Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB541

Regular Session

Relating to the provision of direct patient care by physicians and health care practitioners.

Government Affairs & Regulatory Compliance Analysis

Business Impact

Who HB541 Affects

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.

Estimated Cost Impact

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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Immediate Action Plan

Operational Changes Required

Strategic Ambiguities & Considerations

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Information 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.

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Quick Reference

Frequently Asked Questions

Common questions about HB541

Q

What does Texas HB541 do?

Effective immediately, Texas law expands the "subscription" or "retainer" healthcare model beyond primary care physicians to include all Title 3 licensed health care practitioners (specialists, dentists, chiropractors, etc. ). HB541 creates a statutory safe harbor exempting these "Direct Patient Care" agreements from insurance regulation, provided businesses strictly adhere to new prohibitions on double-billing and mandatory patient disclosures.

Q

Who authored HB541?

HB541 was authored by Texas Representative Matthew Shaheen during the Regular Session.

Q

When was HB541 signed into law?

HB541 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB541?

HB541 is enforced by Other Title 3 Occupations Code Licensing Boards, Texas Board of Nursing, Texas Medical Board, Texas State Board of Dental Examiners and Texas State Board of Examiners of Psychologists.

Q

How significant are the changes in HB541?

The regulatory priority for HB541 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB541?

The cost impact of HB541 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB541 address?

HB541 addresses topics including health care providers, insurance, insurance--health & accident, occupational regulation and occupational regulation--health occupations.

Q

What are the key dates for HB541?

Key dates for HB541: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB541?

HB541 establishes the following penalties: administrative penalty of License discipline/sanctions (varies by board) for Billing an insurer or HMO for services that are already paid for under a Direct Patient Care Agreement (Sec. 117.004).; administrative penalty of License discipline/sanctions (varies by board) for Failure to provide mandatory written or electronic notice to the patient that the agreement is NOT insurance prior to execution (Sec. 117.006).. Consult with legal counsel for specific applicability to your situation.

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Which Texas businesses are affected by HB541?

HB541 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.

Legislative data provided by LegiScanLast updated: January 11, 2026