🚀 go-pugleaf

Note, this has been cross posted to lots of groups(~.25m), folowups are
redirected to alt.politics.libertarian and a few others.

The following document was typed in by me from the bill.  Please mail me
with any errors.  Please copy the material below and use it:-)
privacy related sections of the other bills will follow.
<Roger, Mad Dog Libertarian, Bryner> bryner@atlas.chem.utah.edu

HR 3222 SC
{AKA The cooper health care plan}
(To cantain health care costs and improve access to health care through
accountable health plans and managed competition, and other purposes.)
{my comments are included in {} and do not appear in the text of the bill}

page 279, HR 3222 SC
1   TITLE VI--PAPERWORK REDUC-
2   TIOM AND ADMINISTRATIVE
3   SIMPLIFICATION
4   SEC. 6001. PREEMPTION OF STATE QUILL PEN LAWS.
5     After 1994, no effect shall be given to any provision
6   of State law that requires medical or health insurance
7   records (including billing information) to be maintained
8   in written, rather than electronic, form.
*************************************************************************
{So that no privacy law based upon confidential writen materal can exist,
we all know how easy it is to copy electronic information.  This will be
especialy convienent if in the future it is decided to nationalize this
information, or use it to fight some great crisis.}
*************************************************************************
9   SEC. 6002. CONFIDENTIALITY OF ELECTRONIC HEALTH
10  CARE INFORMATION
11  (a) Promulgation of Requirements.--
12    (1) In general.--The Health Care Standards
13  Commission shall promulgate, and may modify from
14  time to time, requirements to facilitate and ensure
15  the uniform, confidential treatment of individually
16  identifiable health care information in electronic en-
17  vironments.
18    (2) Items to be inculded.-- The require-
19  ments under this subsection shall--
20      (A) provide for the preservation of con-
21    fidentiality and privacy rights in electronic
22    health care claims processing and payment;
23      (B) apply to the collection, storage, han-
24    deling, and transmission of individually identifi-
25    able health care data (including initial and sub-

page 280, HR 3222 SC
1   sequent disclosures) in electronic form by all ac-
2   countable health plans, public and private third-
3   party payers, providers of health care, and all
4   other entities involved in the transactions;
5     (C) not apply to public health reporting re-
6   quired under State or Fedral law;
7     (D) delineate protocols for securing elec-
8   tronic storage, processing, and transmission of
9   health care data;
******************************************************************************
{this basicaly makes what will perhaps be one of the larges markets for
information technology controled by one panel of buricrats, down to every
last detail}
******************************************************************************
10    (E) specify fair information practices that
11  assure a proper balance between required dis-
12  closures and use of data, including--
13      (i) creating a proper balance between
14    what an individual is expected to divulge to
15    a record-keeping organization and what the
16    individual seeks in return,
17      (ii) minimizing the extent to which in-
18    formation concerning and individual is itself
19    a source of unfairness in any decision
20    made on the basis of such information, and
21      (iii) creating and defining obligatoins
22    respecting the uses and disclosures that
23    will be made of recorded information about
24    an individual;

Page 281, HR 3222 SC
1       (F) require publicatoin ot the existence of
2     health care data banks;
3       (G) establish appropriate protections for
4     highly sensitive data (such as data concerning
5     mental health, substance abuse, and commu-
6     nicable and genetic diseases);
7       (H) encourage the use of alternateive dis-
8     pute resolution mechanisms (where appro-
9     priate); and
10      (I) provide for the deletion of information
11    that is no longer needid to carry out the pur-
12    pose for which it was collected.
******************************************************************************
{This is a good start, but where are the real limits. One commision will be
given absolute power over what constitutes sensitive private data and what
is not private. Which government bureaucracies will have access to the
sensitve data? We all know how the social security number has been abused,
perhaps this will happen here also, with the data as well as the identifier.
Maybe the next step will be seperate court system under this commission
similar to the IRS tax courts.
******************************************************************************
13    (3) Consultation with working group.--In
14  promulgating and modifying requirements under this
15  subsection, the Commission shall consult with a
16  working group of knowledgeable individuals rep-
17  resenting all interested parties (including third-party
18  payers, providers, consumers, employers, information
19  managers, and technical experts).
20    (4) Deadline.--The Commission shall first
21  promulgate requirements under this subsection by
22  not later than six months after the date of the en-
23  actment of this Act.
24  (b) Applicatoin of Requirements.--

