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


Senate Research Center   S.B. 1637
2001S0795/1 03/08/01By: Bernsen
Business & Commerce
3/25/2001
As Filed


DIGEST AND PURPOSE 

Currently, 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.  As proposed, 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 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, or making a representation that such a card or
purchasing device provides such a discount, unless: the discount is
specifically and expressly authorized under a separate contract with a
provider of health care goods or services; and the card or other purchasing
device contains a notice expressly and conspicuously printed in boldface
type that the discounts provided are not insurance.  Makes conforming and
nonsubstantive changes. 

SECTION 2.  Effective date: September 1, 2001.