Relating to health benefits offered by postsecondary educational institutions to students and their families.
Impact
The bill impacts state laws by clearly delineating the responsibilities and regulations governing health benefits provided by educational institutions. It specifically excludes these institutions from being considered health insurers under the provisions of state law, allowing them to offer alternative health benefits that can be crucial for students who may not have access to traditional insurance. Additionally, the bill prohibits waiting periods of more than six months for preexisting conditions, further supporting student access to health care.
Summary
SB1409 introduces regulations regarding health benefits offered by postsecondary educational institutions to students and their families in Texas. This bill aims to provide a structured environment for institutions to offer health benefits, classifying these benefits as not being part of the traditional insurance business. The legislation requires that these benefits be managed in an actuarially sound manner, which is defined under the bill, ensuring that postsecondary institutions maintain appropriate cash reserves and coverage for their obligations.
Sentiment
The sentiment surrounding SB1409 appears generally favorable among proponents who argue that it provides necessary legal clarity and supports student health initiatives. Supporters believe that the bill addresses the gap in health benefits options available to students and enhances their overall welfare. However, there are also voices of concern regarding the adequacy of the health benefits provided under these new frameworks and how well they will cater to the diverse needs of students.
Contention
Noteworthy points of contention surrounding SB1409 revolve around the sufficiency of the health benefits offered and the potential implications of classifying these benefits outside the traditional insurance model. Critics may argue that the lack of regulation akin to traditional insurance products might lead to inadequate coverage for students. There are also concerns about ensuring that the actuarial soundness of these plans is properly maintained and that students and families are provided with comprehensive and accessible health advantages.
Texas Constitutional Statutes Affected
Insurance Code
Chapter 1275. Balance Billing Prohibitions And Out-of-network Claim Dispute Resolution For Certain Plans
Relating to the authorization for and approval of certain nursing programs offered by private postsecondary educational institutions or for-profit entities.
Relating to the establishment of the Texas Emergency Aid for Public Postsecondary Students (TEAPPS) grant program for students at certain public institutions of higher education.
Relating to the service of and certain benefits for members of the Texas military forces, including tuition assistance at postsecondary educational institutions.