Bill Text: TX HB2118 | 2021-2022 | 87th Legislature | Introduced

Texas House Bill 2118 (Prior Session Legislation)

Introduced

Bill Title: Relating to deceptive marketing of certain health plans, programs, and arrangements; authorizing an administrative penalty.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-04-13 - Left pending in committee [HB2118 Detail]

Download: Texas-2021-HB2118-Introduced.html

	87R5461 MWC-D

	By: Lucio III	H.B. No. 2118



	A BILL TO BE ENTITLED
	AN ACT
	relating to deceptive marketing of certain health plans, programs,
	and arrangements; authorizing an administrative penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
	by adding Chapter 564 to read as follows:
	CHAPTER 564. PROHIBITED PRACTICES RELATING TO MARKETING OF CERTAIN
	HEALTH PLANS, PROGRAMS, AND ARRANGEMENTS
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 564.0001. APPLICABILITY. This chapter applies to a
	health benefit plan, health care program, or health expense
	arrangement that provides health benefit coverage or otherwise pays
	for, reimburses, or discounts health care expenses and that
	excludes or limits coverage for preexisting conditions,
	discriminates based on health-status related factors, or does not
	provide essential health benefits required under 42 U.S.C. Section
	18022, including:
	(1) an individual accident and health insurance policy
	governed by Chapter 1201;
	(2) a group accident and health insurance policy
	governed by Chapter 1251;
	(3) a short-tem limited-duration insurance policy
	governed by Chapter 1509;
	(4) a health care sharing ministry operated under
	Chapter 1681;
	(5) a discount health care program governed by Chapter
	7001; or
	(6) a direct primary care arrangement governed by
	Subchapter F, Chapter 162, Occupations Code.
	Sec. 564.0002. RULES. The commissioner may adopt rules
	necessary to implement this chapter.
	SUBCHAPTER B. DECEPTIVE MARKETING PROHIBITED
	Sec. 564.0101. PROHIBITED MARKETING TECHNIQUES. A person
	who issues or operates a plan, program, or arrangement to which this
	chapter applies or an agent or third party marketing the plan,
	program, or arrangement on behalf of the issuer or operator may not:
	(1) represent that a plan, program, or arrangement
	provides benefits that it does not provide;
	(2) sell or offer multiple plans, programs, or
	arrangements to an individual as part of a single transaction in a
	manner that is false, misleading, or deceptive;
	(3) use terms associated with health coverage
	regulated under the Patient Protection and Affordable Care Act
	(Pub. L. No. 111-148) in a manner that is false, misleading, or
	deceptive;
	(4) use terms associated with major medical coverage
	in a manner that is false, misleading, or deceptive;
	(5) represent that the federal open enrollment period
	applies to an excepted benefit plan or discount health care
	program;
	(6) misrepresent that a health insurance rate will
	change if the consumer does not make an immediate purchase;
	(7) fail to explain the difference in an excepted
	benefit plan and major medical coverage to a consumer;
	(8) solicit the sale of an insurance product to which
	this chapter applies through an Internet website, e-mail, printed
	advertisement, text message, phone call, or other means without
	identifying the agent's name and national producer number in a
	visible manner;
	(9) contact a prospective purchaser or participant
	without disclosing the employee's, agent's, or third party's name
	and national producer number, if applicable, at the start of the
	contact;
	(10) try to contact a prospective purchaser or
	participant by phone and fail to leave a voice mail message if it is
	possible to leave a voice mail message; or
	(11) use marketing media that has not been filed with
	the department.
	Sec. 564.0102. DUTY TO RECORD MARKETING CALLS. (a) An agent
	shall make an audio recording of each phone call marketing an
	insurance product to which this chapter applies.
	(b) An issuer of an insurance product to which this chapter
	applies shall retain the recording made under Subsection (a) for a
	time period determined by the department.
	Sec. 564.0103. REQUIREMENT TO PROVIDE CERTAIN INFORMATION.
	An issuer of an insurance product to which this chapter applies
	shall provide to the department on request:
	(1) a recording or a transcript of a recording made
	under Section 564.0102; or
	(2) a copy of a written communication soliciting the
	sale of a product to which this chapter applies sent by e-mail,
	text, Internet website, or other means.
	Sec. 564.0104. ADVERTISING FILING REQUIREMENTS. An issuer
	of an insurance product to which this chapter applies shall file for
	informational purposes with the department a copy of any sales or
	marketing materials for the product that the issuer intends to use
	in this state.
	Sec. 564.0105. VIOLATION. (a) If an issuer or operator
	holding a certificate of authority or license under this code or an
	agent or third party acting on behalf of the issuer or operator
	violates this chapter or a rule adopted under this chapter, the
	issuer or operator and the agent or third party commit an unfair
	practice in violation of Chapter 541 and the issuer or operator is
	subject to administrative penalties and other sanctions under
	Chapter 82.
	(b) If an issuer or operator that does not hold a
	certificate of authority or license under this code or an agent or
	third party acting on behalf of the issuer or operator violates this
	chapter or a rule adopted under this chapter, the issuer or operator
	and the agent or third party commit a false, misleading, or
	deceptive act or practice under Section 17.46, Business & Commerce
	Code.
	SECTION 2. This Act takes effect September 1, 2021.