81R2451 PMO-F
By: Chisum H.B. No. 1077
A BILL TO BE ENTITLED
AN ACT
relating to the operation of health care sharing ministries.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Members of health care sharing ministries
voluntarily assist fellow members with the payment of medical
expenses. In many instances, health care sharing ministries
provide assistance to individuals who are without health insurance
coverage and, in doing so, provide important services that the
state would otherwise have to provide. Due to their beneficial work
and religious nature, health care sharing ministries should be
statutorily recognized as religious organizations helping to
fulfill the religious beliefs of ministry members and should not be
treated in the same manner as secular health care coverages,
including insurance.
SECTION 2. Title 8, Insurance Code, is amended by adding
Subtitle K to read as follows:
SUBTITLE K. NONINSURANCE HEALTH COVERAGES
CHAPTER 1680. HEALTH CARE SHARING MINISTRIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1680.001. SHORT TITLE. This chapter may be cited as
the Health Care Sharing Ministries Freedom to Share Act.
Sec. 1680.002. DEFINITION. In this chapter, "health care
sharing ministry" means:
(1) a health care cost sharing arrangement among
individuals of the same religion based on the individuals'
sincerely held religious beliefs and administered by a nonprofit
religious organization; or
(2) a faith-based, nonprofit organization that is tax
exempt under the Internal Revenue Code of 1986 and that:
(A) limits membership in the organization to
individuals of a similar faith;
(B) acts as a facilitator among members who have
financial or medical-related needs and members with the present
ability to assist those with financial or medical needs, all in
accordance with the organization's criteria, through payments from
one member to another;
(C) notifies members of amounts that members may
contribute; and
(D) provides a written monthly statement to all
members listing the total dollar amount of qualified needs
submitted to the organization as well as the total dollar amount
actually assigned to members for contribution.
Sec. 1680.003. CONSTRUCTION WITH OTHER LAW. (a) Chapter
76, Health and Safety Code, does not apply to a health care sharing
ministry.
(b) Notwithstanding any other provision of this code, a
health care sharing ministry is exempt from the operation of the
insurance laws of this state and is not subject to the
commissioner's oversight.
Sec. 1680.004. ENFORCEMENT BY ATTORNEY GENERAL.
Notwithstanding any other law, the office of the attorney general
has jurisdiction over health care sharing ministries to ensure
compliance with this chapter and for:
(1) the prevention and prosecution of deceptive trade
practices and fraud; and
(2) consumer protection.
Sec. 1680.005. NO ASSUMPTION OF RISK. (a) Members of a
health care sharing ministry do not assume any risk or make any
promise to pay the financial or medical needs of other members by
contributing to the ministry.
(b) A health care sharing ministry does not assume any risk
or make any promise to pay the financial or medical needs of a
member by accepting contributions from other members.
[Sections 1680.006-1680.050 reserved for expansion]
SUBCHAPTER B. OPERATION OF MINISTRIES
Sec. 1680.051. NOTICE REQUIRED. Each application for
membership in a health care sharing ministry distributed directly
or on behalf of a health care sharing ministry must include a notice
that is printed in no smaller than 12-point font and that reads
substantially as follows:
"This health care sharing ministry is not offering an
insurance product and is not being offered by or
through an insurance company. This health care
sharing ministry is also not offering a discount
health care plan. Whether anyone chooses to assist you
with your medical bills is voluntary, as no other
member may be compelled to contribute toward your
medical bills. This health care sharing ministry
program is not insurance or a substitute for
insurance. Whether you receive any payments for
medical expenses and whether this health care sharing
ministry program continues to operate, you remain, to
the extent allowable under law, personally and fully
responsible for the payment of your own medical
bills."
Sec. 1680.052. ACKNOWLEDGMENT OF NOTICE; RETENTION. (a) A
health care sharing ministry shall require any adult member to sign
an acknowledgment that the member has read and understands the
notice described by Section 1680.051. The signature of an adult
member constitutes acceptance for any child of the member who is a
minor or dependent of the member.
(b) A health care sharing ministry shall retain the signed
acknowledgment described by Subsection (a) until the second
anniversary of the last date the member retains membership in the
health care sharing ministry.
Sec. 1680.053. PAYMENT AMONG MEMBERS. The means of payment
among members may include electronic transfer or a trust
established solely for the benefit of members that is audited
annually by an independent auditing firm.
Sec. 1680.054. COLLATERAL SHARING ACTIVITIES. A health
care sharing ministry may provide:
(1) for members to share in bills when members
experience disability; and
(2) health counseling, education, and resources to
ministry members.
SECTION 3. Section 101.055(a), Insurance Code, is amended
to read as follows:
(a) Section 101.051(b)(7) does not apply to:
(1) a program otherwise authorized by law that is
established:
(A) by a political subdivision of this state;
(B) by a state agency; or
(C) under Chapter 791, Government Code; [or]
(2) a multiple employer welfare arrangement that is
fully insured as defined by 29 U.S.C. Section 1144(b)(6); or
(3) a health care sharing ministry operated under
Chapter 1680.
SECTION 4. Section 76.002, Health and Safety Code, is
amended to read as follows:
Sec. 76.002. CONSTRUCTION WITH [APPLICABILITY OF] OTHER
LAW. (a) In addition to the requirements of this chapter, a
program operator or marketer is subject to the applicable consumer
protection laws under Chapter 17, Business & Commerce Code.
(b) This chapter does not apply to a health care sharing
ministry operated under Chapter 1680, Insurance Code.
SECTION 5. 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, 2009.