[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 3119 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 3119

    To amend the Public Health Service Act to ensure the guaranteed 
renewability of individual health insurance coverage regardless of the 
             health status-related factors of an enrollee.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 16, 2002

 Mr. Graham (for himself and Mr. Fitzgerald) introduced the following 
  bill; which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
    To amend the Public Health Service Act to ensure the guaranteed 
renewability of individual health insurance coverage regardless of the 
             health status-related factors of an enrollee.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Health Insurance Fairness Act''.

SEC. 2. GUARANTEED RENEWABILITY OF INDIVIDUAL HEALTH INSURANCE 
              COVERAGE.

    Section 2742 of the Public Health Service Act (42 U.S.C. 300gg-42) 
is amended by adding at the end the following:
    ``(f) Prohibition on Certain Reclassifications and Premium 
Increases.--
            ``(1) In general.--For purposes of this section, a health 
        insurance issuer that provides individual health insurance 
        coverage or health insurance coverage through an association 
        (including bona fide association) to an individual shall be 
        deemed to have failed to renew or continue in force coverage 
        with respect to such individual in violation of this section if 
        such issuer--
                    ``(A) moves or reclassifies the individual from the 
                class such individual is in at the time of issue of the 
                contract based on a health status-related factor of the 
                individual; or
                    ``(B) increases the premiums assessed the 
                individual for such coverage based on a health status-
                related factor of the individual.
            ``(2) Rule of construction.--Nothing in paragraph (1) shall 
        be construed to prohibit a health insurance issuer from--
                    ``(A) terminating or discontinuing coverage or a 
                class of coverage in accordance with subsections (b) 
                and (c); or
                    ``(B) raising premium rates for all policy holders 
                based on claims experience.''.
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