HB1473
To Amend The Law Concerning Health-related Cash Discount Cards.
AI-Generated Summary
This bill amends Arkansas law concerning health-related cash discount cards. It revises existing provisions that prohibit the sale, marketing, or distribution of such cards if they do not clearly state that the discounts are not insurance. The bill strengthens these requirements by mandating prominent bold type for disclaimers and consumer cancellation rights. It specifies that discounts must be specifically authorized by individual contracts with healthcare providers. The legislation also prohibits misleading, deceptive, or fraudulent representations regarding the discounts offered. Furthermore, it restricts the use of insurance-related terminology like 'health plan' or 'coverage' in advertising for these discount cards to prevent public deception. The bill enhances enforcement by allowing various entities, including individuals, to initiate legal action for violations and recover damages, attorney fees, and costs. Penalties include a minimum of $100 per card sold or $10,000, plus treble actual damages. The act is made retroactive, applying to violations that occurred before its effective date.
Potential Impact Analysis
Who Might Benefit?
Consumers are the primary beneficiaries of this bill, as it aims to provide clearer disclosures and stronger protections against potentially deceptive practices related to health-related cash discount cards. By requiring prominent disclaimers that these cards are not insurance and establishing a 30-day cancellation period, consumers will be better informed about the nature of their purchases. The enhanced penalties and expanded rights to sue could also deter fraudulent or misleading schemes, leading to greater trust and security for individuals seeking healthcare discounts.
Who Might Suffer?
Entities that sell, market, promote, or advertise health-related cash discount cards that do not meet the stricter disclosure and contractual requirements outlined in this bill would be negatively impacted. Specifically, companies that have used misleading language or have not secured individual contracts with healthcare providers could face injunctions, significant financial penalties, and legal action. The retroactive application of the act could also expose past operations to penalties, potentially affecting their financial viability.