PRINTER'S NO. 1676
No. 1232 Session of 2008
INTRODUCED BY PIPPY, D. WHITE, KITCHEN, WOZNIAK, WASHINGTON AND PUNT, JANUARY 11, 2008
REFERRED TO BANKING AND INSURANCE, JANUARY 11, 2008
AN ACT 1 Amending the act of July 22, 1974 (P.L.589, No.205), entitled 2 "An act relating to unfair insurance practices; prohibiting 3 unfair methods of competition and unfair or deceptive acts 4 and practices; and prescribing remedies and penalties," 5 further providing for unfair acts. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Section 5(a) of the act of July 22, 1974 9 (P.L.589, No.205), known as the Unfair Insurance Practices Act, 10 is amended by adding a paragraph to read: 11 Section 5. Unfair Methods of Competition and Unfair or 12 Deceptive Acts or Practices Defined.--(a) "Unfair methods of 13 competition" and "unfair or deceptive acts or practices" in the 14 business of insurance means: 15 * * * 16 (15) Knowingly doing any of the following: 17 (i) Requiring an insured to obtain ophthalmic services and 18 products from a vision laboratory or company as a condition of 19 obtaining the payment for the vision services.
1 (ii) Imposing upon an insured who is not utilizing an 2 ophthalmic service or product from a vision laboratory or 3 company a copayment fee or other condition not imposed upon 4 insureds utilizing an ophthalmic service or product from the 5 vision laboratory or company. 6 (iii) Hampering competition in numerous ways, including, but 7 not limited to: 8 (A) restraining providers' ability to compete in the market; 9 (B) depriving an insured of the choice associated with free 10 and open competition in the sale of ophthalmic products; 11 (C) suppressing competition based upon quality and service; 12 and 13 (D) reducing the quality and level of care available to an 14 insured in the purchase of any ophthalmic product or denying or 15 impairing the right of an insured to determine from where 16 ophthalmic services or products are made. 17 (iv) Creating a preferred class of providers that is not 18 held to uniform conditions of participation under the same 19 employer's purchased health care contract, vision care contract 20 or other health insurance contracts. 21 (v) Requiring the purchase of a minimum quantity or minimum 22 dollar amount of a specified brand of materials in order to 23 participate as a provider in a vision or other health care plan. 24 (vi) Requiring a provider to participate in a vision benefit 25 plan as a condition of participation in a health care plan. 26 Section 2. This act shall take effect in 60 days. J16L40JS/20080S1232B1676 - 2 -