The Medical Information Bureau
by Crash 24601
Everyone knows about Equifax and TRW keeping a slew of information about
private citizens. In a day when everyone is analyzed and stored bit-by-bit
from grocery store computers tracking what you buy, how much of it, and how
often, to mass mailing companies watching your demographics, of that often
slips past public knowledge is the Medical Information Bureau (MIB).
MIB, for the specific purpose of life insurance companies, tracks the
medical conditions and health of anyone who has applied for life insurance.
Formed shortly after the turn of the century, the basic purpose of the MIB
is to reduce the cost of fraud by being able to cross-check medical information
already obtained on a person by other insurance companies to ensure that the
applicant doesn't have a selective memory. As sensitive as Americans are about
their medical histories, one wonders how this information is kept secure, how
it is moved, how it is used, and which information they keep.
MIB has a membership of about 800 companies sharing information on their
applicants. A person is added to MIB files when they apply for life insurance
with a member company. Only people who have applied for life insurance should
have records on file with MIB. Each member company applied to will first check
with MIB to obtain any codes already on record for the applicant. The member
company will add any additional codes for medical information they might
discover after they have compiled all their medical information on the
applicant. In order to receive records on a specific individual, the member
company must have provided to the individual a written notice describing MIB,
its functions, and consumer rights, and must also have a signed authorization
from the individual to obtain medical information on them.
MIB has over 200 codes representing various medical conditions. The
majority of codes consist of 3-digits representing the condition, and 3-
characters representing the severity of the condition, the source company
reporting the information, and how long ago it was diagnosed/treated. A code
is kept on file for seven years.
Some irrelevant codes, such as sexual deviation, were removed in the mid
1970's after hearings on MIB practices were held. In addition to medical
information, a few codes are available for use relevant to a person's possible
longevity, such as bad driving records, dangerous sports, and aviation
activities. An additional six pieces of information are kept to be used for
the purpose of correctly identifying an applicant: first name, last name,
middle initial, date of birth, place of birth, and occupation.
Codes are transferred between MIB and the member company by a PC and
proprietary software, both provided by MIB. Information is sent and received
in its coded form via modem. After being printed, codes are taken to the
underwriter working on the case. It is the underwriter who encodes and decodes
the information at the insurance company. The information for decoding and
encoding is kept in manuals, each with its own serial number and registered
with MIB to the insurance company and a specific underwriter at the
insurance company. Decoded medical information is intended to then be used
as possible medical conditions to further check into and to be verified by
the requesting member company. MIB periodically audits member companies to
see that procedures are adhered to. Audits are on-site and consist of
checking that information is being kept secure and confidential, that codes
entered on applications are supported by information collected, that codes
are being used only as a basis for further investigation, and that pre-notices
and authorizations are being followed.
MIB is regulated by the Federal Trade Commission and falls under the
Fair-Credit Reporting Act. Individuals have the right to receive copies of the
files from MIB (not the encoded versions, of course), and to pursue corrections
of information they dispute. MIB may require that a file be sent to a
personal physician instead of the requesting individual if they feel it contains
particularly sensitive information.
MIB can be reached at:
Medical Information Bureau (MIB)
P.O. Box 105
Essex Station
Boston, MA 02112
(617) 426-3660
Return to $2600 Index