Privacy Rules Could Hinder Auto, WC Claims.(new privacy rules from U.S. Department of Health and Human Services could hinder the settlement of auto and workers compensation insurance claims)(Brief Article)

National Underwriter Property & Casualty-Risk & Benefits Management, January, 2001 by BROSTOFF, STEVEN

Workers' compensation and auto insurance claims will be delayed and settlements made more expensive due to new privacy rules finalized by the U.S. Department of Health and Human Services, insurance groups said. The American Insurance Association and the National Association of Independent Insurers said that new restrictions on the flow of information from medical providers to insurance companies will make it difficult for insurers to properly handle claims and fight fraud.

"HHS's final privacy rule could deliver a knockout punch to auto insurers and first- and third-party liability issues because of the roadblocks it places on p-c insurers' ability to obtain information for routine claims handling," said Nancy Schroeder, assistant vice president for the Des...

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