No. 30719: R590-152. Health Discount Programs and Value Added Benefit Rule

DAR File No.: 30719
Filed: 11/13/2007, 11:51
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsection 31A-8a-210 specifically authorizes the commissioner to issue rules to enforce Title 31A, Chapter 8a, and to protect the public interest. The rule allows the commissioner to license, examine, audit, or investigate an individual or entity operating or selling health discount programs.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

In the past five years, this rule has been revised twice. The first revision was completed 07/16/2003. The only comment received was regarding grammatical changes, which were made to the rule. During the second revision, completed 10/09/2007, the department went through two comment periods. The changes made in the second comment period took care of many of the concerns from the first comment period. During the second comment period, additional suggestions were received. The nonsubstantive changes were implemented into the rule. With the approval of those suggesting substantive changes, those changes will be added to the rule after the legislative session in 2008 along with other anticipated changes.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule allows the department to license and regulate health discount programs and those who market and operate them. It also allows the department to review the forms of these programs to make sure they comply with the law and avoid using words and terms that would give the purchaser the impression that the program is insurance. This should reduce fraud and uncertainty in this market. The rule also requires managers of health discount programs to provide a website so members can view a current list of health discount plan providers. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Authorized by:

Jilene Whitby, Information Specialist