SB 502

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.

Alternately, a wellness program that is based on an individual satisfying a standard

that is related to a health factor is exempt from unfair trade or marketing practice

laws if it has all of the following qualities: the reward does not exceed 20 percent of

the cost of the coverage under the plan; the program is reasonably designed to

promote health or prevent disease; all eligible individuals have the opportunity to

qualify for the reward at least once per year; and the reward is available to all

similarly situated individuals.