Regular Session
Government Affairs & Regulatory Compliance Analysis
SB2544 imposes a strict statute of limitations on the mediation of out-of-network health benefit claims, effectively ending the practice of mediating aged accounts receivable. Providers and insurers must immediately audit all historical claims to meet a one-time "Legacy Cliff" deadline of December 30, 2025, or permanently forfeit the right to dispute reimbursement amounts; moving forward, all mediation requests must be filed within 180 days of the initial payment.
Sen. Kelly Hancock·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
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 SB2544
SB2544 imposes a strict statute of limitations on the mediation of out-of-network health benefit claims, effectively ending the practice of mediating aged accounts receivable. Providers and insurers must immediately audit all historical claims to meet a one-time "Legacy Cliff" deadline of December 30, 2025, or permanently forfeit the right to dispute reimbursement amounts; moving forward, all mediation requests must be filed within 180 days of the initial payment.
SB2544 was authored by Texas Senator Kelly Hancock during the Regular Session.
SB2544 was signed into law by Governor Greg Abbott on June 20, 2025.
SB2544 is enforced by Texas Department of Insurance.
The regulatory priority for SB2544 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2544 is estimated as "low". This may vary based on industry and implementation requirements.
SB2544 addresses topics including insurance, insurance--health & accident and mediation, dispute resolution, & arbitration.
Key dates for SB2544: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB2544 establishes the following penalties: administrative penalty of Bar to recovery/mediation eligibility for Failure to request mediation within 180 days of receiving initial payment (for services on/after 09/01/2025).; administrative penalty of Permanent waiver of mediation rights for Failure to request mediation by the 120th day after effective date for any legacy claims (services provided prior to 09/01/2025).. Consult with legal counsel for specific applicability to your situation.
SB2544 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.
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.
