89R1424 CJD-F
By: Parker S.B. No. 1409
A BILL TO BE ENTITLED
AN ACT
relating to health benefits offered by institutions of higher
education to students and their families.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1275.002, Insurance Code, is amended to
read as follows:
Sec. 1275.002. APPLICABILITY OF CHAPTER. This chapter
applies only to:
(1) a health benefit plan offered by a nonprofit
agricultural organization under Chapter 1682; [and]
(2) a health benefit plan:
(A) that is a self-insured or self-funded plan
established by an employer for the benefit of the employer's
employees in accordance with the Employee Retirement Income
Security Act of 1974 (29 U.S.C. Section 1001 et seq.); and
(B) for which the plan sponsor has made an
election, submitted to the commissioner in the form and manner
prescribed by the commissioner, to apply this chapter to the plan
for the relevant plan year; and
(3) a health benefit plan offered by an institution of
higher education under Chapter 1683.
SECTION 2. Subtitle K, Title 8, Insurance Code, is amended
by adding Chapter 1683 to read as follows:
CHAPTER 1683. HEALTH BENEFITS PROVIDED BY CERTAIN INSTITUTIONS OF
HIGHER EDUCATION
Sec. 1683.001. DEFINITIONS. In this chapter:
(1) "Institution of higher education" means:
(A) an institution of higher education, as
defined by Section 61.003, Education Code; or
(B) a private or independent institution of
higher education, as defined by Section 61.003, Education Code.
(2) "Higher education health benefits" means health
benefits:
(A) sponsored by an institution of higher
education or an affiliate of the institution;
(B) offered only to:
(i) students enrolled at the institution of
higher education; and
(ii) family members of students enrolled at
the institution of higher education;
(C) that are not provided through an insurance
policy or other product the offering or issuance of which is
regulated as the business of insurance in this state; and
(D) that are deemed by the institution of higher
education to be important in assisting its students and their
families to live long and productive lives.
(3) "Preexisting condition" means a condition present
before the effective date of an individual's enrollment in higher
education health benefits.
Sec. 1683.002. HIGHER EDUCATION HEALTH BENEFITS
AUTHORIZED. An institution of higher education or an affiliate of
the institution may offer in this state higher education health
benefits.
Sec. 1683.003. WAITING PERIOD FOR PREEXISTING CONDITION.
Notwithstanding any other provision of this chapter, an institution
of higher education that offers higher education health benefits
may not require a waiting period of more than six months for
treatment of a preexisting condition otherwise included in higher
education health benefits.
Sec. 1683.004. REQUIRED DISCLOSURE FOR HIGHER EDUCATION
HEALTH BENEFITS. (a) An institution of higher education that
offers higher education health benefits must provide to an
individual applying for higher education health benefits written
notice that the benefits are not provided through an insurance
policy or other product the offering or issuance of which is
regulated as the business of insurance in this state.
(b) An individual must sign and return to the institution of
higher education the notice described by Subsection (a) before the
individual may enroll in higher education health benefits. The
institution of higher education must:
(1) maintain a copy of the signed written notice for
the duration of the term during which the higher education health
benefits are provided to the individual; and
(2) at the request of the individual, provide a copy of
the written notice to the individual.
Sec. 1683.005. INSTITUTION OF HIGHER EDUCATION NOT ENGAGED
IN BUSINESS OF HEALTH INSURANCE; REGISTRATION REQUIRED. (a)
Notwithstanding any other provision of this code, for the purposes
of offering higher education health benefits, an institution of
higher education that acts in accordance with this chapter is not a
health insurer and is not engaging in the business of health
insurance in this state.
(b) An institution of higher education that offers higher
education health benefits must register with the department and
provide information as needed to facilitate compliance with Chapter
1467, as applicable to those benefits under Section 1275.004.
Sec. 1683.006. RISK TRANSFER OR COVERAGE. An institution
of higher education that offers higher education health benefits
under this chapter may contract with a company authorized to engage
in the business of insurance in this state that is not under common
control with the institution of higher education to:
(1) transfer to that company all or a portion of the
organization's risks arising from higher education health benefits
offered under this chapter; or
(2) obtain insurance coverage from the company
guarantying the institution of higher education's obligations
arising from higher education health benefits offered under this
chapter.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.