[As Amended by House Committee of the Whole]
Session of 2000
Substitute for SENATE BILL No. 554
By Committee on Public Health and Welfare

10             AN  ACT concerning health care data; [establishing the health infor-
11             mation privacy act; relating to reporting health care data to a
12             certain state agency;] amending K.S.A. 1999 Supp. 65-6801 and 65-
13             6804 and repealing the existing sections.
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 1999 Supp. 65-6801 is hereby amended to read as
17       follows: 65-6801. (a) The legislature recognizes the urgent need to pro-
18       vide health care consumers, third-party payors, providers and health care
19       planners with information regarding the trends in use and cost of health
20       care services in this state for improved decision-making. This is to be
21       accomplished by compiling a uniform set of data and establishing mech-
22       anisms through which the data will be disseminated.
23             (b) It is the intent of the legislature to require that the information
24       necessary for a review and comparison of utilization patterns, cost, quality
25       and quantity of health care services be supplied to the health care data-
26       base by all providers of health care services and third-party payors to the
27       extent required by K.S.A. 1999 Supp. 65-6805 and amendments thereto
28       and this section and amendments thereto. The secretary of health and
29       environment at the direction of the health care data governing board shall
30       specify by rule and regulation the types of information which shall be
31       submitted and the method of submission.
32             (c) The information is to be compiled and made available in a form
33       prescribed by the governing board to improve the decision-making proc-
34       esses regarding access, identified needs, patterns of medical care, price
35       and use of health care services.
36             Sec.  2. K.S.A. 1999 Supp. 65-6804 is hereby amended to read as
37       follows: 65-6804. (a) The secretary of health and environment shall ad-
38       minister the health care database. In administering the health care da-
39       tabase, the secretary shall receive health care data from those entities
40       identified in K.S.A. 1999 Supp. 65-6805 and amendments thereto and
41       provide for the dissemination of such data as directed by the board.
42             (b) As directed by the board, the secretary of health and environment
43       may contract with an organization experienced in health care data collec-


  1       tion to collect the data from the health care facilities as described in
  2       subsection (h) of K.S.A. 65-425 and amendments thereto, build and main-
  3       tain the database. The secretary of health and environment may accept
  4       data submitted by associations or related organizations on behalf of health
  5       care providers by entering into binding agreements negotiated with such
  6       associations or related organizations to obtain data required pursuant to
  7       this section.
  8             (c) The secretary of health and environment shall adopt rules and
  9       regulations approved by the board governing the acquisition, compilation
10       and dissemination of all data collected pursuant to this act. The rules and
11       regulations shall provide at a minimum that:
12             (1) Measures have been taken to provide system security for all data
13       and information acquired under this act;
14             (2) data will be collected in the most efficient and cost-effective man-
15       ner for both the department and providers of data;
16             (3) procedures will be developed to assure the confidentiality of pa-
17       tient records. Patient names, addresses and other personal identifiers will
18       be omitted from the database;
19             (4) users may be charged for data preparation or information that is
20       beyond the routine data disseminated and that the secretary shall estab-
21       lish by the adoption of such rules and regulations a system of fees for
22       such data preparation or dissemination; and
23             (5) the secretary of health and environment will ensure that the
24       health care database will be kept current, accurate and accessible as pre-
25       scribed by rules and regulations.
26             (d) Data and other information collected pursuant to this act shall be
27       confidential, shall be disseminated only for statistical purposes pursuant
28       to rules and regulations adopted by the secretary of health and environ-
29       ment and approved by the board and shall not be disclosed or made public
30       in any manner which would identify individuals. A violation of this sub-
31       section (d) is a class C misdemeanor.
32             (e) In addition to such criminal penalty under subsection (d), any
33       individual whose identity is revealed in violation of subsection (d) may
34       bring a civil action against the responsible person or persons for any dam-
35       ages to such individual caused by such violation.
36        [New Sec.  3. Sections 3 through 7 shall be known as the health
37       information privacy act.
38             [New Sec.  4. The commissioner shall promulgate rules and
39       regulations to protect the privacy of an individual's health infor-
40       mation. Such rules and regulations shall include a prohibition on
41       the unauthorized collection, use or disclosure of health informa-
42       tion by a carrier.
43             [New Sec.  5. The commissioner shall have the authority to im-


  1       pose a civil penalty of not more than $10,000 for each violation of
  2       the rules and regulations promulgated under this act.
  3             [New Sec.  6. As used in this act:
  4             [(a) ``Carrier'' means a person or entity required to be licensed
  5       or authorized by the commissioner to assume risk, including but
  6       not limited to an insurer, a hospital, medical or health service cor-
  7       poration, a health maintenance organization, a provider sponsored
  8       organization, a multiple employer welfare arrangement, a self-in-
  9       sured group fund or a workers compensation self-insurer. Carrier
10       does not include a nonrisk-bearing regulated insurance entity,
11       such as a producer, agency or administrator.
12             [(b) ``Commissioner'' means the commissioner of insurance.
13             [(c) ``Health information'' means any information or data,
14       whether oral or recorded in any form or medium, and personal
15       facts or information about events or relationships that relates to:
16             [(1) The past, present or future physical, mental or behavioral
17       health or condition of an individual or a member of the individual's
18       family;
19             [(2) the provision of health care to an individual; or
20             [(3) payment for the provision of health care to an individual.
21             [(d) ``Protected health information'' means health information:
22             [(1) That identifies an individual who is the subject of the in-
23       formation; or
24             [(2) with respect to which there is a reasonable basis to believe
25       that the information could be used to identify an individual.
26             [(e) ``Unauthorized'' means a collection, use or disclosure of
27       protected health information made by a carrier without the au-
28       thorization of the subject of that protected health information or
29       that is not in compliance with this act, unless collection, use or
30       disclosure without an authorization is permitted by this act.
31             [New Sec.  7. The commissioner shall promulgate the rules and
32       regulations required by this act on or before January 1, 2001.]
33        Sec.  3. [8.] K.S.A. 1999 Supp. 65-6801 and 65-6804 are hereby
34       repealed.
35        Sec.  4. [9.] This act shall take effect and be in force from and after
36       its publication in the Kansas register.