Texas Health Insurance Coalitions

“Private Purchasing Cooperatives” As defined by HB 897

How Employers Benefit

House Bill 897 allows the formation of Small Employer Coalitions and for all purposes are to be treated the same as a 'single small employer'. Small employers may join together to form a larger group and obtain rates from any Small Group Insurance Carrier offering coverage in Texas. Any small employer with less than 50 employees may join together with other employers to form a coalition group. Rates are then based on the total number of insured in the coalition. The maximum number of insured can not exceed 50 employees per coalition group. The concept of small employer coalitions was a recommendation made January 2003 by Carole Keeton Strayhorn, former Texas Comptroller of Public Accounts, in a report to Texas entitled; Limited Government, Unlimited Opportunity.

» Find out how you can qualify for Small Employer Coalitions
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According to the Comptroller's Report

“The main reason that many small employers do not purchase health coverage for their employees is the cost. Texas could reduce that cost by allowing small employers who band together in coalitions to be treated as single employers under state law.”

House Bill 897, passed by the 78th Regular Session of the Texas LegislatureRead more of this recommendation: HHS 9 Text regarding coalitions

Learn More

Visit the Information Page on this site for more details about Small Employer Group Health Insurance Coalitions.

This site is provided for information only regarding 'private purchasing cooperatives' known as 'Coalitions' for small employers of 2-50 employees as the result of House Bill 897 passed by the 78th Regular Session of the Texas Legislature.

Texas Coalitions, Inc, a Web site,. is Not a Insurance Agency and does not provide insurance products. This site is maintained by Texas Coalitions, Inc. a not-for-profit corporation.

All Health benefit plans are available only through carriers authorized to operate in Texas by the Texas Department of Insurance and sold only through licensed Texas Insurance agents.; All material and information on this site is subject to change based the final determination of the application of HB897 by the Texas Department of Insurance and its regulatory staff 'Coalitions' are considered a 'private purchasing cooperative' defined by HB 897. 'Health Group Cooperatives' are 'private purchasing cooperatives' defined by SB 10 Private purchasing cooperatives were established by Texas legislature in 1993 and are subject Texas Insurance Code Art. 26.14. Private Purchasing Cooperatives and Health Group Cooperatives.

Laws passed in the same;legislative session under SB 10 provides for a different type of 'private purchasing cooperative'.

For information regarding the status of the rules governing SB 10 Cooperatives, please visit this link at the Texas Department of Insurance.