Texas House Bill HB4435

Texas 2019 - 86th Regular

Caption

Relating to the creation of a health insurance risk pool for certain health benefit plan enrollees; authorizing an assessment.

Impact

The introduction of HB4435 is poised to impact the existing framework of health insurance regulations within Texas. By creating a risk pool, the bill aims to stabilize the individual health insurance market, potentially lowering costs for consumers. However, the bill explicitly prohibits the use of the pool to expand Medicaid or similar programs, which has raised concerns among some stakeholders regarding the limitations on healthcare access for low-income individuals.

Summary

House Bill 4435 establishes a health insurance risk pool specifically aimed at individuals enrolled in health benefit plans. The bill's core objective is to significantly reduce health insurance premiums in the individual market by leveraging available federal funds to facilitate access to guaranteed issue health benefit coverage. The bill allows the Texas Commissioner of Insurance to apply for federal funds that will be utilized in the establishment and administration of this risk pool, thus ensuring that residents can secure affordable health coverage.

Contention

Notably, there are contentions surrounding the financial mechanisms outlined in the bill. The Commissioner is empowered to collect assessments from health benefit plan issuers, which some industry stakeholders worry could lead to increased administrative burdens. Furthermore, the lack of taxation or regulatory fees for the programs established under this bill has led to debates about the long-term sustainability and accountability of the risk pool, particularly in light of the financial assessments imposed on insurers.