[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3824 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3824

  To allow States to establish interstate compacts for the purpose of 
                  expanding health insurance options.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 15, 2009

 Mr. Deal of Georgia (for himself, Mr. Burgess, Mr. Pitts, Mr. Blunt, 
  Mr. Barton of Texas, and Mr. Buyer) introduced the following bill; 
       which was referred to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To allow States to establish interstate compacts for the purpose of 
                  expanding health insurance options.

    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 ``Expanded Health Insurance Options 
Act of 2009''.

SEC. 2. EXPANDING HEALTH INSURANCE OPTIONS.

    (a) More Affordable Health Coverage Through State Compacts.--
            (1) Authorizing compacts.--States may enter into 
        arrangements with other States for the purposes of forming one 
        or more interstate compacts--
                    (A) that meet the requirements of this subsection; 
                and
                    (B) under which health insurance issuers would 
                offer health insurance coverage meeting the 
                requirements of this subsection under a unified 
                regulatory structure to residents of the States that 
                are parties to the compact.
            (2) Regulatory structure.--The regulatory structure under 
        such a compact may include regulations relating to the 
        issuance, renewal, rating, mandated benefits, and similar items 
        with respect to health insurance coverage.
            (3) Regulation; grievances.--Health insurance coverage 
        offered in a State that is a party to such a compact shall be 
        regulated by the State involved in the manner specified in the 
        compact and any grievances with respect to such coverage shall 
        be handled in the State in which the covered individual 
        resides.
            (4) Continuation of anti-fraud activities.--Nothing in this 
        section shall be construed to prohibit a State from engaging in 
        anti-fraud activities for the purposes of enforcing regulations 
        or other provisions within such a compact.
            (5) Independent external appeals.--Each interstate compact 
        shall ensure that individuals who are insured in a State that 
        participates in an interstate compact are able to access an 
        independent external appeals process to review decisions made 
        by health insurance issuers relating to the health insurance 
        coverage of such individual.
    (b) Responsibility of Primary State.--In the case of an activity 
described in paragraph (1)(A) that occurs in a State that is 
participating in an interstate compact, the primary State, or the State 
in which the insurance issuer is licensed, is responsible for the 
enforcement of applicable laws, regulations, agreements, and orders 
governing the health insurance issuers and health insurance coverage 
involved, including laws relating to the following:
            (1) The offer, sale, rating, renewal, and issuance of 
        individual health insurance coverage.
            (2) The coverage of health care and insurance related 
        services.
            (3) Management, operations, and investment activities of a 
        health insurance issuer.
            (4) Liability loss control and claims administration.
    (c) Responsibility of Secondary State.--The secondary State that is 
participating in an interstate compact, or the State in which the 
individual resides, may require a health insurance issuer--
            (1) to pay premiums and taxes;
            (2) to submit to examination of financial condition;
            (3) to comply with State laws regarding fraud and abuse; 
        and
            (4) to comply with laws regarding unfair claims practices.
    (d) Disclosure.--The health insurance issuer must provide a clear 
disclosure to the individual that the issuer is in a secondary State 
and all laws and regulations of the secondary State are applicable.
    (e) Effective Date.--This subsection shall apply beginning 1 year 
after the date of the enactment of this Act.
    (f) Definitions.--In this section:
            (1) The terms ``health insurance coverage'' and ``health 
        insurance issuer'' have the meanings given such terms in 
        section 2791 of the Public Health Service Act.
            (2) The term ``State'' means each of the 50 States and the 
        District of Columbia.
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