The bill amends the Texas Insurance Code to establish provisions for employer health benefit plans that do not include state-mandated health benefits, referred to as "employer choice of benefits plans." It introduces definitions and requirements for these plans, including the necessity for health benefit plan issuers to provide a written disclosure statement to employers, acknowledging the absence of certain state-mandated benefits. Employers must also inform employees and prospective employees about the nature of these plans, including the potential for fewer health benefits compared to standard plans. The bill mandates that these plans must include coverage for an essential health benefits package and prohibits preexisting condition exclusions.

Additionally, the bill repeals several existing provisions related to small employer health benefit plans and introduces new sections that outline the rules and requirements for employer choice of benefits plans. It specifies that while these plans are exempt from certain insurance laws, they must still comply with specific regulations. The bill aims to provide more affordable health insurance options for employers while ensuring that employees are adequately informed about the coverage they are receiving. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

Statutes affected:
Introduced: ()
House Committee Report: Insurance Code 1251.202, Insurance Code 1275.002, Insurance Code 1501.002, Insurance Code 1501.252 (Insurance Code 1275, Insurance Code 1251, Insurance Code 1501)