Texas House Bill HB1585

Texas 2013 - 83rd Regular

Caption

Relating to notice of a premium increase for certain health insurance policies.

Impact

This bill amends the Texas Insurance Code, specifically Section 1201.109, which relates to health insurance policies. By enforcing stricter notice requirements, HB1585 empowers consumers with the information necessary to understand changes in their insurance costs, thereby promoting transparency in the health insurance market. The implications for insurers include potential administrative changes to accommodate the new notice timelines and ensure compliance, which could impact their operational processes.

Summary

House Bill 1585 aims to enhance consumer protections concerning health insurance policies by mandating that insurers provide a clear notice to policyholders regarding any premium increases. Specifically, the bill requires that at least 60 days before the effective date of a premium increase, insurers must notify insured individuals of the new premium rates and the percentage change from the previous rates. This provision is intended to ensure that consumers are adequately informed and can make necessary adjustments in their budgeting or seek alternative coverage if needed.

Contention

While the bill is largely positioned as a consumer protection measure, discussions may center around the balance between regulatory oversight and the operational flexibility of insurance providers. There could be concerns from the insurance industry regarding the administrative burden imposed by the new notification requirements, with arguments that such regulations may lead to increased costs passed down to consumers. Critics might also question whether this law effectively addresses broader issues in healthcare affordability and accessibility.