Great news for Texas-based employers and benefits administrators!
On May 30, 2025, Governor Greg Abbott signed Senate Bill 1332 into law, bringing long-overdue administrative relief to group health plan sponsors across Texas. Authored by Senator Kelly Hancock (R–North Richland Hills) and Representative Lacey Hull (R–Houston), this new legislation addresses a persistent challenge related to retroactive health plan terminations.
📌 What SB 1332 Means for Your Business
Under the previous 2005 law, employers were required to pay premiums on terminated employees — even if no healthcare services were used — if the termination notice was delayed due to EDI (Electronic Data Interchange) or internal processing issues.
SB 1332 changes that.
Key Highlights:
✅ Applies to fully insured group health plans issued in Texas
✅ Gives insurers discretion to waive premium liability for late-submitted terminations
✅ Waivers are allowed only if no health claims were incurred after termination
✅ Self-funded and level-funded (ERISA) plans are not affected
✅ Law took immediate effect on May 30, 2025
📅 Why This Matters Now
With early June processing underway and the July 4th holiday approaching, this legislation provides welcome flexibility for HR teams and benefits administrators managing mid-year plan changes.
💡 How Zinn Insurance Can Help
We’re here to help you navigate how SB 1332 may impact your groups and administrative processes. Whether you need help reviewing group health plan policies or guidance on handling retroactive terminations going forward, our benefits experts are ready to assist.
