[Med-privacy] OK-here's Wash Times:Insurance firms scan medical records for terrorism suspects
DPeelMD@aol.com
DPeelMD@aol.com
Sat, 22 Nov 2003 17:09:20 EST
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Every American loses his/her right to privacy in this new and ridiculous way=
=20
to try and find terrorists. If this nation is reduced to looking in medical=20
records for terrorists, we are in pretty bad shape.
Deborah Peel, MD
The Washington Times
www.washingtontimes.com
Insurance firms scan client files for terrorism suspects
By Shaun Waterman
Published November 22, 2003=20
Thousands of insurance companies across the country are combing millions=
=20
of client records to make sure those people are not suspected terrorists.=20
Insurance industry executives and U.S. officials say companies that=20
provide any kind of financial service =E2=80=94 including real estate agents=
and banks as=20
well as insurers =E2=80=94 are obligated to make sure that they are not deal=
ing with=20
any of the more than 5,000 names on the Treasury Department's list of what i=
t=20
calls "specially designated nationals and blocked persons."=20
Aetna Inc. has searched the records of all the 13 million people it=20
covers, spokesman Fred Laberge said.=20
Mr. Laberge said the search "did not compromise privacy or medical=20
records in any way."=20
The 127-page list, maintained by the Treasury Department's Office of=20
Foreign Assets Control (OFAC), is updated frequently. It bears the names of=20
individuals and companies that are thought involved in terrorism, money laun=
dering,=20
drug dealing or sanctions busting =E2=80=94 with any aliases or other identi=
ties they=20
are believed to use.=20
"Generally, under the regulations, the onus is on the business to check=20
that it is complying" by not providing financial services to anyone on the=20
list, said Ken Schloman, spokesman for the Alliance of American Insurers.=20
Federal officials say the regulations are necessary in the war on=20
terrorism.=20
But critics and civil liberties advocates say the regulations make=20
private companies do the government's dirty work.=20
The regulations "require that everyone is treated as a potential=20
terrorist," said Tim Edgar, legislative counsel for the American Civil Liber=
ties=20
Union. He said he expects protests about the rules as increasingly stringent=
=20
enforcement means that "more and more ordinary Americans who are just trying=
to open=20
bank accounts or get insurance come up against" the measures.=20
"This is one of a series of obligations the government has placed on the=
=20
private sector that we're concerned about," said Ari Schwartz, associate dir=
e
ctor of the privacy advocacy group Center for Democracy and Technology.=20
"They're basically getting companies to spy on their customers."=20
Treasury officials say the legal powers on which the regulations are=20
based pre-date the September 11 terrorist attacks, but the climate following=
the=20
attacks has strengthened enforcement efforts, industry representatives say.=20
"The laws that are administered by OFAC have always applied to insurers,=
"=20
said Pat Watts, assistant vice president for the Alliance of American=20
Insurers. But the suicide hijackings have "brought into focus" the need for=20=
insurers=20
to comply. OFAC did not begin recruiting state insurance commissioners =E2=
=80=94 the=20
industry's regulators =E2=80=94 to help them enforce the rules until after S=
eptember=20
11.=20
"Prior to September 11, the entities on this list were almost entirely=20
foreign-based." The issue of compliance did not arise for health insurers or=
=20
similar companies "because no one imagined anyone on the list would be tryin=
g to=20
settle [in the United States] and get health insurance," said Treasury=20
spokeswoman Ann Womack.=20
"All that's changed."=20
OFAC does not issue guidance for companies, which leaves them in a=20
difficult position, industry representatives say.=20
"There are concerns, because making a small mistake can have serious=20
consequences," Mr. Watts said.=20
Criminal violations can result in corporate and personal fines of up to=20
$1 million and 12 years in prison.=20
The agency generally doesn't "come down hard" on companies found in=20
violation but are making a "good-faith effort" to comply, Mr. Watts said.=20
The regulations oblige insurers to check the names of anyone who applies=
=20
for insurance of any kind. "OFAC has made it clear that insuring someone on=20
the list and receiving premiums from them is a breach of the regulations," h=
e=20
said.=20
Anyone whose name comes up as a match would not be issued insurance unti=
l=20
it was confirmed that he or she were not the person named on the list, he=20
said. Existing customers would have their policies blocked or frozen, with a=
ny=20
premiums they paid or payouts due to them reverting to the U.S. government.=20
But critics say it is too easy for innocent people to be targeted throug=
h=20
false matches.=20
"Many of the names on the list are very common," said Chris Hoofnagle,=20
associate director of the Electronic Privacy Information Center. "There are=20=
a=20
lot of variations" with slightly different spellings on many names because o=
f=20
the inconsistency of translation from Arabic and other languages.=20
Mr. Schloman and Mr. Watts confirmed that the insurance trade group has=20
received reports of false matches from companies around the country, but=20
declined to give details or numbers.=20
Mr. Watts said that there was no standard procedure for companies to=20
investigate matches. Companies should "call OFAC and make sure you're doing=20
whatever it is they want you to do."=20
He added that under state law, "generally, anyone refused coverage or wh=
o=20
has a claim denied has a right to be told why."=20
=20
Copyright =C2=A9 2003 News World Communications, Inc. All rights reserved.=20
Return to the article=20
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<DIV>
<DIV>Every American loses his/her right to privacy in this new and ridiculou=
s way to try and find terrorists. If this nation is reduced to looking=20=
in medical records for terrorists, we are in pretty bad shape.</DIV>
<DIV>Deborah Peel, MD</DIV>
<DIV> </DIV>
