1. Privacy and Security: Lessons from Non-Health Sectors Professor Peter P. Swire Moritz College of Law The Ohio State University HIPAA Summit December 12, 2007

2. Overview My background My background Importance of privacy & security to deployment of health IT Importance of privacy & security to deployment of health IT Two key issues, informed by non-health experiences: Two key issues, informed by non-health experiences: Preemption Preemption Enforcement Enforcement Explain the consumer, industry, & political perspectives on these issues Explain the consumer, industry, & political perspectives on these issues Conclusion: the choice we face Conclusion: the choice we face

3. Swire Background Now law professor, based in D.C. Now law professor, based in D.C. Active in many privacy & security activities Active in many privacy & security activities Senior Fellow, Center for American Progress Senior Fellow, Center for American Progress Chief Counselor for Privacy, 1999-2001 Chief Counselor for Privacy, 1999-2001 U.S. Office of Management & Budget U.S. Office of Management & Budget WH coordinator, HIPAA privacy rule WH coordinator, HIPAA privacy rule Financial, Internet, government agency privacy Financial, Internet, government agency privacy National security & FISA National security & FISA Computer security Computer security

4. Background Health care since 2001: Health care since 2001: Written on health privacy & security topics, at www.peterswire.net Written on health privacy & security topics, at www.peterswire.net Consulted on HIPAA implementation and PHR providers Consulted on HIPAA implementation and PHR providers Markle, Connecting for Health Markle, Connecting for Health Deidentification White Paper Deidentification White Paper

5. One Current Healthcare Activity Advisor to new company Advisor to new company Hedgehog - Database Security from Sentrigo Hedgehog - Database Security from Sentrigo Addresses a major gap – protecting against insider misuse/access to databases Addresses a major gap – protecting against insider misuse/access to databases A next logical security step: A next logical security step: Protect against database breaches caused by insiders – free download, pay for enhanced Protect against database breaches caused by insiders – free download, pay for enhanced Logical next step in HIPAA security Logical next step in HIPAA security Assures partners, such as in NHIN, of internal safeguards Assures partners, such as in NHIN, of internal safeguards

6. Privacy, Security & the NHIN As public policy matter, crucial to get the benefits of data flows (electronic health records) while minimizing the risks (privacy and security) As public policy matter, crucial to get the benefits of data flows (electronic health records) while minimizing the risks (privacy and security) As political matter, privacy and security are the greatest obstacles to adoption As political matter, privacy and security are the greatest obstacles to adoption Focus group – the emergency room while out of town as the only scenario that got substantial majority to favor EHRs Focus group – the emergency room while out of town as the only scenario that got substantial majority to favor EHRs Many individuals see risks > rewards of EHRs Many individuals see risks > rewards of EHRs

7. Implications of Public Concern All those who support EHRs must have good answers to the privacy and security questions that will be posed at every step All those who support EHRs must have good answers to the privacy and security questions that will be posed at every step Trust us not likely to be a winning strategy Trust us not likely to be a winning strategy The need for demonstrable, effective protections The need for demonstrable, effective protections The system must be strong enough to survive the inevitable data breaches & resultant bad publicity The system must be strong enough to survive the inevitable data breaches & resultant bad publicity

8. Preemption Industry perspective: Industry perspective: Benefits of data sharing high – paper kills Benefits of data sharing high – paper kills Shift to electronic clinical records is inevitable; that shift has occurred in other sectors Shift to electronic clinical records is inevitable; that shift has occurred in other sectors Can only run a national system if have a national set of rules Can only run a national system if have a national set of rules Preemption is essential – a no brainer Preemption is essential – a no brainer

9. Preemption: Consumer View Janlori Goldman, Health Privacy Project Janlori Goldman, Health Privacy Project A lot of state privacy laws A lot of state privacy laws HIVHIV Other STDsOther STDs Mental health (beyond psychotherapy notes)Mental health (beyond psychotherapy notes) Substance abuse & alcoholSubstance abuse & alcohol Reproductive & contraceptive care (where states vary widely in policy)Reproductive & contraceptive care (where states vary widely in policy) Public health & other state agenciesPublic health & other state agencies HIPAA simply doesnt have provisions for these topics – if preempt, then big drop in privacy protection HIPAA simply doesnt have provisions for these topics – if preempt, then big drop in privacy protection

