Exempting wellness programs from unfair trade or marketing practices

What it does

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Under current law, an insurer may not engage in any of the following unfair trade or marketing practices: inducing a person to enter into an insurance contract by offering benefits not specified in the policy; making an agreement of insurance that is not clearly expressed in the policy; unfairly discriminating among insureds by charging different premiums or by offering different terms of coverage except on the basis of classifications related to the nature and degree of risk covered or the expenses involved; attempting to influence an employer to refuse employment of an individual or discharge an employee; or committing any unfair trade practice that the commissioner defines by rule.

This bill allows an insurer to advertise, market, offer, or operate a wellness program without violating an unfair trade or marketing practice. A wellness program is designed to promote health or prevent disease by offering a reward to insured individuals. If a wellness program contains no conditions for obtaining a reward based on an individual satisfying a standard that is related to a health factor, the wellness program is exempt from unfair trade or marketing practice laws if participation in the program is available to all similarly situated individuals.

Who's behind it

20 lawmakers are its authors⁠. 13 are Democrats and 6 are Republicans. 1 has no party on record.

9 more lawmakers signed on in support⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From OCI