Texas Senate Bill SB879

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/6/09

Caption

Relating to premium discounts for certain participants in the Texas Health Insurance Risk Pool and to related tax credits for health benefit plan issuers.

Impact

The implementation of SB879 is poised to significantly affect individuals seeking affordable health insurance in Texas. By establishing premium discounts linked to income levels, the bill seeks to reduce financial barriers for resource-constrained populations. The potential $20 million cap on aggregate discounts over a two-year period indicates a focused attempt to balance cost control while providing necessary financial supports to enhance health coverage accessibility, particularly for those within the Texas Health Insurance Risk Pool. The provision enabling health benefit plan issuers to claim tax credits against their premium taxes adds a layer of financial incentivization aimed at promoting these discounts.

Summary

SB879 proposes amendments to the Insurance Code relating to premium discounts for participants in the Texas Health Insurance Risk Pool. The bill introduces a sliding scale for premium rates based on an individual's household income in relation to federal poverty guidelines, aiming to lower costs for those in financial need. Specifically, individuals whose incomes are below 200% of the poverty level can expect to pay standard risk rates, while those earning between 200% and 300% would pay 140% of the standard rate. This reform is intended to enhance access to health insurance for lower-income individuals in Texas.

Contention

Although SB879 seeks to improve access to health insurance, there may be discussions related to the adequacy of the financial support and the long-term sustainability of the premium discount program. Critics may express concerns regarding whether the proposed discounts sufficiently address the needs of impoverished individuals, or if they create dependency on state subsidies. Additionally, the potential for budget impacts as a result of the assigned tax credits necessitates close scrutiny to ensure that the program remains equitable and directly supports the intended population without leading to financial strains on the state’s fiscal resources.