Information is Power

Canadian Privacy Legislation

Background

Bill C-6 received Royal Assent on April 13, 2000. The title of the act is "An Act to support and promote electronic commerce by protecting personal information that is collected, used or disclosed in certain circumstances, by providing for the use of electronic means to communicate or record information or transactions and by amending the Canada Evidence Act, the Statutory Instruments Act and the Statute Revision Act."

Rather than specify the appropriate use of personal information, Bill C-6 includes the Canadian Standards Association (CSA) Model Code for the Protection of Personal Information that was published in 1996 the published as a national standard.

The Bill promotes fairness in the handling of personal information by requiring that the purpose of collecting information be disclosed and honoured.

Implementation

For decades, Canadian health insurance companies have protected the privacy of medical information but not financial information. Recently, many have cited Bill C-6 as their reason not to provide employers with claims listings showing the date, amount and category of service.

Implications

Without detailed claims listings, it will be impossible for employers to:

assess claim payment services;
assess the accuracy of renewal reports;
modify the plan design based on utilization.

Since claims comprise 80% of the employee medical and dental cost, insurers who restrict access to the non-medical aspects of claims information will leave their clients powerless.

Action

Find out what claims information your employee benefits provider is willing to disclose and negotiate access to the information that you need to manage your benefits program.