Texas Senate Bill SB2047

Texas 2021 - 87th Regular

Caption

Relating to disclosure requirements for accident and health coverage and health expense arrangements marketed to individuals.

Impact

The implementation of SB2047 will significantly impact how health insurance is marketed and sold in Texas. Issuers will be required to submit disclosure forms for each health benefit plan and health expense arrangement they offer, ensuring that these documents contain essential information concerning coverage, limitations, renewals, and applicable deductibles. This requirement aims to prevent potential misunderstandings and helps consumers make more informed choices regarding their health care coverage.

Summary

Senate Bill 2047 aims to establish clearer disclosure requirements for various types of accident and health coverage, including individual insurance policies and health expense arrangements marketed to consumers. The bill introduces Chapter 1223 to the Texas Insurance Code, which mandates that insurance issuers provide consumers with a standardized disclosure form that must be easy to understand. This initiative is designed to enhance transparency in health insurance offerings and ensure that individuals are better informed about their coverage options before making financial commitments.

Contention

As with many health care-related bills, SB2047 may face contention over the balance between regulation and market freedom. Supporters of the bill argue that enhanced disclosure will protect consumers from misleading insurance practices and promote informed decision-making. Conversely, some critics could argue that the added regulations might lead to increased operational burdens on issuers, potentially resulting in higher costs for consumers. The required standardization may also limit flexibility in how certain health coverage options are presented, sparking debate among stakeholders in the insurance industry.