What is the Small Business Coalitions of Texas ? The Small Business Coalitions (S.B.C.) of Texas is a nonprofit corporation formed for the sole purpose of assisting small businesses in forming small business health insurance coalitions. S.B.C. is in good standing and registered with the Texas Secretary of State’s office as a nonprofit corporation. S.B.C. is also registered and in good standing with the Texas Department of Insurance as a private purchasing cooperative.
What companies benefit most from joining a coalition? Companies that employ 2-24 employees can expect the most significant savings. Larger companies can expect some savings but not on the scale of smaller companies.
Who chooses the company and plan to be offered? Ultimately, the prospective employer members of the coalition. S.B.C. will make a recommendation based on the insurance carriers choice of products, cost to the employer, cost to the employees, and financial rating of the carrier. The prospective employer member has the option of becoming a member of the coalition or not.
What if after choosing health insurance offered by the coalition I want to terminate my membership and the group coverage? Membership is voluntary and can be terminated at any time.
Is my company eligible to join the coalition? Your company must employ a minimum of 2 and a maximum of 48 verifiable full time employees. Your most current quarterly wage and tax statement is used for verification purposes and must be submitted.
Are there mandatory participation and employer contribution requirements? Yes. You must have 75% participation by eligible employees (eligible is an employee who works at least 30 hour per week and is not covered by group coverage elsewhere) and the employer member must contribute a minimum of 50% of the employee only premium. Your most current quarterly wage and tax statement is used for verification purposes.
If I initially don’t join the coalition can I join in a few months?
No. You may join another coalition but not one that has already been formed and finalized.
Do I remit my monthly premium to the insurance company or the coalition?
The law requires the coalition be treated as a single entity for purposes related to purchasing group health insurance. Therefore, your premium will be mailed to the coalition and the coalition will send one check to the carrier for all members of a particular coalition.
Coalition and membership status is strictly based on Texas state law and insurance carrier requirements. These requirements are subject to change.
Small Business Coalitions of Texas, a website, is not an insurance agency or carrier and does not provide insurance products. Small Business Coalitions of Texas is a nonprofit corporation.
Information provided on this website is provided for informational purposes only concerning small employer health coalitions as provided for in the Texas Insurance Code Art. 26.14. Private Purchasing Cooperatives and Health Group Cooperatives.
Health plans provided to Small Employer Health Coalition plans are available only through carriers authorized to operate in Texas by the Texas Department of Insurance and sold only through licensed Texas Insurance agents.; All material and information on this site is subject to change based on the final determination of the application of HB897 by the Texas Department of Insurance and its regulatory staff.
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