House File 508 - 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 2747HH 82 6 av/gg/14 PAG LIN 1 1 Section 1. Section 507B.4, Code 2007, 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 as well as 1 24 potential suspension or revocation of applicable licenses. 1 25 LSB 2747HH 82 1 26 av:nh/gg/14