Texas Senate Bill SB120

Texas 2021 - 87th Regular

Caption

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

Impact

If enacted, SB120 would effectively amend the Texas Insurance Code by introducing Chapter 1511, creating the health insurance risk pool governed by a nine-member board appointed by the commissioner of insurance. The primary goals of this initiative are to reduce premiums in the individual health benefit market by at least 15% and to maximize federal funding. This could include the implementation of reinsurance programs or direct financial assistance to health benefit plan issuers that agree to provide guaranteed issue coverage.

Summary

SB120 proposes the establishment of a health insurance risk pool specifically aimed at providing health benefit plan enrollees with more affordable coverage options. This bill is intended to create a framework whereby federal funds can be utilized to assist residents in obtaining 'guaranteed issue' health coverages, ultimately leading to a reduction in premium rates for health benefit plans in the individual market. Notably, the bill specifies that it will not be used to expand Medicaid programs, focusing solely on private health insurance solutions.

Contention

One area of contention surrounding SB120 is the degree to which this new risk pool might influence existing health insurance frameworks within the state. Advocates argue that by leveraging federal funds, the bill could alleviate financial burdens on consumers while enhancing coverage options available in the individual market. However, critics may express concerns over the bill's limitations regarding Medicaid expansion and whether the reliance on federal funds presents long-term sustainability issues. Furthermore, the bill does provide exemptions from state taxes and fees, which some may view as unfavorable to state revenue in the long run.