Article 21.79F Does Not Prohibit Hospital Discount Programs

September 15, 2004

Texas Commissioner of Insurance Jose Montemayor recently announced  “the purpose and intent of Article 21.79F is not to prohibit the types of discount programs being considered by some hospitals.”  This statement, made in an August 2004 letter to the Texas Hospital Association, suggests that hospitals now have approval to implement discount programs to uninsured patients without fears that such plans will violate Article 21.79F.  Although Commissioner Montemayor apparently intended to answer longstanding questions hospitals and health care providers have had about Article 21.79F, his letter leaves unanswered a number of questions that should be considered before hospitals implement discount programs.

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