Regular Session
Government Affairs & Regulatory Compliance Analysis
Texas law now imposes affirmative duties on hospitals, physicians, and midwives to distribute specific Medicaid eligibility notices to pregnant patients and explicitly authorizes billing newborn care under the mother’s Medicaid ID. While the law is legally effective immediately, the mandatory compliance date for healthcare providers is January 1, 2026, requiring immediate updates to Electronic Medical Records (EMR) and intake workflows.
Rep. Ann Johnson·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:
lowMinimal cost impact anticipated.
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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
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 HB3940
Texas law now imposes affirmative duties on hospitals, physicians, and midwives to distribute specific Medicaid eligibility notices to pregnant patients and explicitly authorizes billing newborn care under the mother’s Medicaid ID. While the law is legally effective immediately, the mandatory compliance date for healthcare providers is January 1, 2026, requiring immediate updates to Electronic Medical Records (EMR) and intake workflows.
HB3940 was authored by Texas Representative Ann Johnson during the Regular Session.
HB3940 was signed into law by Governor Greg Abbott on June 20, 2025.
HB3940 is enforced by Department of State Health Services (DSHS) and Health and Human Services Commission (HHSC).
The regulatory priority for HB3940 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB3940 is estimated as "low". This may vary based on industry and implementation requirements.
HB3940 addresses topics including human services, human services--child services, human services--medical assistance, medicaid and health & human services commission.
Key dates for HB3940: Effective date is 2025-06-20. Rulemaking: Update the mandatory resource pamphlet and guide to include Medicaid eligibility, application processes, and birth reporting contact information. (2025-12-01); Develop a new written notice informing recipients of newborn automatic Medicaid eligibility and the authorized use of the mother's Medicaid ID. (2025-12-01). Consult with legal
HB3940 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.
