HHS chief expects changes in medical privacy rules

Health and Human Services Secretary Tommy Thompson said Tuesday he is likely to change controversial Clinton administration regulations governing confidentiality of medical records. "I am fairly certain, without saying for sure, there will be some modifications to simplify and to lessen the financial burden," Thompson said during a breakfast with reporters. The Clinton administration, under orders from Congress, issued the regulations in final form in December. But when it was discovered that an error was made in transmitting the rules, requiring a 60-day delay to April 14, Thompson decided to reopen them for further comment. "Since so many people have contacted me, press and health entities across America, about the tremendous burden of the privacy rules and the tremendous cost that is going to be foisted upon them, I said why not use this time, this delay time, to get further comments," Thompson said. But Thompson added that there definitely will be a privacy rule. "There will be lots of security placed in there so patients' rights and records will be protected, which is something that this president and myself will insist upon," he said. And he did not rule out the possibility of putting the rule in place as scheduled on April 14 as a "final rule with amendments." But he did say he is unlikely to appear before Congress next week, as some Democrats urged last week at a House Energy and Commerce Health Subcommittee hearing. "We're getting thousands of comments," he said. "Give me a chance to review them." Thompson also said he wants Congress to give him far more flexibility to restructure the Health Care Financing Administration, including major changes in the way the department hires insurance companies to process Medicare paperwork. "With the modern computer system, we could to a better job reducing down from 50 to maybe 10 or maybe five," he said. "That's going to be controversial as all get-out. But if you want us to do the job, give me the flexibility for contracting out for the best service possible, put it on an accountability system, and give me the power to reduce the number of payers that I have to deal with."