New Facts: Abbott Proposes Health Insurance Cost Cuts

In Fort Worth, Gov. Greg Abbott unveiled a health insurance option for small employers. It would let insurers sell group plans that meet federal minimums while omitting some Texas‑required benefits. Abbott said it could cut premiums about 20%, save a typical family roughly $1,150 a year and small businesses more than $3,400 per worker, and extend coverage to over 1 million more Texans.

Employers could still choose fully state‑mandated policies. Abbott said the change needs legislation; Rep. Jay Dean said he is working with him after a similar 2025 bill stalled that would have required federal essential benefits, banned preexisting‑condition exclusions, and forced clear disclosures while also requiring a fully compliant option. The change would touch only state‑regulated plans that cover about 3.2 million Texans, most at small firms.

Medical, pharmacy and patient groups have opposed the approach, warning of coverage gaps, weaker protections and hidden costs, and an Austin policy nonprofit said it could push people with high‑cost needs into debt. Abbott pointed to a Fort Worth restaurant where employee coverage fell from about 90% to about 10% as an example of premium pressure. He also proposed capping co‑pays for inhalers and epinephrine at $25 a month on those same plans, adding to an earlier insulin cap.

AI-synthesized from multiple reported sources