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Abbott proposes mandate-light group health insurance for Texas small firms
The plan would allow employers to meet all federal group health requirements while skipping state-specific benefit mandates beyond the 10 essential health benefits, with Abbott’s office projecting savings of $1,145 a year for Texas families.
Texas Gov. Greg Abbott unveiled a proposal in Fort Worth to let small employers offer group health insurance that meets federal requirements but drops state-specific benefit mandates beyond what the Affordable Care Act requires. Abbott’s office says the approach would preserve the 10 federally required Essential Health Benefits, while keeping the option to buy fully mandated policies.
According to a report cited by Insurance Business, the plan is aimed at a small-employer market where only 27% of Texas businesses currently provide health coverage. Texas Border Business and the Texas Association of Business describe that share as declining, and note Texas ranks third among states for health insurance mandates that exceed ACA requirements.
The proposal also addresses how the mandate burden falls unevenly on smaller employers. Insurance Business reports that four out of five Texas workers with employer coverage are in federally regulated ERISA plans exempt from state mandates, while about three million workers are in small or mid-size employer plans subject to all state requirements.
Rising insurance costs are a central driver of the proposal, the outlet says, with the Texas Association of Business arguing the growing number of state mandates is pushing costs higher and weighing on small business investment. Abbott’s office projects the mandate-light option could save Texas families about $1,145 annually and small businesses more than $3,400 per employee each year, figures Insurance Business notes have not been independently verified.