1 | 1 | | S.B. No. 2423 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | AN ACT |
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5 | 5 | | relating to the transfer or sale of patient information or |
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6 | 6 | | prescription drug history by discount health care programs; |
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7 | 7 | | providing penalties. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Subdivisions (3) and (4), Section 76.001, Health |
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10 | 10 | | and Safety Code, are amended to read as follows: |
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11 | 11 | | (3) "Discount health care program" means a business |
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12 | 12 | | arrangement or contract in which an entity, in exchange for fees, |
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13 | 13 | | dues, charges, or other consideration, offers its members access to |
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14 | 14 | | discounts on health care services provided by health care |
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15 | 15 | | providers. The term does not include an insurance policy, |
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16 | 16 | | certificate of coverage, or other product regulated by the Texas |
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17 | 17 | | Department of Insurance or a self-funded or self-insured employee |
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18 | 18 | | benefit plan. For purposes of this subsection, consideration |
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19 | 19 | | includes patient information or patient prescription drug history |
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20 | 20 | | provided by members, if the entity engages in the transfer or sale |
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21 | 21 | | of such patient information, patient prescription drug history, or |
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22 | 22 | | drug manufacturer rebates. |
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23 | 23 | | (4) "Discount health care program operator" means a |
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24 | 24 | | person who, in exchange for fees, dues, charges, or other |
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25 | 25 | | consideration, operates a discount health care program and |
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26 | 26 | | contracts with providers, provider networks, or other discount |
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27 | 27 | | health care program operators to offer access to health care |
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28 | 28 | | services at a discount and determines the charge to members. For |
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29 | 29 | | purposes of this subsection, consideration includes patient |
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30 | 30 | | information or patient prescription drug history provided by |
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31 | 31 | | members, if the person engages in the transfer or sale of such |
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32 | 32 | | patient information, patient prescription drug history, or drug |
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33 | 33 | | manufacturer rebates. |
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34 | 34 | | SECTION 2. Section 76.053, Health and Safety Code, is |
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35 | 35 | | amended by adding Subsection (a-1) and amending Subsection (b) to |
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36 | 36 | | read as follows: |
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37 | 37 | | (a-1) If a program operator engages in the transfer or sale |
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38 | 38 | | of a member's patient information or patient prescription drug |
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39 | 39 | | history, the program operator shall, before enrollment, provide |
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40 | 40 | | each prospective member disclosure materials describing the |
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41 | 41 | | program operator's practices regarding such transfer or sale. |
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42 | 42 | | (b) A marketer shall use disclosure materials that comply |
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43 | 43 | | with this section [Subsection (a)]. |
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44 | 44 | | SECTION 3. Title 21, Insurance Code, is amended by adding |
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45 | 45 | | Chapter 7002 to read as follows: |
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46 | 46 | | CHAPTER 7002. SUPPLEMENTAL PROVISIONS RELATING TO DISCOUNT HEALTH |
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47 | 47 | | CARE OPERATORS |
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48 | 48 | | Sec. 7002.001. DEFINITION. For purposes of Chapters 562 |
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49 | 49 | | and 7001, Insurance Code, consideration provided to a discount |
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50 | 50 | | health care program or a discount health care program operator |
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51 | 51 | | includes patient information or patient prescription drug history |
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52 | 52 | | provided by members, if the entity engages in the transfer or sale |
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53 | 53 | | of such patient information, patient prescription drug history, or |
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54 | 54 | | drug manufacturer rebates. |
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55 | 55 | | Sec. 7002.002. REQUIRED DISCLOSURE. If a discount health |
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56 | 56 | | care program operator engages in the transfer or sale of a member's |
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57 | 57 | | patient information or patient prescription drug history, the |
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58 | 58 | | program operator shall, before enrollment, provide each |
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59 | 59 | | prospective member disclosure materials describing the program |
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60 | 60 | | operator's practices regarding such transfer or sale. |
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61 | 61 | | Sec. 7002.003. VIOLATION; PENALTIES. A violation of this |
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62 | 62 | | chapter may be enforced in the same manner as a violation of Chapter |
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63 | 63 | | 562 or 7001. |
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64 | 64 | | SECTION 4. (a) Sections 1 and 2 of this Act take effect |
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65 | 65 | | only if House Bill No. 4341 or Senate Bill No. 2339, Acts of the 81st |
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66 | 66 | | Legislature, Regular Session, 2009, or another Act of the 81st |
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67 | 67 | | Legislature, Regular Session, 2009, enacting Chapter 562 and Title |
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68 | 68 | | 21, Insurance Code, concerning discount health care programs is not |
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69 | 69 | | enacted or does not become law. |
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70 | 70 | | (b) Section 3 of this Act takes effect only if House Bill No. |
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71 | 71 | | 4341 or Senate Bill No. 2339, Acts of the 81st Legislature, Regular |
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72 | 72 | | Session, 2009, or another Act of the 81st Legislature, Regular |
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73 | 73 | | Session, 2009, enacting Chapter 562 and Title 21, Insurance Code, |
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74 | 74 | | concerning discount health care programs is enacted and becomes |
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75 | 75 | | law. |
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76 | 76 | | SECTION 5. This Act takes effect September 1, 2009. |
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77 | 77 | | ______________________________ ______________________________ |
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78 | 78 | | President of the Senate Speaker of the House |
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79 | 79 | | I hereby certify that S.B. No. 2423 passed the Senate on |
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80 | 80 | | May 1, 2009, by the following vote: Yeas 31, Nays 0; |
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81 | 81 | | May 21, 2009, Senate refused to concur in House amendments and |
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82 | 82 | | requested appointment of Conference Committee; May 23, 2009, House |
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83 | 83 | | granted request of the Senate; May 30, 2009, Senate adopted |
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84 | 84 | | Conference Committee Report by the following vote: Yeas 31, |
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85 | 85 | | Nays 0. |
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86 | 86 | | ______________________________ |
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87 | 87 | | Secretary of the Senate |
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88 | 88 | | I hereby certify that S.B. No. 2423 passed the House, with |
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89 | 89 | | amendments, on May 15, 2009, by the following vote: Yeas 144, |
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90 | 90 | | Nays 0, one present not voting; May 23, 2009, House granted request |
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91 | 91 | | of the Senate for appointment of Conference Committee; |
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92 | 92 | | May 28, 2009, House adopted Conference Committee Report by the |
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93 | 93 | | following vote: Yeas 141, Nays 0, two present not voting. |
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94 | 94 | | ______________________________ |
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95 | 95 | | Chief Clerk of the House |
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96 | 96 | | Approved: |
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97 | 97 | | ______________________________ |
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98 | 98 | | Date |
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99 | 99 | | ______________________________ |
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100 | 100 | | Governor |
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