Skip to main content

Change To Employer Premium Refund Law

July 18, 2025

Employers in Texas can now request refunds for certain premium payments they made for former workers. 

What Happened: Texas has revised the requirement that employers had to pay premiums for ex-workers through the end of the month in which they officially notified their insurance company the worker no longer was employed.

What’s Changed:  As of June 1, 2025, an employer (or broker) can ask for a retroactive termination and refund of an employee’s premium up to 60 days from the employee’s termination date.  Approval is subject to the discretion of BCBSTX.

Here's an example: Liam Smith worked for ABC Trucking. His last day was May 31. ABC Trucking tells Blue Cross and Blue Shield of Texas 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 by this time billed ABC Trucking for June premiums, no adjustments could be made.
  • Under the new rule, if Liam Smith doesn't get any covered care after May 31, ABC Trucking can now ask for a retroactive termination back to June 1.  If BCBSTX had already billed ABC Trucking for June premiums, there may be a premium adjustment issued to ABC Trucking.

Employers looking for more information should contact BCBSTX via the Membership Message Center in Blue Access for Employers℠. Or call the Group Membership Service Center at 1-855-346-2014.