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.