[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3097 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                S. 3097

 To provide additional protections with respect to health information, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 4, 2025

  Mr. Cassidy introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
 To provide additional protections with respect to health information, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Health Information Privacy Reform 
Act''.

SEC. 2. PROTECTIONS FOR APPLICABLE HEALTH INFORMATION.

    (a) In General.--The Secretary of Health and Human Services, in 
consultation with the Federal Trade Commission, shall promulgate 
regulations setting privacy, security, and breach notifications 
standards for the processing of applicable health information by 
regulated entities and their service providers. Such standards shall 
provide protections that are at least commensurate with, and wherever 
feasible and appropriate harmonize with, the protections provided 
through the privacy, security, and breach notification rules 
promulgated under section 264(c) of the Health Insurance Portability 
and Accountability Act of 1996 (42 U.S.C. 1320d-2 note) and section 
13402 of the HITECH Act (42 U.S.C. 17932) that apply to covered 
entities and business associates with respect to protected health 
information under such rules. Such regulations promulgated under this 
section shall include the following:
            (1) Privacy requirements, including the following:
                    (A) Permitted uses and disclosures of applicable 
                health information without an individual's written 
                authorization that are consistent with the individual's 
                reasonable expectations.
                    (B) Other permitted uses and disclosures of 
                applicable health information without an individual's 
                written authorization for certain public policy 
                purposes, such as public health, health oversight, law 
                enforcement, judicial and administrative proceedings, 
                and any conditions for such uses and disclosures.
                    (C) Uses and disclosures of applicable health 
                information that require the individual's written 
                authorization and the requirements related to such 
                written authorizations.
                    (D) Prohibited uses and disclosures of applicable 
                health information.
                    (E) Minimum necessary requirements for the request, 
                use, and disclosure of applicable health information 
                and any exceptions.
                    (F) Standards and requirements related to legal 
                representatives of the individual.
                    (G) Standards and requirements related to service 
                providers.
                    (H) Individual rights with respect to applicable 
                health information, including the right of the 
                individual to receive a privacy notice from the 
                regulated entity, access to applicable health 
                information, amendment of applicable health 
                information, deletion of applicable health information, 
                and portability of applicable health information, and 
                any exceptions to such rights (such as with respect to 
                applicable health information collected for research 
                purposes), any conditions on such rights, and any other 
                requirements related to such rights, including 
                timeframes for responding to requests.
                    (I) Administrative safeguards, including 
                designation of a privacy officer, policies and 
                procedures, training of workforce members, non-
                retaliation, documentation, and mitigation.
            (2) Security requirements, including the following:
                    (A) Physical, technical, and administrative 
                safeguards for applicable health information in any 
                form.
                    (B) For electronic applicable health information, 
                such safeguards shall be based on well-established 
                national frameworks, such as cybersecurity performance 
                goals of the National Institute of Standards and 
                Technology or the Department of Health and Human 
                Services.
            (3) Breach notification requirements in the event of a 
        breach of applicable health information that are substantially 
        similar to the breach notification requirements under subpart D 
        of part 164 of title 45, Code of Federal Regulations (or any 
        successor regulations).
    (b) Enforcement Authority.--The Secretary, in consultation with the 
Federal Trade Commission, is authorized to enforce all provisions of 
this Act as described in subsection (c).
    (c) Civil Penalties.--In addition to any other sanctions or 
remedies that may be available under any provision of Federal law, in 
the case of a regulated entity or service provider that violates this 
section, subpart D of part 160 of title 45, Code of Federal Regulations 
(or any successor regulations), shall apply to the regulated entity or 
service provider with respect to such violation of this section in the 
same manner that such subpart applies to a person with respect to a 
violation of part 160 of title 45, Code of Federal Regulations (or any 
successor regulations).
    (d) Extension of HITECH Act Amendment to Regulated Entities and 
Service Providers.--The privacy and security practices under section 
13412 of the Health Information Technology for Economic and Clinical 
Health Act (42 U.S.C. 17941) shall apply to regulated entities and 
service providers with respect to applicable health information in the 
same manner that such section applies to covered entities and business 
associates.
    (e) Definitions.--In this section:
            (1) Applicable health information.--The term ``applicable 
        health information''--
                    (A) means information (including demographic 
                information) that--
                            (i) identifies an individual or with 
                        respect to which there is a reasonable basis to 
                        believe that the information could be used to 
                        identify an individual; and
                            (ii) relates to the past, present, or 
                        future physical or mental health or condition 
                        of an individual, the provision of health care 
                        to an individual, or the past, present, or 
                        future payment for the provision of health care 
                        to an individual; and
                    (B) may include information described in 
                subparagraph (A) that was not created or received by a 
                health care provider, health plan, employer, or health 
                care clearinghouse.
            (2) Covered entities; business associates.--The terms 
        ``covered entities'' and ``business associates'' have the 
        meanings given such terms in section 160.103 of title 45, Code 
        of Federal Regulations (or any successor regulations).
            (3) Regulated entity.--The term ``regulated entity''--
                    (A) means a natural or legal person that, alone or 
                jointly with others, determines the purpose and means 
                of processing applicable health information; and
                    (B) does not include--
                            (i) a governmental entity such as a body, 
                        authority, board, bureau, commission, district, 
                        agency, or political subdivision of the 
                        Federal, State, or local government;
                            (ii) a person or an entity that is 
                        collecting, processing, or transferring covered 
                        data on behalf of or a Federal, State, Tribal, 
                        territorial, or local government entity; and
                            (iii) a covered entity or business 
                        associate, as such terms are defined in section 
                        160.103 of title 45, Code of Federal 
                        Regulations (or any successor regulations).
            (4) Service provider.--The term ``service provider'' means 
        a natural or legal entity that processes applicable health 
        information on a behalf of a regulated entity and that is not a 
        covered entity or business associate, as such terms are defined 
        in section 160.103 of title 45, Code of Federal Regulations (or 
        any successor regulations).

