29 June 2009

MEDIA RELEASE

Some insurance companies currently collect copies of full medical notes going back a number of years when they are deciding whether to insure a person, or to pay on a claim. The Privacy Commissioner received a request from the New Zealand Medical Association (NZMA) to look into this practice and she has concluded that insurers usually shouldn't collect all this information.

'People need to be completely upfront and honest when insurers ask about their medical history', says Marie Shroff. 'But their full medical notes contain a great deal of information about them and possibly about their family too. Not all of that is necessarily relevant to making insurance decisions, such as whether to insure someone or to pay out on a claim. The law allows insurers to collect only the information that they need to have so they can make those insurance decisions.

'Occasionally, an insurer will have to get all the information on a person's medical file going back several years. However, this should be rare. Insurers should think twice about asking for full notes. Usually, they should rely on asking specific questions about relevant health conditions, and getting specific answers from clients and/or their doctors. Some insurers do exactly this. Others, though, are risking breaching the law by asking for full notes when they don't need all the information in those notes.'

Marie Shroff also recommends that insurers tell their customers more clearly if they're going to collect medical information about them.

'Currently, there's a lot of confusion. People aren't necessarily aware when they sign the form that they may be agreeing to the insurer getting their wider medical file. Many doctors are also uncertain whether their patient has properly authorised them to release full medical notes. This uncertainty doesn't suit anyone. The insurers have told us that they are willing to make sure their forms more clearly spell out what people are agreeing to.'

Following initial discussions with interested parties, the Privacy Commissioner organised a forum at the end of last year with representatives from the insurance industry and the medical profession. 'As a result of the forum, insurers have been working with us to produce guidelines for the public and we hope to finalise these soon', says Marie Shroff. The NZMA has also produced guidelines for medical professionals, reflecting the results of the Commissioner's inquiry.

View the report on insurers' access to medical notes which is available on the Privacy Commissioner's website at www.privacy.org.nz. For further information, contact Annabel Fordham on 04 474 7598, or 021 509 735. Our 7 tips for health insurance consumers are attached.

Insurance and Health Information: 7 tips for health consumers

1 Always tell the truth

If you lie to an insurer, this could be a criminal offence. Also your insurance could be cancelled.

2 Answer questions as fully as you can

If you don't disclose something that might affect things like your premium, your coverage or payment of a claim, this can lead to hassles and delays. At worst, the insurer might be able to cancel your insurance or refuse your claim.

3 If you don't know the answer to a question about your health, say so

Your insurer will then need to get the information from your doctor. You'll be asked for consent, though.

4 Know what you're consenting to

Read the application form carefully. Know what it is that you're signing up to. If in doubt, ask the insurer or the insurance agent to explain.

5 Know what's in your medical notes

You can ask your doctor to show you, or give you a copy.

6 Work with your doctor to send information to the insurer

It can be useful to make an appointment so that you and your doctor can work together to fill out any additional information that the insurer has asked for.

That way, you'll know exactly what's going on. Plus it'll be much quicker and easier for your doctor and for you. It may not even cost you anything. Your insurer may pay the bill for the appointment to fill in the form - check if you're not sure.

7 Don't be afraid to ask - particularly if an insurer is asking for full notes

If you're applying for insurance and the insurer says it needs full notes, ask why. If you're not satisfied with the answer, go to another company.

Or if you're making a claim on your insurance, again, ask the insurer why it needs full notes in your case. It may have a good reason.

If you think the insurer has collected information that it did not need, ask the insurer to explain. If you're not satisfied, you can make a complaint to the Privacy Commissioner.

Office of the Privacy Commissioner

ENDS