House approves bill to require notice before insurers cancel direct‑pay medical coverage

The Utah House approved HB203, a bill that requires insurers to notify insured certificate holders who pay premiums directly when a premium has not been received, and to send notice before cancellation.

Representative Paul Shepherd, the sponsor, told the chamber a personal story: his father nearly missed a scheduled double‑bypass operation after a mailed premium was not received and coverage was cancelled. He said that, in a narrow set of cases—such as retirees or people on extended COBRA coverage who pay premiums directly to the insurer—the policyholder may be unaware a premium was missed and therefore unable to notify the individual. "We need to insert into the law . . . that the insurance company has a responsibility to provide notification prior to the cancellation," Shepherd said.

Members questioned the bill’s scope and whether the department could address the problem administratively instead of via statute. Shepherd and other supporters said the statutory language closes a loophole created by existing statute and committee practice.

Representative Stevens offered a friendly amendment to limit the requirement to those who are "required to pay the entire premium," addressing concerns that large employers changing carriers would not trigger mass notices to thousands of employees. The amendment passed on the floor.

After floor debate and amendment, the reading clerk recorded that the bill passed the House; the transcript shows the House passage recorded at 66 affirmative and no negative votes as it was transmitted to the Senate.

Next steps: HB203, as amended, will be sent to the Senate for consideration.