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Relating to the administration of a temporary health insurance risk pool.
Under current law, the state provides a temporary health insurance risk pool for certain eligible participants. A health insurance risk pool is a group of individuals whose medical costs are combined to calculate premiums. Pooling risks together allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category.
SB 1940 would prohibit the pool from being used in a manner that requires the state to assume functions currently performed by the U.S. Department of Health and Human Services or the U.S. Internal Revenue Service under the Affordable Care Act, including establishing an exchange or administering premium tax credits.
This bill would also provide for increased access to guaranteed issue health coverage by establishing a high risk pool. If necessary to ensure access to quality individual health insurance coverage for individuals with preexisting conditions, the commissioner may take actions necessary to establish a temporary high risk pool substantially similar to the risk pool mentioned above.
Texas Action is neutral on SB 1940 because it does not affect our liberty principles.