KYFREE policy brief examines Health Data Utilities (HDUs)

 Emerging data platforms support free-markets principles and include robust individual privacy protections

The Kentucky Forum for Rights, Economics & Education (KYFREE) released a policy brief today evaluating emerging data aggregation platforms known as health data utilities (HDUs). As the state’s leading conservative free-market think tank, KYFREE focused on the market-oriented elements and individual privacy protections.

“We apply our principles to any policy or program we evaluate,” stated Andrew McNeill, KYFREE’s President and Senior Policy Fellow. “HDU models are emerging in a number of states and provide relevant points of comparison for the General Assembly to consider how to effectively shape health care policy.”

HDUs are designed and implemented in alignment with states’ priorities to address the needs of their local and regional healthcare ecosystems. The platform harnesses the power of health data to enable integrated treatment, quality measurements, and public health management.

Price transparency is a central feature within an HDU. Transparent markets reduce price variation for common services and create stronger incentives for healthcare providers to compete on quality, outcomes and patient experience.

The platforms operate in compliance with all applicable federal and state healthcare privacy laws and regulatory requirements, including those governing the collection, use, storage, and disclosure of protected health information. Privacy protections are integrated into HDU governance, technical architecture, and operational policies to ensure that data are accessed only for authorized purposes and in accordance with established legal standards.

Rep. Rebecca Raymer, R-Morgantown, introduced House Bill 676 last week to establish a health data utility in Kentucky. It is based upon model legislation from the American Legislative Exchange Council (ALEC). When enacted it will create a seamless, transparent, and secure approach to health information sharing and improve the accessibility, adequacy, and affordability of health care in the state.

“ALEC’s endorsement of a properly implemented HDU provides KYFREE with a high level of confidence that these platforms align with market principles and properly account for individual privacy concerns,” stated Andrew McNeill. “We support Rep. Raymer’s effort to bring this powerful tool to Kentucky’s health care sector.”

The Kentucky Forum for Rights, Economics & Education (KYFREE) is the leading voice in Frankfort for free-market principles and policy analysis. Founded in 2023, KYFREE is a 501(c)3 educational nonprofit dedicated to advancing ideas and solutions to meet the most significant challenges facing our state. See their website for more information.

ABOUT THE REPORT AUTHORS:

Evan Wright is the founder of Polara Labs, a data and AI consulting startup, where he builds and deploys applied machine learning systems end to end. He has served as a founding ML engineer at Roth River and previously worked as an ML engineer at White Clay a fintech firm. Earlier in his career, he worked interned with Senate Leader McConnell and Speaker Osborne of the Kentucky State House.

Andrew McNeill is the President and Senior Policy Fellow at the Kentucky Forum for Rights, Economics & Education (KYFREE). He served as the Deputy State Budget and Policy Director in Gov. Matt Bevin’s administration. His email address is amcneill@kyfree.org.