<DIV>
<TABLE width=3D600 align=3Dleft>
<TBODY>
<TR>
<TD>
<CENTER><FONT face=3DArial,Helvetica size=3D6>The Washington Times</FONT><BR=
><A href=3D"http://www.washingtontimes.com/"><FONT style=3D"TEXT-DECORATION:=
none" face=3DArial,Helvetica size=3D2><B>www.washingtontimes.com</B></A></F=
ONT></CENTER>
<HR>
<P>
<H2>Insurance firms scan client files for terrorism suspects</H2>By Shaun Wa=
terman<BR><SPAN class=3Dtwt-wash1><FONT size=3D1>Published November 22, 2003=
</FONT>=20
<P></P>
<HR>
<BR> Thousands of insurance companies across the coun=
try are combing millions of client records to make sure those people are not=
suspected terrorists. <BR> Insurance industry execut=
ives and U.S. officials say companies that provide any kind of financial ser=
vice =E2=80=94 including real estate agents and banks as well as insurers=20=
=E2=80=94 are obligated to make sure that they are not dealing with any of t=
he more than 5,000 names on the Treasury Department's list of what it calls=20=
"specially designated nationals and blocked persons." <BR> =
Aetna Inc. has searched the records of all the 13 million people it co=
vers, spokesman Fred Laberge said. <BR> Mr. Laberge s=
aid the search "did not compromise privacy or medical records in any way." <=
BR> The 127-page list, maintained by the Treasury Dep=
artment's Office of Foreign Assets Control (OFAC), is updated frequently. It=
bears the names of individuals and companies that are thought involved in t=
errorism, money laundering, drug dealing or sanctions busting =E2=80=94 with=
any aliases or other identities they are believed to use. <BR> &=
nbsp; "Generally, under the regulations, the onus is on the business to=
check that it is complying" by not providing financial services to anyone o=
n the list, said Ken Schloman, spokesman for the Alliance of American Insure=
rs. <BR> Federal officials say the regulations are ne=
cessary in the war on terrorism. <BR> But critics and=
civil liberties advocates say the regulations make private companies do the=
government's dirty work. <BR> The regulations "requi=
re that everyone is treated as a potential terrorist," said Tim Edgar, legis=
lative counsel for the American Civil Liberties Union. He said he expects pr=
otests about the rules as increasingly stringent enforcement means that "mor=
e and more ordinary Americans who are just trying to open bank accounts or g=
et insurance come up against" the measures. <BR> "Thi=
s is one of a series of obligations the government has placed on the private=
sector that we're concerned about," said Ari Schwartz, associate director o=
f the privacy advocacy group Center for Democracy and Technology. "They're b=
asically getting companies to spy on their customers." <BR>  =
; Treasury officials say the legal powers on which the regulations are=20=
based pre-date the September 11 terrorist attacks, but the climate following=
the attacks has strengthened enforcement efforts, industry representatives=20=
say. <BR> "The laws that are administered by OFAC hav=
e always applied to insurers," said Pat Watts, assistant vice president for=20=
the Alliance of American Insurers. But the suicide hijackings have "brought=20=
into focus" the need for insurers to comply. OFAC did not begin recruiting s=
tate insurance commissioners =E2=80=94 the industry's regulators =E2=80=94 t=
o help them enforce the rules until after September 11. <BR> &nbs=
p; "Prior to September 11, the entities on this list were almost entire=
ly foreign-based." The issue of compliance did not arise for health insurers=
or similar companies "because no one imagined anyone on the list would be t=
rying to settle [in the United States] and get health insurance," said Treas=
ury spokeswoman Ann Womack. <BR> "All that's changed.=
" <BR> OFAC does not issue guidance for companies, wh=
ich leaves them in a difficult position, industry representatives say. <BR>&=
nbsp; "There are concerns, because making a small mistake c=
an have serious consequences," Mr. Watts said. <BR> C=
riminal violations can result in corporate and personal fines of up to $1 mi=
llion and 12 years in prison. <BR> The agency general=
ly doesn't "come down hard" on companies found in violation but are making a=
"good-faith effort" to comply, Mr. Watts said. <BR> =
The regulations oblige insurers to check the names of anyone who applies for=
insurance of any kind. "OFAC has made it clear that insuring someone on the=
list and receiving premiums from them is a breach of the regulations," he s=
aid. <BR> Anyone whose name comes up as a match would=
not be issued insurance until it was confirmed that he or she were not the=20=
person named on the list, he said. Existing customers would have their polic=
ies blocked or frozen, with any premiums they paid or payouts due to them re=
verting to the U.S. government. <BR> But critics say=20=
it is too easy for innocent people to be targeted through false matches. <BR=
> "Many of the names on the list are very common," sa=
id Chris Hoofnagle, associate director of the Electronic Privacy Information=
Center. "There are a lot of variations" with slightly different spellings o=
n many names because of the inconsistency of translation from Arabic and oth=
er languages. <BR> Mr. Schloman and Mr. Watts confirm=
ed that the insurance trade group has received reports of false matches from=
companies around the country, but declined to give details or numbers. <BR>=
Mr. Watts said that there was no standard procedure=20=
for companies to investigate matches. Companies should "call OFAC and make s=
ure you're doing whatever it is they want you to do." <BR> =
He added that under state law, "generally, anyone refused coverage or=20=
who has a claim denied has a right to be told why." <BR> &n=
bsp;<BR><BR><BR><BR><FONT face=3D"Arial, Helvetica, sans-serif" size=3D1>Cop=
yright =C2=A9 2003 News World Communications, Inc. All rights reserved.</FON=
T>=20
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<CENTER><FONT face=3DArial,Helvetica size=3D2><A style=3D"TEXT-DECORATION: n=
one" href=3D"http://www.washingtontimes.com/business/20031121-092811-1073r.h=
tm"><B>Return to the article</B></FONT></A> </CENTER></SPAN></TD></TR></TBOD=
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