Texas Senate Bill SB2733

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to the election of certain participating entities to participate in the uniform group coverage program for active school employees.

Impact

The implications of SB2733 are notable as it reintroduces opportunities for educational entities to regain participation in health insurance programs, which can impact recruitment and retention of qualified staff. By allowing these entities to participate, the bill could help mitigate challenges that schools face in offering competitive benefits packages to attract quality educators. The introduction of a risk stabilization fee on premiums may also reflect an attempt to manage fiscal responsibilities associated with re-integration into the coverage program.

Summary

Senate Bill 2733 aims to amend existing provisions of the Insurance Code concerning the participation of certain entities in the uniform group coverage program for active school employees. Specifically, the bill allows specific entities that previously opted out of the program to rejoin before the fifth anniversary of their exit, providing coverage effective from September 1, 2026. This is significant as it aims to restore access to group insurance that provides benefits to active school personnel, enhancing the potential for comprehensive healthcare coverage for employees in the education sector.

Contention

While the bill appears to present a positive amendment to health coverage options for school employees, potential points of contention may arise around the financial sustainability and impact of the risk stabilization fee. Stakeholders might debate whether this additional cost is manageable for the participating entities and how it affects their budgets. Moreover, the stipulation that entities cannot opt out again until 2031 raises questions about the long-term commitment required from entities and how it might limit their flexibility amidst changing circumstances. The underlying dynamics at play may elicit a range of opinions from various educational and economic stakeholders.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 1579. Texas School Employees Uniform Group Health Coverage
  • Section: New Section