Press Releases
HB 897 In The News
Texas
Commissioner of Insurance Supports Small Employers' Efforts to Reduce Health
Insurance Cost
Date of Press Release: October 25, 2004
Read October 25, 2004 Press
Release...
BULLETIN FROM TEXAS COMMISIONER OF
INSURANCE SUPPORTS SMALL EMPLOYERS EFFORTS TO REDUCE HEALTH INSURANCE COST
Austin, Texas - October 25, 2004
In a bulletin issued October 12, 2004 the Texas Commissioner of Insurance
reminded insurance companies of their responsibility to comply with applicable
laws. This action was apparently taken because the Texas Department of Insurance
(TDI) was made aware that some insurance companies issuing small employer
health plans in Texas may not be in compliance with federal and Texas laws
regarding small employer groups.
In 2003, the 78th Texas Legislature enacted House Bill 897 which authorized
small employer health coalitions. House Bill 897 allows small employers to
form 'coalitions' and apply for health insurance as a larger group. These
coalitions are limited in size to 2 to 50 employees, just like a single small
employer, and accordingly are extended protection of the small employer law.
However, TDI indicates it received reports that some carriers are not treating
small employer health coalitions in the same manner as a single employer.
Alleged infractions included failure to issue coverage, requirement of excessive
documentation to establish eligibility, and excessive premium rates being
charged small employer health coalitions.
TDI reminded insurance carriers that small employer health coalitions are
protected by the all-products guarantee and are guaranteed issuance of any
small employer policy or plan. Carriers were also reminded that because the
law requires small employer coalitions to be treated as a small employer,
a carrier must rate small employer coalitions just as it would any single
small employer.
The Department indicated it has received numerous questions and complaints
regarding alleged attempts to frustrate or delay issuance of coverage to groups
that may not meet the regular requirements for eligibility including sole
proprietors, partners, and independent contractors. Clarification of eligibility
for these categories and eligibility documentation are provided in the Commissioner's
bulletin.
Information provided in the Department's bulletin is needed to eliminate confusion
and improve communications. It should smooth out and speed up the process
for small employers to join coalitions and obtain health benefits at lower
cost.
The Commissioner's BULLETIN No. B-0043-04 can be viewed by going to the following
link and clicking on the bulletin number http://www.tdi.state.tx.us/commish/bulletin.html
For more information, please contact:
Marvin Williams
Texas Coalitions, Inc.
512-447-9853
866-813-2395 (fax)
marvin@texascoalitions.com
Business
Owners Join Together to Reduce Health Insurance Cost
Date of Press Release: September 29, 2004
Read Sept 29, 2004 Press Release...
BUSINESS OWNERS JOIN TOGETHER TO REDUCE
HEALTH INSURANCE COST
AUSTIN, TX -- September 29, 2004
Over 5 million Texans live without health insurance1. About 26
percent of Texans are uninsured. 66 percent of uninsured adults work, but
either work for a firm that doesn't offer insurance or they can't afford the
employee contribution2. While the problem is being debated on national
campaign platforms, Texas Legislators have taken action!
Business owners can now utilize a new Texas law that enables them to provide
insurance for their employees at lower rates. House Bill 897 allows small
employers to form 'coalitions' and apply for health insurance as a larger
group. This September, seven small employers formed a coalition and obtained
an employee health benefit plan from a major national insurance carrier. The
combined premiums for the employers in the coalition were 31% lower than if
each had purchased their own group health insurance plan.
Texas Coalitions, Inc stated, “Rate comparisons from major insurance
carriers illustrate that most employers can obtain lower premiums by joining
a coalition instead of purchasing their own company plan. The greatest savings
seems to be for the employer with 2-9 employees. A large percentage of the
uninsured are employed by firms with 2-24 employees and employers this size
generally benefit the most from HB 897.”
“We began providing information to small employers about this new legislation
at the first of the year, and the response has been tremendous. With group
health insurance rates increasing at the highest levels since the 80's, it
seems everyone is searching for solutions. In the past few months we have
been contacted by everyone from the neighborhood CPA with 2 employees to business
organizations with hundreds of small employer members.”
1. U.S. Census Bureau: March 2003 Current Population
Survey for Texas - Analysis by Texas Health and Human Services Commission,
October 2003
2. Texas Department of Insurance, Straight Talk About Insurance. http://www.tdi.state.tx.us/commish/talkhealth.html#uninsure
For more information, please contact:
Marvin Williams
Texas Coalitions, Inc.
512-447-9853
866-813-2395 (fax)
marvin@texascoalitions.com
New
Legislation Enables Employers To Reduce Health Insurance Expense
Date of Press Release: April 1, 2004
Read April 1, 2004 Press Release...
NEW LEGISLATION ENABLES EMPLOYERS
TO REDUCE HEALTH INSURANCE EXPENSE
Austin, Texas - April 1, 2004
Texas Coalitions, Inc., a Texas not-for-profit corporation, began assisting
Small Employers in Texas to form "small employer coalitions" for the purpose
of acquiring Health Insurance Benefits at lower rates than are normally available.
This was made possible by the passing of HB 897 in the 78th Regular Session
of the Texas Legislature which clarified previous legislation.
Under HB 897, a coalition is considered a private purchasing cooperative,
comprised of Small employers of 2-50 insured employees each, and is therefore
subject to Small Group Reform regulations. As a Small Employer group, acceptance
is guaranteed from any insurance carrier offering Group Health Benefit Plans
in Texas. Small groups of 10 or less employees are usually accessed a premium
surcharge of 10-20% due to their size. By joining with other employers in
a coalition, several smaller employers can form a coalition of up to 50 insured
employees and eliminate most surcharges. Normal underwriting procedures allow
carriers to adjust rates for health conditions in a group based on risk vs.
premium received. Small groups of 2-5 employees are typically assessed higher
rates due to what most people would consider normal health conditions of the
employees. This increased rate is usually less for groups of 40-50 insured
due to the increased amount of premium collected.
For more information, please contact:
Marvin Williams
Texas Coalitions, Inc.
512-447-9853
866-813-2395 (fax)
marvin@texascoalitions.com