Again as with many articles ripped from the main media...
Again as with many articles ripped from the main media the register should have a their science correspondents investigate a bit further before copy-paste.
I have personally worked with patient data similar to the data what is being proposed to be collected, first this data will not have any personal details they are not relevant for biology, (biology does not care if you are called called Peter or John) biological relevant data such as: height, blood pressure, etc will be collected .
So the genetic data will be accompanied with a series of bio-relevant data , in some cases such as in Biomedical Demographic studies, social data might collected such as the place you live, income, etc.
In any case in the first instance (5-10 years likely) these databases are for R&D purposes and will be completely anonymous and then after many years of research and IF we find some conclusions then the doctor that will treat you will be the only person that has access to both sets of data (personal details+genetic data). There is a whole new field(Medical Informatics) that has been discussing this issues as well as the methods to implement secure and efficient data sanitation.
All this does not prevent insurance companies or any other company from using advances in biological research to screen persons either via genetic tests or any other methods, so its up to the law to protect people much in the same way that for example people from different ethical groups should not (I hope/believe that the law protects against this) be treated differently.