The bill amends the Texas Insurance Code to establish regulations 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 and prospective employees regarding the absence of certain state-mandated benefits. Additionally, the bill mandates that these plans must include coverage for an essential health benefits package, as defined by federal law, and prohibits preexisting condition exclusions.

The bill also makes several amendments to existing sections of the Insurance Code, including the addition of definitions and requirements for the disclosure of state-mandated health benefits that are not included in the employer choice of benefits plans. It repeals certain sections of the Insurance Code that are no longer applicable under the new framework. The act will take effect immediately upon receiving a two-thirds vote from both houses of the legislature or on September 1, 2025, if such a vote is not achieved.

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