S.B. No. 1409 amends the Texas Insurance Code to include provisions for health benefits offered by postsecondary educational institutions. The bill adds a new Chapter 1683, which defines "higher education health benefits" as health benefits sponsored by these institutions for enrolled students and their families, not provided through traditional insurance policies. It allows postsecondary institutions to offer these benefits without mandating student enrollment and limits waiting periods for preexisting conditions to a maximum of six months. Additionally, institutions must provide written notice to applicants that these benefits are not regulated as insurance.

The bill also clarifies that postsecondary educational institutions offering these health benefits are not considered health insurers and outlines requirements for registration with the state. Institutions must ensure that the benefits are actuarially sound, obtaining actuarial opinions to maintain appropriate cash reserves and insurance coverage. The act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 1275.002 (Insurance Code 1275)
Senate Committee Report: Insurance Code 1275.002 (Insurance Code 1275)
Engrossed: Insurance Code 1275.002 (Insurance Code 1275)
House Committee Report: Insurance Code 1275.002 (Insurance Code 1275)
Enrolled: Insurance Code 1275.002 (Insurance Code 1275)