Texas Senate Bill SB90

Texas 2015 - 84th Regular

• Filed: 11/10/14

Caption

Relating to notice and prior approval of health benefit plan rates.

Impact

The impact of SB90 on state laws is significant as it introduces a framework that enhances regulatory scrutiny over health benefit plan rates. By requiring approval for rate changes, the legislation aims to prevent issuers from implementing rate increases without adequate justification, thereby fostering transparency and protecting consumers from potentially unjustified escalations in healthcare costs. Additionally, the bill emphasizes accountability by compelling health benefit plan issuers to provide supporting information for their proposed rates, ensuring that rates are reflective of actual costs and risks associated with the coverage.

Summary

Senate Bill 90, which relates to the notice and prior approval of health benefit plan rates, seeks to establish more stringent regulations for health benefit plan issuers concerning their rate-setting practices. The bill introduces requirements for health benefit plans that provide medical or surgical expense coverage, mandating that issuers must obtain prior approval from the commissioner before adopting any new rates. This enhances oversight and aims to ensure that rates offered are justifiable based on sound actuarial principles and do not result in excessive or discriminatory pricing for covered individuals.

Contention

While supporters of SB90 argue that the bill is essential for protecting consumers against unfair increases in health insurance premiums, opponents may express concerns about the potential for overregulation stifling market competition. Some stakeholders fear that strict oversight could lead to reduced insurer participation in the market, ultimately limiting choices for consumers. However, proponents counter that the enhanced consumer protection measures would lead to more equitable rates and contribute to a more stable health insurance market overall.