SEC. 3. RIGHTS AND REQUIREMENTS REGARDING ACCESS TO CERTAIN PROTECTED 
              HEALTH INFORMATION.

    (a) Time and Manner of Access.--In applying section 13405(e) of the 
Health Information Technology for Economic and Clinical Health Act (42 
U.S.C. 17935(e)) or section 164.524(c)(3)(ii) of title 45, Code of 
Federal Regulations (or any successor regulations), in the case that an 
individual requests that a covered entity or any business associate of 
a covered entity transmit, produce, or provide access to a copy of the 
individual's protected health information to a person, including an 
entity, designated by the individual, and except where permitted 
without authorization under section 164.506(c) of title 45, Code of 
Federal Regulations (or any successor regulations)--
            (1) the individual's request shall meet all requirements of 
        a valid authorization under section 164.508(b) of title 45, 
        Code of Federal Regulations (or any successor regulations); and
            (2) the covered entity or business associate may condition 
        the transmittal, production, or provision of access upon the 
        person to whom the information is to be transmitted or produced 
        or to whom access is to be provided--
                    (A) paying fees, in accordance with applicable 
                State law and consistent with subsection (b), in 
                advance of such transmittal, production, or access; and
                    (B) acknowledging and accepting the terms, 
                limitations, and conditions of use and disclosure 
                contained in the request made by the individual as the 
                legally binding obligation of the person receiving the 
                information.
    (b) Fees.--
            (1) In general.--In applying section 13405(e)(3) of the 
        Health Information Technology for Economic and Clinical Health 
        Act (42 U.S.C. 17935(e)(3)) or section 164.524(c)(4) of title 
        45, Code of Federal Regulations (or any successor regulations), 
        each such section shall apply only--
                    (A) to the provision of access to, or the 
                production, copying, or transmittal of, protected 
                health information directly to--
                            (i) the individual, or the individual's 
                        personal representative for health care 
                        purposes as described in section 164.502(g) of 
                        title 45, Code of Federal Regulations (or any 
                        successor regulations);
                            (ii) subject to paragraph (2) and section 
                        164.510(b) of title 45, Code of Federal 
                        Regulations (or any successor regulation), any 
                        other person identified in, and subject to the 
                        limitations of, such section; or
                            (iii) the individual's health care provider 
                        or the business associates of such provider; 
                        and
                    (B) as directed by the individual, to the 
                electronic transmittal of the individual's electronic 
                health record to the patient portal or mobile medical 
                application used and maintained by the individual's 
                health care provider or for the health care provider by 
                its business associate.
            (2) Additional limitations.--In the case of the provision 
        of access to, or the production, copying, or transmittal of, 
        protected health information under paragraph (1)(A) directly to 
        a person described in clause (ii) of such paragraph, such 
        protected health information shall, in accordance with section 
        164.510(b) of title 45, Code of Federal Regulations (or any 
        successor regulations), be limited to only such information 
        that is--
                    (A) directly relevant to the person's involvement 
                with the care of the individual or with the payment 
                relevant to the care of the individual; or
                    (B) needed for notification purposes described in 
                such section.
    (c) Definitions.--In this section, the terms ``business 
associate'', ``covered entity'', ``health care provider'', 
``individual'', ``person'', and ``protected health information'' have 
the meanings given such terms in section 160.103 of title 45, Code of 
Federal Regulations (or any successor regulations).
    (d) Guidance.--Not later than 180 days after the date of enactment 
of this Act, the Secretary of Health and Human Services shall amend 
existing guidance as necessary to implement subsections (a) and (b).

