Texas Senate Bill SB1367

Texas 2013 - 83rd Regular

Caption

Relating to abolishing the Texas Health Insurance Pool.

Impact

The bill primarily impacts the ability of individuals who relied on the Texas Health Insurance Pool for coverage, particularly those with preexisting conditions. It sets forth a timeline for the termination of pool coverage and stipulates that coverage will end on either January 1, 2014, or when comparable health benefit coverage becomes accessible. Consequently, this move can have far-reaching implications for the accessibility of health insurance for vulnerable populations, as the pool was a crucial safety net for many individuals.

Summary

SB1367 aims to abolish the Texas Health Insurance Pool, which was initially established to provide health coverage for individuals who had difficulty obtaining insurance due to preexisting conditions. The bill mandates a structured dissolution plan whereby the pool's obligations will cease and the management and resources will be transferred to the Texas Department of Insurance. This transition is intended to ensure that any coverage previously offered by the pool remains available through other means, specifically emphasizing a shift towards a more guaranteed issue basis for health insurance in Texas.

Contention

Notable points of contention surrounding SB1367 focus on concerns regarding the timing and adequacy of alternative health coverage options that will replace the pool's provisions. Opponents argue that the bill's timeline for terminating coverage may leave some individuals without necessary insurance during a transitional period. Advocates, however, assert that the abolishment of the pool is necessary to streamline healthcare coverage and transition to a system that aligns with modern insurance practices, particularly under the guidelines set forth by federal regulations.