Florida's U.S. Sen. Bill Nelson is following through on his campaign pledge to protect the privacy ofconsumers' financial and health-related information.

Freshman U.S. Sen. Bill Nelson may be the new kid on the block, but he didn't waste any time following through on a key campaign promise: protecting Americans' privacy.

Nelson has introduced a bill to keep insurance companies, banks and other financial institutions from sharing health-related and financial information about consumers without their explicit consent.

Is this really a problem?

You bet, and it's going to get worse.

Congress recently passed a law that allows the merging of brokerage houses, insurance companies and banks but made no serious provision for the protection of consumer privacy. Under the law that takes effect on July 1, highly personal medical and financial information may freely flow among affiliated companies and even, under certain conditions, to outside, non-affiliated companies. Nelson's proposal would plug this leak.

Some have argued that information databases are owned by the company collecting the information, and that consumers wanting privacy should patronize only businesses that promise confidentiality. This might be a valid argument when we're talking about voluntarily giving up personal information at a Radio Shack, but it doesn't hold up for financial institutions. Here, consumers are in need of government protection.

When we go to the doctor in order to qualify for life insurance or supply information when applying for a loan, we have to be able to rely on the institutions to keep those records private. There is no way to use a credit card, access medical insurance reimbursements or use a checking account without generating a great deal of personal information -- increasingly valuable information.

Unfortunately, the incentives all run one way, for companies to exploit this asset, especially to help out one of their own affiliates: "You want a mortgage? Well, let's see what your medical insurance records indicate about your health prospects."

Broad medical privacy rules were promulgated during the Clinton administration. But before they could become final, Tommy Thompson, the new secretary of Health and Human Services, reopened the rules for a new public comment period that ended March 30. While the rules are scheduled for implementation April 14, Thompson is reportedly considering major revisions that would substantially water down medical privacy to appease doctors, hospitals and insurance companies. But even if these rules are left largely intact, Nelson's proposal provides important privacy protection. His bill covers medical and financial information, and it would hold insurance company officials and other corporate officers personally liable for misusing personal information.

Nelson's spokesman, Dan McLaughlin, says to expect even broader privacy legislation in the future. The senator made it to Washington on a promise to give citizens control over their sensitive information, and he's making good.

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