Texas House Bill HB3183

Texas 2009 - 81st Regular

Caption

Relating to requirements regarding employer liability for certain group health benefit plan premiums.

Impact

The implications of HB 3183 are significant for employers who offer group health insurance. By requiring that group policyholders remain financially responsible for premiums until formal notification of an enrollee's ineligibility, the bill enhances the continuity of health coverage for individuals during job transitions. This could help reduce the number of individuals left without health insurance due to oversight or delays in communication about eligibility changes. Furthermore, it provides a structured notification process that sets clear expectations for both the insurer and the group policyholder.

Summary

House Bill 3183 seeks to amend the Texas Insurance Code concerning the responsibilities of group contract holders regarding health benefit plan premiums. The bill stipulates that group contract holders are liable for premiums for enrollees who are no longer part of the eligible group until they notify the health maintenance organization (HMO) of the enrollee's change in status. This approach aims to ensure that enrollees maintain coverage during a transitional period, benefitting both the employee and the employer by clarifying these responsibilities.

Contention

While the bill aims to protect enrollees, it raises concerns among some businesses regarding potential financial liabilities. Employers may worry about incurring additional costs if they fail to promptly notify insurers about changes in enrollee eligibility. The bill places a responsibility on health maintenance organizations to inform employers of these obligations, which some critics argue could lead to confusion or additional administrative burdens. The balance between protecting employees and not unduly burdening employers is a point of contention in discussions about this bill.