Committee OKs plan to make health reimbursement data private

Minnesotans who apply for reimbursements on their health insurance expenditures could have fewer worries about how state government is handling their personal data.

Sponsored by Rep. Peggy Scott (R-Andover), HF83 would set limits on access to information about individuals seeking relief from escalating individual-market premiums that would be held by state agencies if a fast-moving health insurance premium assistance bill (HF1) becomes law.

The House Civil Law and Data Practices Policy Committee approved HF83 on a divided voice-vote Tuesday and referred it to the House Commerce and Regulatory Reform Committee.

Under HF1, sponsored by Rep. Joe Hoppe (R-Chaska), consumers would apply for premium rebates from Minnesota Management and Budget, which would check with health insurance companies and other government agencies to verify an applicant’s eligibility.

Scott’s bill would alter several parts of the process described in HF1 to better protect applicant privacy.

For example, it would classify personal data that applicants and health insurance companies provide to the state as “private” under the Minnesota Government Data Practices Act.

MMB would be required to destroy personal data on individual applicants on June 30, 2018 – days after a deadline for a required report on the program by the Office of Legislative Auditor.

HF83 would also require a so-called “Tennessen warning notice” to applicants, informing them, among other things, how MMB would share the personal data they include in their applications.

“This is a lot of data sharing from a lot of places,” said Rep. Debra Hilstrom (DFL-Brooklyn Center).

Rep. John Lesch (DFL-St. Paul) asked if HF83 is “cleanup language” for HF1. Scott said it would ensure the relief plan conforms to state law on data.

MMB Commissioner Myron Frans said there is a simple solution to privacy problems in HF1: “Do not collect the data.” He advocated for Gov. Mark Dayton’s approach to health care premium reimbursements that would have the state pay insurance companies to make up for discounted premiums without state agencies verifying eligibility beforehand.

A companion, SF55, sponsored by Sen. Michelle Benson (R-Ham Lake), awaits action by the Senate Judiciary and Public Safety Finance and Policy Committee.