HBA-JEK S.B. 1637 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1637
By: Bernsen
Business & Industry
5/5/2001
Engrossed



BACKGROUND AND PURPOSE 

Many uninsured and under insured citizens consent to agreements that
purport to provide medical insurance coverage or discounts on medical
services or goods when, in fact, the provider has no contractual obligation
to provide the insurance or discount.  Current law prohibits deceptive
trade practices, but does not address  the sale, advertisement, or
distribution of a card or other purchasing device that is not insurance or
evidence of insurance coverage and that purports to provide a discount on
the purchase of health care goods or services.  Senate Bill 1637 provides
that the sale, advertisement, distribution, or representation of such a
card or purchasing device is a false, misleading, or deceptive act
prohibited by law. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

Senate Bill 1637 amends the Business & Commerce Code to provide that
selling, advertising, or distributing a card or other purchasing device
that is not insurance or evidence of insurance coverage and that purports
to provide a discount or access to a discount on the purchase of health
care goods or services is a false, misleading, or deceptive act.  An
exception is if the discount is specifically and expressly authorized under
a separate contract with a provider of healthcare goods or services and the
card or purchasing device contains a notice expressly and conspicuously
printed in boldface type that the discounts provided are not insurance. 

EFFECTIVE DATE

September 1, 2001.