November 30, 2022

Texas Mutual board approves creation of health coverage-focused subsidiary

The Texas Mutual board of directors approved the initial steps for creating a health coverage-focused subsidiary. Last year the Texas Legislature authorized Texas Mutual to potentially offer health coverage solutions through a subsidiary that could help the people of Texas and Texas businesses.

Subject to future regulatory approval, the subsidiary will seek to introduce an additional health coverage option to small businesses, specifically those with fewer than 50 employees. The proposed health coverage plan will offer a level-funded product and is looking to provide a more affordable option for businesses than traditional fully insured products.

None of this changes Texas Mutual’s commitment to its important core mission of providing workers’ compensation insurance. The subsidiary will be a separate entity with separate employees and separate management, so your relationship with Texas Mutual will not change. Our commitment to providing best-in-class service will continue as usual, as it has for years.

Much of this process is still in the planning stages, and there is still more to be determined. Any product launch will not be before September 2023, which is the earliest the subsidiary could be authorized by the State to begin selling health coverage.

For over 30 years, Texas Mutual has been caring for hardworking Texans, and that commitment will only strengthen with this new venture. The subsidiary will seek to make coverage better for Texas businesses and their employees, and it will be another way that we work toward our commitment to building a stronger, safer Texas.

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