S.B. No. 1332 amends the Texas Insurance Code to clarify the obligations of group health benefit plan policyholders regarding premium payments after an individual's eligibility for group coverage has terminated. The bill introduces new provisions that allow health maintenance organizations (HMOs) and insurers to waive the contract holder's liability for premiums if they are notified of the termination of an enrollee's or individual's eligibility later than the end of the month in which the eligibility ended. This waiver is contingent upon the condition that no covered services were provided to the enrollee or individual after their eligibility termination.

Specifically, the bill adds Subsection (e) to both Section 843.210 and Section 1301.0061 of the Insurance Code, establishing that if the notification of termination is delayed, the respective HMO or insurer may forgo charging premiums for subsequent months. This legislative change aims to provide relief to policyholders in situations where timely notification was not possible, thereby preventing unnecessary financial burdens when coverage has already ceased. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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