Texas House Bill HB4341

Texas 2009 - 81st Regular

• Out of House Committee: 4/23/09
• Voted on by House: 5/6/09
• Out of Senate Committee: 5/15/09
• Voted on by Senate: 5/19/09
• Governor Action: 6/19/09
• Enrolled: 5/25/09
• Passed: 6/19/09

Caption

Relating to the regulation of discount health care programs by the Texas Department of Insurance; providing penalties.

Impact

The enactment of HB4341 will impact how discount health care programs operate in Texas. It mandates that these programs comply with new rules designed to protect consumers from unfair practices. Operators will have to maintain transparency by clearly stating the nature of the services provided, such as the fact that they are not insurance products. Penalties for non-compliance can include civil penalties and the possibility of injunctions against deceptive marketing practices. This regulatory framework is expected to foster a more regulated and safer environment for consumers seeking discount health care services.

Summary

House Bill 4341 aims to regulate discount health care programs in Texas by establishing guidelines set by the Texas Department of Insurance. The bill defines discount health care programs as business arrangements where entities offer discounts on health care services to members, in exchange for fees. To prevent misunderstandings, the bill explicitly states that these programs are not classified as insurance. Key provisions include the requirement for program operators to register with the state and adhere to specific marketing and operational standards.

Contention

Despite the bill's intent to enhance consumer protection, there are points of contention among stakeholders regarding its implications. Some industry representatives argue that the added regulatory burden could stifle competition and limit choices for consumers. Conversely, consumer advocates support the bill, emphasizing the need for safeguards against misleading claims in a fragmented market where consumers often struggle to understand the differences between insurance and discount health care offerings. Overall, the bill seeks to strike a balance between consumer protection and market viability.