SECTION 26.441. Private Purchasing Cooperatives

(a) Two or more small or large employers may form a private purchasing cooperative for the purchase of small or large employer health benefit plans. A private purchasing cooperative must be organized as a nonprofit corporation and has the rights and duties provided by the Texas Nonprofit Corporation Act, Business Organizations Code Chapter 22.

(b) On receipt of a certificate of incorporation or certificate of authority from the secretary of state, the private purchasing cooperative must file notification of the receipt of the certificate and a copy of the cooperative's organizational documents with the commissioner.

(c) When a private purchasing cooperative or the Texas Health Benefits Purchasing Cooperative arranges for coverage under a health benefit plan for a small or large employer, the health benefit plan issued to a:

(1) small employer must be a small employer health benefit plan;

(2) large employer must be a large employer health benefit plan; and

(3) school district electing to be treated as a small employer under Insurance Code §1501.009 (concerning School District Election), must be a small employer health benefit plan.

Source Note: The provisions of this §26.441 adopted to be effective May 17, 2017, 42 TexReg 2539