Page 282, HR 3222 SC
1       (1) State enforcement of similar re-
2     quirements.--The requirements promulgated
3     under subsection (a) shall not apply to health care
4     information in a State if--
5         (A) the State has applied to the Health
6       Care Standards Commission for a Determina-
7       tion that eh State has in effect a law that pro-
8       vides for the application of requirements with
9       respect to such information (and enforcement
10      provisions with respect to such requirements)
11      consistent with such requirements (and with the
12      enforcement provisoins of subsection (c)), and
13        (B) the commission determines that the
14      State has such a law in effect.
15      (2) Applicatoin tho current informa-
16    tion.--The Health Care Standards Commission
17    shall specify the extent to which (and manner in
18    which) the requirements promulgated under sub-
19    section (a) apply to information collected before the
20    effective date of the requirements.
21    (c) Defense for Proper Disclosures.--An en-
22  tity that establishes that is has disclosed health care infor-
24  mation in accordance with the requirements promulgated
24  under subsection (a) has established a defense in an actionn
25  brought for improper disclosure of such information.
***********************************************************************
{In other words, no judicial recourse for bad calls by the Commision:-(}
***********************************************************************

Page 283, HR 3222 SC
1     (d) Penalties for Violations.--An entity that
2   collects, stores, handles, transmits, or discloses health care
3   information in violation of the requirements promulgated
4   under subsection (a) is liable for civil damages, equitable
5   remedies, and attorneys' fees (if appropriate), in accord-
6   ance with regulations of the Health Care Standards Com-
7   mission.
8   SEC. 6003 STANDARDIZATION FOR THE ELECTRONIC RE-
9   CEIPT AND TRANSMISSION OF HEALTH PLAN
10  INFORMATION.
11    (a) Goals.--The Health Care Standards Commis-
12  sion shall establish national goals, and time frameworks,
13  respecting the progress to be made by the health care in-
14  dustry in eliminating unnecessary paperwork and achiev-
15  ing appropriate standardization in the areas of electronic
16  receipt and transmission of health care claims and health
17  plan information and eligibility verification (consistent
18  with the requirements promulgated under section
19  6002(a))
20    (b) Contingent Requirements.--If the Commis-
21  sion determines that the health care industry has failed
22  to meet the goals established under subsection (a) by the
23  deadlines established by the Commission under such sub-
24  section, the Commission shall promulgate (and may, from
25  time to time, modify) standards and requirements con-

Page 284, HR 3222 SC
1   cerning the electronic receipt and transmission of health
2   plan claims forms and other health plan information.
3     (c) Consultation.--The Commission shall conduct
4   activities under this section in consulatation with the Ac-
5   credited Standards Committe X-12 of the American Na-
6   tional Standards Institute, insurers, providers, and others.
7   SEC. 6004. USE OF UNIFORM HEALTH CLAIMS FORMS AND
8   IDENTIFICATION NUMBERS.
9     (a) Goals.--The Health Care Standards Commis-
10  sion shall establish national goals, and time frameworks,
11  respecting the progress to be made by the health care in-
12  dustry in achieving uniformity--
13      (1) in the format and content of basic claims
14    forms under health plans, and
15      (2) in the use of common identification num-
16    bers for beneficaries and providers of health care
17    items or services under health plans.
18    (b) Contingent Requirements.--If the Commis-
19  sion determines that the health care industry has failed
20  to meet the goals established under subsection (a) by the
21  deadlines established by the Commission under such sub-
22  section, the Commission shall promulgate (and may, from
23  time to time, modify) standards and requirements
24  concerning--

