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AN ACT
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relating to the operation of health care sharing ministries. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 8, Insurance Code, is amended by adding |
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Subtitle K to read as follows: |
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SUBTITLE K. HEALTH CARE SHARING MINISTRIES |
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CHAPTER 1681. HEALTH CARE SHARING MINISTRIES |
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Sec. 1681.001. TREATMENT AS HEALTH CARE SHARING MINISTRY. |
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A faith-based, nonprofit organization that is tax-exempt under the |
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Internal Revenue Code of 1986 qualifies for treatment as a health |
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care sharing ministry under this chapter if it: |
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(1) limits its participants to individuals of a |
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similar faith; |
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(2) acts as a facilitator among participants who have |
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medical bills and matches those participants with other |
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participants with the present ability to assist those with medical |
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bills in accordance with criteria established by the health care |
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sharing ministry; |
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(3) provides for the medical bills of a participant |
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through contributions from one participant to another; |
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(4) provides amounts that participants may contribute |
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with no assumption of risk or promise to pay among the participants |
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and no assumption of risk or promise to pay by the health care |
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sharing ministry to the participants; |
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(5) provides a written monthly statement to all |
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participants that lists the total dollar amount of qualified needs |
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submitted to the health care sharing ministry, as well as the amount |
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actually published or assigned to participants for their |
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contribution; |
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(6) discloses administrative fees and costs to |
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participants; |
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(7) provides that any card issued to a participant for |
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the purpose of presentation to a health care provider clearly |
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indicates that the participant is part of a health care sharing |
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ministry that is not engaging in the business of insurance; |
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(8) provides a written disclaimer on or accompanying |
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all applications and guideline materials distributed by or on |
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behalf of the ministry that complies with Section 1681.002; and |
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(9) does not operate a discount health care program as |
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defined by Section 7001.001. |
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Sec. 1681.002. NOTICE. To qualify as a health care sharing |
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ministry under this chapter, the notice described by Section |
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1681.001(8) must read substantially as follows: |
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"Notice: This health care sharing ministry facilitates the |
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sharing of medical expenses and is not an insurance company, and |
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neither its guidelines nor its plan of operation is an insurance |
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policy. Whether anyone chooses to assist you with your medical |
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bills will be totally voluntary because no other participant will |
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be compelled by law to contribute toward your medical bills. As |
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such, participation in the ministry or a subscription to any of its |
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documents should never be considered to be insurance. Regardless |
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of whether you receive any payment for medical expenses or whether |
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this ministry continues to operate, you are always personally |
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responsible for the payment of your own medical bills. Complaints |
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concerning this health care sharing ministry may be reported to the |
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office of the Texas attorney general." |
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Sec. 1681.003. EXEMPTION. Notwithstanding any other |
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provision of this code, a health care sharing ministry that acts in |
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accordance with this chapter is not considered to be engaging in the |
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business of insurance. |
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SECTION 2. Subchapter A, Chapter 562, Insurance Code, is |
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amended by adding Section 562.0041 to read as follows: |
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Sec. 562.0041. EXEMPTION. This chapter does not apply to a |
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health care sharing ministry operated under Chapter 1681. |
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SECTION 3. Section 651.002, Insurance Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) This chapter does not apply to a health care sharing |
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ministry operated under Chapter 1681. |
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SECTION 4. Subchapter A, Chapter 4151, Insurance Code, is |
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amended by adding Section 4151.0022 to read as follows: |
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Sec. 4151.0022. NONAPPLICABILITY. This chapter does not |
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apply to a health care sharing ministry operated under Chapter |
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1681. |
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SECTION 5. Section 7001.002, Insurance Code, is amended to |
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read as follows: |
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Sec. 7001.002. EXEMPTION. This chapter does not apply to a |
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program operator who is an insurer and who holds a certificate of |
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authority under Title 6, or a health care sharing ministry operated |
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under Chapter 1681. |
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SECTION 6. Chapter 7002, Insurance Code, is amended by |
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adding Section 7002.004 to read as follows: |
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Sec. 7002.004. EXEMPTION. This chapter does not apply to a |
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health care sharing ministry operated under Chapter 1681. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 874 passed the Senate on |
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March 26, 2013, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 874 passed the House on |
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May 17, 2013, by the following vote: Yeas 134, Nays 0, two |
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present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |