| (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.
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