Page 285, HR 3222 SC
1       (1) the format and content of basic claims
2     forms under health plans, and
3       (2) the common identification numbers to be
4     used by health plans to identify health plan bene-
5     ficiaries and health care providers.
6     (c) Consultation.--The Commission shall conduct
7   activities under this section in consultation with the
8   Workgroup for Electronic Data Interchange and with in-
9   surers, providers, and others.
10  SEC. 6005. PRIORITY AMONG INSURERS.
11    (a) Goals.--The Health Care Standards Commis-
12  sion shall establish national goals, and time frameworks,
13  respecting the progress to be made by the health care in-
14  dustry in achieving uniformity in the rules for determining
15  the liability of insurers when benefits are payable under
16  two or more health plans.
17    (b) Contingent Requirements.--If the Commis-
18  sion determines that the health care industry has failed
19  to meet the goals established under subsection (a) by the
20  deadlines established by the Commission under such sub-
21  section, the Commission shall promulgate (and may, from
22  time to time, modify) rules for determining the liability
23  of health plans when benefits are payable under two or
24  more health plans.

Page 286, HR 3222 SC
1     (c) Consultation.--The Commission shall conduct
2   activities under this section in consultation with health
3   plans.
4   SEC. 6006. FURNISHING OF INFORMATION AMONG HEALTH
5   PLANS.
6     (a) Goals.--The Health Care Standards Commis-
7   sion shall establish national goals, and time frameworks,
8   respecting the progress to be made by the health care in-
9   dustry in achieving uniformity in the abailability of infor-
10  mation among health plans when benefits are payable
11  under two or more healthe plans.
12    (b) Contingent Requiremnets.--If the Commis-
13  sion determines that the health care industry has failed
14  to meet the goals established under subsection(a) by the
15  deadlines established by the Commission under such sub-
16  section, the Commission shall promulgate (and may, from
17  time to time, modify) requirements concerning the trans-
18  fer among health plans (and annual updating) of appro-
19  priate information (which may include requirements for
20  the use of unique identifers, and for the listing of all indi-
21  viduals covered under a health plan).
22    (c) Consultation.--The Commission shall conduct
23  activities under this section in consultation with health
24  plans.

Page 287, HR 3222 SC
1   SEC. 6007. FALURE TO SATISFY CERTAIN HEALTH PLAN
2   REQUIREMENTS.
3     (a) In General.--jChapter 47 of the Internal Reve-
4   nue Code of 1986 (relationg to taxes on group health plans)
5   is amedned by adding at the end the following new section:
6   "SEC. 5000A. FAILURE TO SATISFY CERTAIN HEALTH PLAN"
7    REQUIREMENTS.
8   "(a) General Rule.--There is hereby inposed, on
9   any administratior of a health plan, a tax on any failure
10  to comply with an applicable requirement of sections 6003
11  through 6006 of the Managed Competition Act of 1993.
12  The Health Care Standards Commission shall determine
13  whether any such administration meets the requirements
14  of those sections.
15    "(b) Amount of Tax.--The amount of tax imposed
16  by subsection (a) for a taxable year in which and adminis-
17  trator fails to comply with a requirement described in that
18  subsection shall be equal to $100 for each such failure.
***************************************************************************
{Here is the teeth of this requirement.  This tax will make it expensive,
but not impossible to withold information if you desire, or if that
information might be embarassing, but it will cost.  I wonder if problems
with health care fraud will soon necessitate the raising of this tax by 60
fold, just like the federal firearms license}
***************************************************************************

19    "(c) Controlled Groups.--
20      "(1) Employers.--In the case of an adminis-
21    trator that is an employer, for purposes of this sec-
22    tion all persons that are treated as part of the same
23    employer (within the meaning of section 414) as the
24    administrator shall be treated as the same person.

