Texas House Bill HB2118

Texas 2021 - 87th Regular

Caption

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

Impact

If enacted, HB2118 will impose regulations on health benefit plans and insurance products that discriminate based on health status or limit coverage for preexisting conditions. The bill's framing will likely impact how insurance companies and their agents market their products, enhancing consumer rights and providing clear guidelines on permissible marketing practices. This legislative change aims to ensure that consumers are informed and protected from potential fraud in the healthcare market.

Summary

House Bill 2118 addresses the deceptive marketing practices related to certain health plans, programs, and arrangements. The bill aims to provide greater protections for consumers by prohibiting misleading representations about health coverage. It includes stipulations against selling multiple plans in a deceptive manner and restricts the usage of terms associated with the Affordable Care Act in misleading contexts. Additionally, the bill mandates that marketing calls be recorded and maintained for accountability.

Contention

There might be contention surrounding HB2118 regarding the balance between regulation and the freedom of businesses to market their products. While proponents will argue it's necessary to protect consumers from exploitation by providing a clear regulatory framework, opponents may contend that it could lead to increased compliance burdens on insurers, potentially raising costs for consumers. The extent to which the bill could affect the operational dynamics of health insurance marketing will be a focal point of debates.