Student health insurance.

Assembly Member Solache's student health insurance legislation establishes new flexibility for college students to terminate or waive their institution-provided health coverage under specific circumstances. Starting July 1, 2026, students who graduate, take a leave of absence, or cease enrollment may terminate their coverage mid-year with 30 days' notice, paying premiums only through their termination date. The bill also requires institutions to grant coverage waivers to students who maintain qualifying minimum essential coverage elsewhere.

The measure maintains existing requirements that student health insurance policies comply with individual market standards for essential health benefits, out-of-pocket maximums, and lifetime limits. However, it preserves exemptions from certain individual market rules, including guaranteed availability and renewability provisions. Student health coverage must provide at least 60% actuarial value, with insurers required to disclose coverage levels in plan materials.

To enhance oversight, the Department of Insurance may prohibit rate changes if insurers fail to file required information 120 days before implementation. The Insurance Commissioner can assess penalties up to $5,000 per violation, or $10,000 for willful violations. The bill also expresses legislative intent for University of California self-funded student plans to maintain or exceed Affordable Care Act coverage standards, though these plans are not directly regulated by the new requirements.