Bill > AB594

This bill amends California's Insurance Code to modify student health insurance regulations, primarily focusing on providing students with more flexibility in managing their health coverage. Starting July 1, 2026, the bill will allow students to terminate their student health insurance coverage during the policy year if they graduate, take a leave of absence, or are no longer enrolled at their institution of higher education. Students must provide at least 30 days' notice to their institution, which must then terminate coverage by the end of the same calendar month if possible. The bill also mandates that students will only pay premiums through their coverage termination date and requires institutions to provide pro-rata refunds for prepaid academic terms. Additionally, the bill requires institutions to grant a waiver from student health insurance coverage if a student can demonstrate they have minimum essential coverage, and prohibits charging students a fee for such a waiver. The legislation also gives the Insurance Commissioner authority to enforce these provisions and assess administrative penalties up to $5,000 for standard violations and $10,000 for willful violations. The bill aims to provide more consumer-friendly options for students while maintaining comprehensive health coverage standards, and it encourages self-funded student health plans offered by the University of California to maintain or exceed federal Affordable Care Act coverage standards.

Budget and Finance, Health and Social Services, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB594