UNITED STATES OF AMERICA 

FEDERAL TRADE COMMISSION 

______________________________ 

) 

) AGREEMENT CONTAINING 

In the Matter of ) CONSENT ORDER 

 ) 

MILLIMAN, INC., ) FILE NO. 062 3189 

a corporation. ) 

______________________________) 

The Federal Trade Commission has conducted an investigation of certain acts and 

practices of Milliman, Inc. (“proposed respondent”). Proposed respondent, having been 

represented by counsel, is willing to enter into an agreement containing a consent order 

resolving the allegations contained in the attached draft complaint. Therefore, 

IT IS HEREBY AGREED by and between Milliman, Inc., by its duly authorized 

officers and attorneys, and counsel for the Federal Trade Commission that: 

1. Proposed respondent is a corporation organized, existing, and doing business 

under and by virtue of the laws of the State of Washington, with its office and principal 

place of business located at 1301 Fifth Avenue, Seattle, Washington. 

2. Proposed respondent admits all of the jurisdictional facts set forth in the draft 

complaint, specifically: 

a. Respondent is a Washington corporation with its office or principal place 

of business located at 1301 Fifth Avenue, Seattle, Washington. 

b. Since at least 2005, respondent has marketed IntelliScript. 

c. Respondent has contractual relationships with insurance companies that 

use IntelliScript for underwriting or claims review purposes. These insurance companies 

require applicants to sign a consent form, which authorizes the insurance company or its 

agents to access the consumer’s health and medical records, including prescription drug 

records. 

d. Respondent has contractual relationships with Pharmacy Benefit 

Managers (“PBMs), which maintain records of individuals’ prescription drug histories. 

Respondent obtains an insurance applicant’s five-year prescription drug history from the 

PBMs and creates a record of this drug history on the applicant for the insurance 

company. This record, generated by IntelliScript, includes, but is not limited to: all 

prescription drugs, including dosage and number of refills filled by the insurance 

applicant for the previous five years. It also includes, for each drug, the name and 

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address of the dispensing pharmacy, as well as the name and address of the prescribing 

doctor, including medical specialty. Respondent also prepares and analysis of 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. 

3. Proposed respondent waives: 

a. any further procedural steps; 

b. the requirement that the Commission’s decision contain a statement of 

findings of fact and conclusions of law; and 

c. all rights to seek judicial review or otherwise challenge or contest the 

validity of the order entered into pursuant to this agreement. 

4. This agreement shall not become part of the public record of the proceeding 

unless and until it is accepted by the Commission. If this agreement is accepted by the 

Commission, it, together with the draft complaint, will be placed on the public record for 

a period of thirty (30) days and information about it publicly released. The Commission 

thereafter may either withdraw its acceptance of this agreement and so notify proposed 

respondent, in which event it will take such action as it may consider appropriate, or issue 

and serve its complaint (in such form as the circumstances may require) and decision in 

disposition of the proceeding. 

5. This agreement is for settlement purposes only and does not constitute an 

admission by proposed respondent that the law has been violated as alleged in the draft 

complaint, or that the facts as alleged in the draft complaint, other than the jurisdictional 

facts, are true. 

6. This agreement contemplates that, if it is accepted by the Commission, and if such 

acceptance is not subsequently withdrawn by the Commission pursuant to the provisions 

of Section 2.34 of the Commission’s Rules, the Commission may, without further notice 

to proposed respondent, (1) issue its complaint corresponding in form and substance with 

the attached draft complaint and its decision containing the following order in disposition 

of the proceeding, and (2) make information about it public. When so entered, the order 

shall have the same force and effect and may be altered, modified, or set aside in the 

same manner and within the same time provided by statute for other orders. The order 

shall become final upon service. Delivery of the complaint and the decision and order to 

proposed respondent’s address as stated in this agreement by any means specified in 

Section 4.4(a) of the Commission’s Rules shall constitute service. Proposed respondent 

waives any right it may have to any other manner of service. The complaint may be used 

in construing the terms of the order. No agreement, understanding, representation, or 

interpretation not contained in the order or in the agreement may be used to vary or 

contradict the terms of the order. 

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7. Proposed respondent has read the draft complaint and consent order. It 

understands that it may be liable for civil penalties in the amount provided by law and 

other appropriate relief for each violation of the order after it becomes final. 

DEFINITIONS 

 For purposes of this order, the following definitions apply: 

“Respondent” means Milliman, Inc., a corporation, its successors and assigns, 

and its officers, agents, representatives and employees acting in such capacity on its 

behalf, directly or through any corporation, subsidiary, division or other device. 

“IntelliScript” means respondent’s data aggregation service that provides 

individual medical profiles, including prescription drug purchase histories, to health and 

life insurance companies. 

“FCRA” means the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., as the 

same from time to time may be amended or modified by statute or by regulations having 

the effect of statutory provisions. 

