2006 Louisiana Laws - RS 22:230.7 — Flexible health benefit policies, contracts, and agreements

§230.7.  Flexible health benefit policies, contracts, and agreements

A.  For purposes of this Section, notwithstanding any law to the contrary, the following terms shall be defined as follows:

(1)  "Flexible health benefits policy, contract, or agreement" means a health insurance policy, contract, or agreement that offers coverage for preventive care, emergency care, inpatient and outpatient hospital care, and physician care but that is not required to include, in whole or in part, state-mandated health benefits.

(2)  "Group health policy" is any policy of health and accident insurance covering more than one person.  However, for purposes of this Section, "group health policy" shall be limited to any such policy offered to employees of an employer that employs fifty or fewer individuals.

(3)  "Health insurance policy, contract, or agreement" means a group health policy or similar coverage issued by a health maintenance organization.  For purposes of this Section, such group policies or coverage shall be limited to those offered to employees of employers that employ fifty or fewer individuals.  "Health insurance policy, contract, or agreement" shall also mean any individual health policy or health maintenance organization individual subscriber or enrollee agreement.

(4)  "Individual health policy" means health insurance coverage offered to an individual in the individual market but does not include limited duration insurance.

(5)  "State-mandated health benefits" means coverage required or required to be offered under this Code or other laws of this state to be provided in an individual or group health policy or similar coverage by a health maintenance organization that does any of the following:

(a)  Includes coverage for specific health care services or benefits.

(b)  Places limitations or restrictions on deductibles, coinsurance, copayments, or any annual or lifetime maximum benefit amounts.

(c)  Includes a specific category of licensed health care practitioners from which an insured is entitled to receive care.

(d)  Requires coverage for all services that a health care practitioner recommends that are consistent with generally accepted principles of professional medicine or a similar standard.

B.  A health insurer or health maintenance organization properly authorized in this state may offer one or more flexible health benefits policies, contracts, or agreements.  In offering such a policy, contract, or agreement, the health insurer or health maintenance organization shall do each of the following:

(1)  Provide written notice to the proposed insured, subscriber, or enrollee, as required in Subsection C of this Section.

(2)  Make available to the proposed insured, subscriber, or enrollee, subject to underwriting, at least one health insurance policy, contract, or agreement that provides all state-mandated health benefits.

(3)  Provide a list of current state-mandated health benefits to the proposed insured, subscriber, or enrollee.

C.  For flexible health benefit policies, contracts, or agreements, the written notice required in Paragraph (B)(1) shall include in bold type within or accompanying the written application for such policy, contract, or agreement the following:

"You have the option to select a flexible health benefits policy, contract, or agreement which is not subject to all of the state-mandated health benefits normally required in insurance policies, contracts, or agreements in this state.  You have been provided a list of specific services and benefits mandated to be covered under Louisiana law.  This flexible health benefits policy, contract, or agreement may provide a more affordable health insurance policy, contract, or agreement for you.  At the same time, it may provide you with fewer health benefits than those normally imposed on health insurance policies, contracts, or agreements in Louisiana.  If you are considering this option, please consult with your insurance producer to learn the degree to which the flexible health benefits policy, contract, or agreement does not provide benefits equal to those policies, contracts, or agreements subject to state-mandated health benefits."

Acts 2004, No. 799, §1.