But consumer advocates spy a dark cloud behind that silver lining. They worry that the law would make it easier for businesses to deny insurance or to sell investments to people who don't understand the financial risks. The bank denies a mortgage to a customer because the insurance company tells the bank that the mortgage applicant has health problems and probably won't live long enough to pay off the loan. Mindful of this possibility, Rep. Jim Leach, R-Iowa, wanted to make it illegal to share medical records in such a way. But the reference to medical information was deleted under pressure from the White House.
Congressional leaders say they plan to address medical privacy in separate legislation.
Letting the market decide Sen. Phil Gramm, R-Texas, says that the market, not the government, should settle these issues. He wanted to require banks to disclose how customer data are used, but to place few limits on the use of the information. Faced with a veto threat, Gramm and his fellow Republicans compromised. They can sell your personal information to companies marketing non-financial products unless you tell them not to. On the other hand, they can't sell your personal information to companies marketing nonfinancial products such as health-club memberships.