Texas 2009 - 81st Regular

Texas Senate Bill SB842

Filed
 
Out of Senate Committee
4/6/09  
Voted on by Senate
4/16/09  
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the operation of health care sharing organizations.

Impact

One of the primary impacts of SB842 is the formal recognition of health care sharing organizations, allowing them to operate legally apart from traditional insurance regulations. These organizations are exempt from the usual scrutiny of insurance laws, thereby gaining operational freedom. The bill also ensures consumer protection by giving the Attorney General jurisdiction to oversee these organizations to prevent deceptive practices. However, participants are explicitly informed that engagement in health care sharing arrangements does not equate to acquiring insurance and that they remain financially responsible for their own medical bills.

Summary

SB842, known as the Health Care Sharing Organizations Freedom to Share Act, seeks to regulate health care sharing organizations in Texas. These organizations allow participants, often based on religious beliefs, to help each other with medical expenses without treating these arrangements as traditional insurance. This bill provides a legal framework recognizing these organizations as legitimate entities that foster voluntary financial assistance among their members, who usually lack health insurance. The legislation defines the operation, rights, and responsibilities of these organizations in Texas, promoting transparency and accountability while emphasizing their non-insurance status.

Contention

While there are proponents who argue that SB842 promotes alternative healthcare solutions that align with religious values, critics might contend that the bill creates gaps in consumer protection. The exemption from traditional insurance regulatory frameworks could potentially leave participants vulnerable to financial risks, as they purely rely on voluntary sharing without any guarantees. Furthermore, concerns might arise regarding the adequacy of oversight provided by the Attorney General's office compared to traditional insurance regulators, especially in cases of inadequate assistance or disputes among participants.

Companion Bills

TX HB1276

Identical Relating to the operation of health care sharing organizations.

Previously Filed As

TX SB344

Relating to the creation of the Texas Health Insurance Exchange and premium assistance and cost-sharing reduction programs; authorizing a fee.

TX HB4611

Relating to the nonsubstantive revision of the health and human services laws governing the Health and Human Services Commission, Medicaid, and other social services.

TX HB4835

Relating to the creation and operations of certain health care provider participation programs.

TX SB1724

Relating to advance directives and health care treatment decisions made by or on behalf of patients, including a review of those directives and decisions.

TX SB1952

Relating to advance directives and health care treatment decisions made by or on behalf of patients, including a review of those directives and decisions.

TX HB5280

Relating to operation by certain nonprofit organizations of certain regional health care programs for employees of small employers.

TX HB3162

Relating to advance directives, do-not-resuscitate orders, and health care treatment decisions made by or on behalf of certain patients, including a review of directives and decisions.

TX HB1073

Relating to certain health care services contract arrangements entered into by insurers and health care providers.

TX HB2180

Relating to the application of prescription drug price rebates to reduce health benefit plan enrollee cost sharing.

TX SB17

Relating to the development and implementation of the Live Well Texas program and the expansion of Medicaid eligibility to provide health benefit coverage to certain individuals; imposing penalties.

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