Middletown Is Sued for Names of Health Benefits Enrollees

For Immediate Release
7/23/2013

(MIDDLETOWN) – Today, Middletown resident Lee Brewer filed a lawsuit in Superior Court against Middletown Township to obtain the names of enrollees for health benefits with the municipality. The suit is seeking enrollment dating back to 2008. Brewer is represented by attorney Walter Luers.

“Many other governmental agencies make these records readily available to the public,” Middletown Democratic Party chairman Don Watson pointed out.

In fact, the Township of Middletown Sewerage Authority recently disclosed the same data that Middletown Township is withholding.

The case was brought because Township officials claim that the names of enrollees are confidential under the Health Insurance Portability and Accountability Act (HIPAA).

Walter Luers stated “HIPAA covers claims data and medical information. Revealing the type of coverage or who is covered does not shed any light whatsoever on claims, claims data or medical procedures.”

The Township has also argued that because it self-insures for health coverage, it is a payor like an insurance company, whose records are generally not subject to disclosure.

“If a governmental body could keep who it’s insuring a secret simply by paying its own claims, those inclined to bend the rules would have a huge incentive to self insure,” said Mr. Watson.

“The Township’s position prevents the public from ascertaining whether people are receiving health benefits who should not be receiving them, such as outside professionals or retirees who should be on Medicare. Public agencies, whether through malfeasance or negligence, have people on their health insurance rolls all the time who should not be there,” said Luers.

According to Luers, the question has already been addressed by the courts. In 2005, the New Jersey Superior Court ruling in the case of Michelson vs. Wyatt established that release of certain coverage information – specifically, enrollee names and coverage selections – serves the public interest by preventing waste and abuse by government.

The Michelson decision, therefore, established the public’s right not only to the names of health benefits enrollees, but also to the information needed to compare costs under various insurance options.

Middletown Township expects to pay close to $9 million dollars for health benefits in 2013, almost 14% of the municipal budget.