[Med-privacy] collecting med. info. & the FCRA

[pmarshall]

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                           E P I C  A l e r t
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Volume 10.12                                              June 19, 2003
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                            Published by the
              Electronic Privacy Information Center (EPIC)
                            Washington, D.C.

            http://www.epic.org/alert/EPIC_Alert_10.12.html


[....]

The House Committee on Financial Services explored the role of the
Federal Credit Reporting Act (FCRA) in employee background checks and
the collection of medical information at a hearing on June 17. EPIC
Executive Director Marc Rotenberg testified on the need to ensure that
strong safeguards exist so that personal medical information is not
discernable in an individual's credit report.  Other panelists
included insurance company representatives, a representative from the
American Bankers Association and the Health Policy Institute at
Georgetown University.  EPIC's testimony argued in favor of
strengthening reporting accuracy and easing an individual's ability to
correct errors on their credit report.  In addition, EPIC urged the
Committee to allow the state preemption loophole in the FCRA to expire
so that states have the freedom to protect the interests of citizens.

Rotenberg provided the Committee with an example of how medical
information may find its way into one's credit report, emphasizing the
need to protect such medical information.  The example was that of the
woman who has taken out credit with a neonatal clinic to pay for
fertility testing.  One of the lines on her credit report would likely
reveal the name of the clinic and anyone with access to her report
would know of these medical payments.  Although it would not legally
be a basis for denying a hire, a potential employer might infer that
the woman might want to begin a family soon.

Rotenberg emphasized that this issue should be of particular concern
to the Committee because employers are increasingly using background
checks on potential and current employees.  Additionally, landlords
are using credit reports to screen potential renters, and even health
clubs are using credit reports as a means of evaluating applications
for membership.

The insurance industry representatives supported extending the federal
preemption clause of the Act since, in his view, sufficient safeguards
for protecting medical information was in place.  Banking industry
representative also expressed support for federal preemption to
provide regulatory consistency and noted that sometimes medical
information is relevant to credit worthiness.

[....]

EPIC's Testimony on Medical Privacy and FCRA:

      http://www.epic.org/privacy/medical/fcratestimony6.17.03.pdf