Texas House Bill HB3074

Texas 2021 - 87th Regular

Caption

Relating to the eligibility of certain individuals to purchase Medicare supplement benefit plans at the lowest standard premium rate.

Impact

The proposed legislation directly impacts the Texas Insurance Code by amending it to include specific requirements regarding premium rates for Medicare supplement plans. This change will ensure that eligible individuals, particularly those aged 70 and above who may be at risk of being charged higher premiums due to age or health-related factors, can access more affordable healthcare options. By limiting the grounds on which premiums can be based, the bill seeks to enhance consumer protections for the elderly population.

Summary

House Bill 3074 is an act that aims to regulate the eligibility of individuals to purchase Medicare supplement benefit plans at the lowest standard premium rates in Texas. This bill introduces provisions that mandate entities providing these plans to offer them at the lowest rate if applicants meet certain eligibility criteria. Specifically, it focuses on individuals who are currently covered by a substantially comparable plan and apply for a new plan during a designated eligibility period that occurs every five years, starting at age 70. This change is intended to improve access and affordability for older Texans.

Contention

While the bill aims to benefit older adults by ensuring they are not unfairly penalized based on health status or personal characteristics, there may be concerns regarding the financial implications for insurance providers. Entities may argue that the requirement to offer lower rates could impact their profitability and lead to a consolidation of available plans or a reduction in service quality. As such, discussions may occur around the balance between consumer protection and industry sustainability, highlighting a potential area of contention among stakeholders.