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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB1307

Regular Session

Relating to a biennial health coverage reference guide developed by the Texas Department of Insurance.

Government Affairs & Regulatory Compliance Analysis

SB1307: Government Affairs Overview

SB1307 mandates the Texas Department of Insurance (TDI) to publish a biennial "Health Coverage Reference Guide" establishing the official state definitions for health coverage, consumer rights, and insurance scams. While the statutory burden lies with TDI, this guide creates a new standard of care for brokers, issuers, and non-insurance product vendors, whose marketing and dispute resolution processes must align with the guide's terminology to avoid claims of misrepresentation.

Sen. Molly Cook·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Business Impact

Who SB1307 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

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

🏦

Banking & Finance

Affected business types:

  • Banks
  • Credit unions
  • Financial services firms
  • Insurance companies
View all banking & finance legislation
🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation

Key Operational Considerations

  • 1Marketing Agreements: If you utilize third-party marketers for discount cards or limited-benefit plans, amend agreements to require adherence to the terminology established in the upcoming TDI guide.
  • 2Customer Service Scripts: By Q1 2026, update call center scripts. Staff must be trained to respond to consumers referencing the guide (e.g., "The TDI guide says I have a right to X").
  • 3Sales Training: Brokers and agents must be retrained to explain the difference between your products and the "comprehensive health insurance" baseline defined in the guide.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB1307
Low
Relating to a biennial health coverage reference guide developed by the Texas Department of Insurance.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Texas Department of Insurance
Primary Author: Sen. Molly Cook
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: January 1, 2026 (Publication of the first guide; operational alignment must be complete by this date).
  • Agency Rulemaking: Between September 1, 2025, and December 31, 2025, TDI will draft the content in consultation with the Health and Human Services Commission (HHSC). This is the "Regulatory Gray Zone" where industry stakeholders must advocate for fair definitions.

Immediate Action Plan

  • 1. Audit Marketing Collateral (Immediate): Identify any language in your sales materials that could be construed as misleading when compared to standard ACA definitions.
  • 2. Engage in the Drafting Process (Q4 2025): Assign government relations staff to monitor TDI’s drafting sessions. You must ensure the guide distinguishes between *fraud* and *legitimate limited-benefit options*.
  • 3. Prepare "Guide Alignment" Scripts (Q4 2025): Draft explanatory language for your agents that specifically addresses how your product fits into the categories TDI publishes.

Operational Changes Required

Contracts

  • Plan Documents & Member Handbooks: Review definitions in your policy documents. While you do not need to amend contracts immediately, any definitions of "network," "deductible," or "appeal" that contradict the TDI guide will be vulnerable to legal challenge.
  • Marketing Agreements: If you utilize third-party marketers for discount cards or limited-benefit plans, amend agreements to require adherence to the terminology established in the upcoming TDI guide.

Hiring/Training

  • Customer Service Scripts: By Q1 2026, update call center scripts. Staff must be trained to respond to consumers referencing the guide (e.g., "The TDI guide says I have a right to X").
  • Sales Training: Brokers and agents must be retrained to explain the difference between your products and the "comprehensive health insurance" baseline defined in the guide.

Reporting & Record-Keeping

  • Internal Compliance Memo: Create a "gap analysis" document comparing your product's features against the guide’s descriptions of "scams" and "non-insurance products." This document will serve as your defense if a consumer alleges your product was sold under false pretenses.
  • No New Filings: There are no new statutory reporting requirements to the state.

Fees & Costs

  • No New Fees: The Legislative Budget Board anticipates no fiscal impact to the state, meaning no pass-through assessments to insurers are currently planned.

Strategic Ambiguities & Considerations

The law directs TDI to define subjective concepts. Watch these areas closely during the drafting phase:

  • 1. "Health Coverage Scams" (Sec. 524A.001(b)(5)(G)): The law requires the guide to teach consumers how to recognize scams. TDI has broad discretion here. There is a high risk that legitimate, non-ACA-compliant products (e.g., Short-Term Limited Duration Insurance or Health Sharing Ministries) could be implicitly categorized as "scam-adjacent" if the language is not carefully drafted.
  • 2. Comparisons to "Comprehensive" Insurance: The guide must compare discount cards and non-insurance products to major medical insurance. If TDI focuses solely on coverage breadth rather than cost-benefit, non-insurance products will be framed negatively by the state.

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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

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 14, 2025
Passed Senate
Apr 9, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsConsumer ProtectionInsuranceInsurance--health & AccidentInsurance, Texas Department of
03

Senate Authors

Sen. Molly CookDemocrat · Primary Author
Joint Authors
Coauthors (2)

House Sponsor

Rep. Hubert VoDemocrat · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Molly Cook

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Related by Topic

View more Consumer Protection legislation
Quick Reference

Frequently Asked Questions

Common questions about SB1307

Q

What does Texas SB1307 do?

SB1307 mandates the Texas Department of Insurance (TDI) to publish a biennial "Health Coverage Reference Guide" establishing the official state definitions for health coverage, consumer rights, and insurance scams. While the statutory burden lies with TDI, this guide creates a new standard of care for brokers, issuers, and non-insurance product vendors, whose marketing and dispute resolution processes must align with the guide's terminology to avoid claims of misrepresentation.

Q

Who authored SB1307?

SB1307 was authored by Texas Senator Molly Cook during the Regular Session.

Q

When was SB1307 signed into law?

SB1307 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB1307?

SB1307 is enforced by Texas Department of Insurance.

Q

How significant are the changes in SB1307?

The regulatory priority for SB1307 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1307?

The cost impact of SB1307 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1307 address?

SB1307 addresses topics including consumer protection, insurance, insurance--health & accident and insurance, texas department of.

Q

What are the key dates for SB1307?

Key dates for SB1307: Effective date is 2025-09-01. Rulemaking: Must develop and publish the first biennial health coverage reference guide in consultation with HHSC. (2026-01-01). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB1307?

SB1307 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.

Need Strategic Guidance on This Legislation?

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.

Legislative data provided by LegiScanLast updated: January 11, 2026