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A BILL TO BE ENTITLED
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AN ACT
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relating to health benefits offered by institutions of higher |
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education to students and their families. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1275.002, Insurance Code, is amended to |
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read as follows: |
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Sec. 1275.002. APPLICABILITY OF CHAPTER. This chapter |
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applies to a health benefit plan offered by: |
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(1) a nonprofit agricultural organization under |
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Chapter 1682; and |
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(2) an institution of higher education under Chapter |
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1683. |
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SECTION 2. Subtitle K, Title 8, Insurance Code, is amended |
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by adding Chapter 1683 to read as follows: |
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CHAPTER 1683. HEALTH BENEFITS PROVIDED BY CERTAIN INSTITUTIONS OF |
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HIGHER EDUCATION |
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Sec. 1683.001. DEFINITIONS. In this chapter: |
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(1) "Institution of higher education" means: |
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(A) an institution of higher education, as |
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defined by Section 61.003, Education Code; or |
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(B) a private or independent institution of |
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higher education, as defined by Section 61.003, Education Code. |
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(2) "Higher education health benefits" means health |
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benefits: |
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(A) sponsored by an institution of higher |
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education or an affiliate of the institution; |
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(B) offered only to: |
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(i) students enrolled at the institution of |
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higher education; and |
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(ii) family members of students enrolled at |
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the institution of higher education; |
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(C) that are not provided through an insurance |
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policy or other product the offering or issuance of which is |
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regulated as the business of insurance in this state; and |
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(D) that are deemed by the institution of higher |
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education to be important in assisting its students and their |
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families to live long and productive lives. |
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(3) "Preexisting condition" means a condition present |
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before the effective date of an individual's enrollment in higher |
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education health benefits. |
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Sec. 1683.002. HIGHER EDUCATION HEALTH BENEFITS |
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AUTHORIZED. An institution of higher education or an affiliate of |
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the institution may offer in this state higher education health |
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benefits. |
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Sec. 1683.003. WAITING PERIOD FOR PREEXISTING CONDITION. |
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Notwithstanding any other provision of this chapter, an institution |
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of higher education that offers higher education health benefits |
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may not require a waiting period of more than six months for |
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treatment of a preexisting condition otherwise included in higher |
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education health benefits. |
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Sec. 1683.004. REQUIRED DISCLOSURE FOR HIGHER EDUCATION |
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HEALTH BENEFITS. (a) An institution of higher education that |
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offers higher education health benefits must provide to an |
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individual applying for higher education health benefits written |
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notice that the benefits are not provided through an insurance |
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policy or other product the offering or issuance of which is |
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regulated as the business of insurance in this state. |
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(b) An individual must sign and return to the institution of |
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higher education the notice described by Subsection (a) before the |
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individual may enroll in higher education health benefits. The |
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institution of higher education must: |
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(1) maintain a copy of the signed written notice for |
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the duration of the term during which the higher education health |
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benefits are provided to the individual; and |
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(2) at the request of the individual, provide a copy of |
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the written notice to the individual. |
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Sec. 1683.005. INSTITUTION OF HIGHER EDUCATION NOT ENGAGED |
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IN BUSINESS OF HEALTH INSURANCE. Notwithstanding any other |
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provision of this code, for the purposes of offering higher |
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education health benefits, an institution of higher education that |
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acts in accordance with this chapter is not a health insurer and is |
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not engaging in the business of health insurance in this state. |
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Sec. 1683.006. RISK TRANSFER OR COVERAGE. An institution |
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of higher education that offers higher education health benefits |
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under this chapter may contract with a company authorized to engage |
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in the business of insurance in this state that is not under common |
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control with the institution of higher education to: |
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(1) transfer to that company all or a portion of the |
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organization's risks arising from higher education health benefits |
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offered under this chapter; or |
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(2) obtain insurance coverage from the company |
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guarantying the institution of higher education's obligations |
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arising from higher education health benefits offered under this |
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chapter. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |