The bill, S.B. No. 1409, amends the Texas Insurance Code to establish regulations regarding health benefits offered by institutions of higher education to students and their families. It introduces a new chapter, Chapter 1683, which defines "higher education health benefits" and specifies that these benefits must be sponsored by an institution of higher education or its affiliates, and offered exclusively to enrolled students and their family members. The bill also stipulates that these benefits are not to be provided through traditional insurance policies regulated under state law. Additionally, it limits the waiting period for treatment of preexisting conditions to a maximum of six months.

Furthermore, the bill mandates that institutions offering these health benefits must provide written notice to applicants, clarifying that the benefits are not regulated as insurance. Institutions must maintain a signed copy of this notice and are required to register with the relevant department to ensure compliance with applicable regulations. The bill also allows institutions to contract with authorized insurance companies to manage risks associated with the health benefits they offer. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Insurance Code 1275.002 (Insurance Code 1275)