88R12291 CJD-F
 
  By: A. Johnson of Harris H.B. No. 3371
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to health benefits offered by institutions of higher
  education to students and their families.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1275.002, Insurance Code, is amended to
  read as follows:
         Sec. 1275.002.  APPLICABILITY OF CHAPTER.  This chapter
  applies to a health benefit plan offered by:
               (1)  a nonprofit agricultural organization under
  Chapter 1682; and
               (2)  an institution of higher education under Chapter
  1683.
         SECTION 2.  Subtitle K, Title 8, Insurance Code, is amended
  by adding Chapter 1683 to read as follows:
  CHAPTER 1683. HEALTH BENEFITS PROVIDED BY CERTAIN INSTITUTIONS OF
  HIGHER EDUCATION
         Sec. 1683.001.  DEFINITIONS. In this chapter:
               (1)  "Institution of higher education" means:
                     (A)  an institution of higher education, as
  defined by Section 61.003, Education Code; or
                     (B)  a private or independent institution of
  higher education, as defined by Section 61.003, Education Code.
               (2)  "Higher education health benefits" means health
  benefits:
                     (A)  sponsored by an institution of higher
  education or an affiliate of the institution;
                     (B)  offered only to:
                           (i)  students enrolled at the institution of
  higher education; and
                           (ii)  family members of students enrolled at
  the institution of higher education;
                     (C)  that are not provided through an insurance
  policy or other product the offering or issuance of which is
  regulated as the business of insurance in this state; and
                     (D)  that are deemed by the institution of higher
  education to be important in assisting its students and their
  families to live long and productive lives.
               (3)  "Preexisting condition" means a condition present
  before the effective date of an individual's enrollment in higher
  education health benefits.
         Sec. 1683.002.  HIGHER EDUCATION HEALTH BENEFITS
  AUTHORIZED. An institution of higher education or an affiliate of
  the institution may offer in this state higher education health
  benefits.
         Sec. 1683.003.  WAITING PERIOD FOR PREEXISTING CONDITION.
  Notwithstanding any other provision of this chapter, an institution
  of higher education that offers higher education health benefits
  may not require a waiting period of more than six months for
  treatment of a preexisting condition otherwise included in higher
  education health benefits.
         Sec. 1683.004.  REQUIRED DISCLOSURE FOR HIGHER EDUCATION
  HEALTH BENEFITS. (a) An institution of higher education that
  offers higher education health benefits must provide to an
  individual applying for higher education health benefits written
  notice that the benefits are not provided through an insurance
  policy or other product the offering or issuance of which is
  regulated as the business of insurance in this state.
         (b)  An individual must sign and return to the institution of
  higher education the notice described by Subsection (a) before the
  individual may enroll in higher education health benefits. The
  institution of higher education must:
               (1)  maintain a copy of the signed written notice for
  the duration of the term during which the higher education health
  benefits are provided to the individual; and
               (2)  at the request of the individual, provide a copy of
  the written notice to the individual.
         Sec. 1683.005.  INSTITUTION OF HIGHER EDUCATION NOT ENGAGED
  IN BUSINESS OF HEALTH INSURANCE. Notwithstanding any other
  provision of this code, for the purposes of offering higher
  education health benefits, an institution of higher education that
  acts in accordance with this chapter is not a health insurer and is
  not engaging in the business of health insurance in this state.
         Sec. 1683.006.  RISK TRANSFER OR COVERAGE. An institution
  of higher education that offers higher education health benefits
  under this chapter may contract with a company authorized to engage
  in the business of insurance in this state that is not under common
  control with the institution of higher education to:
               (1)  transfer to that company all or a portion of the
  organization's risks arising from higher education health benefits
  offered under this chapter; or
               (2)  obtain insurance coverage from the company
  guarantying the institution of higher education's obligations
  arising from higher education health benefits offered under this
  chapter.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.