Texas Legislative Update

February 2024

Michael Grimes, Imperium Public Affairs (TCEP Lobbyist)

Texas Campaign Update
The 2024 Texas elections have gotten off to an aggressively competitive start – and we are still in the primary season. Unprecedented numbers of incumbents are being challenged for their offices, and the intraparty fighting is fierce amongst Republicans and Democrats alike. Campaign finance reports filed recently reveal a surge in funding for both allies and adversaries of many Texas House Republican incumbents, setting the stage for a potentially intense primary season.

Governor Greg Abbott, aiming to bolster a pro-voucher GOP majority, raised $19 million. Abbott has endorsed half of the primary challengers to 16 House Republicans who opposed a school voucher program. Meanwhile, Attorney General Ken Paxton, seeking to replace House Republicans who voted to impeach him, raised $2.2 million.

House Speaker Dade Phelan and allied groups, armed with significant resources, are gearing up to defend those same incumbents, including those targeted by Abbott and Paxton. In response, pro-public education groups have also become active in supporting anti-voucher House Republicans against the attacks. The landscape indicates a brewing GOP civil war with substantial financial backing on multiple fronts.

TDI published the ERISA opt-in form
House Bill 1592 (88th Legislature, 2023) provides an option for self-insured or self-funded ERISA plan sponsors to choose the application of Insurance Code Chapter 1275 for the relevant plan year. To exercise this option, the plan sponsor is required to submit the ERISA opt-in form through TDI's Balance Billing: Independent Dispute Resolution webpage.

For detailed information regarding ERISA plan elections, refer to the adoption order available on TDI’s website. Additional dates and documents related to this action can be accessed on TDI's Proposed and Adopted Rules for 2023 webpage.

House Bill 3359 (Network Adequacy)
During the 2023 legislative session, TCEP worked closely with other specialties to develop legislation (HB 3359) to strengthen the network adequacy requirements and make the Texas Department of Insurance more accountable in going after violations by health plans. With the passage of HB 3359, TDI has now been directed to formulate rules to implement the legislature’s directive. The first set of draft rules were significantly flawed, often fatally missing the intent of the legislature and creating a weaker regulatory structure than the current network adequacy rules at TDI. After TCEP and other specialties joined with TMA to oppose the draft rules presented by TDI, the agency pulled them back and are re-working the rules with input from the bill’s authors (Representative Greg Bonnen and Senator Charles Schwertner) and other legislators who have objected to the first draft. We expect the updated rules will be made public in the very near future and will continue to work to make improvements.