Texas Senate Bill SB825

Texas 2019 - 86th Regular

Caption

Relating to health benefit plan coverage of preexisting conditions and the guaranteed issue of certain health benefit plans.

Impact

The enactment of SB825 would significantly change the landscape of health insurance in Texas. By requiring insurers to cover individuals with preexisting conditions, the bill may lead to an increase in insured individuals and improved health outcomes, as people will no longer face discrimination based on their health history. This legislation aligns with broader efforts to ensure equitable access to health services, mirroring initiatives found in federal regulations. Such measures may prove essential in preventing the financial strain on individuals who previously faced barriers in acquiring health care.

Summary

SB825 aims to address the issue of health benefit plan coverage, specifically focusing on preexisting conditions and guaranteeing the issuance of health benefit plans. The bill seeks to amend the Texas Insurance Code to eliminate the ability of health benefit plan issuers to deny coverage based on preexisting conditions. This means that individuals wishing to obtain health insurance coverage will not be barred based on their previous health issues, thereby improving access to necessary medical care for a larger segment of the population.

Contention

Despite the potential benefits of SB825, there are points of contention that may arise during its implementation. Critics may argue that mandating coverage for preexisting conditions could lead to increased costs for insurance companies, which might then be passed on to consumers through higher premiums. Additionally, there are concerns about the timing of implementation and requirement for compliance from state agencies, which could create a legal and operational challenge for insurers adapting to the new regulations. Stakeholders could further debate the effectiveness of this legislation in achieving health equity without compromising the financial sustainability of the health insurance market.