Plans across the country, covering 75 million Americans. We understand that the recently proposed GLB privacy rules do not directly apply to Blue Cross and Blue Shield Plans. For BCBS Plans, there is no question as to whether patient records should be kept confidential, but only as to how this should be accomplished. Our over-riding concern with the GLB proposed privacy rules is that their substantial overlap with other federal privacy rules as well as state regulations will create a confusing patchwork of rules for consumers and insurers.
States already have a myriad of privacy laws and regulations dealing with patient records.
HHS expects to issue final versions of these rules, as well as additional proposed rules on privacy, in the near future. The GLB proposed regulation not only duplicates sections of the HHS proposed rule on privacy, but also includes conflicting rules. Moreover, the overlap and complexity of the federal rules creates a potential market disincentive - making it difficult for health insurers to meaningfully interact with the financial services industry. Consumer privacy would retain broad protections, without the additional costs of compliance with duplicative regulation. To support this key recommendation, we have attached detailed comments describing certain operational impacts and conflicts relative to BCBS Plans.