SB228 Summary

• Establishes a new licensing and regulatory system for discount medical plan organizations operating in Delaware, requiring organizations to obtain a license from the Insurance Commissioner before doing business in the state.

• Requires discount medical plan organizations to maintain a $50,000 surety bond or deposit, file all member fees and plan forms with the Commissioner for approval, and maintain an up-to-date website listing all contracted providers.

• Prohibits misleading marketing and requires clear written disclosures to members stating the plan is not insurance, that members must pay for services directly, and that discounts vary by provider and service type.

• Mandates refund of all periodic charges if a member cancels within 30 days of receiving plan documents, and pro-rata refunds if the organization cancels membership for reasons other than non-payment.

• Sets initial licensing fee at $500 and renewal fee at $100; allows 180 days for existing discount medical plan organizations to comply with the new requirements.