SEC. 4. CONFIDENTIALITY OF RECORDS.

    Section 543 of the Public Health Service Act (42 U.S.C. 290dd-2) is 
amended--
            (1) in subsection (a), by striking ``subsection (b)'' and 
        inserting ``the HIPAA regulations'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by redesignating 
                subparagraphs (A) through (D) as paragraphs (1) through 
                (4), respectively, and adjusting the margins 
                accordingly; and
                    (B) by striking ``(b) Permitted Disclosure'' and 
                all that follows through ``(2) Method for disclosure--
                Whether'' and inserting the following:
    ``(b) Permitted Disclosure.--Whether'';
            (3) in subsection (c), in the matter preceding paragraph 
        (1), by striking ``subsection (b)(2)(C)'' and inserting 
        ``subsection (b)(3)''; and
            (4) in subsection (g), by striking ``subsection (b)(2)(C)'' 
        and inserting ``subsection (b)(3)''.

SEC. 5. NAS STUDY ON COMPENSATION TO PATIENTS FOR SHARING IDENTIFIABLE 
              DATA FOR RESEARCH PURPOSES.

    (a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Secretary of Health and Human Services shall seek to 
enter into a contract with the National Academies of Sciences, 
Engineering, and Medicine to conduct a study examining potential risks 
and benefits of paying compensation to patients for sharing their 
identifiable data for research purposes.
    (b) Inclusions.--The study conducted pursuant to the contract under 
subsection (a) shall include an examination of--
            (1) the risks to patient privacy posed by the integration 
        of identifiable, de-identified, and aggregated health 
        information into datasets used for research;
            (2) privacy enhancing tools and methods for the protection 
        of patient health data;
            (3) the feasibility of tracking patient data and consent 
        for the integration of patient health data into datasets used 
        for research;
            (4) ethical considerations for compensating patients for 
        use of their identifiable and de-identified health data;
            (5) whether the existing exemptions permitting de-
        identified data to be used for research should consider whether 
        a patient was given an opportunity to opt-in or opt-out of 
        participation; and
            (6) risk of re-identification of de-identified data.

SEC. 6. PATIENT NOTIFICATION REQUIREMENTS UNDER THE HIPAA PRIVACY 
              REGULATIONS.

