Government Begins Penalizing Data Brokers for Selling Patient Health Information
What happened
On October 31, 2026, the government began penalizing data brokers for selling patient health information. Reports indicate that these companies track patients' whereabouts using smartphone location data and connect it with other gathered information to sell inferences about health struggles to companies promoting unproven treatments.
From phillyvoice.com
Why it matters
The penalties target the sale of patient health information by data brokers. This action addresses concerns that location data emitted from mobile phones in certain settings is not covered by HIPAA, despite a 2022 survey showing that over 92% of patients believed their health data should not be available for purchase.
From phillyvoice.com
Who's involved
- Department of Health & Human ServicesGovernment agency initiating penalties against tracking companies for data misuse.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- MedicareSpeculative
Medicare might face increased compliance costs for handling health data due to stricter tracking laws.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- California may face increased regulatory demands over data broker privacyCalifornia may face increased regulatory demands over data broker privacyPossible
- How could the sale of health data by brokers affect Xavier Becerra?Data privacy crisis may force HHS to tighten health data rulesPossible
- Stricter data privacy laws may increase Medicare's compliance costsMedicare may face increased compliance costs due to stricter health data privacy lawsPossible
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The entities involved
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Gavin Newsom
40th governor of California since 2019
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American Medical Association
United States association of physicians and medical students