Bill Text: TX SB457 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to disclosure requirements for health benefit plans and health expense arrangements marketed to individuals.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2023-02-17 - Referred to Health & Human Services [SB457 Detail]

Download: Texas-2023-SB457-Introduced.html

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88R1760 SCL-D
By: Menéndez S.B. No. 457

A BILL TO BE ENTITLED
AN ACT
relating to disclosure requirements for health benefit plans and
health expense arrangements marketed to individuals.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 8, Insurance Code, is amended
by adding Chapter 1223 to read as follows:
CHAPTER 1223. MANDATORY DISCLOSURES FOR CERTAIN HEALTH BENEFIT
PLANS AND HEALTH EXPENSE ARRANGEMENTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1223.001. DEFINITION. In this chapter, "issuer" means
a person who markets, sells, issues, or operates a health benefit
plan or health expense arrangement governed by this chapter.
Sec. 1223.002. APPLICABILITY. Except as provided by
Section 1223.003 but notwithstanding any other law, this chapter
applies to a health benefit plan or health expense arrangement
marketed to an individual to provide health benefit coverage or pay
for health care expenses, 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 that is marketed to an individual;
(3) individual health maintenance organization
coverage;
(4) a health care sharing ministry operated under
Chapter 1681;
(5) a discount health care program governed by Chapter
7001;
(6) a direct primary care arrangement governed by
Subchapter F, Chapter 162, Occupations Code; or
(7) any other plan or arrangement the commissioner
determines is or could be marketed to an individual as an
alternative or supplement to an employer-provided health benefit
plan or health benefit plan coverage regulated under the Patient
Protection and Affordable Care Act (Pub. L. No. 111-148).
Sec. 1223.003. EXCEPTION. This chapter does not apply to a
health benefit plan or health expense arrangement if:
(1) the issuer is required to submit a summary of
benefits and coverage for the plan or arrangement to the United
States secretary of health and human services under 42 U.S.C.
Section 300gg-15; or
(2) the issuer is required to provide a disclosure
form for the plan or arrangement under Section 1509.002.
Sec. 1223.004. RULES. The commissioner may adopt rules
necessary to implement this chapter.
SUBCHAPTER B. DISCLOSURE REQUIRED
Sec. 1223.051. DISCLOSURE FORM TEMPLATE. (a) The
commissioner by rule shall prescribe a disclosure form template for
each type of health benefit plan or health expense arrangement to
which this chapter applies.
(b) The commissioner shall ensure that the disclosure form
template is presented in plain language and in a standardized
format designed to facilitate consumer understanding.
(c) The commissioner may prescribe as many disclosure form
templates as necessary to account for each type of health benefit
plan or health expense arrangement.
(d) Except as provided by Subsection (e), the disclosure
form template must include the following information that is
tailored to the type of health benefit plan or health expense
arrangement described by the template:
(1) a statement:
(A) of whether the plan or arrangement is
insurance; and
(B) of what, if any, guarantees are made of
payment for health care services;
(2) the duration of coverage;
(3) a statement:
(A) of whether:
(i) the plan or arrangement may be renewed
at the option of the enrollee or participant with no new
underwriting;
(ii) the plan or arrangement is only able to
be renewed at the option of the issuer after underwriting; or
(iii) the plan or arrangement may not be
renewed;
(B) of whether, on renewal, the issuer is able
to:
(i) increase the premium or assess a direct
fee, contribution, or similar cost; or
(ii) make changes to the plan or
arrangement terms, including benefits and limits, based on an
individual's health status;
(C) that the expiration of the plan or
arrangement is not a qualifying life event that would make a person
eligible for a special enrollment period, if applicable; and
(D) that the plan or arrangement may expire
outside of the open enrollment period under the Patient Protection
and Affordable Care Act (Pub. L. No. 111-148);
(4) to the extent the information is available, the
dates of the next three open enrollment periods under the Patient
Protection and Affordable Care Act (Pub. L. No. 111-148) following
