Hull Bill Lets Insurers Forgive Late-Reported Premiums, If They Choose

The text as introduced · 285 words

89R8897 MEW-F

By: Hull
H.B. No. 2583

A BILL TO BE ENTITLED

AN ACT

relating to a group health benefit plan policy or contract holder's

obligation to pay premiums on behalf of an individual after the

individual's eligibility for group coverage terminates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 843.210, Insurance Code, is amended by

adding Subsection (e) to read as follows:

(e) If the group contract holder notifies the health

maintenance organization of the termination of an enrollee's

eligibility for coverage later than the end of the month in which

the enrollee's eligibility for the group coverage terminated, the

health maintenance organization may waive the contract holder's

liability for premiums on the enrollee for any subsequent months,

provided that no covered services were provided to the enrollee

after the end of the month in which the enrollee's eligibility

terminated.

SECTION 2. Section 1301.0061, Insurance Code, is amended by

adding Subsection (e) to read as follows:

(e) If the group policyholder notifies the insurer of the

termination of an individual's eligibility for coverage later than

the end of the month in which the individual's eligibility for the

group coverage terminated, the insurer may waive the policyholder's

liability for premiums on the individual for any subsequent months,

provided that no covered services were provided to the individual

after the end of the month in which the individual's eligibility

terminated.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.