The bill, titled "Employer Choice of Benefits Plans," introduces a new chapter to the Texas Insurance Code that allows health benefit plan issuers to offer plans that do not include state-mandated health benefits. It defines "employer choice of benefits plan" as a group health benefit plan that may partially or wholly exclude state-mandated health benefits while still providing creditable coverage. The bill mandates that these plans must include essential health benefits as defined by federal regulations and requires health benefit plan issuers to provide written disclosure statements to employers, detailing which state-mandated benefits are excluded from the plan.

Additionally, the bill stipulates that each application for enrollment in an employer choice of benefits plan must contain specific language informing potential enrollees about the absence of state-mandated health benefits. It also requires that health benefit plan issuers offering these plans must provide at least one group health benefit plan that includes state-mandated benefits. Furthermore, the employer choice of benefits plans are exempt from other insurance laws that do not explicitly apply to them. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

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