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 a new chapter, Chapter 1506, which defines these plans and outlines requirements for health benefit plan issuers. Key provisions include the necessity for employers to provide disclosure statements to employees regarding the absence of state-mandated benefits, as well as the requirement for these plans to include essential health benefits as defined by federal law. Additionally, the bill mandates that employers must sign a disclosure statement acknowledging the lack of certain mandated benefits before entering into a contract for such plans.

The bill also repeals several existing sections of the Insurance Code that are no longer applicable under the new framework. It clarifies that while employer choice of benefits plans can offer more affordable options, they may also provide fewer health benefits than traditional plans. The legislation aims to create a more flexible health insurance market 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)