Texas House Bill HB2893

Texas 2019 - 86th Regular

Caption

Relating to eligibility to establish a multiple employer welfare arrangement.

Impact

The proposed changes could significantly impact state laws governing health insurance, especially for small businesses and self-employed individuals. By allowing working owners of businesses to qualify as both employers and employees for the purposes of MEWAs, the bill is expected to facilitate a more inclusive insurance arrangement. This could lead to increased competition in the health insurance market and ultimately lower premiums for enrollees by expanding the risk pool among smaller employers and self-employed individuals.

Summary

House Bill 2893 relates to the eligibility criteria for establishing a multiple employer welfare arrangement (MEWA) in Texas. The bill seeks to amend the existing regulations within the Texas Insurance Code concerning MEWAs, which allow groups of employers to provide employee health benefit plans collectively. By redefining membership requirements, HB2893 aims to broaden the scope of entities that can participate, particularly targeting small businesses and self-employed individuals, thus enhancing their access to health insurance coverage and benefits.

Contention

Despite its potential benefits, there may be points of contention surrounding HB2893. Critics could argue that expanding eligibility for MEWAs might lead to an influx of lower-quality insurance plans, which could undermine existing employee protections and safety net provisions traditionally afforded under more established plans. Additionally, opponents may also express concerns regarding how these changes might affect the regulatory framework and the potential for abuse by entities seeking to skirt state insurance requirements under the guise of association health plans.