    (a) Patient Notification Upon Removal.--Any regulated entity or 
service provider who gains access to the protected health information 
of an individual through the patient right of access under section 
164.524 of title 45, Code of Federal Regulations (or any successor 
regulations) shall--
            (1) provide a written plain language notification to such 
        individual prior to accessing such information--
                    (A) that such protected health information will no 
                longer be subject to the protections under the HIPAA 
                privacy regulation; and
                    (B) that includes an explanation of how and to 
                which entities such protected health information may be 
                redisclosed; and
            (2) require the consent of the individual before selling 
        such protected health information to third parties.
    (b) Patient Notification Regarding Wellness Data.--
            (1) In general.--Any regulated entity or service provider 
        who offers digital technology that generates wellness data 
        about individuals shall, with respect to each individual who 
        uses such technology--
                    (A) provide a written plain language notification 
                to the individual in advance of initiating the 
                generation of such data that such data will not be 
                subject to the protections of the HIPAA privacy 
                regulation; and
                    (B) offer the individual an opportunity to opt out 
                of such wellness data generation.
            (2) Wellness data.--In this subsection, the term ``wellness 
        data'' means data generated for the purpose of promoting health 
        or preventing disease, which may include vital statistics, step 
        counts, and medical regimen compliance.
    (c) Definitions.--In this section--
            (1) the terms ``business associate'', ``covered entity'', 
        and ``protected health information'' have the meanings given 
        such terms in section 160.103 of title 45, Code of Federal 
        Regulations (or any successor regulations);
            (2) the term ``HIPAA privacy regulation'' has the meaning 
        given such term in section 1180(b)(3) of the Social Security 
        Act (42 U.S.C. 1320d-9(b)(3)); and
            (3) the terms ``regulated entity'' and ``service provider'' 
        have the meanings given such terms in section 2.
    (d) Effective Date.--This section shall take effect beginning one 
year after the date of enactment of this Act.

SEC. 7. MINIMUM NECESSARY GUIDANCE.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary of Health and Human Services shall publish guidance on the 
application of the minimum necessary standard to data used for 
artificial intelligence and other machine learning applications and 
relevant requirements, including health data interoperability 
requirements under section 3001(c)(9) of the Public Health Service Act 
(42 U.S.C. 300jj-11(c)(9)) and the use of limited data sets pursuant to 
section 13405(b) of the HITECH Act (42 U.S.C. 17935(b)).

SEC. 8. DE-IDENTIFIED INFORMATION.

    (a) Establishment of Standards.--Not later than 1 year after the 
date of enactment of this Act, the Secretary of Health and Human 
Services shall promulgate regulations establishing unified national 
standards for rendering applicable health information as de-identified 
information, in a manner similar to the manner in which individually 
identifiable health information may be rendered de-identified 
information pursuant to part 164 of title 45, Code of Federal 
Regulations (or any successor regulations).
    (b) Composition of Standards.--Such standards shall--
            (1) be at least equivalent to or exceed the de-
        identification standard specified in section 164.514(b) of 
        title 45, Code of Federal Regulations (or any successor 
        regulations);
            (2) specify standards for the use of privacy-enhancing 
        technologies as a method for creating de-identified 
        information; and
            (3) specify that information shall not qualify as de-
        identified information when provided by a regulated entity, 
        service provider, covered entity, or business associate to 
        another person or entity unless such person or entity 
        contractually agrees in writing not to re-identify or attempt 
        to re-identify the information, and to require the same of any 
        person or entity to whom such person or entity provides the 
        information.
    (c) Definitions.--In this section--
            (1) the term ``applicable health information'' has the 
        meaning given such term in section 2;
            (2) the terms ``business associate'', ``covered entity'', 
        and ``individually identifiable health information'' have the 
        meanings given such terms in section 160.103 of title 45, Code 
        of Federal Regulations (or any successor regulations); and
            (3) the term ``privacy enhancing technologies'' means any 
        software or hardware solution, technical process, or other 
        technological means of mitigating individuals' privacy risks 
        arising from data processing by enhancing predictability, 
        manageability, disassociability, and confidentiality.

SEC. 9. PREEMPTION.

    Section 160.203 of title 45, Code of Federal Regulations (or any 
successor regulations) shall apply to the requirements set forth under 
this Act in the same manner and to the same extent as such section 
applies to the standards, requirements, and implementation 
specifications under subchapter C of chapter I of subtitle A of title 
45, Code of Federal Regulations (or any successor regulations).
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