Bill Text: TX SB874 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to the operation of health care sharing ministries.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-06-14 - Effective immediately [SB874 Detail]
Download: Texas-2013-SB874-Enrolled.html
S.B. No. 874 |
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relating to the operation of health care sharing ministries. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 8, Insurance Code, is amended by adding | ||
Subtitle K to read as follows: | ||
SUBTITLE K. HEALTH CARE SHARING MINISTRIES | ||
CHAPTER 1681. HEALTH CARE SHARING MINISTRIES | ||
Sec. 1681.001. TREATMENT AS HEALTH CARE SHARING MINISTRY. | ||
A faith-based, nonprofit organization that is tax-exempt under the | ||
Internal Revenue Code of 1986 qualifies for treatment as a health | ||
care sharing ministry under this chapter if it: | ||
(1) limits its participants to individuals of a | ||
similar faith; | ||
(2) acts as a facilitator among participants who have | ||
medical bills and matches those participants with other | ||
participants with the present ability to assist those with medical | ||
bills in accordance with criteria established by the health care | ||
sharing ministry; | ||
(3) provides for the medical bills of a participant | ||
through contributions from one participant to another; | ||
(4) provides amounts that participants may contribute | ||
with no assumption of risk or promise to pay among the participants | ||
and no assumption of risk or promise to pay by the health care | ||
sharing ministry to the participants; | ||
(5) provides a written monthly statement to all | ||
participants that lists the total dollar amount of qualified needs | ||
submitted to the health care sharing ministry, as well as the amount | ||
actually published or assigned to participants for their | ||
contribution; | ||
(6) discloses administrative fees and costs to | ||
participants; | ||
(7) provides that any card issued to a participant for | ||
the purpose of presentation to a health care provider clearly | ||
indicates that the participant is part of a health care sharing | ||
ministry that is not engaging in the business of insurance; | ||
(8) provides a written disclaimer on or accompanying | ||
all applications and guideline materials distributed by or on | ||
behalf of the ministry that complies with Section 1681.002; and | ||
(9) does not operate a discount health care program as | ||
defined by Section 7001.001. | ||
Sec. 1681.002. NOTICE. To qualify as a health care sharing | ||
ministry under this chapter, the notice described by Section | ||
1681.001(8) must read substantially as follows: | ||
"Notice: This health care sharing ministry facilitates the | ||
sharing of medical expenses and is not an insurance company, and | ||
neither its guidelines nor its plan of operation is an insurance | ||
policy. Whether anyone chooses to assist you with your medical | ||
bills will be totally voluntary because no other participant will | ||
be compelled by law to contribute toward your medical bills. As | ||
such, participation in the ministry or a subscription to any of its | ||
documents should never be considered to be insurance. Regardless | ||
of whether you receive any payment for medical expenses or whether | ||
this ministry continues to operate, you are always personally | ||
responsible for the payment of your own medical bills. Complaints | ||
concerning this health care sharing ministry may be reported to the | ||
office of the Texas attorney general." | ||
Sec. 1681.003. EXEMPTION. Notwithstanding any other | ||
provision of this code, a health care sharing ministry that acts in | ||
accordance with this chapter is not considered to be engaging in the | ||
business of insurance. | ||
SECTION 2. Subchapter A, Chapter 562, Insurance Code, is | ||
amended by adding Section 562.0041 to read as follows: | ||
Sec. 562.0041. EXEMPTION. This chapter does not apply to a | ||
health care sharing ministry operated under Chapter 1681. | ||
SECTION 3. Section 651.002, Insurance Code, is amended by | ||
adding Subsection (c) to read as follows: | ||
(c) This chapter does not apply to a health care sharing | ||
ministry operated under Chapter 1681. | ||
SECTION 4. Subchapter A, Chapter 4151, Insurance Code, is | ||
amended by adding Section 4151.0022 to read as follows: | ||
Sec. 4151.0022. NONAPPLICABILITY. This chapter does not | ||
apply to a health care sharing ministry operated under Chapter | ||
1681. | ||
SECTION 5. Section 7001.002, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 7001.002. EXEMPTION. This chapter does not apply to a | ||
program operator who is an insurer and who holds a certificate of | ||
authority under Title 6, or a health care sharing ministry operated | ||
under Chapter 1681. | ||
SECTION 6. Chapter 7002, Insurance Code, is amended by | ||
adding Section 7002.004 to read as follows: | ||
Sec. 7002.004. EXEMPTION. This chapter does not apply to a | ||
health care sharing ministry operated under Chapter 1681. | ||
SECTION 7. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2013. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 874 passed the Senate on | ||
March 26, 2013, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 874 passed the House on | ||
May 17, 2013, by the following vote: Yeas 134, Nays 0, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |