81R2451 PMO-F

By: Chisum H.B. No. 1077

A BILL TO BE ENTITLED

AN ACT

relating to the operation of health care sharing ministries.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Members of health care sharing ministries voluntarily assist fellow members with the payment of medical expenses. In many instances, health care sharing ministries provide assistance to individuals who are without health insurance coverage and, in doing so, provide important services that the state would otherwise have to provide. Due to their beneficial work and religious nature, health care sharing ministries should be statutorily recognized as religious organizations helping to fulfill the religious beliefs of ministry members and should not be treated in the same manner as secular health care coverages, including insurance.

SECTION 2. Title 8, Insurance Code, is amended by adding Subtitle K to read as follows:

SUBTITLE K. NONINSURANCE HEALTH COVERAGES

CHAPTER 1680. HEALTH CARE SHARING MINISTRIES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 1680.001. SHORT TITLE. This chapter may be cited as the Health Care Sharing Ministries Freedom to Share Act.

Sec. 1680.002. DEFINITION. In this chapter, "health care sharing ministry" means:

(1) a health care cost sharing arrangement among individuals of the same religion based on the individuals' sincerely held religious beliefs and administered by a nonprofit religious organization; or

(2) a faith-based, nonprofit organization that is tax exempt under the Internal Revenue Code of 1986 and that:

(A) limits membership in the organization to individuals of a similar faith;

(B) acts as a facilitator among members who have financial or medical-related needs and members with the present ability to assist those with financial or medical needs, all in accordance with the organization's criteria, through payments from one member to another;

(C) notifies members of amounts that members may contribute; and

(D) provides a written monthly statement to all members listing the total dollar amount of qualified needs submitted to the organization as well as the total dollar amount actually assigned to members for contribution.

Sec. 1680.003. CONSTRUCTION WITH OTHER LAW. (a) Chapter 76, Health and Safety Code, does not apply to a health care sharing ministry.

(b) Notwithstanding any other provision of this code, a health care sharing ministry is exempt from the operation of the insurance laws of this state and is not subject to the commissioner's oversight.

Sec. 1680.004. ENFORCEMENT BY ATTORNEY GENERAL. Notwithstanding any other law, the office of the attorney general has jurisdiction over health care sharing ministries to ensure compliance with this chapter and for:

(1) the prevention and prosecution of deceptive trade practices and fraud; and

(2) consumer protection.

Sec. 1680.005. NO ASSUMPTION OF RISK. (a) Members of a health care sharing ministry do not assume any risk or make any promise to pay the financial or medical needs of other members by contributing to the ministry.

(b) A health care sharing ministry does not assume any risk or make any promise to pay the financial or medical needs of a member by accepting contributions from other members.

[Sections 1680.006-1680.050 reserved for expansion]

SUBCHAPTER B. OPERATION OF MINISTRIES

Sec. 1680.051. NOTICE REQUIRED. Each application for membership in a health care sharing ministry distributed directly or on behalf of a health care sharing ministry must include a notice that is printed in no smaller than 12-point font and that reads substantially as follows:

"This health care sharing ministry is not offering an insurance product and is not being offered by or through an insurance company. This health care sharing ministry is also not offering a discount health care plan. Whether anyone chooses to assist you with your medical bills is voluntary, as no other member may be compelled to contribute toward your medical bills. This health care sharing ministry program is not insurance or a substitute for insurance. Whether you receive any payments for medical expenses and whether this health care sharing ministry program continues to operate, you remain, to the extent allowable under law, personally and fully responsible for the payment of your own medical bills."

Sec. 1680.052. ACKNOWLEDGMENT OF NOTICE; RETENTION. (a) A health care sharing ministry shall require any adult member to sign an acknowledgment that the member has read and understands the notice described by Section 1680.051. The signature of an adult member constitutes acceptance for any child of the member who is a minor or dependent of the member.

(b) A health care sharing ministry shall retain the signed acknowledgment described by Subsection (a) until the second anniversary of the last date the member retains membership in the health care sharing ministry.

Sec. 1680.053. PAYMENT AMONG MEMBERS. The means of payment among members may include electronic transfer or a trust established solely for the benefit of members that is audited annually by an independent auditing firm.

Sec. 1680.054. COLLATERAL SHARING ACTIVITIES. A health care sharing ministry may provide:

(1) for members to share in bills when members experience disability; and

(2) health counseling, education, and resources to ministry members.

SECTION 3. Section 101.055(a), Insurance Code, is amended to read as follows:

(a) Section 101.051(b)(7) does not apply to:

(1) a program otherwise authorized by law that is established:

(A) by a political subdivision of this state;

(B) by a state agency; or

(C) under Chapter 791, Government Code; [or]

(2) a multiple employer welfare arrangement that is fully insured as defined by 29 U.S.C. Section 1144(b)(6); or

(3) a health care sharing ministry operated under Chapter 1680.

SECTION 4. Section 76.002, Health and Safety Code, is amended to read as follows:

Sec. 76.002. CONSTRUCTION WITH [APPLICABILITY OF] OTHER LAW. (a) In addition to the requirements of this chapter, a program operator or marketer is subject to the applicable consumer protection laws under Chapter 17, Business & Commerce Code.

(b) This chapter does not apply to a health care sharing ministry operated under Chapter 1680, Insurance Code.

SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.