Texas Senate Bill SB2547

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to imposing a moratorium on the awarding of certain contracts by the Health and Human Services Commission under Medicaid and the child health plan program.

Impact

The main outcome of SB2547 will be a freeze on new contractual agreements, allowing for the renewal of existing contracts only. This could significantly impact the operational dynamics of managed care organizations, as it limits their ability to compete for new contracts during this period. By restricting new contracts, the bill is anticipated to provide an opportunity for a thorough examination of the existing arrangements and the overall structure of medical services provided under Medicaid and the child health plan program.

Summary

SB2547 imposes a temporary moratorium on the awarding of certain contracts by the Health and Human Services Commission (HHSC) specifically related to Medicaid and the child health plan program. This bill specifically targets contracts awarded to managed care organizations for delivering health care services to enrollees under the STAR Medicaid managed care program and children covered by the child health plan. The moratorium extends from the bill's effective date until the next review by the Texas Sunset Advisory Commission, which is designed to evaluate the continued necessity of the HHSC functions and programs.

Contention

Notably, the bill could stimulate contention among stakeholders depending on their investment in existing managed care organizations. Suppliers and healthcare providers who rely heavily on these contracts might argue that the moratorium disrupts the competitive landscape and hinders innovation in service delivery, while supporters may contend that such a pause is necessary to assess and ensure the effectiveness and efficiency of the current programs in place. Additionally, the bill raises potential concerns regarding compliance with federal guidelines, as provisions allow for delays in implementation until necessary federal waivers are obtained.

Texas Constitutional Statutes Affected

Government Code

• Chapter 325. Sunset Law
  • Section: New Section