Bill > HB2583

This bill modifies Texas insurance law to provide health maintenance organizations (HMOs) and insurers with discretionary authority to waive premium payments for individuals who are no longer eligible for group health coverage. Specifically, if a group contract holder or policyholder notifies the HMO or insurer about an individual's termination of eligibility after the end of the month in which coverage actually ends, the insurance provider may choose to waive the contract holder's liability for premiums in subsequent months. This waiver is only applicable if no covered medical services were provided to the individual after their coverage termination date. The bill amends two sections of the Texas Insurance Code (Sections 843.210 and 1301.0061) to implement this provision. The legislation will take effect immediately if it receives a two-thirds vote in both legislative chambers, or otherwise will become effective on September 1, 2025. The purpose appears to be to provide flexibility to group health plan administrators in cases of delayed notification of coverage termination.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2583