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H.B. 181






Sponsor: Sheryl L. Allen

             6      This act modifies the Insurance Code. The act amends provisions related to health
             7      insurance. The act prohibits certain accident and health insurers and certain programs
             8      offered under the Public Employees' Benefit and Insurance Program Act from displaying
             9      Social Security numbers on cards required for an individual to access services. The act
             10      provides exceptions. The act requires insurers to comply with the security requirements
             11      by July 1, 2004 but permits certain extensions until March 1, 2005.
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      ENACTS:
             14          31A-22-634, Utah Code Annotated 1953
             15          49-20-408, Utah Code Annotated 1953
             16      Be it enacted by the Legislature of the state of Utah:
             17          Section 1. Section 31A-22-634 is enacted to read:
             18          31A-22-634. Prohibition against certain use of Social Security number,
             19      exceptions, applicability of section.
             20          (1) As used in this section:
             21          (a) "Insurer" means:
             22          (i) insurers governed by this part as described in Section 31A-22-600 , and includes:
             23          (A) a health maintenance organization; h AND h
             24          (B) a third-party administrator that is subject to this title; and
             25           h [ (C) a subcontractor of those described in Subsection (1)(a)(i), including a pharmacy
             26      benefit manager; and
] h

             27          (ii) notwithstanding Subsection 31A-1-103 (3)(f) and Section 31A-22-600 , a health,

             28      dental, medical, Medicare supplement or conversion program offered under Title 49, Chapter
             29      20, Public Employees' Benefit and Insurance Program Act.
             30          (b) "Publicly display" or "publicly post" means to intentionally communicate or
             31      otherwise make available to the general public.
             32          (2) An insurer h OR ITS SUBCONTRACTORS, INCLUDING A PHARMACY BENEFIT
             32a      MANAGER, h shall not do any of the following:
             33          (a) publicly display or publicly post in any manner an individual's Social Security
             34      number; or
             35          (b) print an individual's Social Security number on any card required for the individual
             36      to access products or services provided or covered by the insurer.
             37          (3) This section does not prevent the collection, use, or release of a Social Security
             38      number as required by state or federal law, or the use of a Social Security number for internal
             39      verification or administrative purposes, or the release of a Social Security number to a health
             40      care provider for claims administration purposes, or as part of the verification, eligibility, or
             41      payment process.
             42          (4) If a federal law takes effect requiring the United States Department of Health and
             43      Human Services to establish a national unique patient health identifier program, an insurer that
             44      complies with the federal law shall be considered in compliance with this section.
             45          (5) An insurer must comply with the provisions of this section by July 1, 2004.
             46          (6) (a) An insurer may obtain an extension for compliance with the requirements of this
             47      section in accordance with Subsections (6)(b) and (c).
             48          (b) The request for extension:
             49          (i) must be submitted in writing to the department prior to July 1, 2004; and
             50          (ii) must provide an explanation as to why the insurer cannot comply with the
             51      requirements of this section by July 1, 2004.
             52          (c) The commissioner shall grant a request for extension:
             53          (i) for a period of time not to exceed March 1, 2005; and
             54          (ii) if the commissioner finds that the explanation provided under Subsection (6)(b)(ii)
             55      is a S [ valid ] REASONABLE s explanation.
             56          Section 2. Section 49-20-408 is enacted to read:
             57          49-20-408. Prohibition against certain uses of Social Security numbers.

             58          Notwithstanding the provisions of Subsection 31A-1-103 (3)(f), health, dental, medical,

             59      Medicare supplement or conversion coverage offered under Section 49-20-202 shall comply
             60      with the provisions of Section 31A-22-634 .

Legislative Review Note
    as of 12-12-02 9:28 AM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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