By: Armbrister S.B. No. 682 A BILL TO BE ENTITLED AN ACT 1-1 relating to advertisements for certain health benefit plans. 1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-3 SECTION 1. Subchapter B, Chapter 21, Insurance Code, is 1-4 amended by adding Article 21.20-2 to read as follows: 1-5 Art. 21.20-2. ADVERTISEMENTS FOR CERTAIN HEALTH BENEFIT 1-6 PLANS 1-7 Sec. 1. SCOPE OF ARTICLE. (a) This article applies only to 1-8 a health benefit plan that provides benefits for medical or 1-9 surgical expenses incurred as a result of a health condition, 1-10 accident, or sickness, including an individual, group, blanket, or 1-11 franchise insurance policy or agreement, a group hospital service 1-12 contract, or an individual or group evidence of coverage issued by: 1-13 (1) an insurance company; 1-14 (2) a group hospital service corporation operating 1-15 under Chapter 20 of this code; 1-16 (3) a health maintenance organization operating under 1-17 the Texas Health Maintenance Organization Act (Chapter 20A, 1-18 Vernon's Texas Insurance Code); or 1-19 (4) an approved nonprofit health corporation that is 1-20 certified under Section 5.01(a), Medical Practice Act (Article 1-21 4495b, Vernon's Texas Civil Statutes), and that holds a certificate 1-22 of authority issued by the commissioner under Article 21.52F of 1-23 this code. 2-1 (b) This article does not apply to: 2-2 (1) a health benefit plan that provides coverage: 2-3 (A) only for a specified disease; 2-4 (B) only for accidental death or dismemberment; 2-5 or 2-6 (C) for wages or payments in lieu of wages for a 2-7 period during which an employee is absent from work because of 2-8 sickness or injury; or 2-9 (2) a long-term care policy, including a nursing home 2-10 fixed indemnity policy, unless the commissioner determines that the 2-11 policy provides benefit coverage so comprehensive that the policy 2-12 is a health benefit plan as described by Subsection (a) of this 2-13 section. 2-14 Sec. 2. DISCLAIMERS. (a) Subject to Article 21.21 of this 2-15 code, an advertisement for a health benefit plan may include rate 2-16 information without including information about all benefit 2-17 exclusions and limitations if the advertisement includes prominent 2-18 disclaimers that clearly indicate that: 2-19 (1) the rates are illustrative; 2-20 (2) a person should not send money to the issuer of 2-21 the health benefit plan in response to the advertisement; 2-22 (3) a person cannot obtain coverage under the health 2-23 benefit plan until the person completes an application for 2-24 coverage; and 2-25 (4) benefit exclusions and limitations may apply to 3-1 the health benefit plan. 3-2 (b) Any rate mentioned in the advertisement shall indicate 3-3 the age, gender, and geographic location on which the rate is 3-4 based. 3-5 SECTION 2. The importance of this legislation and the 3-6 crowded condition of the calendars in both houses create an 3-7 emergency and an imperative public necessity that the 3-8 constitutional rule requiring bills to be read on three several 3-9 days in each house be suspended, and this rule is hereby suspended, 3-10 and that this Act take effect and be in force from and after its 3-11 passage, and it is so enacted.