House Bill 897 allows the formation of Small Employer Coalitions and for all purposes are to be treated the same as a 'single small employer'. Small employers may join together to form a larger group and obtain rates from any Small Group Insurance Carrier offering coverage in Texas.  Any small employer with less than 50 employees may join together with other employers to form a coalition group. Rates are then based on the total number of insured in the coalition.  The maximum number of insured can not exceed 50 employees per coalition group.  The concept of small employer coalitions was a recommendation made January 2003 by Carole Keeton Strayhorn, Texas Comptroller of Public Accounts, in a report to Texas entitled;

Limited Government, Unlimited Opportunity

Specific HHS 9 Text regarding coalitions

 Visit the Information Page on this site for more details about Small Employer Group Health Insurance Coalitions 

Laws passed in the same legislative session under SB 10 provides for a different type of 'private purchasing cooperative'. For information regarding the status of the rules governing SB 10 Cooperatives, please visit this link at the Texas Department of Insurance

"together, employers save"

16 October 2005