Page 288, HR 3222 SC
1     "(2) Other Administratiors.--In the case of
2   on administrator that is not an employer, for pur-
3   poses of this section--
4       "(A) Controlled group of corpora-
5     tons.--All corporations which are members of
6     the same controlled group of corporations shall
7     be treated as 1 person.  For purposes of the pre-
8     ceding sentence, the term 'controlled group of
9     corporations' has the meaning given to such
10    term by section 1563(a), eccept that--
11        "(i) 'more than 50 percent' shall be
12      substituted for 'at least 80 percent' each
13      place it appears in section 1563(a)(1), and
14        "(ii) the determination shall be made
15      without regard to subsections (a)(4) and
16      (e)(3)(C) or section 1563
17      "(B) Partnerships, proprietorships,
18    etc., which are under common control.--
19    Under regulations prescribed by the Secretary,
20    all trades or businesses (whether or not incor-
21    porated) which are under common control shall
22    be treated as 1 person.  The regulations pre-
23    scribed under this subparagraph shall be based
24    on principles similar to the principles which
25    apply in the case of subparagraph (A).

Page 289, HR 322 SC
1     "(d) Limitations on Tax.--
2       "(1) Tax not to apply where failure not
3     discovered exercising reasonable dili-
4     gence.--No tax shall be imposed by subsection (a)
5     with respect to any failure for which it is established
6     to the satisfaction of the Secretary that the person
7     liable for tax did not know, and by exercising rea-
8     sonable diligence would not have known, that the
9     failure existed.
10      "(2) Tax not to apply to failures cor-
11    rected within 30 days.--No tax shall be imposed
12    by subsection (a) on any failure if--
13        "(A) the failure was due to reasonable
14      cause and not to willful neglect, and
15        "(B) the failure is corrected during the 30-
16      day period beginning on the 1st date the person
17      liable for the tax knew, or by exercising reason-
18      able diligence would have known, that the fail-
19      ure existed.
20      "(3) Waiver by secretary.--In the case of a
21    failure which is due to reasonable cause and not to
22    willful neglect, the Secretary may waive part or all
23    of the tax imposed by subsection (a) to the extent
24    that the payment of that tax would be excessive rel-
25    ative to the failure involved"
(read when you make a contrabution to the campaign of my boss:-)

Page 290, HR 322 SC
1    (b) Nondeductibility of Tax.--Paragraph (6) of
2   section 275(a) of that Code (relating to nondeductibility
3   of cretain taxes) is amended by inserting "47," after
4   "46,".
5     (c) Clerical Amendments.--The table of sections
6   for chapter 47 of that Code is amended by adding at the
7   end the following new item:
        "5000A. Failure to satisfy certain health plan requiremnets.".
8   SEC. 6008. DEFINITIONS.
9     For purposes of this title--
10      (1) The term "health plan" means any contract
11    or arrangement under which an entity bears all or
12    part of the cost of providing health care items and
13    services, including a hospital or medical expense in-
14    curred policy or certificate, hospital or medical serv-
15    ice plan contract, or health maintenance subscriber
16    contract (including any closed accountable health
17    plan), but does not include (except for purposes of
18    sections 6005 and 6006)--
19        (A) coverage only for accident, dental, vi-
20      sion, disability, or long term care, medicare
21      suplemental health insurance, or any combina-
22      ton thereof,
23        (B) coverage issued as a supplement to li-
24      ability insurance,

Page 291, HR 322 SC
1       (C) workers' compenstaion or similar in-
2     surance, or
3       (D) automobile medical-payment insur-
4     ance.
5     (2) The term "provider" means a physician,
6   hospital, pharmacy, laboratory, or other person li-
7   censed or otherwise authorized under applicable
8   State laws to furnish health care items or services.

R Bryner (rb7656@u.cc.utah.edu) wrote:
> test

BANG!