Texas Senate Bill SB2087

Texas 2017 - 85th Regular

Caption

Relating to the creation of a temporary health insurance risk pool.

Impact

If enacted, SB 2087 would create a new chapter in the Texas Insurance Code wherein the temporary health insurance risk pool would operate. It specifies that the pool is not designed to expand Medicaid but rather to serve as a supplementary option to improve healthcare access for individuals. The proposed funding mechanisms highlight that state funds cannot be used for the pool without direct appropriation, ensuring the reliance on federally available funds. Annual reporting requirements would ensure transparency around the utilization of the pool and its financial activities.

Summary

Senate Bill 2087 establishes a temporary health insurance risk pool aimed at maximizing federal funding to support residents in accessing affordable healthcare. The bill empowers the commissioner of insurance to apply for federal funds available after March 1, 2017, to create and manage this risk pool. The goal of the pool is to provide alternative insurance coverage and reinsurance options for health benefit plans, which can help lower premium rates for individuals, particularly those with existing health conditions.

Sentiment

The sentiment surrounding SB 2087 is generally supportive among healthcare advocates who see the need for improved access to insurance coverage for low-income residents and those with preexisting conditions. However, there may also be contention regarding the efficacy and adequacy of funding, as the bill's reliance on federal funds raises concerns about sustainability. Some legislators may question the long-term financial implications for the state and the potential limitations in benefits if federal funding is not secured.

Contention

A notable point of contention within discussions about SB 2087 lies in its intent not to expand the Medicaid program but to create a separate mechanism for insurance coverage. Critics may argue this could lead to confusion and insufficient coverage for those who would typically qualify for Medicaid. Additionally, limits on utilizing state funds for the pool could create challenges if federal funding does not materialize or meets shortfalls, leading to uncertainty in the healthcare landscape for vulnerable populations.