Stakes are high in battle over health data privacy. (Medical Privacy).(Insurance industry monitors legislative action on privacy standards for personal health information)(Government Activity)

National Underwriter Property & Casualty-Risk & Benefits Management, May, 2002 by Brostoff, Steven

For both insurance producers and companies, efforts to develop workable privacy standards for personal health information carry very high stakes. Insurance agents and brokers fear they could be effectively barred from shopping group health insurance policies and providing the traditional services offered to corporate clients.

Insurers believe that restrictions on sharing certain health information could lead to a flood of litigation in the workers' compensation market, resulting in a dramatic increase in costs and premiums. The controversy centers on a proposed rule developed by the U.S. Department of Health and Human Services aimed at protecting the privacy of individually identifiable health information. The rule was first released on Dec. 28, 2000, and...

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