The landmark consumer protection law, the Fair Credit Reporting Act (FCRA) was passed in 1970. The FCRA, which went into effect in 1971, originally exempted disclosure of medical information by data-gathering organizations such as the Medical Information Bureau (MIB), although it did direct disclosure to consumers of information that would be detrimental to a person’s credit rating. In 1973, the U.S. Senate Banking Committee, Subcommittee for Consumer Credit, held hearings on the use of medical information for insurance underwriting.
During these hearings, the Senate subcommittee chairman, Senator William Proxmire, questioned Joseph C. Wilberding, executive director and general counsel of the Medical Information Bureau (MIB). Mr. Wilberding testified that the individual consumer files collected and exchanged by MIB, “included data on sexual deviation, drug addiction, alcoholism and such hazardous hobbies as auto racing and flying.” (Source, “Insurance Data Called Faulty“, The New York Times, October 4, 1973.)
That consumers are largely unaware of the MIB’s existence cannot be blamed on individual apathy or misinformation. The Medical Information Bureau (MIB) was purposefully hidden by its employees. Mr. Wilberding also testified that “applicants for health insurance policies were “not told” that medical information would be made available to the 700 companies that support the data bank, and insisted that applicants “shouldn’t be told.” (more…)