The bill amends the Insurance Code to allow participating entities that previously opted out of the uniform group coverage program between September 1, 2021, and September 1, 2023, to rejoin the program before the five-year waiting period. This is a significant change from the existing law, which prohibits such entities from rejoining until five years have passed since their decision to discontinue participation. Additionally, for each plan year that follows their rejoining, a risk stabilization fee will be imposed on their premiums until the fifth anniversary of their rejoining. This provision is set to expire on September 1, 2033.

Furthermore, the bill introduces a new section in the Education Code that provides additional state aid to school districts or open-enrollment charter schools that do not participate in the uniform group coverage program. This aid is calculated based on the amount appropriated for health care for public education employees and the number of employees in the district or school. The funds received under this provision must be used exclusively for contributions to group health coverage plans for employees. The bill is set to take effect on September 1, 2025, with the new aid provisions becoming effective on September 1, 2027.

Statutes affected:
Introduced: Insurance Code 1579.155 (Insurance Code 1579)
House Committee Report: Insurance Code 1579.155 (Insurance Code 1579)