S.B. No. 2423
AN ACT
relating to the transfer or sale of patient information or
prescription drug history by discount health care programs;
providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subdivisions (3) and (4), Section 76.001, Health
and Safety Code, are amended to read as follows:
(3) "Discount health care program" means a business
arrangement or contract in which an entity, in exchange for fees,
dues, charges, or other consideration, offers its members access to
discounts on health care services provided by health care
providers. The term does not include an insurance policy,
certificate of coverage, or other product regulated by the Texas
Department of Insurance or a self-funded or self-insured employee
benefit plan. For purposes of this subsection, consideration
includes patient information or patient prescription drug history
provided by members, if the entity engages in the transfer or sale
of such patient information, patient prescription drug history, or
drug manufacturer rebates.
(4) "Discount health care program operator" means a
person who, in exchange for fees, dues, charges, or other
consideration, operates a discount health care program and
contracts with providers, provider networks, or other discount
health care program operators to offer access to health care
services at a discount and determines the charge to members. For
purposes of this subsection, consideration includes patient
information or patient prescription drug history provided by
members, if the person engages in the transfer or sale of such
patient information, patient prescription drug history, or drug
manufacturer rebates.
SECTION 2. Section 76.053, Health and Safety Code, is
amended by adding Subsection (a-1) and amending Subsection (b) to
read as follows:
(a-1) If a program operator engages in the transfer or sale
of a member's patient information or patient prescription drug
history, the program operator shall, before enrollment, provide
each prospective member disclosure materials describing the
program operator's practices regarding such transfer or sale.
(b) A marketer shall use disclosure materials that comply
with this section [Subsection (a)].
SECTION 3. Title 21, Insurance Code, is amended by adding
Chapter 7002 to read as follows:
CHAPTER 7002. SUPPLEMENTAL PROVISIONS RELATING TO DISCOUNT HEALTH
CARE OPERATORS
Sec. 7002.001. DEFINITION. For purposes of Chapters 562
and 7001, Insurance Code, consideration provided to a discount
health care program or a discount health care program operator
includes patient information or patient prescription drug history
provided by members, if the entity engages in the transfer or sale
of such patient information, patient prescription drug history, or
drug manufacturer rebates.
Sec. 7002.002. REQUIRED DISCLOSURE. If a discount health
care program operator engages in the transfer or sale of a member's
patient information or patient prescription drug history, the
program operator shall, before enrollment, provide each
prospective member disclosure materials describing the program
operator's practices regarding such transfer or sale.
Sec. 7002.003. VIOLATION; PENALTIES. A violation of this
chapter may be enforced in the same manner as a violation of Chapter
562 or 7001.
SECTION 4. (a) Sections 1 and 2 of this Act take effect
only if House Bill No. 4341 or Senate Bill No. 2339, Acts of the 81st
Legislature, Regular Session, 2009, or another Act of the 81st
Legislature, Regular Session, 2009, enacting Chapter 562 and Title
21, Insurance Code, concerning discount health care programs is not
enacted or does not become law.
(b) Section 3 of this Act takes effect only if House Bill No.
4341 or Senate Bill No. 2339, Acts of the 81st Legislature, Regular
Session, 2009, or another Act of the 81st Legislature, Regular
Session, 2009, enacting Chapter 562 and Title 21, Insurance Code,
concerning discount health care programs is enacted and becomes
law.
SECTION 5. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2423 passed the Senate on
May 1, 2009, by the following vote: Yeas 31, Nays 0;
May 21, 2009, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 23, 2009, House
granted request of the Senate; May 30, 2009, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2423 passed the House, with
amendments, on May 15, 2009, by the following vote: Yeas 144,
Nays 0, one present not voting; May 23, 2009, House granted request
of the Senate for appointment of Conference Committee;
May 28, 2009, House adopted Conference Committee Report by the
following vote: Yeas 141, Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor