Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective immediately, HB2254 prohibits health insurers from forcing Primary Care Physicians (PCPs) into value-based or capitated arrangements through network exclusion or fee discrimination. The law creates a regulatory safe harbor allowing PCPs to accept risk-based payments without insurance licensure, provided the contracts meet strict new transparency and operational standards regarding patient attribution, data access, and dispute resolution.
Rep. Lacey Hull·House Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.
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
Immediate Legal Review Required: All pending PPO and EPO provider agreements must be audited against Section 1301.0065.
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
Explore more bills from this author and on related topics
Common questions about HB2254
Effective immediately, HB2254 prohibits health insurers from forcing Primary Care Physicians (PCPs) into value-based or capitated arrangements through network exclusion or fee discrimination. The law creates a regulatory safe harbor allowing PCPs to accept risk-based payments without insurance licensure, provided the contracts meet strict new transparency and operational standards regarding patient attribution, data access, and dispute resolution.
HB2254 was authored by Texas Representative Lacey Hull during the Regular Session.
HB2254 was signed into law by Governor Greg Abbott on June 20, 2025.
HB2254 is enforced by Texas Department of Insurance (TDI).
The regulatory priority for HB2254 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB2254 is estimated as "medium". This may vary based on industry and implementation requirements.
HB2254 addresses topics including health care providers, insurance, insurance--health & accident and physicians.
Key dates for HB2254: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.
HB2254 establishes the following penalties: administrative penalty of Unspecified administrative sanctions for Insurer discrimination against a primary care physician (PCP) or group for refusing to enter a value-based/capitated arrangement (e.g., reducing fee schedules or excluding from network).. Consult with legal counsel for specific applicability to your situation.
HB2254 primarily affects healthcare providers and medical facilities, insurance companies and financial institutions. 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.
