H.B. No. 3126 amends the Insurance Code by adding Section 1579.1551, which allows certain entities that previously discontinued their participation in the uniform group coverage program for active school employees to rejoin the program. Specifically, this applies to entities that ceased participation effective September 1, 2022. These entities can elect to participate again before the fifth anniversary of their discontinuation, provided they notify the trustee by December 31, 2025, and meet any additional requirements set by the trustee.

Furthermore, for the plan year beginning September 1, 2026, the trustee is required to impose a risk stabilization fee on the premiums of these entities. Once an entity elects to rejoin the program, it cannot discontinue participation until September 1, 2031. The section also allows the trustee to establish further requirements and conditions for participation, and it is set to expire on September 1, 2031. The act is scheduled to take effect on September 1, 2025.

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