SB 457 Texas Senate · 89th Legislature (2025)

Relating to the regulation of certain nursing facilities, including licensing requirements and Medicaid participation and reimbursement requirements.

This bill modifies Texas Medicaid payment rules for nursing facilities. It requires Medicaid to pay facilities within 10 days of a clean claim submission, enforces a patient care expense ratio, and mandates reductions in preventable events and unnecessary institutionalizations. Nursing facilities must comply with these standards to maintain Medicaid participation, while Medicaid managed care organizations must provide discharge planning, assist with income collection, and offer payment incentives for cost-reducing initiatives. A new claims portal system is also established for submitting claims to Medicaid managed care organizations. The bill directly affects nursing facilities receiving Medicaid payments and the managed care organizations administering those programs.
Bill status signed all 5 stages cleared
Introduction
Nov 2024
Committee Review
May 2025
Senate Passage
Jun 2025
House Passage
Jun 2025
Signed into Law
Jun 2025
Introduced Nov 21, 2024 Signed Jun 20, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Enrolled · 6 edits · Jun 20, 2025
MODERATE
This bill establishes a new patient care expense ratio requirement for nursing facilities receiving Medicaid reimbursement, requiring at least 80% of funds to be spent on direct patient care expenses. It also adds protections for facilities during ownership changes and expands the definition of eligible expenses to include more staff categories and operational costs. The changes aim to ensure nursing facilities maintain adequate staffing and care quality while preventing financial abuse of Medicaid funds.
Scope change
The bill applies to all nursing facilities participating in the medical assistance program, with specific exemptions for state-owned facilities and certain supplemental payment programs.
REQUIREMENT

New requirement that nursing facilities must spend at least 80% of Medicaid reimbursement attributable to patient care expenses on reasonable and necessary patient care expenses.

New protections requiring facilities to continue receiving Medicaid reimbursement uninterrupted during ownership change applications, with successor liability agreements covering outstanding debts.

Removed deleted section regarding staff rate enhancement methodology approval that was present in the earlier version.

DEFINITION

Expanded definition of 'patient care expense' to include additional staff categories (nonprofessional administrative staff, central supply staff, housekeeping, laundry, food service) and operational costs (diagnostic, equipment, oxygen, drugs, therapy consultants, dietary services).

ENFORCEMENT

Authority for the commission to recoup reimbursement amounts if facilities fail to comply with the expense ratio, with exceptions for high-rated facilities, low occupancy, or disaster-related expenses.

TIMELINE

Established implementation timeline requiring compliance with the expense ratio beginning September 1, 2025, with a report due November 1, 2027.

Floor votes · House May 27, 2025

How they voted

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

Actions timeline

Total actions
73
Key actions
22
Committee
15
Amendments
4
Jun 20, 2025
Signed into law
Signed by the Governor
executive
Jun 2, 2025
Lower · Passed
Signed in the House
lower
Jun 1, 2025
Upper · Passed
Signed in the Senate
upper
May 31, 2025
Upper · Passed
Senate adopts conference committee report
upper
May 31, 2025
Lower · Passed
House adopts conference committee report
lower
May 30, 2025
Lower · Passed
House grants request for conference committee
lower
May 29, 2025
Lower · Passed
Senate requests conference committee-reported
lower
May 29, 2025
Upper · Passed
Senate requests conference committee
upper
May 29, 2025
Introduced
House amendment(s) laid before the Senate
upper
May 28, 2025
Upper · Passed
House passage as amended reported
upper
May 28, 2025
Lower · Passed
Passed
lower
May 27, 2025
Lower · Passed
Passed to 3rd reading as amended
lower
May 27, 2025
Lower · Passed
Amended
lower
May 27, 2025
House · Passed
House Vote: pass (114-24-6)
house
May 22, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 22, 2025
Lower · Passed
Committee report distributed
lower
May 16, 2025
Lower · Passed
Reported favorably as substituted
lower
May 2, 2025
Committee
Referred to Human Services
lower
May 2, 2025
Introduced
Read first time
lower
May 1, 2025
Introduced
Received from the Senate
lower
May 1, 2025
Upper · Passed
Passed
upper
Apr 28, 2025
Upper · Passed
Committee report printed and distributed
upper
Apr 28, 2025
Upper · Passed
Reported favorably as substituted
upper
Apr 23, 2025
Upper · Passed
Vote taken in committee
upper
Mar 11, 2025
Upper · Passed
Left pending in committee
upper
Mar 11, 2025
Upper · Passed
Testimony taken in committee
upper
Feb 3, 2025
Committee
Referred to Health & Human Services
upper
Feb 3, 2025
Introduced
Read first time
upper
4 primary · 4 co-sponsors

Sponsors