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Bill would let managed-care organizations inform enrollees about other coverage options; committee leaves measure pending

2577392 · March 12, 2025

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Summary

Senate Bill 963 would allow Medicaid managed-care organizations to inform enrollees about other qualified health-plan options, including plans on the exchange; supporters said the change would give enrollees more choices and came from interim committee findings.

Senate Bill 963, sponsored by Sen. Hughes, was presented to the Committee on Health & Human Services. The bill would clarify that managed care organizations (MCOs) may inform current and former Medicaid enrollees about other health coverage options, including qualified health plans offered through the health-insurance exchange.

Sen. Hughes said the bill originated from interim work showing that MCOs were effectively prevented by current rules from providing enrollment information about other coverage paths; the proposed change would “say that an MCO can inform enrollees about the availability of qualified health plans offered through the exchange.”

Jamie Dudensing, CEO of the Texas Association of Health Plans, testified in support and said the change came from an interim hearing on fraud, waste and abuse and from follow-up research about uninsured Texans. Dudensing said outreach from MCOs about existing programs and private-market options could help reduce the number of uninsured Texans, many of whom are eligible for coverage under current programs but lack information.

Sen. Hughes and the sponsor told the committee they expect to file a committee substitute to clarify coverage for current and former Medicaid enrollees. No one registered to testify in opposition at the hearing. The committee closed public testimony and left SB 963 pending.