 The terms “consumer,” “consumer report,” and “consumer reporting agency,”

shall be defined as provided in Sections 603(c), 603(d) and 603(f), respectively of the 

Fair Credit Reporting Act, 15 U.S.C. §§ 1681a(c),1681a(d) and 1681a(f). 

 “Notice To Users” is the notice referred to in Section 607(d) of the Fair Credit 

Reporting Act, 15 U.S.C. §1681e(d), 16 CFR 698, Appendix H. 

I. 

 IT IS ORDERED that respondent, directly or through any corporation, subsidiary, 

division, or other device, in connection with the sale or dissemination of any medical 

profile generated by IntelliScript, or any other consumer report to any user or prospective 

user of such consumer report, shall, as required by Section 607(d) of the Fair Credit 

Reporting Act, 15 U.S.C. §1681e(d), provide to such users or prospective users a Notice 

To Users. 

 II 

 IT IS FURTHER ORDERED that respondent, in connection with the compilation, 

creation, sale, or dissemination of any medical profile generated by IntelliScript, or any 

other consumer report, shall: 

 A. Maintain or continue to maintain reasonable procedures to limit the 

furnishing of such consumer report to those with a permissible purpose, as required by 

Section 607(a) of the Fair Credit Reporting Act, 15 U.S.C. § 1681e(a); 

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 B. Follow or continue to follow reasonable procedures to assure maximum 

possible accuracy of the information concerning the individuals about whom the report 

relates, as required by Section 607(b) of the Fair Credit Reporting Act, 15 U.S.C. 

§1681e(b); 

 C. Maintain or continue to maintain reasonable procedures to ensure 

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

“Procedures in case of disputed accuracy;” 

D. 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; and 

 E. Comply or continue to comply with the Disposal of Consumer Report 

Information and Records Rule, 16 C.F.R. Part 682. 

 III. 

 IT IS FURTHER ORDERED that respondent shall, for five (5) years, maintain 

and upon request make available to the Federal Trade Commission for inspection and 

copying documents demonstrating compliance with the requirements of Parts I and II of 

this order. 

 IV. 

 IT IS FURTHER ORDERED that respondent shall deliver a copy of this order to 

all current and future officers and directors, and to all current and future managers, 

employees, agents, and representatives having decision-making responsibilities with 

respect to IntelliScript or any other consumer report, and shall secure from each such 

person a signed and dated statement acknowledging receipt of the order. Respondent 

shall deliver this order to such current personnel within thirty (30) days after the date of 

service of this order, and to such future personnel within thirty (30) days after the person 

assumes such position or responsibilities. 

 V. 

 IT IS FURTHER ORDERED that respondent and its successors and assigns shall 

notify the Commission at least thirty (30) days prior to any change in the corporation that 

may affect compliance obligations arising under this order, including but not limited to a 

dissolution, assignment, sale, merger, or other action that would result in the emergence 

of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate 

that engages in any acts or practices subject to this order; the proposed filing of a 

bankruptcy petition; or a change in the corporate name or address. Provided, however, 

that, with respect to any proposed change in the corporation about which respondent 

learns less than thirty (30) days prior to the date such action is to take place, respondent 

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shall notify the Commission as soon as it is practicable after obtaining such knowledge. 

All notices required by this Part shall be sent by certified mail to the Associate Director, 

Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 

600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. 

 VI. 

 IT IS FURTHER ORDERED that respondent shall within sixty (60) days after the 

date of service of this order, and at such other times as the Federal Trade Commission 

may require, file with the Commission a report, in writing, setting forth in detail the 

manner and form in which it has complied with this order. 

 VII. 

 This order will terminate twenty (20) years from the date of its issuance, or 

twenty (20) years from the most recent date that the United States or the Federal Trade 

Commission files a complaint (with or without an accompanying consent decree) in 

federal court alleging any violation of the order, whichever comes later; provided, 

however, that the filing of such a complaint will not affect the duration of: 

 A. Any Part in this order that terminates in less than twenty (20) years; 

 B. This order’s application to any respondent that is not named as a defendant 

in such complaint; and 

 C. This order if such complaint is filed after the order has terminated 

pursuant to this Part. 

Provided, further, that if such complaint is dismissed or a federal court rules that the 

respondent did not violate any provision of the order, and the dismissal or ruling is either 

not appealed or upheld on appeal, then the order will terminate according to this Part as 

though the complaint had never been filed, except that the order will not terminate 

between the date such complaint is filed and the later of the deadline for appealing such 

dismissal or ruling and the date such dismissal or ruling is upheld on appeal. 

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 Signed this ___________________ day of _____ 2007. 

 Milliman, Inc. 

 ______________________________ 

______________________________ 

 Counsel for the Federal Trade 

Commission 

Approved: 

_______________________________ 

Joel Winston 

Associate Director, 

Division of Privacy and Identity Protection 

_______________________________ 

Lydia B. Parnes 

Director, Bureau of Consumer Protection 

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