House Bill No. 3126 introduces a new section, 1579.1551, to the Insurance Code, specifically aimed at small school districts that previously opted out of the uniform group coverage program for active school employees. This section allows eligible school districts—those with 500 or fewer employees that discontinued participation effective September 1, 2022—to rejoin the program before the five-year waiting period typically required. To do so, these districts must provide written notice to the trustee by December 31, 2025, indicating their intention to participate starting September 1, 2026, and comply with any additional requirements set by the trustee.

Furthermore, the bill stipulates that a risk stabilization fee will be imposed on the premiums of participating districts for the plan year beginning September 1, 2026. Once a district elects to rejoin the program, it cannot discontinue participation until September 1, 2031. The trustee is also granted the authority to establish further requirements and conditions for participation. This new provision will expire on September 1, 2031, and the act is set to take effect on September 1, 2025.

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