House File 300 - Introduced
HOUSE FILE
BY FORD
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to an unfair or deceptive practice in the
2 insurance trade involving the discharge of individuals from
3 hospitals, and providing penalties.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 2511HH 81
6 av/gg/14
PAG LIN
1 1 Section 1. Section 507B.4, Code 2005, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 9A. DISCHARGE FROM HOSPITAL ==
1 4 MISREPRESENTATION. Communicating to a covered individual who
1 5 is hospitalized, either directly or through an intermediary,
1 6 that the covered individual should or must be discharged or
1 7 released from the hospital by a certain time or date, without
1 8 first providing the covered individual with written consent to
1 9 such discharge or release endorsed by the covered individual's
1 10 attending health care provider.
1 11 EXPLANATION
1 12 This bill adds a new subsection to Code section 507B.4,
1 13 relating to unfair methods of competition and unfair or
1 14 deceptive acts or practices in the insurance trade.
1 15 The bill prohibits as an unfair act or practice by an
1 16 insurance company the communication to a covered individual
1 17 that the individual must be discharged or released from the
1 18 hospital by a certain time or date before the individual
1 19 receives written consent to the discharge from the
1 20 individual's health care provider.
1 21 A person who violates a provision of Code section 507B.4 is
1 22 subject to entry of a cease and desist order and payment of
1 23 monetary penalties under Code section 507B.7 and to a monetary
1 24 penalty under Code section 507B.11 for violation of cease and
1 25 desist orders in the amount of up to $10,000 for each
1 26 violation, as well as potential suspension or revocation of
1 27 applicable licenses.
1 28 LSB 2511HH 81
1 29 av:nh/gg/14