Signed Into Law
Signed June 20, 2025Effective 2025-09-01
HB721

Regular Session

Relating to the applicability of certain laws requiring health care cost disclosures by health benefit plan issuers and administrators.

Government Affairs & Regulatory Compliance Analysis

Business Impact

Who HB721 Affects

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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 HB721

Q

What does Texas HB721 do?

HB721 creates a statutory exemption from health care cost disclosure mandates for Health Reimbursement Arrangements (HRAs), account-based plans, and certain local government health programs. Plan sponsors and administrators of these specific arrangements must cease disclosure protocols to reduce administrative overhead, while standard health plans and Professional Employer Organization (PEO) sponsored plans remain fully subject to transparency laws.

Q

Who authored HB721?

HB721 was authored by Texas Representative Terri Leo-Wilson during the Regular Session.

Q

When was HB721 signed into law?

HB721 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB721?

HB721 is enforced by Texas Department of Insurance.

Q

How significant are the changes in HB721?

The regulatory priority for HB721 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB721?

The cost impact of HB721 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB721 address?

HB721 addresses topics including insurance and insurance--health & accident.

Q

What are the key dates for HB721?

Key dates for HB721: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB721?

HB721 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.

Legislative data provided by LegiScanLast updated: January 11, 2026