H.B. No. 2583 amends the Texas Insurance Code to clarify the obligations of group health benefit plan policyholders regarding premium payments after an individual's eligibility for coverage has terminated. The bill introduces new provisions in Sections 843.210 and 1301.0061, which state that if a group contract holder or policyholder notifies the health maintenance organization or insurer of the termination of an enrollee's or individual's eligibility later than the end of the month in which the eligibility ended, the organization or insurer may waive the policyholder's liability for premiums for any subsequent months. This waiver is contingent upon the condition that no covered services were provided to the enrollee or individual after their eligibility termination.

The bill aims to provide relief to group contract holders and policyholders by potentially eliminating their financial responsibility for premiums when timely notification of eligibility termination is not made, as long as no services were rendered post-termination. The act will take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 843.210, Insurance Code 1301.0061 (Insurance Code 843, Insurance Code 1301)
House Committee Report: Insurance Code 843.210, Insurance Code 1301.0061 (Insurance Code 843, Insurance Code 1301)