Texas Senate Bill SB1332

Texas 2013 - 83rd Regular

Caption

Relating to who is an employee for large and small employers for health benefit plans.

Impact

The bill's changes could have a significant impact on how employers in Texas manage their health benefit provisions. By clarifying and potentially altering employee classification, the legislation may affect the cost and accessibility of health benefits for employees of varying employer sizes. This could encourage more small employers to provide health benefits, as clarified definitions may simplify compliance and enable better access to health coverage for their employees.

Notable

Supporters of SB1332 might assert that this bill creates necessary distinctions that allow for better regulatory clarity and help ensure that health benefit plans operate fairly within the market. Critics, however, might express concern that these changes could inadvertently exclude certain businesses based on their employee count or lead to variability in the quality and extent of health benefits available to employees across different businesses.

Summary

SB1332 addresses the classification of employees for purposes of health benefit plans in Texas, specifically distinguishing between large and small employers. The bill aims to amend the definitions found in the Insurance Code, notably modifying the criteria to qualify as a large or small employer based on the number of employees. The changes set forth in the bill become effective for health benefit plans delivered, issued, or renewed on or after January 1, 2014.

Contention

One potential point of contention surrounding SB1332 is the delineation of what constitutes a 'small' versus a 'large' employer. Some stakeholders may argue that the thresholds set may not adequately reflect the circumstances of smaller businesses, thus affecting their ability to compete with larger entities that may have more resources. Additionally, the adjustments in the Insurance Code could lead to debates regarding the adequacy of health coverage provided, as different rules apply to large and small employers.