Section 1 Short title
This Act may be cited as the “Justice for Patients Act”.
Justice for Patients Act
A BILL
To prohibit the inclusion of mandatory predispute arbitration clauses and clauses limiting class action lawsuits in health insurance contracts.
Sec. 2 Prohibition on mandatory predispute arbitration and limitations on class action lawsuits
PHSA— Part D of title XXVII of the Public Health Service Act (42 U.S.C. 300gg–111 et seq.) is amended by adding at the end the following new section:
“2799A–11. Prohibition on inclusion of certain requirements in health insurance contracts
“(a) Prohibition on mandatory predispute arbitration—A group health plan or a health insurance issuer offering group or individual health insurance coverage may not include in any plan provision, agreement, or arrangement, any predispute arbitration clause that requires the arbitration of any claim relating to such plan or coverage that otherwise may be brought by a participant or beneficiary under State or Federal law. Any such provisions requiring predispute arbitration shall have no force or effect.
“(b) Prohibition on limitation of class actions—A group health plan or issuer offering group or individual health insurance coverage may not include in any plan provision, agreement, or arrangement, any limitation on the ability of a participant or beneficiary of such plan or coverage to engage in a class action lawsuit relating to the administration of such plan or coverage that otherwise may be brought by a participant or beneficiary under State or Federal law..
“(c) Applicability—An issue as to whether this section applies with respect to a dispute shall be determined under Federal law. The applicability of this section to an agreement to arbitrate and the validity and enforceability of an agreement to which this section applies shall be determined by a court, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement, and irrespective of whether the agreement purports to delegate such determinations to an arbitrator.”
ERISA—
In general— Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 et seq.) is amended by adding at the end the following new section:
“726. Prohibition on inclusion of certain requirements in health insurance contracts
“(a) Prohibition on mandatory predispute arbitration—A group health plan or a health insurance issuer offering group or individual health insurance coverage may not include in any plan provision, agreement, or arrangement, any predispute arbitration clause that requires the arbitration of any claim relating to such plan or coverage that otherwise may be brought by a participant or beneficiary under State or Federal law. Any such provisions requiring predispute arbitration shall have no force or effect.
“(b) Prohibition on limitation of class actions—A group or individual health plan or a health insurance issuer offering group health insurance coverage may not include any limitation on the ability of a participant or beneficiary of such plan or coverage to engage in a class action lawsuit relating to the administration of such plan or coverage that otherwise may be brought by a participant or beneficiary under State or Federal law.
“(c) Applicability—An issue as to whether this section applies with respect to a dispute shall be determined under Federal law. The applicability of this section to an agreement to arbitrate and the validity and enforceability of an agreement to which this section applies shall be determined by a court, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement, and irrespective of whether the agreement purports to delegate such determinations to an arbitrator.”
Clerical amendment— The table of contents in section 1 of such Act is amended by adding at the end the following new item:
IRC—
In general— Subchapter B of chapter 100 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
“9826. Prohibition on inclusion of certain requirements in health insurance contracts
“(a) Prohibition on mandatory predispute arbitration—A group health plan or health insurance issuer offering group or individual health insurance coverage may not include in any plan provision, agreement, or arrangement, any predispute arbitration clause that requires the arbitration of any claim relating to such plan or coverage that otherwise may be brought by a participant or beneficiary under State or Federal law. Any such provisions requiring predispute arbitration shall have no force or effect.
“(b) Prohibition on limitation of class actions—A group health plan or a health insurance issuer offering group or individual health insurance coverage may not include any limitation on the ability of a participant or beneficiary of such plan or coverage to engage in a class action lawsuit relating to the administration of such plan or coverage that otherwise may be brought by a participant or beneficiary under State or Federal law.
“(c) Applicability—An issue as to whether this section applies with respect to a dispute shall be determined under Federal law. The applicability of this section to an agreement to arbitrate and the validity and enforceability of an agreement to which this section applies shall be determined by a court, rather than an arbitrator, irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement, and irrespective of whether the agreement purports to delegate such determinations to an arbitrator.”
Clerical amendment— The table of sections for such subchapter is amended by adding at the end the following new item: