The Central Texas Health Insurance Experts in Providing the Best Insurance Coverage

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The goal of reducing the big number of Texas residents without insurance is got a big boost with the launch of Healthy Texas, the public-private health insurance program that offers low-cost health insurance to small business owners.

The Texas state lawmakers enacted Senate Bill 78 two years ago that set aside about $35 million for Healthy Texas. In this program, employers will purchase private insurance from carriers and the insurance companies' risk for higher than average claims from these plans are reduced by available state funds.

The premiums for Healthy Texas plans are expected to be lower by one-third from the regular premium rates. The Texas Department of Insurance (TDI) have struck deals with insurance carriers, such as United Healthcare, to help launch the program. Small business owners, brokers, and non-profit organizations can sign on to the program through the insurance companies that partnered with TDI.

This is a response of the Texas Legislature to deal with the state's big number of uninsured people that number around 6 million. Aside from this, only 32% of small business owners offer insurance. In contrast, 89% of large companies offer insurance (this data can be found at TDI).

Many state legislators hope the program will provide the solution for small business that say cost is the biggest factor that prevents them from offering insurance to their employees.

The state fund that will be used for this program is called the Premium Stabilization Fund. It will subsidize high-cost claims so that carriers can avoid large losses from these claims, and so lower their risks which, in turn lowers their premium rates.

Insurance companies that participate in the program will be reimbursed for claims from $5,000 to $75,000 at 80% of the amount. Claims made below $5,000 will be covered by the carriers.

The Premium Stabilization fund of $35 million is expected to last for at least 2 years. Beyond this amount, the funding will need to be reauthorized.

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