Justice for Patients Act

To prohibit the inclusion of mandatory predispute arbitration clauses and clauses limiting class action lawsuits in health insurance contracts. 1. Short title This Act may be cited as the Justice for Patients Act 2. Prohibition on mandatory predispute arbitration and limitations on class action lawsuits (a) PHSA Part D of title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg–111 et seq. 2799A–11. Prohibition on inclusion of certain requirements in health insurance contracts (a) Prohibition on mandatory predispute arbitration A group health plan and group or individual health insurance coverage shall not include any predispute arbitration clause that requires the arbitration of claims under such plan or coverage. (b) Prohibition on limitation of class actions A group health plan and group or individual health insurance coverage shall not include any limitation on the ability of an enrollee of such plan or coverage to engage in a class action lawsuit relating to the administration of such plan or coverage. (c) Applicability An issue as to whether this section applies with respect to a dispute shall be determined under Federal law. The applicability of this section to an agreement to arbitrate and the validity and enforceability of an agreement to which this section applies shall be determined by a court, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement, and irrespective of whether the agreement purports to delegate such determinations to an arbitrator. . (b) ERISA (1) In general Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1185 et seq. 726. Prohibition on inclusion of certain requirements in health insurance contracts (a) Prohibition on mandatory predispute arbitration A group health plan or a health insurance issuer offering group health insurance coverage shall not include any predispute arbitration clause that requires the arbitration of claims under such plan or coverage. (b) Prohibition on limitation of class actions A group health plan or a health insurance issuer offering group health insurance coverage shall not include any limitation on the ability of an enrollee of such coverage to engage in a class action lawsuit relating to the administration of such plan or coverage. (c) Applicability An issue as to whether this section applies with respect to a dispute shall be determined under Federal law. The applicability of this section to an agreement to arbitrate and the validity and enforceability of an agreement to which this section applies shall be determined by a court, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement, and irrespective of whether the agreement purports to delegate such determinations to an arbitrator. . (2) Clerical amendment The table of contents in section 1 of such Act is amended by adding at the end the following new item: Sec. 726. Prohibition on inclusion of certain requirements in health insurance contracts. . (c) IRC (1) In general Subchapter B of chapter 100 9826. Prohibition on inclusion of certain requirements in health insurance contracts (a) Prohibition on mandatory predispute arbitration A group health plan shall not include any predispute arbitration clause that requires the arbitration of claims under such plan. (b) Prohibition on limitation of class actions A group health plan shall not include any limitation on the ability of an enrollee of such plan to engage in a class action lawsuit relating to the administration of such plan. (c) Applicability An issue as to whether this section applies with respect to a dispute shall be determined under Federal law. The applicability of this section to an agreement to arbitrate and the validity and enforceability of an agreement to which this section applies shall be determined by a court, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement, and irrespective of whether the agreement purports to delegate such determinations to an arbitrator. . (2) Clerical amendment The table of sections for such subchapter is amended by adding at the end the following new item: Sec. 9826. Prohibition on inclusion of certain requirements in health insurance contracts. .

Summary: Justice for Patients Act This bill prohibits private health insurance plans from (1) including any mandatory arbitration provision for disputes related to the plan, or (2) limiting the ability of a plan enrollee to participate in a class action lawsuit related to the plan. Further, the applicability of this bill to an arbitration agreement may not be determined by an arbitrator.