Insurance, Administration

Rule R590-152

Health Discount Programs and Value Added Benefit Rule

Five-Year Notice of Review and Statement of Continuation

DAR File No.: 37034
Filed: 11/07/2012 09:09:24 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 31A-8a-210, specifically authorizes the commissioner to issue rules to enforce Title 31A, Chapter 8a, Health Discount Program Consumer Protection Act, and to protect the public interest. The rule allows the commissioner to license, examine, audit, or investigate an individual or entity operating or selling health discount programs.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

This rule was amended 01/20/2011. A comment period was provided and a comment was received. The change required health discount marketers to be licensed regardless of the number of health discount operators they contracted with. The comment noted that this would create an additional expense for these small marketers. However, the department countered that they needed authority to regulate all marketers regardless of size and to do this they must all be licensed. This is an area of the market place where marketing and advertising violations are common.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule authorizes the department to license and regulate health discount programs and those who market and operate them. It also allows the department to review the forms of these programs to make sure they comply with the law and avoid using words and terms that would give the purchaser the impression that the program is insurance. This should reduce fraud and uncertainty in this market. The rule also requires managers of health discount programs to provide a website so members can view a current list of health discount plan providers. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]

Authorized by:

Neal Gooch, Commissioner

Effective:

11/07/2012