Texas House Bill HB4217

Texas 2009 - 81st Regular

Caption

Relating to the establishment of the Texas Individual Health Insurance Association and to the efficient operation of that system.

Impact

The bill is expected to have a significant impact on Texas law regarding health insurance operations. By creating this overarching association, the legislation seeks to ensure that both insurers and consumers operate under a more organized structure, promoting fair practices and enhancing consumer protection within the health insurance industry. The association is also granted powers to operate as a reinsurance system, which would help mitigate risks for insurers, thereby promoting stability in the individual health insurance sector.

Summary

House Bill 4217 establishes the Texas Individual Health Insurance Association as a nonprofit entity composed of authorized insurers. The primary aim of this legislation is to efficiently manage and operate the individual health insurance market in Texas. All insurers seeking to provide individual health coverage are required to be members of the association, thereby centralizing the administration of health insurance policies within the state. This framework intends to streamline processes and enhance accessibility to health coverage for individuals requiring insurance.

Contention

One notable point of contention related to HB 4217 revolves around the implications it may have on competition within the health insurance market. Critics of the bill may argue that forcing all insurers to join a single association could reduce competition, ultimately leading to higher premiums and less choice for consumers. Additionally, there may be concerns regarding the governance structure of the association, particularly how the governing committee is appointed and the transparency of its operations. Ensuring that the association operates without favoritism and maintains accountability to policyholders will be crucial in addressing these concerns.