Texas Senate Bill SB1014

Texas 2025 - 89th Regular

• Filed: 1/30/25

Caption

Relating to certain health care services contract arrangements entered into by insurers and health care providers.

Impact

The bill's impact on state law involves clarifying the legal framework under which primary care physicians can be compensated under various payment arrangements without being classified as insurance entities. This is intended to provide more flexibility for physicians to participate in different models that could potentially enhance patient care and reduce overall healthcare costs. Importantly, the legislation aims to prevent insurers from discriminating against providers who opt not to engage in these alternative payment arrangements.

Summary

SB1014 is legislation introduced in Texas aiming to amend the Insurance Code to allow certain contract arrangements between health care providers and insurers. Specifically, it introduces provisions regarding value-based and capitated payment arrangements for primary care physicians and physician groups. A significant goal of the bill is to facilitate innovative payment structures that could support better healthcare delivery while ensuring that these contracts are not seen as the providers engaging in the business of insurance.

Contention

Despite its intended benefits, the bill may face scrutiny regarding its implications for the physician-patient relationship. Some stakeholders may argue that capitated payment models could inadvertently incentivize providers to limit necessary services in order to control costs. Moreover, there may be concerns among healthcare advocates that without sufficient regulatory oversight, such arrangements could lead to inequitable care delivery. Therefore, continued dialogue and potential amendments may be necessary to address these concerns as the bill progresses through the legislative process.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 1301. Preferred Provider Benefit Plans
  • Section: New Section