Student health insurance.

Assembly Member Solache's student health insurance legislation establishes new flexibility for college students to manage their health coverage while maintaining consumer protections. Starting July 2026, students may terminate their institution's health insurance if they graduate, take leave, or end enrollment, with 30 days' notice required. Institutions must process these requests within the same calendar month when feasible and refund premiums prorated to the termination date.

The bill requires institutions to grant automatic waivers to students who obtain minimum essential coverage elsewhere, without charging additional fees or premiums. It maintains existing requirements that student health plans provide at least 60% actuarial value and comply with essential health benefits rules, while allowing institutions to create separate risk pools based on legitimate academic classifications rather than health factors.

To enhance oversight, the Department of Insurance may prohibit rate changes that fail to meet filing deadlines, with administrative penalties up to $5,000 per violation or $10,000 for willful violations. The legislation also encourages self-funded University of California student health plans to maintain or exceed Affordable Care Act coverage standards, though these plans remain exempt from direct regulation.