Texas House Bill HB2750

Texas 2009 - 81st Regular

Caption

Relating to the regulation of certain market conduct activities of certain life, accident, and health insurers and health benefit plan issuers; providing civil liability and administrative and criminal penalties.

Impact

One significant aspect of HB2750 is the introduction of penalties for insurers that engage in 'bad faith' cancellations. It declares that setting cancellation goals, paying employee bonuses tied to cancellations, or making cancellations a condition of employment constitutes an unfair practice. Through these measures, the bill aims to prevent insurance providers from incentivizing cancellations in ways that could adversely affect policyholders and to foster a more transparent and accountable insurance market.

Summary

House Bill 2750 seeks to enhance the regulation of certain market conduct activities of life, accident, and health insurers, as well as health benefit plan issuers. The legislation specifically targets the practices surrounding the cancellation of health benefit plans, introducing provisions that aim to curb unfair methods of competition and deceptive practices in this domain. By establishing explicit criteria and guidelines for how and when health benefit plans can be cancelled, HB2750 strives to improve consumer protection and ensure fair treatment for policyholders.

Contention

Debates surrounding HB2750 highlighted concerns from various stakeholders. Supporters argue that the bill strengthens consumer protections and promotes fairness in insurance practice, fostering a more reliable health coverage environment. However, critics raise concerns that the regulations could lead to insurers raising premiums to mitigate the risk associated with stricter cancellation standards. There is apprehension that well-intentioned regulations might result in unintended consequences that adversely affect the availability and affordability of health insurance for consumers.