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367.828 Health discount plan -- Penalties.
(1)
(2)
(3)
(4)
As used in this section, "health discount plan" means any card, program,
device, or mechanism that is not insurance that purports to offer discounts or
access to discounts from a health care provider without recourse to the health
discount plan.
No person shall sell, market, promote, advertise, or otherwise distribute a
health discount plan unless:
(a) The health discount plan clearly states in bold and prominent type on all
cards or other purchasing devices, promotional materials, and advertising
that the discounts are not insurance;
(b) The discounts are specifically authorized by an individual and separate
contract with each health care provider listed in conjunction with the
health discount plan; and
(c) The discounts or the range of discounts advertised or offered by the plan
are clearly and conspicuously disclosed to the consumer.
The provisions of subsection (2) of this section do not apply to the following:
(a) A customer discount or membership card issued by a retailer for use in its
own facility; or
(b) Any card, program, device, or mechanism that is not insurance and which
is administered by a health insurer authorized to transact the business of
insurance in this state.
A violation of this section shall be deemed an unfair, false, misleading, or
deceptive act or practice in the conduct of trade or commerce in violation of
KRS 367.170. All of the remedies, powers, and duties delegated to the
Attorney General by KRS 367.190 to 367.300 and penalties pertaining to acts
and practices declared unlawful under KRS 367.170 shall be applied to acts
and practices in violation of this section.
Effective:July 15, 2002
History: Created 2002 Ky. Acts ch. 105, sec. 29, effective July 15, 2002.
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