Tex. Ins. Code § 1501.205 · Subchapter E. UNDERWRITING AND RATING OF SMALL EMPLOYER HEALTH BENEFIT PLANS
PREMIUM RATES: ESTABLISHMENT.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) In this section:
(1) "Risk characteristic" means:
(A) a health status related factor;
(B) the duration of coverage; or
(C) any characteristic similar to a characteristic described by Paragraph (A) or (B) that is related to the health status or experience of a small employer group or of any member of a small employer group.
(2) "Risk load" means the percentage above the applicable base premium rate a small employer health benefit plan issuer charges to a small employer to reflect the risk characteristics associated with that particular small employer group.
(b) Small employer health benefit plan issuers shall develop premium rates for each small employer group in a two-step process. In the first step, the small employer health benefit plan issuer shall develop a base premium rate for each small employer group without regard to any risk characteristic of the group. In the second step, the small employer health benefit plan issuer may adjust the resulting base premium rate by the risk load of the group, subject to this subchapter, to reflect the risk characteristics of the group.
(c) The risk load assessed to a particular group shall reflect the risk characteristics of the particular group.
Notes and commentary — not statutory text
History
Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.1501.htm
- Text hash
- sha256 1d937a62a9ed93c7a406a62606131911600802e50841bfcf7ca339ff2091448c
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.