10. Consumers & Preemption Link of reporting and privacy Link of reporting and privacy HIV and other public health reporting based on privacy promises HIV and other public health reporting based on privacy promises So, objections if do reporting w/out privacy So, objections if do reporting w/out privacy Concrete problems of multi-state? Concrete problems of multi-state? Many RHIOs have only one or a few states Many RHIOs have only one or a few states Build out from there Build out from there State laws both as burdens (industry) and protections (consumers) State laws both as burdens (industry) and protections (consumers)

11. Preemption & Politics Consumer and privacy advocates see states as the engine for innovation Consumer and privacy advocates see states as the engine for innovation Current example: data breach Current example: data breach California went first, and now Congress is trying to catch up with a uniform standard California went first, and now Congress is trying to catch up with a uniform standard Basic political dynamic – industry gets preemption in exchange for raising standards nationally Basic political dynamic – industry gets preemption in exchange for raising standards nationally

12. Preemption in Other Sectors Gramm-Leach-Bliley: no preemption Gramm-Leach-Bliley: no preemption But, Fair Credit 2003 does some of that But, Fair Credit 2003 does some of that Wiretap (ECPA): no preemption Wiretap (ECPA): no preemption Data breach: proposed preemption Data breach: proposed preemption FTC unfair/deceptive enforcement: no preemption FTC unfair/deceptive enforcement: no preemption CAN-SPAM: significant preemption CAN-SPAM: significant preemption Conclusion -- variation Conclusion -- variation

13. Key Issues in Preemption Scope of preemption matters & can vary Scope of preemption matters & can vary One policy baseline: scope of preemption matches the scope of the federal regime One policy baseline: scope of preemption matches the scope of the federal regime If the scope is for networked health IT, then preemption about that, not entire health system If the scope is for networked health IT, then preemption about that, not entire health system Preserve state tort and contract law? Preserve state tort and contract law? Preserve state unfair & deceptive enforcement? Preserve state unfair & deceptive enforcement? Grandfather existing state laws? Some of them? Grandfather existing state laws? Some of them?

14. Summary on Preemption Strong pressures for preemption in national, networked system Strong pressures for preemption in national, networked system If simply preempt and apply HIPAA, then have a dramatic reduction in privacy & security If simply preempt and apply HIPAA, then have a dramatic reduction in privacy & security This is a major & complicated policy challenge that is not likely to have a simple outcome This is a major & complicated policy challenge that is not likely to have a simple outcome

15. Enforcement The critique here of enforcement: The critique here of enforcement: Critique of policies, not of the good faith of the individuals involved Critique of policies, not of the good faith of the individuals involved The current no enforcement system The current no enforcement system Key question for the NHIN: Key question for the NHIN: Can the current no-enforcement system be a credible basis for EHRs and the NHIN? Can the current no-enforcement system be a credible basis for EHRs and the NHIN?

16. The No Enforcement System Imagine some other area of law that you care about – violations are serious. Imagine some other area of law that you care about – violations are serious. Batting average: 0 enforcement actions for 25,000 complaints; > 4,100 violations Batting average: 0 enforcement actions for 25,000 complaints; > 4,100 violations Enforcement policy: one free violation Enforcement policy: one free violation Criminal enforcement: Criminal enforcement: DOJ cut back scope of criminal penalties DOJ cut back scope of criminal penalties No prosecution for the > 350 criminal referrals No prosecution for the > 350 criminal referrals Not even referred back to HHS Not even referred back to HHS 4 cases brought by local federal prosecutors 4 cases brought by local federal prosecutors

