It’s Xmas In Texas – State Passes “No Credit Ding Law”

Major boon to Reference Based Pricing plans…………………..

“Texas SB 1037 “No Credit Ding law” was signed into law for any account after copay, deductible where there was health coverage” cannot be reported to a credit bureau… . Effective immediately… . RBR: Katie bar the door….” – Doug Aldeen – General Counsel and ERISA Health Care Attorney

By: Taylor S.B. No. 1037
       (In the Senate – Filed February 22, 2019; March 7, 2019,
read first time and referred to Committee on Business & Commerce;
March 27, 2019, reported favorably by the following vote:  Yeas 7,
Nays 2; March 27, 2019, sent to printer.)
Click here to see the committee vote

 

A BILL TO BE ENTITLED
AN ACT
relating to limitations on the information reported by consumer
reporting agencies.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 20.05, Business & Commerce Code, is
amended by amending Subsection (a) and adding Subsection (d) to
read as follows:
       (a)  Except as provided by Subsection (b), a consumer
reporting agency may not furnish a consumer report containing
information related to:
             (1)  a case under Title 11 of the United States Code or
under the federal Bankruptcy Act in which the date of entry of the
order for relief or the date of adjudication predates the consumer
report by more than 10 years;
             (2)  a suit or judgment in which the date of entry
predates the consumer report by more than seven years or the
governing statute of limitations, whichever is longer;
             (3)  a tax lien in which the date of payment predates
the consumer report by more than seven years;
             (4)  a record of arrest, indictment, or conviction of a
crime in which the date of disposition, release, or parole predates
the consumer report by more than seven years; [or]
             (5)  a collection account with a medical industry code,
if the consumer was covered by a health benefit plan at the time of
the event giving rise to the collection and the collection is for an
outstanding balance, after copayments, deductibles, and
coinsurance, owed to an emergency care provider or a facility-based
provider for an out-of-network benefit claim; or
             (6)  another item or event that predates the consumer
report by more than seven years.
       (d)  In this section:
             (1)  “Emergency care provider” means a physician,
health care practitioner, facility, or other health care provider
who provides emergency care.
             (2)  “Facility” has the meaning assigned by Section
324.001, Health and Safety Code.
             (3)  “Facility-based provider” means a physician,
health care practitioner, or other health care provider who
provides health care or medical services to patients of a facility.
             (4)  “Health care practitioner” means an individual who
is licensed to provide health care services.
       SECTION 2.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.
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