SRC-EPT, TBR S.B. 1637 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1637
By: Bernsen
Business & Commerce
6/14/2001
Enrolled


DIGEST AND PURPOSE 

Many citizens in Texas are without insurance.  In some instances uninsured
or underinsured Texans purchase "prescription health insurance" or "cash
discount" cards that purport to be insurance or to offer discounts on
health purchases, yet have no contractual obligation to do either.  Such
cards may look like prescription insurance cards, and may be sold for
$7-$20 per month, but provide no benefits. S.B. 1637 prohibits the selling
or distributing of any card or other device that is not insurance yet
purports to offer insurance coverage or discounts on health purchases. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 17.46(b), Business & Commerce Code, to provide
that except as provided in Subsection (d) of this section, the term "false,
misleading, or deceptive acts or practices" includes, but is not limited
to, selling, advertising, or distributing a card which purports to be a
prescription drug identification card issued under Section 19A, Article
21.07-6, Insurance Code, in accordance with rules adopted by the
commissioner of insurance, which offers a discount on the purchase  of
health care goods or services from a third party provider, and which is not
evidence of insurance coverage unless the discount is authorized under an
agreement between the seller of the card and the provider of those goods
and services or the discount or card is offered to members of the seller;
the seller does not represent that the card provides insurance coverage of
any kind; and the discount is not false, misleading, or deceptive. 

SECTION 2.  Effective date: September 1, 2001.