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Relating to the Texas Life and Health Insurance Guaranty Association.
No significant fiscal implication to the State is anticipated.
SB 1153 amends the Life and Health Insurance Guaranty Association Act to add Health Maintenance Organizations (HMOs) as member insurers. It would also make several additional changes, such as providing for coverage of HMO enrollees and allocating the assessment of long-term care insolvencies equally between life and health insurers.
The entire premise of a guaranty association is to provide a safety net for those covered by bankrupt insurance agencies. The fact that this organization is codified in state law potentially puts Texas tax payers on the hook if the Association were unable to meet it obligations.
However, since the organization exists, modernizing it and updating responsible changes should be done.
Texas Action is neutral on SB 1153.