Texas 2025 - 89th Regular

Texas House Bill HB2290 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	89R21096 SCF-F
2	2	By: Johnson, Lambert, Lalani H.B. No. 2290
3	3	Substitute the following for H.B. No. 2290:
4	4	By: Wilson C.S.H.B. No. 2290
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9	9	A BILL TO BE ENTITLED
10	10	AN ACT
11	11	relating to health benefits offered by postsecondary educational
12	12	institutions to students and their families.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 1275.002, Insurance Code, is amended to
15	15	read as follows:
16	16	Sec. 1275.002. APPLICABILITY OF CHAPTER. This chapter
17	17	applies only to:
18	18	(1) a health benefit plan offered by a nonprofit
19	19	agricultural organization under Chapter 1682; [and]
20	20	(2) a health benefit plan:
21	21	(A) that is a self-insured or self-funded plan
22	22	established by an employer for the benefit of the employer's
23	23	employees in accordance with the Employee Retirement Income
24	24	Security Act of 1974 (29 U.S.C. Section 1001 et seq.); and
25	25	(B) for which the plan sponsor has made an
26	26	election, submitted to the commissioner in the form and manner
27	27	prescribed by the commissioner, to apply this chapter to the plan
28	28	for the relevant plan year; and
29	29	(3) a health benefit plan offered by a postsecondary
30	30	educational institution under Chapter 1683.
31	31	SECTION 2. Subtitle K, Title 8, Insurance Code, is amended
32	32	by adding Chapter 1683 to read as follows:
33	33	CHAPTER 1683. HEALTH BENEFITS PROVIDED BY CERTAIN POSTSECONDARY
34	34	EDUCATIONAL INSTITUTIONS
35	35	Sec. 1683.001. DEFINITIONS. In this chapter:
36	36	(1) "Higher education health benefits" means health
37	37	benefits:
38	38	(A) sponsored by a postsecondary educational
39	39	institution;
40	40	(B) offered only to:
41	41	(i) students enrolled at the postsecondary
42	42	educational institution; and
43	43	(ii) family members of students enrolled at
44	44	the postsecondary educational institution;
45	45	(C) that are not provided through an insurance
46	46	policy or other product the offering or issuance of which is
47	47	regulated as the business of insurance in this state; and
48	48	(D) that are deemed by the postsecondary
49	49	educational institution to be important in assisting its students
50	50	and their families to live long and productive lives.
51	51	(2) "Postsecondary educational institution" means an
52	52	institution of higher education or a private or independent
53	53	institution of higher education, as those terms are defined by
54	54	Section 61.003, Education Code.
55	55	(3) "Preexisting condition" means a condition present
56	56	before the effective date of an individual's enrollment in higher
57	57	education health benefits.
58	58	Sec. 1683.002. HIGHER EDUCATION HEALTH BENEFITS
59	59	AUTHORIZED. A postsecondary educational institution may offer in
60	60	this state higher education health benefits. A postsecondary
61	61	educational institution that offers higher education health
62	62	benefits under this chapter may not require a student to enroll in
63	63	the benefits.
64	64	Sec. 1683.003. WAITING PERIOD FOR PREEXISTING CONDITION.
65	65	Notwithstanding any other provision of this chapter, a
66	66	postsecondary educational institution that offers higher education
67	67	health benefits may not require a waiting period of more than six
68	68	months for treatment of a preexisting condition otherwise included
69	69	in higher education health benefits.
70	70	Sec. 1683.004. REQUIRED DISCLOSURE FOR HIGHER EDUCATION
71	71	HEALTH BENEFITS. (a) A postsecondary educational institution that
72	72	offers higher education health benefits must provide to an
73	73	individual applying for higher education health benefits written
74	74	notice that the benefits are not provided through an insurance
75	75	policy or other product the offering or issuance of which is
76	76	regulated as the business of insurance in this state.
77	77	(b) An individual must sign and return to the postsecondary
78	78	educational institution the notice described by Subsection (a)
79	79	before the individual may enroll in higher education health
80	80	benefits. The postsecondary educational institution must:
81	81	(1) maintain a copy of the signed written notice for
82	82	the duration of the term during which the higher education health
83	83	benefits are provided to the individual; and
84	84	(2) at the request of the individual, provide a copy of
85	85	the written notice to the individual.
86	86	Sec. 1683.005. POSTSECONDARY EDUCATIONAL INSTITUTION NOT
87	87	ENGAGED IN BUSINESS OF HEALTH INSURANCE; REGISTRATION REQUIRED.
88	88	(a) Notwithstanding any other provision of this code, for the
89	89	purposes of offering higher education health benefits, a
90	90	postsecondary educational institution that acts in accordance with
91	91	this chapter is not a health insurer and is not engaging in the
92	92	business of health insurance in this state.
93	93	(b) A postsecondary educational institution that offers
94	94	higher education health benefits must register with the department
95	95	and provide information as needed to facilitate compliance with
96	96	Chapter 1467, as applicable to those benefits under Section
97	97	1275.004.
98	98	Sec. 1683.006. RISK TRANSFER OR COVERAGE. A postsecondary
99	99	educational institution that offers higher education health
100	100	benefits under this chapter may contract with a company authorized
101	101	to engage in the business of insurance in this state that is not
102	102	under common control with the postsecondary educational
103	103	institution to:
104	104	(1) transfer to that company all or a portion of the
105	105	organization's risks arising from higher education health benefits
106	106	offered under this chapter; or
107	107	(2) obtain insurance coverage from the company
108	108	guarantying the postsecondary educational institution's
109	109	obligations arising from higher education health benefits offered
110	110	under this chapter.
111	111	Sec. 1683.007. ACTUARIAL SOUNDNESS. (a) A postsecondary
112	112	educational institution that offers higher education health
113	113	benefits under this chapter shall administer the benefits in a
114	114	manner that is actuarially sound.
115	115	(b) The postsecondary educational institution shall ensure
116	116	the higher education health benefits offered by the postsecondary
117	117	educational institution are actuarially sound by:
118	118	(1) obtaining an actuarial opinion from an actuary who
119	119	is a fellow of the Society of Actuaries or a member of the American
120	120	Academy of Actuaries that recommends the amount of cash reserves
121	121	and the level of specific and aggregate stop-loss insurance the
122	122	postsecondary educational institution should maintain for purposes
123	123	of administering the benefits; and
124	124	(2) maintaining the levels of cash reserves and
125	125	stop-loss insurance recommended by the actuarial opinion obtained
126	126	under Subdivision (1).
127	127	SECTION 3. This Act takes effect immediately if it receives
128	128	a vote of two-thirds of all the members elected to each house, as
129	129	provided by Section 39, Article III, Texas Constitution. If this
130	130	Act does not receive the vote necessary for immediate effect, this
131	131	Act takes effect September 1, 2025.