2025 Texas sessionsRegular and both called sessions have ended. This index covers House and Senate bills, not resolutions. Statuses come from official reports.

2025 · Regular session · Senate bill

SB1332

SB1332 lets certain health insurers and health maintenance organizations waive later months' premiums when a group plan holder reports someone's loss of eligibility late.

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Official caption: Relating to a group health benefit plan policy or contract holder's obligation to pay premiums on behalf of an individual after the individual's eligibility for group coverage terminates.

Signed by governorSource-checked explanation published

Official report lists Senate author(s): Hancock. This does not identify sponsors or amendment drafters.

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Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.

Bill highlights

Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.

SB1332 lets certain health insurers and health maintenance organizations waive later months' premiums when a group plan holder reports someone's loss of eligibility late.
The two provisions apply to group HMO contracts and group policies under preferred provider benefit plans.

Read the full explanation ↓

What does it do?

SB1332 lets certain health insurers and health maintenance organizations waive later months’ premiums when a group plan holder reports someone’s loss of eligibility late. The waiver is optional, not an automatic refund or a right to stop paying premiums. It is allowed only if no covered services were provided after the end of the month in which eligibility ended. The governor signed the bill May 30, 2025, and it took effect that day. Final law; Official history.

The two provisions apply to group HMO contracts and group policies under preferred provider benefit plans. The party relieved of possible liability is the group contract holder or policyholder, not automatically the individual former enrollee. The act does not create a waiver for every kind of insurance or every late payment. Final law; Existing HMO provision; Existing preferred-provider provision.

What changed along the way?

Existing law makes the group holder responsible for premiums from the time someone is no longer eligible through the end of the month when the holder notifies the insurer or HMO. It also says the individual remains covered through that period. SB1332 leaves those provisions in place and adds an exception permitting the insurer or HMO to waive liability for subsequent months when notice arrives after the eligibility-ending month and the no-covered-services condition is satisfied. Prior HMO rule; Prior preferred-provider rule; Final law.

For example, if eligibility ends in January but the holder does not notify the insurer until March, the new provision permits a waiver for later months if no covered services were provided after January ended. It does not require a waiver of January’s premium, require the insurer to agree, or permit the waiver when covered services were provided in the intervening period. The bill does not specify a new automatic refund procedure. Final law, sections 1–2.

The introduced, Senate committee, Senate-passed, House committee and enrolled versions match in substance. No separate amendments appear in the official amendment index. The final act received the votes needed for immediate effect; the September 1 date in its fallback clause was not the operative effective date. Introduced text; Senate committee text; Senate-passed text; House committee text; Text index; Amendment index; Final law.

For the full amendment record, open the official amendment index.

Official bill versions

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Who could benefit—and who could bear the costs?

Group holders that report eligibility changes late may avoid some premiums if the insurer or HMO agrees and the statutory conditions are met. Insurers retain discretion and may forgo premium revenue when granting a waiver. People and group administrators should not assume that an eligibility change alone cancels premium liability or automatically produces a refund. The act does not quantify how often waivers will be granted or how much a particular employer or enrollee will save. Final law.

The March 17 fiscal note anticipates no significant fiscal impact to the state or local governments and assumes state costs can be absorbed with existing resources. That estimate concerns government budgets, not a finding that every affected private group will have no financial effect. The act makes no appropriation. Fiscal note; Final law.

Official sources

Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.