Texas Senate Bill SB1220

Texas 2013 - 83rd Regular

Caption

Relating to the use of certain funds from the Texas Health Insurance Pool.

Impact

The implementation of SB1220 is expected to enhance the financial structure of the Texas Health Insurance Pool. By better defining the use of collected funds, the bill seeks to promote premium discounts to health insurance policies, which could encourage wider access to affordable health care options for Texans. The allocation of excess funds to the Texas Health Services Authority emphasizes the goal of supporting health services and related initiatives in a more structured manner.

Summary

Senate Bill 1220 focuses on the allocation and use of funds collected through penalties and interest from health maintenance organizations and insurers in Texas. The bill amends Section 1506.260 of the Insurance Code, outlining that these funds can be used specifically to finance premium discounts under certain provisions. It aims to streamline how excess funds are allocated, ensuring that they support the objectives of the Texas Health Services Authority.

Sentiment

Overall sentiment regarding SB1220 appears to be supportive among health service proponents, who see it as a necessary adjustment to improve funding efficiency and effectiveness within the state's health insurance framework. The language of the bill suggests a recognition of the importance of funding mechanisms that directly impact citizens' ability to access healthcare services affordably.

Contention

While the text of the bill does not highlight significant opposition, any bill related to health insurance tends to raise questions about funding, accessibility, and the potential for unintended consequences. Stakeholders may express concerns regarding the actual effectiveness of the funding allocation changes proposed in the bill and how they affect health maintenance organizations' capabilities to offer discounts in a competitive market.