ANALYSIS OF PROPOSED CONSENT ORDER TO AID PUBLIC COMMENT 

In the Matter of Milliman, Inc. 

File No. 0623189 

 The Federal Trade Commission has accepted, subject to final approval, an 

agreement containing a consent order from Milliman, Inc. (“respondent” or “Milliman”). 

 The proposed consent order has been placed on the public record for thirty (30) 

days for receipt of comments by interested persons. Comments received during this 

period will become part of the public record. After thirty (30) days, the Commission will 

again review the agreement and the comments received, and will decide whether it should 

withdraw from the agreement or make final the agreement’s proposed order. 

 Milliman markets IntelliScript, a data aggregation service that provides individual 

medical profiles, including but not limited to prescription drug purchase histories of 

insurance applicants, to health and life insurance companies. Insurance companies use 

IntelliScript for underwriting or claims review purposes. The medical profile generated 

by IntelliScript analyzes the individual’s prescription drug history, and provides a ‘map’ 

of the risk levels associated with each drug, based on information provided by the insurer. 

 The Commission’s complaint alleges that the medical profile generated for the 

IntelliScript service is a consumer report and that respondent is a consumer reporting 

agency, as those terms are defined in Sections 603(d) and (f) of the Fair Credit Reporting 

Act, 15 U.S.C. §§1681a(d) and (f). The complaint alleges that the respondent’s failure to 

provide the “Notice To Users of Consumer Reports: Obligations of Users Under the 

FCRA” (“Notice To Users”),the required content of which is found in 16 CFR 698, 

Appendix H, is a violation of Section 607(d) of the Fair Credit Reporting Act, 15 U.S.C. 

§ 1681e(d). 

 The proposed consent order contains provisions designed to prevent respondent 

from engaging in similar acts and practices in the future. 

 Part I of the proposed order requires respondent to provide the Notice To Users to 

any user or prospective user of any medical profile generated by IntelliScript that 

constitutes a consumer report or of any other consumer report. 

 Part II.A. of the proposed order requires respondent to maintain or continue to 

maintain reasonable procedures to limit the furnishing of consumer reports to those with 

a permissible purpose, as required by Section 607(a) of the Fair Credit Reporting Act, 15 

U.S.C. § 1681e(a). 

 Part II.B. of the proposed order requires respondent to follow or continue to 

follow reasonable procedures to assure maximum possible accuracy of the information 

concerning the individuals about whom the reports relates, as required by Section 607(b) 

of the Fair Credit Reporting Act, 15 U.S.C. §1681e(b). 

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 Part II.C. of the proposed order requires respondent to maintain or continue to 

maintain reasonable procedures to ensure compliance with Section 611 of the Fair Credit 

Reporting Act, 15 U.S.C. § 1681i, “Procedure in case of disputed accuracy.” 

 Part II.D. of the proposed order requires respondent to conduct or continue to 

conduct a reasonable reinvestigation in cases of disputed accuracy, as required by Section 

611 of the Fair Credit Reporting Act, 15 U.S.C. §1681i. 

 Part II.E. of the proposed order requires respondent to comply or continue to 

comply with the Disposal of Consumer Report Information and Records Rule, 16 C.F.R. 

Part 682. 

 Part III of the proposed order contains a document retention requirement. It 

requires respondent to maintain and upon request make available to the Commission for 

inspection and copying documents demonstrating compliance with the requirements of 

Parts I and II of the proposed order. 

 Part IV of the proposed order requires respondent to distribute copies of the order 

to various officers, directors, and managers, employees, agents, and representatives 

having decision-making responsibilities with respect to IntelliScript or any other 

consumer report. 

 Part V of the proposed order requires respondent to notify the Commission of any 

changes in corporate structure that might affect compliance with the order. 

 Part VI of the proposed order requires respondent to file with the Commission one 

or more reports detailing its compliance with the order. 

 Part VII of the proposed order is a “sunset” provision, dictating the conditions 

under which the order will terminate twenty years from the date it is issued or twenty 

years after a complaint is filed in federal court, by either the United States or the FTC, 

alleging any violation of the order. 

 The purpose of this analysis is to facilitate public comment on the proposed order. 

It is not intended to constitute an official interpretation of the proposed order or to modify 

in any way its terms. 

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