Medical Privacy Law Nets No Fines
Monday, June 5, 2006
In the three years since Americans gained federal protection for their private medical information, the Bush administration has received thousands of complaints alleging violations but has not imposed a single civil fine and has prosecuted just two criminal cases.
Of the 19,420 grievances lodged so far, the most common allegations have been that personal medical details were wrongly revealed, information was poorly protected, more details were disclosed than necessary, proper authorization was not obtained or patients were frustrated getting their own records.
The government has "closed" more than 73 percent of the cases -- more than 14,000 -- either ruling that there was no violation, or allowing health plans, hospitals, doctors' offices or other entities simply to promise to fix whatever they had done wrong, escaping any penalty.
"Our first approach to dealing with any complaint is to work for voluntary compliance. So far it's worked out pretty well," said Winston Wilkinson, who heads the Department of Health and Human Services' Office of Civil Rights, which is in charge of enforcing the law.
While praised by hospitals, insurance plans and doctors, the approach has drawn strong criticism from privacy advocates and some health industry analysts. They say the administration's decision not to enforce the law more aggressively has not safeguarded sensitive medical records and has made providers and insurers complacent about complying.
"The law was put in place to give people some confidence that when they talk to their doctor or file a claim with their insurance company, that information isn't going to be used against them," said Janlori Goldman, a health-care privacy expert at Columbia University. "They have done almost nothing to enforce the law or make sure people are taking it seriously. I think we're dangerously close to having a law that is essentially meaningless."
The debate has intensified amid a government push to computerize medical records to improve the efficiency and quality of health care. Privacy advocates say large, centralized electronic databases will be especially vulnerable to invasions, making it even more crucial that existing safeguards be enforced.
The highly touted Health Insurance Portability and Accountability Act -- known as HIPAA -- guaranteed for the first time beginning in 2003 that medical information be protected by a uniform national standard instead of a hodgepodge of state laws.
The law gave the job of enforcement to HHS, including the authority to impose fines of $100 for each civil violation, up to a maximum of $25,000. HHS can also refer possible criminal violations to the Justice Department, which could seek penalties of up to $250,000 in fines and 10 years in jail.
Wilkinson would not discuss any specific complaints but said his office has "been able to work out the problems . . . by going in and doing technical assistance and education to resolve the situation. We try to exhaust that before making a finding of a technical violation and moving to the enforcement stage. We've been able to do that."
About 5,000 cases remain open, and some could result in fines, Wilkinson said. "There might be a need to use a penalty. We don't know that at this stage."
His office has referred at least 309 possible criminal violations to the Justice Department. Officials there would not comment on the status of those cases other than to say they would have been sent to offices of U.S. attorneys or the FBI for investigation. Two cases have resulted in criminal charges: A Seattle man was sentenced to 16 months in prison in 2004 for stealing credit card information from a cancer patient, and a Texas woman was convicted in March of selling an FBI agent's medical records.