It's a potential public health disaster
If you think that your data is likely to be used to your detriment, you will either lie or you won't seek treatment at all.
Thus these people will simply wait until they collapse on the street and have to be taken by ambulance, at huge cost to the NHS.
Or they'll spread something around for years that would have been easily treatable or preventable.
Once again the Home Office demonstrate a complete and total disregard for the obvious consequences of their actions.