(a) Except as provided by Subsection (b), a county may not provide health and accident coverage through a risk pool under this chapter, except:
(1) as authorized by Subchapter A, Chapter 157; or
(2) through an interlocal contract entered under The Interlocal Cooperation Act (Article 4413(32c), Vernon’s Texas Civil Statutes) with other political subdivisions of this state if the aggregate annual contributions to the pool will exceed $1 million based on an actuarial estimate by an actuary who is a member of the American Academy of Actuaries.
(b) A county with a population of fewer than 500,000 may create and provide coverage through a pool if the aggregate annual claims, contributions, or both claims and contributions to the pool will exceed $300,000 based on an actuarial estimate by an actuary who is a member of the American Academy of Actuaries.