HB 2254 Texas House · 89th Legislature (2025)

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

HB 2254 allows health insurance companies to contract with primary care physicians or primary care physician groups using value-based payment models (like fixed payments for defined services) or traditional fee-for-service arrangements, without classifying these contracts as insurance. It directly affects insurers and primary care providers (family medicine, internal medicine, pediatrics physicians/groups), clarifying that such contracts do not make providers "engaged in the business of insurance." The bill prohibits insurers from reducing fees or forcing participation in these arrangements, requiring equal treatment for providers who choose not to join value-based or capitated payment programs. This changes how insurers and primary care providers structure financial agreements for routine patient care.
Bill status signed all 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
Jun 2025
Introduced Mar 14, 2025 Signed Jun 20, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Enrolled · 5 edits · Jun 20, 2025
MODERATE
The bill text was reformatted from a draft version to the final enrolled version, with substantive policy changes including the addition of new requirements for contracts involving shared savings, clarification on subcontracting prohibitions, and a revised effective date of September 1, 2025 if not passed by a two-thirds vote. The bill allows insurers to enter into value-based or capitated payment arrangements with primary care physician groups without being considered insurance businesses, while maintaining protections against discrimination and ensuring specific contract terms are met.
Scope change
The bill's scope remains focused on health care contract arrangements between insurers and primary care physicians, but the enrolled version adds new provisions regarding shared savings distribution and subcontracting restrictions that were not present in the earlier draft.
REQUIREMENT

Added requirement that contracts involving shared savings must specify whether the entire savings is shared when minimum savings rate is reached, or only the amount exceeding that minimum.

Added prohibition on subcontracting by parties to contracts under the value-based payment arrangements.

Modified subsection (f)(3) to include renegotiation opportunities for material increases in scope of services or material changes in benefit structure.

TIMELINE

Changed effective date to September 1, 2025 if the bill does not receive a two-thirds vote in both legislative houses.

DEFINITION

Added new subsection (g) clarifying that global capitation arrangements are not authorized under this section.

Floor votes · House May 1, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
55
Key actions
18
Committee
12
Amendments
2
Jun 20, 2025
Signed into law
Signed by the Governor
executive
May 23, 2025
Upper · Passed
Signed in the Senate
upper
May 23, 2025
Lower · Passed
Signed in the House
lower
May 21, 2025
Lower · Passed
Senate passage reported
lower
May 21, 2025
Upper · Passed
Passed
upper
May 15, 2025
Upper · Passed
Committee report printed and distributed
upper
May 15, 2025
Upper · Passed
Reported favorably w/o amendments
upper
May 14, 2025
Upper · Passed
Vote taken in committee
upper
May 13, 2025
Upper · Passed
Left pending in committee
upper
May 13, 2025
Upper · Passed
Testimony taken in committee
upper
May 5, 2025
Committee
Referred to Health & Human Services
upper
May 5, 2025
Introduced
Read first time
upper
May 5, 2025
Introduced
Received from the House
upper
May 1, 2025
Lower · Passed
Passed
lower
Apr 30, 2025
Lower · Passed
Passed to engrossment as amended
lower
Apr 30, 2025
Lower · Passed
Amended
lower
Apr 11, 2025
Lower · Passed
Committee report sent to Calendars
lower
Apr 10, 2025
Lower · Passed
Committee report distributed
lower
Apr 3, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
Mar 26, 2025
Lower · Passed
Left pending in committee
lower
Mar 26, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Mar 14, 2025
Committee
Referred to Insurance
lower
Mar 14, 2025
Introduced
Read first time
lower
2 primary · 4 co-sponsors

Sponsors