TX SB1409

Authorizes Texas postsecondary educational institutions (public and private colleges/universities) to offer self-funded "higher education health benefits" to enrolled students and their family members without being classified as health insurers

Limits preexisting condition waiting periods to a maximum of six months for treatment under these health benefit plans

Requires institutions to provide written disclosure to applicants that the benefits are not provided through a regulated insurance product, with signed acknowledgment required before enrollment

Mandates that institutions register with the Texas Department of Insurance and administer benefits in an actuarially sound manner, including obtaining actuarial opinions on required cash reserves and stop-loss insurance levels

Allows institutions to contract with authorized insurance companies to transfer risk or obtain coverage guaranteeing their health benefit obligations; takes effect immediately with two-thirds vote or September 1, 2025