I 

108TH CONGRESS 

1ST SESSION H. R. 3600

To amend the Public Health Service Act to require health insurance issuers 

to credit toward an annual deductible in case of subsequent issuance 

of similar health insurance policy by the same issuer to the same person. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 21, 2003

Mr. ENGEL introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

A BILL

To amend the Public Health Service Act to require health 

insurance issuers to credit toward an annual deductible 

in case of subsequent issuance of similar health insurance 

policy by the same issuer to the same person.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Health Deductible In5 surance Fairness Act of 2003’’. 

6 SEC. 2. CREDITING TOWARD ANNUAL DEDUCTIBLE IN CASE 

7 OF SUBSEQUENT ISSUANCE BY SAME ISSUER. 

8 (a) GROUP HEALTH PLANS.—
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1 (1) PUBLIC HEALTH SERVICE ACT AMEND2 MENTS.—(A) Subpart 2 of part A of title XXVII of 

3 the Public Health Service Act is amended by adding 

4 at the end the following new section: 

5 ‘‘SEC. 2707. STANDARD RELATING TO CREDITING TOWARD 

6 ANNUAL DEDUCTIBLE IN CASE OF SUBSE7 QUENT ISSUANCE BY SAME ISSUER. 

8 ‘‘(a) REQUIREMENT.—If a health insurance issuer of9 fering group health insurance coverage imposes an annual 

10 deductible under such coverage with respect to an indi11 vidual and the individual changes the coverage obtained 

12 (including a change from family to individual coverage) 

13 from such issuer in a year to other health insurance cov14 erage that also imposes an annual deductible, the issuer 

15 shall credit toward the deductible for the latter coverage 

16 amounts that were credited toward the deductible under 

17 the former coverage during the same year. 

18 ‘‘(b) NOTICE.—A group health plan under this part 

19 shall comply with the notice requirement under section 

20 714(b) of the Employee Retirement Income Security Act 

21 of 1974 with respect to the requirements of this section 

22 as if such section applied to such plan.’’.

23 (b) INDIVIDUAL HEALTH INSURANCE.—Part B of 

24 title XXVII of of such Act is amended by inserting after 

25 section 2752 the following new section: 
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1 ‘‘SEC. 2753. STANDARD RELATING TO CREDITING TOWARD 

2 ANNUAL DEDUCTIBLE IN CASE OF SUBSE3 QUENT ISSUANCE BY SAME ISSUER. 

4 ‘‘(a) IN GENERAL.—The provisions of section 

5 2707(a) shall apply to health insurance coverage offered 

6 by a health insurance issuer in the individual market in 

7 the same manner as they apply to health insurance cov8 erage offered by a health insurance issuer in connection 

9 with a group health plan in the small or large group mar10 ket. 

11 ‘‘(b) NOTICE.—A health insurance issuer under this 

12 part shall comply with the notice requirement under sec13 tion 714(b) of the Employee Retirement Income Security 

14 Act of 1974 with respect to the requirements referred to 

15 in subsection (a) as if such section applied to such issuer 

16 and such issuer were a group health plan.’’. 

17 (c) EFFECTIVE DATES.—

18 (1) GROUP HEALTH INSURANCE COVERAGE.—

19 Subject to paragraph (3), the amendments made by 

20 subsection (a) apply with respect to group health 

21 plans for plan years beginning on or after a date 

22 specified by the Secretary of Health and Human 

23 Services that is not later than January 1, 2005. 

24 (2) INDIVIDUAL HEALTH INSURANCE COV25 ERAGE.—The amendment made by subsection (b) 

26 shall apply with respect to health insurance coverage 
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1 offered, sold, issued, renewed, in effect, or operated 

2 in the individual market on or after such date.

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