It’s Just a Medical Release… Until It’s Not.
Why You Should Think Twice Before Signing That Insurance Authorization
At some point, most people dealing with a health, disability, or accident-related insurance claim are asked to sign a medical records authorization. It’s usually presented as routine—something the insurer needs to evaluate the claim. But if you take the time to actually read what you’re being asked to sign, you may find that it goes well beyond authorizing the release of medical records.
Many of these so-called "routine" authorizations give the insurance company permission to access much more than just your medical history. Some include:
- Your consumer credit report
- Your financial records
- Files from government agencies
- Even records from “any other person”
- In some cases, they may even attempt to waive attorney-client privilege
And let’s not overlook the Medical Information Bureau (MIB)—a little-known clearinghouse of medical and insurance data. These authorizations often give the insurer permission to pull and share your data with MIB and other insurers, which could impact future applications for coverage.
Can They Really Do That?
Under federal law—specifically, the Fair Credit Reporting Act (FCRA)—an insurance company cannot obtain a credit report for the purpose of evaluating a claim. They can request one for underwriting when issuing a policy, but not after the fact when a claim has been filed.
Courts and federal regulators have made that clear. For example, in Padilla v. UNUM Provident, the court referenced guidance from the Federal Trade Commission stating that insurers may not rely on the “underwriting” exception to justify pulling a credit report during claim review. That matches the rulings in cases like LeBlanc v. Allstate and St. Paul Guardian v. Johnson.
So how do insurers get around this?
Simple. They ask you to sign an authorization. Once you give written consent, your protections under the FCRA are gone. That signature turns an otherwise impermissible act into a “permissible use.”
What Happens If You Refuse to Sign?
Some people worry that refusing to sign a broad authorization will result in their claim being denied. And sure, an insurance company can try to use that as a reason to delay or push back. But there’s a strong counterargument.
If the claimant signs a narrowed authorization—one that excludes irrelevant or invasive categories of information—and shows a willingness to cooperate by offering to discuss what is needed and why, it’s tough for the insurer to justify denial based on non-cooperation.
There’s also the matter of credit score. Frequent inquiries on a credit report can lower a person’s score. So not only are insurers overreaching—they may be actively harming your financial reputation in the process.
Bottom Line
These overbroad authorizations are not about gathering medical records. They’re about mining for reasons to deny the claim, and in the process, invading the claimant’s privacy far beyond what’s necessary or lawful.
If you’re a lawyer, take a few extra minutes to review any authorization your client is being asked to sign. If you’re handling your own claim, don’t assume that the form you’ve been given is fair or routine.
Protect your rights. Ask questions. And don’t be afraid to push back.
Call us today at (769) 208-5683 for a free consultation.
