Texas House Bill HB4105

Texas 2017 - 85th Regular

Caption

Relating to certain information reported to the Texas Department of Insurance by insurers, other entities, and individuals in connection with employee benefit plans; creating an offense.

Impact

This bill specifically addresses the need for regulated entities and individuals involved in offering or selling employee benefit plans to disclose any fees or compensations received in conjunction with these plans. The requirement aims to promote ethical practices in the industry and to protect employees and employers from potentially misleading or undisclosed financial arrangements. This legislative move underscores the state’s commitment to enhancing consumer protection within employee benefit programs.

Summary

House Bill 4105 introduces a regulatory framework concerning the disclosures required in connection with employee benefit plans in Texas. The bill amends Chapter 38 of the Insurance Code, incorporating a new subchapter that mandates specific reporting from regulated entities, including various types of health benefit plan issuers and insurance companies. The essence of the bill is to ensure transparency in how compensation related to employee benefits is reported to the Texas Department of Insurance.

Contention

Notably, the bill includes provisions that impose penalties for non-compliance, establishing that individuals who fail to adhere to the disclosure requirements could face charges classified as Class C misdemeanors. The approach taken in HB4105 is aimed at instilling accountability within the insurance sector; however, it may also spark debate regarding the administrative burdens imposed on smaller entities that must comply with these regulations. Critics might argue that the compliance requirements could disproportionately affect smaller businesses and limit their ability to provide employee benefit plans.