Texas 2021 - 87th Regular

Texas House Bill HB2118 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R5461 MWC-D
2	2	By: Lucio III H.B. No. 2118
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to deceptive marketing of certain health plans, programs,
8	8	and arrangements; authorizing an administrative penalty.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle C, Title 5, Insurance Code, is amended
11	11	by adding Chapter 564 to read as follows:
12	12	CHAPTER 564. PROHIBITED PRACTICES RELATING TO MARKETING OF CERTAIN
13	13	HEALTH PLANS, PROGRAMS, AND ARRANGEMENTS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 564.0001. APPLICABILITY. This chapter applies to a
16	16	health benefit plan, health care program, or health expense
17	17	arrangement that provides health benefit coverage or otherwise pays
18	18	for, reimburses, or discounts health care expenses and that
19	19	excludes or limits coverage for preexisting conditions,
20	20	discriminates based on health-status related factors, or does not
21	21	provide essential health benefits required under 42 U.S.C. Section
22	22	18022, including:
23	23	(1) an individual accident and health insurance policy
24	24	governed by Chapter 1201;
25	25	(2) a group accident and health insurance policy
26	26	governed by Chapter 1251;
27	27	(3) a short-tem limited-duration insurance policy
28	28	governed by Chapter 1509;
29	29	(4) a health care sharing ministry operated under
30	30	Chapter 1681;
31	31	(5) a discount health care program governed by Chapter
32	32	7001; or
33	33	(6) a direct primary care arrangement governed by
34	34	Subchapter F, Chapter 162, Occupations Code.
35	35	Sec. 564.0002. RULES. The commissioner may adopt rules
36	36	necessary to implement this chapter.
37	37	SUBCHAPTER B. DECEPTIVE MARKETING PROHIBITED
38	38	Sec. 564.0101. PROHIBITED MARKETING TECHNIQUES. A person
39	39	who issues or operates a plan, program, or arrangement to which this
40	40	chapter applies or an agent or third party marketing the plan,
41	41	program, or arrangement on behalf of the issuer or operator may not:
42	42	(1) represent that a plan, program, or arrangement
43	43	provides benefits that it does not provide;
44	44	(2) sell or offer multiple plans, programs, or
45	45	arrangements to an individual as part of a single transaction in a
46	46	manner that is false, misleading, or deceptive;
47	47	(3) use terms associated with health coverage
48	48	regulated under the Patient Protection and Affordable Care Act
49	49	(Pub. L. No. 111-148) in a manner that is false, misleading, or
50	50	deceptive;
51	51	(4) use terms associated with major medical coverage
52	52	in a manner that is false, misleading, or deceptive;
53	53	(5) represent that the federal open enrollment period
54	54	applies to an excepted benefit plan or discount health care
55	55	program;
56	56	(6) misrepresent that a health insurance rate will
57	57	change if the consumer does not make an immediate purchase;
58	58	(7) fail to explain the difference in an excepted
59	59	benefit plan and major medical coverage to a consumer;
60	60	(8) solicit the sale of an insurance product to which
61	61	this chapter applies through an Internet website, e-mail, printed
62	62	advertisement, text message, phone call, or other means without
63	63	identifying the agent's name and national producer number in a
64	64	visible manner;
65	65	(9) contact a prospective purchaser or participant
66	66	without disclosing the employee's, agent's, or third party's name
67	67	and national producer number, if applicable, at the start of the
68	68	contact;
69	69	(10) try to contact a prospective purchaser or
70	70	participant by phone and fail to leave a voice mail message if it is
71	71	possible to leave a voice mail message; or
72	72	(11) use marketing media that has not been filed with
73	73	the department.
74	74	Sec. 564.0102. DUTY TO RECORD MARKETING CALLS. (a) An agent
75	75	shall make an audio recording of each phone call marketing an
76	76	insurance product to which this chapter applies.
77	77	(b) An issuer of an insurance product to which this chapter
78	78	applies shall retain the recording made under Subsection (a) for a
79	79	time period determined by the department.
80	80	Sec. 564.0103. REQUIREMENT TO PROVIDE CERTAIN INFORMATION.
81	81	An issuer of an insurance product to which this chapter applies
82	82	shall provide to the department on request:
83	83	(1) a recording or a transcript of a recording made
84	84	under Section 564.0102; or
85	85	(2) a copy of a written communication soliciting the
86	86	sale of a product to which this chapter applies sent by e-mail,
87	87	text, Internet website, or other means.
88	88	Sec. 564.0104. ADVERTISING FILING REQUIREMENTS. An issuer
89	89	of an insurance product to which this chapter applies shall file for
90	90	informational purposes with the department a copy of any sales or
91	91	marketing materials for the product that the issuer intends to use
92	92	in this state.
93	93	Sec. 564.0105. VIOLATION. (a) If an issuer or operator
94	94	holding a certificate of authority or license under this code or an
95	95	agent or third party acting on behalf of the issuer or operator
96	96	violates this chapter or a rule adopted under this chapter, the
97	97	issuer or operator and the agent or third party commit an unfair
98	98	practice in violation of Chapter 541 and the issuer or operator is
99	99	subject to administrative penalties and other sanctions under
100	100	Chapter 82.
101	101	(b) If an issuer or operator that does not hold a
102	102	certificate of authority or license under this code or an agent or
103	103	third party acting on behalf of the issuer or operator violates this
104	104	chapter or a rule adopted under this chapter, the issuer or operator
105	105	and the agent or third party commit a false, misleading, or
106	106	deceptive act or practice under Section 17.46, Business & Commerce
107	107	Code.
108	108	SECTION 2. This Act takes effect September 1, 2021.