Texas Senate Bill SB77

Texas 2009 - 81st Regular

• Filed: 11/10/08

Caption

Relating to participation by single-employee businesses in private purchasing cooperatives or health group cooperatives.

Impact

The implementation of SB77 would significantly affect the landscape of health insurance accessibility in Texas for single-employee businesses. By enabling such businesses to engage in health group cooperatives, this legislation is expected to lower insurance costs and improve the availability of health insurance options tailored to the needs of sole proprietors. However, the bill segregates membership eligibility based on the number of employees, which means that only businesses averaging fewer than two employees can enroll, thus maintaining a targeted approach to insurance coverage for very small entities.

Summary

Senate Bill 77 (SB77) is an act that facilitates the participation of single-employee businesses in health group cooperatives and private purchasing cooperatives. This legislation amends the Texas Insurance Code to define 'eligible single-employee business' and establish rules for these businesses to join cooperatives, ensuring they meet specific criteria including having a legitimate business purpose and not being solely formed to procure health benefit plan coverage. The bill aims to enhance healthcare access for sole proprietors and promote their financial viability through collective purchasing power.

Contention

While the bill has notable support from advocates of small business rights, there are points of contention, particularly regarding the limits it places on cooperative membership. Critics argue that the stipulation requiring eligible businesses to have a business purpose may create barriers for individuals seeking to form cooperatives and access adequate health insurance. Additionally, the bill's focus on small businesses may overlook the needs of slightly larger entities that also struggle with insurance affordability, potentially leaving them without competitive health coverage options.