Texas 2021 - 87th Regular

Texas Senate Bill SB1442 Compare Versions

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

Old	New	Differences
1	1	87R4862 SCL-F
2	2	By: Campbell S.B. No. 1442
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to regulation of health care sharing ministries; providing
8	8	civil penalties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 1681, Insurance Code, is amended by
11	11	designating Sections 1681.001 through 1681.003 as Subchapter A and
12	12	adding a subchapter heading to read as follows:
13	13	SUBCHAPTER A. HEALTH CARE SHARING MINISTRY REQUIREMENTS
14	14	SECTION 2. Sections 1681.001 and 1681.002, Insurance Code,
15	15	are amended to read as follows:
16	16	Sec. 1681.001. TREATMENT AS HEALTH CARE SHARING MINISTRY.
17	17	A faith-based, nonprofit organization that is tax-exempt under the
18	18	Internal Revenue Code of 1986 qualifies for treatment as a health
19	19	care sharing ministry under this chapter if it:
20	20	(1) limits its participants to individuals of a
21	21	similar faith;
22	22	(2) acts as a facilitator among participants who have
23	23	medical expenses [bills] and matches those participants with other
24	24	participants [with the present ability] to assist those with
25	25	medical expenses [bills] in accordance with criteria established by
26	26	the health care sharing ministry;
27	27	(3) provides for the satisfaction of the medical
28	28	expenses [bills] of a participant through contributions from one
29	29	participant to another, including through collected contributions
30	30	or from participant contributions collected by the health care
31	31	sharing ministry;
32	32	(4) provides amounts that participants may contribute
33	33	with no assumption of risk or promise to pay among the participants
34	34	and no assumption of risk or promise to pay by the health care
35	35	sharing ministry to the participants;
36	36	(5) provides a [written] monthly statement to all
37	37	participants that lists the total dollar amount of qualified
38	38	eligible sharing requests [needs] submitted to the health care
39	39	sharing ministry, as well as the amount actually shared with
40	40	[published or assigned to] participants for their contribution;
41	41	(6) discloses administrative fees and costs to
42	42	participants;
43	43	(7) provides that any card issued to a participant for
44	44	the purpose of presentation to a health care provider clearly
45	45	indicates that the participant is part of a health care sharing
46	46	ministry that is not engaging in the business of insurance;
47	47	(8) provides a written disclaimer on or accompanying
48	48	all applications and guideline materials distributed by or on
49	49	behalf of the ministry that complies with Section 1681.002; [and]
50	50	(9) does not operate a discount health care program as
51	51	defined by Section 7001.001;
52	52	(10) is exempt from federal taxation under 26 U.S.C.
53	53	Section 501(a) by being described by Section 501(c)(3) of that
54	54	code;
55	55	(11) ensures that a participant retains membership
56	56	regardless of whether the participant develops a medical condition;
57	57	(12) has been or a predecessor of the health care
58	58	sharing ministry has been in existence at all times since December
59	59	31, 1999, and medical expenses of its participants have been shared
60	60	continuously and without interruption since at least December 31,
61	61	1999;
62	62	(13) performs an annual audit that is:
63	63	(A) conducted by an independent certified public
64	64	accounting firm in accordance with generally accepted accounting
65	65	principles; and
66	66	(B) made available to the public on request; and
67	67	(14) has received a written confirmation from the
68	68	Centers for Medicare and Medicaid Services that verifies that the
69	69	health care sharing ministry satisfies federal qualifications for a
70	70	health care sharing ministry.
71	71	Sec. 1681.002. NOTICE. To qualify as a health care sharing
72	72	ministry under this chapter, the notice described by Section
73	73	1681.001(8) must read substantially as follows:
74	74	"Notice: This health care sharing ministry facilitates the
75	75	sharing of medical expenses and is not an insurance company, and
76	76	neither its guidelines nor its plan of operation is an insurance
77	77	policy. Whether anyone chooses to assist you with your medical
78	78	expenses [bills] will be totally voluntary because no other
79	79	participant will be compelled by law to contribute toward your
80	80	medical expenses [bills]. As such, participation in the ministry or
81	81	a subscription to any of its documents should never be considered to
82	82	be insurance. Regardless of whether you receive any payment for
83	83	medical expenses, whether any payment is made to a health care
84	84	provider on your behalf from collected contributions, or whether
85	85	this ministry continues to operate, you are always personally
86	86	responsible for the payment of your own medical expenses [bills].
87	87	Complaints concerning this health care sharing ministry may be
88	88	reported to the office of the Texas attorney general."
89	89	SECTION 3. Subchapter A, Chapter 1681, Insurance Code, as
90	90	added by this Act, is amended by adding Section 1681.004 to read as
91	91	follows:
92	92	Sec. 1681.004. CONTRACTING AUTHORITY. A health care
93	93	sharing ministry may:
94	94	(1) contract and negotiate with health care providers
95	95	and provider networks for the purpose of lowering medical expenses
96	96	for sharing among members; and
97	97	(2) contract with a discount health care program
98	98	registered in this state to provide participants with access to
99	99	discounts on health care services provided by health care providers
100	100	if the health care sharing ministry does not act as a program
101	101	operator as defined by Section 7001.001.
102	102	SECTION 4. Chapter 1681, Insurance Code, is amended by
103	103	adding Subchapter B to read as follows:
104	104	SUBCHAPTER B. ENFORCEMENT
105	105	Sec. 1681.051. ATTORNEY GENERAL JURISDICTION. The attorney
106	106	general has:
107	107	(1) the exclusive authority to determine whether an
108	108	organization qualifies for treatment as a health care sharing
109	109	ministry under this chapter; and
110	110	(2) exclusive jurisdiction and enforcement authority
111	111	over all complaints and compliance issues concerning health care
112	112	sharing ministries.
113	113	Sec. 1681.052. DECEPTIVE TRADE PRACTICE. A person or
114	114	organization that operates a health care sharing ministry that is
115	115	not qualified as a health care sharing ministry under this chapter
116	116	is considered to engage in a false, misleading, or deceptive act or
117	117	practice in violation of Section 17.46, Business & Commerce Code.
118	118	Sec. 1681.053. CIVIL PENALTY. In addition to requesting a
119	119	temporary or permanent injunction against a person or organization
120	120	that violates Section 17.46, Business & Commerce Code, as described
121	121	by Section 1681.052, the attorney general may request a civil
122	122	penalty of not more than $20,000 for each violation.
123	123	Sec. 1681.054. REMEDIES NOT EXCLUSIVE. The remedies
124	124	provided by this subchapter are:
125	125	(1) not exclusive; and
126	126	(2) in addition to any other remedy or procedure
127	127	provided by another law or at common law.
128	128	SECTION 5. This Act takes effect September 1, 2021.