Large school districts that self-insure must still get quotes at least once every 4 years, but now only for health, accident or disability coverage, and the law now spells out who counts as an "authorized service provider" for those quotes.
Official title: school districts; insurance quotes
- September 12, 2026
What changes
BeforeA school district with at least 300 employees that set up a self-insurance program under this section had to get quotes from authorized service providers at least once every 4 years to see if comparable coverage was available at a better price.
NowThe 4-year quote requirement applies only when the self-insurance program is used to buy disability or health benefit plan insurance, pool the risk of health or accident claims, or provide health and medical services. The 300-employee threshold stays.
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Now"Authorized service providers" for these quotes is defined as any of these: 2 or more service providers available through the pool or trustees that run the district's self-insurance program; 2 or more qualified insurers that give proposals directly to the district's governing board; or a licensed insurance producer who gets proposals from 2 or more qualified insurers for the board.
BeforeRequired yearly data reports to districts covered high-cost claims and employee and dependent census information.
NowThe reports are worded to refer to each "enrollee" (for claims over $50,000 and diagnosis or medical condition descriptions) and to require census details for each employee and dependent. Other edits in the law are wording and style cleanup.
Who it affects
- School district governing boards with at least 300 employees that self-insure health, accident or disability coverage
- Insurers, insurance producers, pools and trustees that serve school district self-insurance programs
What you need to do
Nothing.
What the law doesn't answer
- Whether districts that self-insure only property or liability risks must still seek quotes in any other way
- Whether districts must switch providers if a lower price is found
- What counts as a "qualified insurer"
- Any penalty for a district that does not obtain quotes
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.