Regular Session
Government Affairs & Regulatory Compliance Analysis
HB138 immediately subjects Health Benefit Plan Issuers (HMOs and PPOs) to a new annual regulatory fee to fund a legislative analysis program at UT Health. Crucially, it mandates a strict 10-day turnaround for "Special Data Calls" during legislative sessions, requiring issuers to rapidly quantify the administrative costs of proposed insurance mandates under penalty of Insurance Code violations.
Rep. Jay Dean·House Bill·Regular Session
Center for Health Care Data at UT Health Science Center at Houston (Program Administration) • Comptroller of Public Accounts (Fee Assessment) • Texas Department of Insurance (Data Calls & Covered Lives Reporting)
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.
Affected business types:
Affected business types:
mediumModerate costs expected for implementation.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Third-Party Administrators (TPAs) & PBMs:
Existing Service Level Agreements (SLAs) likely lack the speed required by this law. You must amend contracts to require vendors to provide data regarding the administrative cost of implementing new mandates within 48 to 72 hours of a request. This ensures you can compile, validate, and submit the data to TDI within the statutory 10-day window.
Actuarial & Government Affairs Protocol:
No new hiring is mandated, but you must establish a "Rapid Response Team." Train actuarial staff on a standardized protocol to estimate administrative expenses (e.g., IT coding changes, network renegotiations) instantly upon receipt of a Special Data Call.
Methodology Disclosure:
When responding to a Special Data Call, the law requires you to disclose the calculation methodology used. You cannot invent this ad-hoc. Develop a defensible, standardized internal methodology for estimating implementation costs now to ensure consistency across legislative sessions.
New Regulatory Assessment:
Scope of "Administrative Expenses":
The statute requires issuers to report the cost of implementing mandates but does not define what constitutes a valid "administrative expense." It is unclear if this includes indirect costs like staff retraining or system overhauls. We must monitor TDI rulemaking to ensure the definition is broad enough to capture the true cost of compliance.
Fee Escalation:
The Comptroller is authorized to set fees to cover "deficits incurred" by the program. If the Center for Health Care Data exceeds its budget, the statute allows for an automatic, uncapped increase in your assessment the following biennium.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about HB138
HB138 immediately subjects Health Benefit Plan Issuers (HMOs and PPOs) to a new annual regulatory fee to fund a legislative analysis program at UT Health. Crucially, it mandates a strict 10-day turnaround for "Special Data Calls" during legislative sessions, requiring issuers to rapidly quantify the administrative costs of proposed insurance mandates under penalty of Insurance Code violations.
HB138 was authored by Texas Representative Jay Dean during the Regular Session.
HB138 was signed into law by Governor Greg Abbott on June 20, 2025.
HB138 is enforced by Center for Health Care Data at UT Health Science Center at Houston (Program Administration), Comptroller of Public Accounts (Fee Assessment) and Texas Department of Insurance (Data Calls & Covered Lives Reporting).
The regulatory priority for HB138 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB138 is estimated as "medium". This may vary based on industry and implementation requirements.
HB138 addresses topics including insurance, insurance--health & accident, legislature, university of texas health science center at houston and comptroller of public accounts.
Key dates for HB138: Effective date is 2025-06-20. Rulemaking: Establish the Health Impact, Cost, and Coverage Analysis Program. (2026-01-01); May adopt rules to administer the fee assessment. (None specified (Discretionary)). Consult with legal counsel regarding applicability.
HB138 primarily affects insurance companies and financial institutions, healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
