By Van de Putte H.B. No. 263
75R53 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to restrictions on the use of certain genetic information
1-3 by insurers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter E, Chapter 21, Insurance Code, is
1-6 amended by adding Article 21.73 to read as follows:
1-7 Art. 21.73. USE OF GENETIC TESTING INFORMATION BY INSURERS
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Genetic characteristic" means a scientifically or
1-10 medically identifiable gene or chromosome, or an alteration of such
1-11 a gene or chromosome, that:
1-12 (A) is:
1-13 (i) known to be a cause of a disease or
1-14 disorder; or
1-15 (ii) determined to be associated with a
1-16 statistically increased risk of development of a disease or
1-17 disorder; and
1-18 (B) may be asymptomatic of a disease or
1-19 disorder.
1-20 (2) "Genetic information" means information about
1-21 genes, gene products, or inherited characteristics derived from an
1-22 individual or family member.
1-23 (3) "Genetic services" means health services used to
1-24 obtain, assess, and interpret genetic information for:
2-1 (A) diagnostic purposes;
2-2 (B) therapeutic services; or
2-3 (C) genetic education and counseling.
2-4 (4) "Genetic test" means a laboratory test that is
2-5 used to:
2-6 (A) determine the presence or absence of genetic
2-7 characteristics; or
2-8 (B) diagnose a genetic characteristic.
2-9 (5) "Insurer" includes:
2-10 (A) a company authorized to engage in the
2-11 business of insurance in this state under Chapter 3 of this code;
2-12 (B) a group hospital service corporation under
2-13 Chapter 20 of this code;
2-14 (C) a health maintenance organization under the
2-15 Texas Health Maintenance Organization Act (Chapter 20A, Vernon's
2-16 Texas Insurance Code);
2-17 (D) a nonprofit hospital or other entity that
2-18 provides health care insurance, group disability insurance, or
2-19 long-term care insurance coverage and is subject to the
2-20 jurisdiction of the commissioner;
2-21 (E) an insurance agent regulated under
2-22 Subchapter A, Chapter 21, of this code;
2-23 (F) a third party administrator regulated under
2-24 Article 21.07-6 of this code; and
2-25 (G) any other person engaged in the business of
2-26 health insurance in this state who is subject to regulation under
2-27 this code or the other insurance laws of this state.
3-1 Sec. 2. USE OF GENETIC INFORMATION BY INSURERS. (a) An
3-2 insurer, in the writing of a health insurance policy or contract or
3-3 an evidence of coverage, may not:
3-4 (1) use genetic information, genetic testing, or
3-5 genetic services to reject, deny, limit, cancel, refuse to renew,
3-6 increase the premiums for, or otherwise adversely affect
3-7 eligibility for or coverage under the policy or contract or
3-8 evidence of coverage; or
3-9 (2) request or require an individual who is an insured
3-10 or an applicant for insurance to disclose to the insurer genetic
3-11 information regarding that individual or a member of that
3-12 individual's family.
3-13 (b) If an insurer requests that an applicant for insurance
3-14 other than health insurance submit to a genetic test in connection
3-15 with the insurance application:
3-16 (1) the person or entity who performs the test may
3-17 disclose the results of the test to the applicant on the
3-18 applicant's request, as well as to the insurer;
3-19 (2) the insurer must disclose the proposed use of
3-20 those results by the insurer to the applicant; and
3-21 (3) the insurer must obtain the written authorization
3-22 of the applicant for that use.
3-23 (c) An insurer may not use the results of a genetic test
3-24 conducted in accordance with Subsection (b) of this section as an
3-25 inducement for the purchase of insurance coverage.
3-26 (d) An insurer may not discriminate in the fees,
3-27 commissions, or other compensation paid to an insurance agent for
4-1 writing or renewing a health insurance policy or contract or an
4-2 evidence of coverage for an individual because genetic
4-3 characteristics of that individual may be associated with a
4-4 disability in the individual or the individual's descendants.
4-5 Sec. 3. INFORMATION CONFIDENTIAL; EXCEPTIONS. (a) Except
4-6 as provided by Subsection (c) of this section, genetic information
4-7 is confidential and privileged regardless of the source of the
4-8 information. A person or entity who holds that information may not
4-9 disclose or be compelled to disclose, by subpoena or otherwise,
4-10 genetic information about an individual unless the disclosure is
4-11 specifically authorized by the individual as provided by Subsection
4-12 (b) of this section. This subsection applies to a redisclosure of
4-13 genetic information by a secondary recipient of the information
4-14 after disclosure of the information by an initial recipient.
4-15 (b) An individual or the legal representative of an
4-16 individual may authorize the disclosure of genetic information
4-17 relating to that individual through a written authorization that
4-18 includes:
4-19 (1) a description of the information to be disclosed;
4-20 (2) the name of the person or entity to whom the
4-21 disclosure is made; and
4-22 (3) the purpose for the disclosure.
4-23 (c) Subject to Subchapter G, Chapter 411, Government Code,
4-24 genetic information relating to an individual may be disclosed
4-25 without the authorization required under Subsection (b) if the
4-26 disclosure is:
4-27 (1) authorized under a state or federal criminal law
5-1 relating to:
5-2 (A) the identification of individuals; or
5-3 (B) a criminal or juvenile proceeding, an
5-4 inquest, or a child fatality review by a multidisciplinary child
5-5 abuse team;
5-6 (2) required under a specific order of a state or
5-7 federal court;
5-8 (3) authorized under a state or federal law to
5-9 establish paternity;
5-10 (4) made to furnish genetic information relating to a
5-11 decedent to the blood relatives of the decedent for the purpose of
5-12 medical diagnosis; or
5-13 (5) to identify a decedent.
5-14 Sec. 4. UNFAIR PRACTICE; REMEDIES. An insurer who requires
5-15 an individual to submit to a genetic test or who uses or reveals
5-16 genetic information in violation of the requirements of this
5-17 article commits an unfair practice under Article 21.21 of this code
5-18 and is liable to that individual as provided by that article.
5-19 SECTION 2. This Act takes effect September 1, 1997, and
5-20 applies only to an insurance policy or evidence of coverage that is
5-21 delivered, issued for delivery, or renewed on or after January 1,
5-22 1998. A policy or evidence of coverage that is delivered, issued
5-23 for delivery, or renewed before January 1, 1998, is governed by the
5-24 law as it existed immediately before the effective date of this
5-25 Act, and that law is continued in effect for that purpose.
5-26 SECTION 3. The importance of this legislation and the
5-27 crowded condition of the calendars in both houses create an
6-1 emergency and an imperative public necessity that the
6-2 constitutional rule requiring bills to be read on three several
6-3 days in each house be suspended, and this rule is hereby suspended.