Secretary Thompson Expects to Change But Not ‘Scrap’ Privacy Rules

Responding to industry complaints about cost and "complexity," HHS Secretary Tommy Thompson said on March 27 at a meeting with the press that he will amend Clinton administration medical privacy rules but added that they will not be "scrapped altogether," the Wall Street Journal reports. As written, the rules would establish "strict new standards" on how health care providers may disclose personal medical information (Lueck, Wall Street Journal, 3/28). The regulations would create a "federal right" to privacy of medical records, requiring written permission from patients before providers could disclose the information (Meckler, AP/Akron Beacon Journal, 3/28). In a meeting with reporters, Thompson did not address what changes would be made, though he noted, "[T]here will be some modifications to simplify and lessen the financial burden" (Wall Street Journal, 3/28). He added, "There will be lots of security placed in there so patients' rights and records will be protected, which is something that [President Bush] and myself will insist upon" (Rovner, CongressDaily, 3/27). Thompson also did not address when the changes will be made: Though he said he would decide on modifications within the next 30 days, it remains unclear whether the changes will be made after the rules take effect on April 14 -- as permitted by the regulation -- or whether Thompson will delay implementation altogether to "rewrite major parts" of the rules. The Journal reports that pharmaceutical companies, chain drug stores and HMOs have criticized the rules, saying they would cost "billions of dollars" and require "massive overhauls" of information technology systems. Privacy advocates, however, say that the industry has exaggerated cost estimates. Joanne Hustead, senior counsel for the Health Privacy Project at Georgetown University, said, "What we're seeing now is a Chicken Little sky-is-falling campaign" (Wall Street Journal, 3/28).

Weighing in on Patients' Rights, Rx Drugs
During his session with the press, Thompson also addressed the uninsured, Medicare drug coverage, patients' rights legislation and Medicare contractors. Regarding the uninsured, Thompson said he supports President Bush's proposal to offer tax credits to allow people to buy private insurance. He also favors expanding CHIP programs, a position "typically favor[ed]" by Democrats, according to the AP/Akron Beacon Journal. In addition, Thompson added that Congress is not likely to support President Bush's plan to add prescription drug coverage to Medicare, dubbed "Immediate Helping Hand," because Congress wants to "claim credit" for creating such a program. Bush's proposal would give states short term block grants to establish prescription drug programs for low-income Medicare beneficiaries while working on a long term way to provide drug coverage. On patients' rights legislation, Thompson is "optimistic" a bill will pass, noting that the "main sticking point" is not over patients' right to sue health plans but over whether states that provide similar protections will be able to "opt out of providing" the protections mandated under a federal law. With regard to Medicare reform, he said that Congress should allow "more competition" among Medicare insurance companies to process claims so that HCFA can ensure that these contractors are more responsive to providers (Meckler, AP/Akron Beacon Journal, 3/28).