110 HR 6071 IH: Health Care Consumer Protection Act of U.S. House of Representatives 2008-05-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 2d Session H. R. 6071 IN THE HOUSE OF REPRESENTATIVES May 15, 2008 Mr. Forbes (for himself and Mrs. Boyda of Kansas) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To amend the Public Health Service Act to require reinstatement upon payment of all premiums due of group or individual health insurance coverage terminated by reason of nonpayment of premiums.

1.

Short title

This Act may be cited as the Health Care Consumer Protection Act of 2008.

2.

Right of reinstatement for health insurance coverage terminated by reason of nonpayment of premiums

(a)

Group health insurance coverage

Part 3 of subtitle A of title XXVII of the Public Health Service Act is amended by adding at the end the following new section:

2714.

Right of reinstatement for group health insurance coverage terminated by reason of nonpayment of premiums

(a)

In general

If a health insurance issuer offering group health insurance coverage in connection with a group health plan cancels or does not renew the coverage by reason of nonpayment of premiums, the issuer— (1)shall provide, during the 14-day period beginning on the date of such cancellation or non-renewal, written notice to the administrator of the plan and to each participant receiving such coverage under the plan of the cancellation or non-renewal of the coverage, of the reason for such cancellation or non-renewal, and of the right of reinstatement provided under paragraph (2); and (2)shall reinstate the coverage as if the coverage had not lapsed if the premiums due, and such reasonable administrative fee as the State regulating such coverage may specify, are paid to the issuer by not later than 60 days after the date the cancellation or non-renewal would otherwise have become effective. (b)

Relation to State law

Nothing in this title shall be construed as preventing a State from providing for— (1)reinstatement of lapsed group health insurance coverage in a case not described in subsection (a); or (2)reinstatement of coverage after a period of nonpayment of longer than that specified in such subsection.

. (b)

Individual health insurance coverage

Such Act is amended by inserting after section 2752 the following new section:

2753.

Right of reinstatement for health insurance coverage terminated by reason of nonpayment of premiums

(a)

Application of rules

The provisions of section 2714 shall apply to health insurance coverage offered by a health insurance issuer in the individual market in the same manner as they apply to health insurance coverage offered by a health insurance issuer in connection with a group health plan. (b)

Application to coverage obtained through an association or organization

In applying subsection (a), if— (1)such health insurance coverage is offered through an association or other organization; (2)the association or organization is responsible for payment of the premium for such coverage; and (3)the association or organization fails to make payment of such premium, the issuer shall provide the required notice both to the association or organization and to the individuals whose coverage is affected by such non-payment and repayment of premiums owed may be made by either the association or such individuals.

. (c)

Effective dates

(1)

Group health insurance

The amendment made by subsection (a) shall apply to group health insurance coverage offered for plans years beginning on or after 1 year after the date of the enactment of this Act. (2)

Individual health insurance

The amendment made by subsection (b) shall apply to individual health insurance coverage as of the date that is 1 year after the date of the enactment of this Act.