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Bill

HB 1473

TO AMEND THE LAW CONCERNING HEALTH-RELATED CASH DISCOUNT CARDS.

2025 Regular Session Introduced by Clint Penzo and 1 co-sponsor

HB 1473 aimed to protect consumers from misleading health discount cards by enforcing clear marketing rules and allowing cancellations within 30 days, but it died in committee.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1473

Summary of House Bill 1473

Bill Number: HB 1473
Title: To Amend the Law Concerning Health-Related Cash Discount Cards
Status: Died in House Committee at Sine Die adjournment
Introduced: February 13, 2025
Classification: Bill

Purpose and Intent

House Bill 1473 aimed to amend existing Arkansas law regarding health-related cash discount cards. The bill sought to enhance consumer protection by establishing clearer guidelines and prohibitions on how these discount cards can be marketed and sold. The intent was to prevent misleading practices that could confuse consumers about the nature of these cards, particularly in relation to health insurance.

Key Provisions

The bill proposed several amendments to Arkansas Code § 4-106-201 and § 4-106-202, including:

  1. Prohibited Practices:

    • It would be unlawful to sell or promote discount cards that do not clearly state in bold type that they are not insurance.
    • Cards must inform consumers of their right to cancel within 30 days of registration.
    • Discounts must be authorized by separate contracts with each healthcare provider listed.
    • Any misleading or deceptive language associated with the cards would be prohibited.
    • Specific phrases commonly associated with insurance must not be used in a way that could mislead consumers.

  2. Consumer Rights:

    • Consumers would have the right to cancel their registration within 30 days, with clear instructions provided at the time of purchase.

  3. Enforcement and Penalties:

    • The Attorney General, as well as any injured party, could initiate legal action against violators.
    • Penalties for violations could include monetary damages, with a minimum of $100 per card or a maximum of $10,000, along with attorney's fees and costs.
    • Actions must be initiated within two years of the violation.

  4. Cumulative Remedies:

    • The remedies provided under this bill would be in addition to those available under the Deceptive Trade Practices Act and other applicable laws.

Impact

If enacted, HB 1473 would have affected:
- Consumers: Enhanced protections for individuals purchasing health-related cash discount cards, ensuring they are not misled about the nature of the product.
- Businesses: Companies selling these discount cards would need to comply with stricter advertising and disclosure requirements, potentially impacting their marketing strategies.
- Legal Framework: The bill would have provided a clearer legal framework for addressing violations related to health-related cash discount cards.

Legislative Timeline

  • February 13, 2025: Bill filed and read for the first time.
  • February 20, 2025: Amendments adopted and bill engrossed.
  • February 26, 2025: Further amendments adopted and bill reported correctly engrossed.
  • May 5, 2025: Bill died in House Committee at Sine Die adjournment.

In summary, HB 1473 was designed to protect consumers from misleading practices related to health-related cash discount cards, but ultimately did not progress through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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