Bill Text: TX SB1442 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to regulation of health care sharing ministries; providing civil penalties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-18 - Referred to Business & Commerce [SB1442 Detail]
Download: Texas-2021-SB1442-Introduced.html
87R4862 SCL-F | ||
By: Campbell | S.B. No. 1442 |
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relating to regulation of health care sharing ministries; providing | ||
civil penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 1681, Insurance Code, is amended by | ||
designating Sections 1681.001 through 1681.003 as Subchapter A and | ||
adding a subchapter heading to read as follows: | ||
SUBCHAPTER A. HEALTH CARE SHARING MINISTRY REQUIREMENTS | ||
SECTION 2. Sections 1681.001 and 1681.002, Insurance Code, | ||
are amended to read as follows: | ||
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 expenses [ |
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participants [ |
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medical expenses [ |
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the health care sharing ministry; | ||
(3) provides for the satisfaction of the medical | ||
expenses [ |
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participant to another, including through collected contributions | ||
or from participant contributions collected by the health care | ||
sharing ministry; | ||
(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 [ |
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participants that lists the total dollar amount of qualified | ||
eligible sharing requests [ |
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sharing ministry, as well as the amount actually shared with | ||
[ |
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(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; [ |
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(9) does not operate a discount health care program as | ||
defined by Section 7001.001; | ||
(10) is exempt from federal taxation under 26 U.S.C. | ||
Section 501(a) by being described by Section 501(c)(3) of that | ||
code; | ||
(11) ensures that a participant retains membership | ||
regardless of whether the participant develops a medical condition; | ||
(12) has been or a predecessor of the health care | ||
sharing ministry has been in existence at all times since December | ||
31, 1999, and medical expenses of its participants have been shared | ||
continuously and without interruption since at least December 31, | ||
1999; | ||
(13) performs an annual audit that is: | ||
(A) conducted by an independent certified public | ||
accounting firm in accordance with generally accepted accounting | ||
principles; and | ||
(B) made available to the public on request; and | ||
(14) has received a written confirmation from the | ||
Centers for Medicare and Medicaid Services that verifies that the | ||
health care sharing ministry satisfies federal qualifications for a | ||
health care sharing ministry. | ||
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 | ||
expenses [ |
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participant will be compelled by law to contribute toward your | ||
medical expenses [ |
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a subscription to any of its documents should never be considered to | ||
be insurance. Regardless of whether you receive any payment for | ||
medical expenses, whether any payment is made to a health care | ||
provider on your behalf from collected contributions, or whether | ||
this ministry continues to operate, you are always personally | ||
responsible for the payment of your own medical expenses [ |
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Complaints concerning this health care sharing ministry may be | ||
reported to the office of the Texas attorney general." | ||
SECTION 3. Subchapter A, Chapter 1681, Insurance Code, as | ||
added by this Act, is amended by adding Section 1681.004 to read as | ||
follows: | ||
Sec. 1681.004. CONTRACTING AUTHORITY. A health care | ||
sharing ministry may: | ||
(1) contract and negotiate with health care providers | ||
and provider networks for the purpose of lowering medical expenses | ||
for sharing among members; and | ||
(2) contract with a discount health care program | ||
registered in this state to provide participants with access to | ||
discounts on health care services provided by health care providers | ||
if the health care sharing ministry does not act as a program | ||
operator as defined by Section 7001.001. | ||
SECTION 4. Chapter 1681, Insurance Code, is amended by | ||
adding Subchapter B to read as follows: | ||
SUBCHAPTER B. ENFORCEMENT | ||
Sec. 1681.051. ATTORNEY GENERAL JURISDICTION. The attorney | ||
general has: | ||
(1) the exclusive authority to determine whether an | ||
organization qualifies for treatment as a health care sharing | ||
ministry under this chapter; and | ||
(2) exclusive jurisdiction and enforcement authority | ||
over all complaints and compliance issues concerning health care | ||
sharing ministries. | ||
Sec. 1681.052. DECEPTIVE TRADE PRACTICE. A person or | ||
organization that operates a health care sharing ministry that is | ||
not qualified as a health care sharing ministry under this chapter | ||
is considered to engage in a false, misleading, or deceptive act or | ||
practice in violation of Section 17.46, Business & Commerce Code. | ||
Sec. 1681.053. CIVIL PENALTY. In addition to requesting a | ||
temporary or permanent injunction against a person or organization | ||
that violates Section 17.46, Business & Commerce Code, as described | ||
by Section 1681.052, the attorney general may request a civil | ||
penalty of not more than $20,000 for each violation. | ||
Sec. 1681.054. REMEDIES NOT EXCLUSIVE. The remedies | ||
provided by this subchapter are: | ||
(1) not exclusive; and | ||
(2) in addition to any other remedy or procedure | ||
provided by another law or at common law. | ||
SECTION 5. This Act takes effect September 1, 2021. |