HB 2782

83(R) - 2013

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


John Smithee

Bill Caption

Relating to the authority of the commissioner of insurance to disapprove rate changes for certain health benefit plans.

Fiscal Notes

No significant fiscal implication to the State is anticipated

Bill Analysis

Summary: HB 2782 would grant the commissioner of the Texas Department of Insurance (TDI) the authority to disapprove rate increases for health insurance plans. Currently, the TDI commissioner can publish reports stating whether or not he thinks certain rates are reasonable. This bill would allow the office to prevent insurance companies from setting rates if TDI does not approve.

Analysis: HB 2782 represents a clear undermining of free market principles. It is not a legitimate role of government to set price caps. Although the TDI has the power to disapprove of rates in regards to automobile and homeowner’s insurance, this power should not be expanded any further.