Texas Senate Bill SB1978

Texas 2009 - 81st Regular

Caption

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

Impact

The enactment of SB1978 will amend existing provisions under the Texas Insurance Code, making it mandatory for insurers and health maintenance organizations to refund premiums paid on behalf of an individual once they are no longer part of the eligible group, provided that the individual did not incur any claims after becoming ineligible. This adjustment seeks to clarify the financial responsibilities of group policyholders and potentially reduce their liability when employees leave or change status.

Summary

SB1978 addresses the requirements regarding employer liability for premiums associated with group health benefit plans in Texas. The bill stipulates that group contract holders must continue to cover an enrollee's premiums from the moment they become ineligible for the group's coverage until the end of the month in which a notification is provided to the health maintenance organization (HMO) or insurer. This ensures that enrollees remain covered during this transition period, adding a layer of consumer protection amid employment changes.

Contention

Notable contention surrounding the bill likely revolves around the implications of extended employer liability for premiums. Proponents would argue that this enhances continuity of care for individuals during employment transitions, likely improving overall health outcomes for enrollees. Critics, however, may express concerns about the financial burdens placed on employers, particularly smaller businesses, who could face increased costs associated with additional premium payments during periods of transition for their employees.