the date the plan or arrangement expires;
(5) whether the plan or arrangement contains any
limitations or exclusions to preexisting conditions;
(6) the maximum dollar amount payable under the plan
or arrangement;
(7) the deductibles under the plan or arrangement and
the health care services to which the deductibles apply;
(8) whether the following health care services are
covered and any limits to the coverage:
(A) prescription drugs;
(B) mental health services;
(C) substance abuse treatment;
(D) maternity care;
(E) hospitalization;
(F) surgery;
(G) emergency health care; and
(H) preventive health care;
(9) for a plan or arrangement other than a
traditional, major medical health benefit plan, information on
unique aspects of the plan or arrangement and how it differs from
traditional, major medical coverage that the commissioner
determines is important to facilitate consumer understanding; and
(10) any other information the commissioner
determines is important for a purchaser of or participant in a plan
or arrangement.
(e) The commissioner may omit information described by
Subsection (d) in a disclosure form template if the information is
inapplicable to the type of plan or arrangement for which the
template is prescribed.
Sec. 1223.052. DISCLOSURE FORM REVIEW. (a) Before an
issuer may sell, market, or provide a health benefit plan or health
expense arrangement to a consumer, the issuer shall submit to the
department for approval in the manner prescribed by commissioner
rule a disclosure form for each plan or arrangement offered by the
issuer.
(b) Except as provided by Subsection (c), the disclosure
form must use the disclosure form template prescribed by the
commissioner under Section 1223.051 for the health benefit plan or
health expense arrangement described by the form.
(c) An issuer may modify the disclosure form template for a
health benefit plan or health expense arrangement that is not able
to be accurately represented by the template. If the issuer
modifies the template, the issuer shall clearly identify any
changes made and explain the reason for those changes when the
issuer submits the form for approval under Subsection (a).
(d) The department shall approve a disclosure form if the
form uses the appropriate disclosure form template and accurately
describes the health benefit plan or health expense arrangement in
a manner that is easily understandable to a consumer.
Sec. 1223.053. DISCLOSURE TO CONSUMER. (a) An issuer shall
provide to a consumer the disclosure form approved under Section
1223.052:
(1) before the earliest of the time that the consumer
completes an application, makes an initial premium payment, or
makes any other payment in connection with coverage under or
participation in the health benefit plan or health expense
arrangement; and
(2) at the time the policy, certificate, or
arrangement is issued or entered into.
(b) An issuer shall ensure that a consumer signs the
disclosure form before the issuer accepts an application or
payment for or issues or enters into the health benefit plan or
health expense arrangement. An electronic signature must comply
with Chapter 35 and rules adopted under this chapter.
Sec. 1223.054. RETENTION. An issuer shall retain a signed
disclosure form until the fifth anniversary of the date the issuer
receives the form, and the issuer shall make the form available to
the department on request.
Sec. 1223.055. HEALTH CARE SHARING MINISTRIES. The
commissioner shall consult with the attorney general in prescribing
the disclosure form template applicable to a health care sharing
ministry, and the template must incorporate the notice described by
Section 1681.002.
Sec. 1223.056. DIRECT PRIMARY CARE ARRANGEMENTS. The
commissioner shall consult with the Texas Medical Board in
prescribing the disclosure form template applicable to a direct
primary care arrangement, and the template must incorporate the
disclosure required by Section 162.256, Occupations Code.
Sec. 1223.057. ENFORCEMENT. The department may take an
enforcement action under Subtitle B, Title 2, against an issuer
that violates this chapter.
SECTION 2. Not later than January 1, 2024, the commissioner
of insurance shall adopt rules necessary to implement Chapter 1223,
Insurance Code, as added by this Act.
SECTION 3. Chapter 1223, Insurance Code, as added by this
Act, applies only to a health benefit plan or health expense
arrangement delivered, issued for delivery, entered into, or
renewed on or after January 1, 2024.
SECTION 4. This Act takes effect September 1, 2023.