Tennessee Senate Bill SB1270

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25
• Engrossed: 3/13/25
• Enrolled: 3/28/25
• Passed: 4/11/25
• Chaptered: 5/2/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 56 and Section 68-1-115, relative to insurance.

Impact

Should SB1270 become law, it will significantly impact how health insurance companies operate within Tennessee. Specifically, the bill will require health benefit plan issuers to deliver comprehensive reports that detail aggregate paid claims, total premiums, and the number of covered employees. This information must be made available upon request within a set timeframe—30 days. Additionally, the bill stipulates that even after a coverage termination, plan issuers must supply updated claims experience reports. By ensuring that insurance providers must adhere to these regulations, SB1270 promotes a culture of accountability and transparency in the health insurance market.

Summary

Senate Bill 1270, also referred to as the Employee Health Benefit Transparency Act, seeks to amend the Tennessee Code Annotated by introducing a new section that mandates health benefit plan issuers to provide claims experience reports upon request by plan sponsors or administrators. This measure is designed to enhance transparency in the insurance sector, allowing employers and administrators easier access to data on claims and total premiums incurred over specified periods. It aims to improve the ability of plan sponsors to make informed decisions regarding employee health benefits.

Sentiment

The sentiment surrounding SB1270 appears largely supportive among legislators who advocate for consumer rights and transparency in healthcare services. Proponents argue that access to detailed claims experiences will empower employers to negotiate better terms and choose more suitable plans for their employees. However, there is some concern about the potential implications for health insurers, particularly regarding administrative burdens and compliance costs. The discussion has highlighted the balance needed between increasing transparency and ensuring that insurance companies can still operate efficiently.

Contention

While many support the objectives of SB1270, issues have been raised regarding how much information should be legally required and the ramifications for privacy and data protection under HIPAA regulations. Some critics contend that mandating such reporting could lead to increased operational costs for insurers, which might subsequently be passed on to consumers. Furthermore, there are concerns regarding the potential for misuse of sensitive information that could emerge from these reports. Therefore, the dialogue surrounding SB1270 encapsulates a broader debate on transparency versus costs and privacy in the health insurance landscape.