Texas Senate Bill SB614

Texas 2009 - 81st Regular

Caption

Relating to preexisting condition provisions in individual accident and health insurance policies.

Impact

The legislation has notable implications for state insurance law, particularly in how insurers can manage preexisting condition clauses. One of the significant features of SB614 is its specific protection for those aged 65 and older, which prohibits insurers from imposing preexisting condition exclusions beyond six months after the issuance of the policy. This provision is particularly beneficial for older individuals who may have a higher likelihood of having preexisting conditions yet still require insurance coverage.

Summary

SB614 is a bill aimed at amending the provisions concerning preexisting conditions specified in individual accident and health insurance policies. The bill introduces new regulations that limit the application of preexisting condition clauses to illnesses or conditions that were diagnosed or treated in the six months prior to the effective date of the insurance coverage. This change is intended to provide individuals with a fairer opportunity to receive coverage for conditions that may have previously been excluded due to such provisions. Additionally, the bill mandates that preexisting condition limitations cannot apply to claims made after the first anniversary of an individual's coverage effective date.

Contention

The bill has sparked discussions among legislators regarding the balance between protecting consumers and ensuring that insurers can manage risks effectively. Supporters argue that enhancing the accessibility of coverage for individuals with preexisting conditions is an essential step towards a more equitable healthcare system. However, opponents raise concerns that loosening restrictions may lead to increased costs for insurers, potentially causing higher premiums for all policyholders. As such, the bill reflects broader debates around healthcare accessibility and insurance market regulations.