07/23/2025
Texas Senate Bill 1332: Employer Premium Flexibility
Applies to fully insured groups, including Municipality/County School, PPO, HMO and POS
Senate Bill 1332 changes requirements related to employer premium payments for terminated employees.
What you need to know: A previous 2005 Texas Senate bill required employers to keep paying premiums for terminated employees from the date of their termination through the end of the month in which they notified their insurer.
What’s changing: SB 1332 allows insurers to offer a retroactive premium termination if the employee doesn’t receive any covered services after their termination date.
If an employer delays notifying the insurer when a worker is terminated, and the employee doesn’t get any covered care after their termination date, the employer may request a retroactive termination for review under SB 1332. Approval is subject to the discretion of Blue Cross and Blue Shield of Texas and is not guaranteed in every case.
When does this go into effect? June 1, 2025. An employer (or broker) may request a review from Blue Cross and Blue Shield of Texas for a retroactive termination of an employee’s premium up to 60 days after the termination date, effective June 1, 2025.
Here’s an example: Liam Smith worked for ABC Trucking. His last day was May 31. ABC Trucking notified BCBSTX on June 20 that Liam Smith was no longer an employee.
Under the old rule, BCBSTX had to charge ABC Trucking for Liam Smith’s premium through June 30. If BCBSTX had already billed ABC Trucking for June premiums, no adjustments would be made.
Under the new rule, if Liam Smith didn’t receive any covered services after May 31, ABC Trucking may request a retroactive termination back to June 1. If BCBSTX approves the retroactive termination request, there may be a premium adjustment issued to ABC Trucking.
How can a group submit a retroactive termination request for review under SB 1332? If you have an employee termination that may qualify under SB 1332, you may submit a request for review through your existing Group Membership support channel.
Please note SB 1332 in the subject line to help direct your inquiry to the right area and allow up to 14 business days for a response.
Note that approval is subject to the discretion of BCBSTX and is not guaranteed in every case.
