HB 656 Summary

• Prohibits health carriers and insurance professionals from denying, canceling, or restricting health benefit plan coverage based on an applicant's or insured's abuse status, or adding premium differentials on that basis.

• Restricts disclosure of confidential abuse information (including abuse status, abuse-related medical conditions, and contact information) except to the abuse subject, healthcare providers, designated physicians, courts, reinsurers, and other specified entities that execute written confidentiality agreements.

• Requires health carriers taking adverse actions based on abuse-related medical conditions to provide written explanation and demonstrate the action does not treat abuse status as a medical condition, is applied equally to all applicants with similar conditions, and is supported by actuarial principles.

• Mandates health carriers develop and implement written policies protecting the safety and privacy of abuse subjects when processing applications, investigating claims, and handling related matters.

• Grants the Insurance Commissioner authority to investigate complaints and enforce violations through suspension or revocation of licenses, civil penalties, cease and desist orders, injunctive relief, restitution, or referral to prosecutors.

• Becomes effective July 1, 2010, for all health benefit plans issued, renewed, or continued on or after that date and all applications submitted on or after that date.