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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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