Relating to the application for and continuation of certain health benefit plan coverage; providing a civil penalty.
Impact
The implementation of SB350 could significantly impact both consumers and health insurers in Texas. By providing a framework for ensuring that applicants receive clear guidance during the application process, the bill aims to reduce misunderstandings and misrepresentations in health benefit plan applications. The provisions ensuring continuation of coverage for individuals transitioning between plans could provide greater security for consumers, allowing them to maintain their coverage without interruption when modifying their health plans due to various circumstances.
Summary
SB350 is an act that addresses the application for and continuation of health benefit plan coverage in the state of Texas. The bill introduces new provisions to the Insurance Code, specifically adding chapters that define health benefit plans and outline the responsibilities of insurance agents when assisting applicants. Notably, the legislation stipulates that agents must ensure the completeness and accuracy of answers provided by applicants and entails civil penalties for agents who willfully misstate material facts on applications. Such penalties could reach up to $10,000 for intentional inaccuracies, which could enhance accountability and integrity in the application process.
Contention
Despite the potential benefits, SB350 may have contentious elements as well. For example, the bill allows health plan issuers to apply preexisting condition provisions or waiting periods similar to those in prior policies if an individual had been subjected to such conditions in their previous coverage. This aspect of the bill could raise concerns among advocates for patients, particularly those with existing health conditions, about the fairness and accessibility of insurance options. The potential for civil penalties might also incite debates regarding the regulatory burden on insurance agents, who may feel that such measures could create challenges in their operations and affect their client relationships.
Human services: medical services; general changes to the medical assistance program; provide for. Amends secs. 105d & 106 of 1939 PA 280 (MCL 400.105d & 400.106) & repeals secs. 105c & 105f of 1939 PA 280 (MCL 400.105c & 400.105f).