AHIMA Calls Blue Cross Blue Shield $43 Billion Price Tag
for Confidentiality Overblown

December 17, 1999 -- The requirements of healthcare confidentiality proposals currently being debated in Congress could cost the industry $43 billion over the next five years. A recent study conducted by the Robert E. Nolan Company for Blue Cross and Blue Shield Association (BCBSA) estimates that the price tag for universal health privacy standards would exceed the costs of the Children's Health Insurance Program ($24 billion) and the Medicare prescription drug benefit ($37 billion).

The report has fueled resistance among those in the industry who believe the proposals represent an overly bureaucratic, potentially damaging solution to a small problem. "While we believe that privacy protection is important, we do not believe it must be unduly complicated as to put quality at risk," said Allan Korn, MD, Senior Vice President and Chief Medical Officer of BCBSA. The report's figures -- including the $9.1 billion in projected costs for tracking and disclosure and $23.4 billion for infrastructure changes -- have been disputed by the American Health Information Management Association (AHIMA), an industry group representing health information management professionals.

AHIMA's President-elect, Margaret Skurka, says healthcare organizations are already investing in information systems that carry out multiple tasks, confidentiality being just one. Ms. Skurka believes the study measures the costs of entire systems rather than just the components related to confidentiality. She also points out that most states require healthcare providers to grant access to medical records and permit organizations to charge a fee to cover costs. Any proposal passed by Congress would likely follow this model, reducing the $9.1 billion figure cited by Blue Cross. "There is no doubt that implementing confidentiality legislation or regulations will cost some money, though less than what Blue Cross estimates," said Ms. Skurka. "In any case, a price tag should not stop us from doing what is right for our patients."