Health Care Freedom Act

Summary

This bill prohibits health insurers from accepting federal subsidies under the Affordable Care Act that trigger the employer mandate. Health insurers accepting subsidies shall have their license to issue new business suspended for all business on exchanges established by the Affordable Care Act.

Model Policy

Section 1. Title. This Act shall be known as the “Health Care Freedom Act.”

Section 2. Definitions.

“Health insurance issuer” means {insert appropriate state health insurance issuer definition or state code reference}.

Section 3. Prohibition on Issuers. Enforcement.

(A) A health insurance issuer operating in this state shall not accept any remuneration, credit, or subsidy, as described in 42 U.S.C. 18082.

(B) If a health insurance issuer violates division (A) of this section, the issuer’s license to issue new business in the state on the federal exchange established by the Affordable Care Act shall be suspended immediately and until such time as the issuer represents it has returned that remuneration, credit, or subsidy to its source and will decline any such future remuneration, credit, or subsidy. Such suspensions shall not be construed as impairing the right of contract or the right to continue or renew existing business in the state.

(C) The attorney general shall take such action as is provided in {insert appropriate state law} in the defense or prosecution of rights protected under this chapter.

Section 4. Other Obligations of Attorney General.

The attorney general shall seek injunctive and any other appropriate relief as expeditiously as possible to preserve the rights and property of the residents of the state, and to defend as necessary the state, and its officials, employees, and agents, in the event that any law or regulation violating the public policy set forth in this chapter is enacted by any government, subdivision, or agency thereof.

Section 5. {Severability clause.}

Section 6. {Repealer clause.}

Section 7. {Effective date.}

Model legislation created by the American Legislative Exchange Council


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