1Providing for the rights of individuals to purchase private
2health care insurance; and prohibiting certain governmental
3action.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1.  Short title.

7This act shall be known and may be cited as the Freedom of
8Choice in Health Care Act.

9Section 2.  Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Commonwealth agency."  The Commonwealth, including the
14Executive Department, Commonwealth departments and boards and
15commissions; an independent administrative department, board and
16commission; or a public official thereof, acting under the color

1of State law.

2"Direct purchase."  Payment for lawful health care services
3without a public or private third party, not including an
4employer, paying for any portion of the service.

5"Health care system."  Any public or private entity whose
6function or purpose is the management of, processing of, or
7enrollment of individuals for or payment for, in full or in
8part, health care services, health care data or health care
9information for its participants.

10"Penalties or fines."  Any civil or criminal penalty or fine,
11tax, salary or wage withholding or surcharge, or any named fee
12with a similar effect established by law or rule by a
13government-established, government-created or government-
14controlled agency that is used to punish or discourage the
15exercise of rights protected under this section.

16Section 3.  Individual rights.

17The people shall have the right to enter into private
18contracts with health care providers for health care services
19and to purchase private health care coverage. The legislature
20may not require any individual to participate in any health care
21system or plan, nor may it impose a penalty or fine, of any
22type, for choosing to obtain or decline health care coverage or
23for participation in any particular health care system or plan.

24Section 4.  Freedom of choice in health care.

25(a)  Prohibited actions.--To preserve the freedom of
26Pennsylvanians to provide for their health care:

27(1)  A law or rule shall not compel, through penalties
28and fines, directly or indirectly, any individual, employer
29or health care provider to participate in any health care
30system.

1(2)  An individual or employer may pay directly for
2lawful health care services and shall not be required to pay
3penalties or fines for paying directly for lawful health care
4services. A health care provider may accept direct payment
5for lawful health care services and shall not be required to
6pay penalties or fines for accepting direct payment from a
7individual or employer for lawful health care services.

8(b)  Private health care insurance.--Subject to reasonable
9and necessary rules that do not substantially limit an
10individual's options, the purchase or sale of health insurance
11in private health care systems shall not be prohibited by rule
12or law.

13(c)  Interpretation.--This section does not affect:

14(1)  Which health care services a health care provider or
15hospital is required to perform or provide.

16(2)  Which health care services are permitted by law.

17(3)  The terms or conditions of any health care system to
18the extent that those terms and conditions do not have the
19effect of punishing an individual or employer for paying
20directly for lawful health care services or a health care
21provider or hospital for accepting direct payment from an
22individual or employer for lawful health care services.

23Section 5.  Participation in related laws.

24Neither the Governor nor the Department of Health, the
25Department of Public Welfare or any other Commonwealth agency
26shall participate in the compliance with any Federal law,
27regulation or policy that would compromise the freedom of choice
28in health care of any resident of this Commonwealth.

29Section 6.  Effective date.

30This act shall take effect immediately.