Texas House Bill HB2064

Texas 2009 - 81st Regular

• Out of House Committee: 3/30/09
• Voted on by House: 4/8/09
• Out of Senate Committee: 5/6/09
• Voted on by Senate: 5/12/09
• Governor Action: 5/30/09
• Enrolled: 5/20/09
• Passed: 5/30/09

Caption

Relating to premium discounts for certain participants in the Texas Health Insurance Risk Pool and to funding for those discounts through certain penalties.

Impact

The legislation alters the Texas Insurance Code, specifically by modifying how premium rates are calculated and providing a framework for tax credits for health benefit plan issuers. These tax credits will offset the costs imposed by discounted premiums, incentivizing insurers to participate in the Texas Health Insurance Risk Pool. The total premium discount available is capped at $20 million for a two-year period, ensuring fiscal responsibility while expanding access to health insurance for more individuals.

Summary

House Bill 2064 addresses premium discounts for participants in the Texas Health Insurance Risk Pool. The bill stipulates that premium rates must be set to provide for all expected claims costs, while offering discounted premiums on a sliding scale based on the applicant's financial need. It targets individuals with household incomes below 300 percent of the federal poverty measure, ensuring they have access to affordable health insurance options. The proposed discount structure intends to assist lower-income individuals significantly by aligning premiums to their income levels.

Contention

While the bill seeks to create a more inclusive health insurance framework, notable concerns may arise regarding the long-term sustainability of the premium discount program and the financial implications for insurers participating in the Texas Health Insurance Risk Pool. Some stakeholders may worry about the possible strain on the pool's solvency as the discounts and credits are implemented, which could result in higher premiums in the future for all policyholders if not managed appropriately. There may also be debates over the initial cap on discount allocations, as it could limit the program's reach despite its intent to provide broader access to low-income families.