Texas House Bill HB1932

Texas 2009 - 81st Regular

• Out of House Committee: 4/28/09

Caption

Relating to consumer labeling requirements for certain health benefit plans; providing penalties.

Impact

If enacted, HB1932 will amend Chapter 541 of the Texas Insurance Code, establishing clear criteria for what information must be included in these labels, which will enhance consumer clarity and understanding. The labels will have to display pivotal financial information such as monthly premiums, annual deductibles, out-of-pocket maximums, and specific coverage details. Such disclosures are expected to assist consumers in navigating their insurance options more effectively and make healthcare choices that better suit their individual or family needs.

Summary

House Bill 1932 introduces mandatory consumer labeling requirements for health benefit plans in Texas, addressing the complexity and lack of transparency associated with different insurance offerings. The legislature acknowledges that consumers often struggle to compare health benefit plans due to inconsistent information presented in policy documents. The bill aims to require standardized disclosures, known as 'insurance facts labels,' that will help consumers make informed choices when selecting health coverage by clearly outlining benefits, costs, and other relevant information.

Contention

One point of contention may arise from insurance providers regarding the impact of stringent labeling requirements on their marketing strategies. Some may argue that the mandated format and content could limit flexibility and hinder their ability to differentiate their products in a competitive market. However, supporters of the bill contend that transparency is paramount and that consumers deserve clear and accessible information to understand what they are paying for and what to expect from their health plans. The potential pushback from some stakeholders indicates a complex interplay between regulatory mandates and market freedoms.