February 8, 2001

"Mr. Chairman, thank you for convening this oversight hearing on the medical privacy regulation recently issued by the Department of Health and Human Services. I also want to thank the General Accounting Office for its report to the Committee on the new rights and responsibilities created by the regulation and the major concerns of stakeholders.

We live in an era in which information can travel around the world in the blink of an eye - an advance in technology that has already dramatically improved the delivery of health care. But, while many of our constituents embrace the benefits of the information age, they remain deeply concerned about what they perceive to be a loss of control over their sensitive, personal information - whether financial, medical, or genetic.

There is a growing fear that technology is being used not to improve our lives, but to make it easier for others to rifle through our medicine cabinets and peer into our checkbooks.

In the simplest terms, consumers want the "right to know" and the "right to say no" to the sharing of their personal information.

I think it's fair to say that prior to this new regulation, they didn't have those rights when it came to their medical records. By and large, with the exception of a few state laws, all consumers had standing between them and the misuse of their information were good intentions, professional ethics and internal company policies.

With this regulation, for the first time, consumers will have the right to see their own records. For the first time, health care providers will have to get a patient's consent before sharing medical information. For the first time, firewalls will be placed in the workplace between the people who run the employer's health insurance program and those who make hiring and firing decisions. These new rights, and the many others provided by the regulation, are truly a historic step forward.

"Having worked for more than two years with Senator Jeffords to craft what became the only bipartisan Senate medical privacy legislation, I understand just how tough a job it is to get it right when it comes to crafting privacy protections. Given the complexity of our health care system, figuring out how to give consumers control over their medical records without disrupting the flow of information needed to make the health care system work is a formidable task. So, I want to commend the Clinton Administration for its success in creating a strong base of federal protections for medical records.

It is clear, however, that there is still more to be done when it comes to protecting the privacy of medical records. Secretary Shalala was limited by law in the scope of the protections she could give. For example, she could not directly regulate the use of medical information by employers and drug companies. And she could not offer individuals whose rights are violated the opportunity to seek legal redress. These are protections only Congress can give and it is my hope that we will act quickly to plug these holes.

Beyond the work remaining on medical records, it is my hope that this Congress will be known as one that took bold, purposeful steps to restore personal privacy in all its forms. As a new co-chair of the bipartisan, bicameral Congressional Privacy Caucus - along with Senator Shelby, and Congressmen Markey and Barton - I would like to see us work across committee and party lines to address the pervasive concerns of the public about the full range of threats to privacy. In my view, if we fail to deal with this issue comprehensively, we will see a backlash from the public of a sufficient magnitude to negate the promise that information technology holds for improving the lives of all Americans.

Thank you again, Mr. Chairman, for holding this hearing. I look forward to the testimony of our witnesses."