FOR IMMEDIATE RELEASE
June 14, 2000
Release No. 00-33
Will Bruno
202-682-6046
Kimberly Cordero
202-682-6394
[email protected]
APA President-Elect Urges Congress to Close Patient Privacy Loophole in 1999 Banking Law
Washington, DC -- The American Psychiatric Association (APA) today urged the House Banking and Financial Service Committee to add strong medical record privacy protections to the Financial Services Modernization Act of 1999. This law allows health and life insurers to easily merge with banks and other financial services companies, yet does not contain adequate patient/consumer privacy provisions.
"In these large new holding companies, it is easy for a health insurance company to disclose medical records information to a corporate affiliate such as a life insurance company, mortgage lender or credit card issuer," APA President-Elect Richard Harding, M.D., told the committee.
"This is not information that a life insurance salesman, a telemarketer, or a bank's mortgage officer should have at their fingertips," he said.
As a result of medical information disclosures between affiliates, a financial company could deny credit on the basis of a patient's medical condition, said Dr. Harding. In addition, he noted that the original law contains virtually no limits on police access to records maintained by financial institutions.
The House Banking and Financial Service Committee is considering H.R. 4585, which proposes a general rule allowing patients to choose if their medical records, including mental health records, will be disclosed to an affiliated company or to a non-affiliated third party. In these cases, companies would need the express written consent of the patient before disclosing medical records.
In addition, Dr. Harding asked the Committee to re-evaluate the patient consent exceptions in H.R. 4585. He urged that the exceptions be narrowed to ensure that patient privacy is protected.
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The American Psychiatric Association is a national medical specialty society, founded in 1844, whose 40,000 physician members specialize in the diagnosis and treatment of mental and emotional illnesses and substance use disorders.
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