Bill > SB1332

This bill modifies Texas insurance law to provide flexibility for group health benefit plan contract holders or policyholders when an individual's group coverage eligibility terminates. Specifically, if a group contract holder or policyholder notifies a health maintenance organization (HMO) or insurer of an enrollee's coverage termination after the end of the month in which the eligibility expires, the HMO or insurer 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 the end of the month when their group coverage eligibility ended. The bill amends two sections of the Texas Insurance Code to create this provision, effectively giving HMOs and insurers discretion in handling late notifications of coverage termination. The legislation will take effect immediately if it receives a two-thirds vote in both legislative chambers, or on September 1, 2025, if it does not receive the immediate effect vote.

Business and Industry, Health and Social Services

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1332