SB1266

Regular Session

Relating to Medicaid provider enrollment and credentialing processes.

01

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.

02
03

Official Analysis

Bill Text(with markup)


Technology

Included in the amounts above, the total non-FTE-related technology cost is estimated to be $165,417 from All Funds in fiscal year 2026 and $563,548 from All Funds in fiscal year 2027.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
529 Health and Human Services Commission
LBB Staff:
JMc, NPe, ER, ESch, NV
Quick Reference

Frequently Asked Questions

Common questions about SB1266

Q

What does Texas SB1266 do?

SB1266 fundamentally alters the risk profile for Medicaid providers by prohibiting the Health and Human Services Commission (HHSC) from disenrolling a provider for revalidation errors without first providing a 30-day notice and an opportunity to cure. This legislation shifts the burden of administrative perfection away from the provider, mandating that the agency provide a dedicated support team and a formal electronic complaint process for all entities billing Texas Medicaid. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Providers must have updated contact protocols in place to receive and act on the new statutory notices).

Q

Who authored SB1266?

SB1266 was authored by Texas Senator Carol Alvarado during the Regular Session.

Q

When was SB1266 signed into law?

SB1266 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1266?

SB1266 is enforced by Health and Human Services Commission (HHSC).

Q

How urgent is compliance with SB1266?

The compliance urgency for SB1266 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB1266?

The cost impact of SB1266 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1266 address?

SB1266 addresses topics including electronic information systems, human services, human services--medical assistance, internet and medicaid.

Legislative data provided by LegiScanLast updated: November 25, 2025

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