Focus Report, Volume 76, Number 5, February 1999 Page: 12
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(continued from page 10)
TIPA now provides coverage to about 775 employers,
down from 1,100 in January 1998, and to 8,200
individuals. The alliance estimates that 50 percent of the
TIPA-enrolled employers did not previously offer
coverage to their employees, whereas small carriers
outside of TIPA capture only about 17 percent to 20
percent of the uninsured market. TIPA estimates that
almost half of the 416,000 small businesses in Texas
still do not offer health benefits to their employees. In
response, TIPA is redesigning its benefit plans and
taking other measures to stay competitive.
Major issue:
- TIPA's ability to compete. Small-employer health
benefit carriers have been raising premium rates
significantly over the past few years. In addition to
these market pressures, TIPA's ability to compete is
in question because it has become associated withHouse Research Organization
Texas House of Representatives
Capitol Extension
Room E2.180
Steering Committee: Henryhigher-risk enrollees. Carriers are dropping out
because they are not getting enough business and fear
high-risk enrollees. Employer participation is dropping
because some say TIPA no longer offers a choice of
carriers. Agents are referring high-risk groups to
TIPA, which is required by law to issue insurance to
all who apply and agree to pay for premiums, while
sending lower-risk small-employer business to carriers
who do not participate in TIPA. Proponents say that
unless TIPA can pool the risk of all small businesses,
many insurers will continue to "cherry-pick" the low-
risk groups for themselves. Insurers say they have no
control over how independent agents refer clients and
that any additional regulations would make small-
business health coverage more expensive, thereby
reducing its availability in the marketplace.
- by Kristie Zamrazil
THEUHIVERS~ OF TEXAS-PAN~1C!
0 1161 0819PO. Box 2910
Austin, Texas 78768-2910
(512) 463-0752
FAX (512) 463-1962
Cuellar, Chairman 9 Peggy Hamric, Vice ChairmanTom Craddick
Dianne White Delisi
Harold DuttonRoberto Gutierrez
Bob HunterCarl lsett
Mike Krusee
Brian McCallElliott Naishtat
Joe PickettBob Turner
Leticia Van de Putte
Steve WolensStaff: Tom Whatley, Director; Greg Martin, Editor; Rita Barr, Office Manager;
Kellie Dworaczyk, John J. Goodson, Ann Walther, and Kristie Zamrazil, Analystsii-
House Research Organization
Page 12
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Texas. Legislature. House of Representatives. Research Organization. Focus Report, Volume 76, Number 5, February 1999, periodical, February 4, 1999; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth641172/m1/12/?q=%22~1~1%22~1: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.