Health groups challenge new medical privacy rules in court

PHILADELPHIA -- Health care professionals and patient advocates have sued to overturn new medical privacy rules that took effect Monday, claiming the regulations do more harm than good.

The suit, filed in Philadelphia, said the rules crafted by the Department of Health and Human Services violate patient privacy rights by allowing insurance companies and other groups to view medical records without permission.

"There is an endless line of people who have very good reasons why they need your health information. But the question is, do they have a right to it without asking your permission first? We say they don't," said James Pyles, an attorney for the plaintiffs.

The regulations bar medical providers from giving out patient information to third parties, except in certain cases. Pharmacies, for example, may see records needed to fill a prescription. Insurance companies can see records needed to process a bill.

In drafting the rules, the Clinton administration inserted a clause that also would have required a patient's written consent before confidential data were released. But the Bush administration eliminated that requirement over fears it would create surplus paperwork and complicate patient care.

Deborah Peel, a psychoanalyst in Austin, Texas, said some of her patients pay cash, rather than run the risk that an insurance company will reveal something about their case to an employer.

"Huge categories of entities are allowed to have your information without your consent," she said.

Richard Campanelli, the director of Health and Human Services' civil rights office, said many safeguards in the law should ensure that medical records are distributed to as small a circle of caregivers as possible.