Texas House Bill HB3381

Texas 2015 - 84th Regular

Caption

Relating to submission and payment of claims under long-term care benefit plans; imposing a penalty.

Impact

A key provision of HB3381 is the establishment of timelines for the payment of claims. Specifically, the bill mandates that issuers must pay claims within 30 days of receipt if they are valid. This brings more rigorous standards to the processing of claims and is designed to protect consumers by ensuring timely payment. Additionally, the bill imposes a penalty of $500 on issuers who fail to comply with these payment timelines, further incentivizing adherence to the regulations outlined.

Summary

House Bill 3381 focuses on the submission and payment of claims under long-term care benefit plans in the state of Texas. The bill outlines specific procedures for claim submission, which can be done through mail, electronic transmission, fax, or in person. This clarification aims to facilitate smoother interactions between plan issuers and individuals covered under these benefit plans, ensuring that all parties are aware of their rights and obligations regarding claims submission.

Contention

Discussion surrounding HB3381 highlighted some concerns regarding the potential burden that the imposed penalties could place on insurance companies, especially smaller issuers. While proponents argue that the bill will enhance consumer protection and accountability, critics fear that the penalties could lead to higher premiums or discourage issuers from offering long-term care plans altogether. Balancing consumer protection with the operational viability of insurance providers remains a crucial point of contention among stakeholders involved in these discussions.