Bills we are watching – Texas Senate Bill 1332!
This is big, folks! Texas Senate Bill 1332 has passed in both the House and Senate in the 2025 Texas Legislative session, has been signed into law by Governor Greg Abbot!
SB1332 became law on May 30, 2025.
SB1332 closes an unintentional loophole created under Senate Bill 51 (passed in 2005) and allows health insurance carriers to waive premiums when a carrier receives late notification of an employee’s departure from a company, as long as the employee did not receive covered services following their departure. This applies to fully-insured PPO and HMO plans, not Level Funded or Self Funded plans. This eases the issues around the situation where an employer does not remove a terminated employee from their health plan in time.
As a refresher, Senate Bill 51 was the bill that required employers make “timely terminations” of employees from their medical plans, if not timely they would have to pay for that upcoming month’s premium on that employee. The window to make terminations was small, and often an employer would not know an employee had quit until it was too late.
We have helped many an employer deal with the repercussions of SB51 and welcome the new SB1332!
Track the status of the SB1332 here:
Here is a refresher about SB51 from Blue Cross’ site: