Texas House Bill HB3120

Texas 2009 - 81st Regular

Caption

Relating to the maximum allowable premium rate increase for small employer health benefit plans.

Impact

The implementation of HB 3120 is expected to enhance consumer protections for small employers and their employees, aiming to ensure that premium increases remain within reasonable limits. This measure intends to foster a more stable insurance market for small employers by curtailing excessive premium hikes that could otherwise burden businesses and their employees. Furthermore, the bill would enable small employers, eligible employees, or their dependents to file complaints with the office of public insurance counsel if they believe that the rates charged are excessive based on the new regulations.

Summary

House Bill 3120 aims to regulate the maximum allowable premium rate increases for small employer health benefit plans in Texas. The bill proposes that any increase in the premium rate charged to a small employer for a new rating period cannot exceed an aggregate percentage that includes a base percentage change plus adjustments for claims experience and changes in coverage. Specifically, increases should not exceed 10% plus any adjustments that may apply, creating a more predictable and manageable framework for small employers in dealing with rising insurance costs.

Contention

Notably, there may be contention surrounding HB 3120 regarding its enforcement and the potential administrative burden it could place on insurance issuers. Proponents of the bill highlight the importance of protecting small employers from unjustified premium increases, while opponents may argue it could limit flexibility in the insurance market. Moreover, the implications of this legislation on overall health insurance dynamics within the state could spark discussions among stakeholders about balancing consumer protections with the operational realities of insurance providers.