17. Effects of No Enforcement Signals work Signals work Surveys already showing lower efforts at HIPAA compliance and lower reported actual compliance by covered entities Surveys already showing lower efforts at HIPAA compliance and lower reported actual compliance by covered entities Contrast internal HIPAA efforts and budget (low enforcement) with compliance efforts on Medicare fraud & abuse (hi enforcement) Contrast internal HIPAA efforts and budget (low enforcement) with compliance efforts on Medicare fraud & abuse (hi enforcement) Why should Congress and consumer groups trust compliance with HIPAA, much less with new rules for the NHIN? Why should Congress and consumer groups trust compliance with HIPAA, much less with new rules for the NHIN? GAO Report, 2007, on lack of privacy in the NHIN GAO Report, 2007, on lack of privacy in the NHIN

18. Other Privacy Enforcement Fair Credit, stored communications, video rentals, cable TV Fair Credit, stored communications, video rentals, cable TV Federal plus private right of action Federal plus private right of action Deceptive practices, CAN-SPAM, COPPA, proposed data breach Deceptive practices, CAN-SPAM, COPPA, proposed data breach Federal, plus state AG Federal, plus state AG HIPAA as outlier, with federal-only enforcement HIPAA as outlier, with federal-only enforcement If feds dont do it, then have no enforcement of the HIPAA rules themselves If feds dont do it, then have no enforcement of the HIPAA rules themselves

19. What We Have Learned Within health IT debates, consensus statements often sound like this: Within health IT debates, consensus statements often sound like this: Need preemption to do the national network Need preemption to do the national network Should not punish/enforce against covered entities, when they are struggling in good faith to implement new HIPAA mandates Should not punish/enforce against covered entities, when they are struggling in good faith to implement new HIPAA mandates Of course, privacy and security should be part of the NHIN, but likely dont go beyond HIPAA requirements Of course, privacy and security should be part of the NHIN, but likely dont go beyond HIPAA requirements

20. What We Have Learned That trio of conclusions, based on experience in other sectors, may face serious political obstacles: That trio of conclusions, based on experience in other sectors, may face serious political obstacles: Preemption is likely to be partial and require new federal standards in some areas Preemption is likely to be partial and require new federal standards in some areas The no-enforcement system will be hard to sustain The no-enforcement system will be hard to sustain New privacy/security protections quite likely will accompany new NHIN data flows New privacy/security protections quite likely will accompany new NHIN data flows

21. Conclusion: Your Choice Option 1: Play Hardball Option 1: Play Hardball Decide the costs of privacy & security are too high to be built into the NHIN Decide the costs of privacy & security are too high to be built into the NHIN Push a strategy of high preemption and low enforcement Push a strategy of high preemption and low enforcement Grudgingly give only the bare minimum on privacy/security when the political system forces it onto industry Grudgingly give only the bare minimum on privacy/security when the political system forces it onto industry

22. The Better Choice Option 2: A NHIN to Be Proud Of Option 2: A NHIN to Be Proud Of Incorporate the key values of state laws – especially for sensitive data – into the NHIN Incorporate the key values of state laws – especially for sensitive data – into the NHIN Support reasonable enforcement, so that bad actors are deterred and good actors within covered entities get support Support reasonable enforcement, so that bad actors are deterred and good actors within covered entities get support Build privacy & security into the fabric of new systems, not just as a patch later Build privacy & security into the fabric of new systems, not just as a patch later Connecting for Health as an exampleConnecting for Health as an example

23. The Better Choice With the second option – A NHIN to Be Proud Of – the patients are not treated as the political enemies With the second option – A NHIN to Be Proud Of – the patients are not treated as the political enemies The risk of political backlash is less The risk of political backlash is less The quality of the NHIN for actual patients is higher The quality of the NHIN for actual patients is higher That, I think, should be our goal That, I think, should be our goal Thank you Thank you

24. Contact Information Phone: (240) 994-4142 Phone: (240) 994-4142 Email: peter@peterswire.net Email: peter@peterswire.netpeter@peterswire.net Web: www.peterswire.net Web: www.peterswire.netwww.peterswire.net