Texas HB2583 allows insurers to waive premium payments if eligibility termination is reported late and no services were used.

HB2583 amends the Texas Insurance Code to allow health maintenance organizations and insurers to waive premium payments if the group contract holder or policyholder notifies them of an enrollee's or individual's eligibility termination later than the end of the month in which it occurred, provided no covered services were provided after the termination. This applies to both group health benefit plans and individual coverages. The changes take effect immediately if approved by two-thirds of the legislature, otherwise on September 1, 2025.

Texas HB2583 allows insurers to waive premium payments if eligibility termination is reported late and no services were used.

HB2583 amends the Texas Insurance Code to allow health maintenance organizations and insurers to waive premium payments if the group contract holder or policyholder notifies them of an enrollee's or individual's eligibility termination later than the end of the month in which it occurred, provided no covered services were provided after the termination. This applies to both group health benefit plans and individual coverages. The changes take effect immediately if approved by two-thirds of the legislature, otherwise on September 1, 2025.