Regular Session
Government Affairs & Regulatory Compliance Analysis
SB 493 statutorily voids contractual "gag clauses" between Pharmacy Benefit Managers (PBMs) and pharmacists, fundamentally altering the enforceability of provider agreements. Effective September 1, 2025, PBMs are prohibited from restricting pharmacists from disclosing lower cash prices to patients or communicating directly with plan sponsors regarding reimbursement and network adequacy.
Sen. Lois Kolkhorst·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
Affected business types:
lowMinimal cost impact anticipated.
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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.
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This bill's path through the Texas Legislature
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Common questions about SB493
SB 493 statutorily voids contractual "gag clauses" between Pharmacy Benefit Managers (PBMs) and pharmacists, fundamentally altering the enforceability of provider agreements. Effective September 1, 2025, PBMs are prohibited from restricting pharmacists from disclosing lower cash prices to patients or communicating directly with plan sponsors regarding reimbursement and network adequacy.
SB493 was authored by Texas Senator Lois Kolkhorst during the Regular Session.
SB493 was signed into law by Governor Greg Abbott on June 20, 2025.
SB493 is enforced by Texas Department of Insurance.
The regulatory priority for SB493 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB493 is estimated as "low". This may vary based on industry and implementation requirements.
SB493 addresses topics including insurance, insurance--health & accident, occupational regulation, occupational regulation--health occupations and medicine & prescription drugs.
Key dates for SB493: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB493 establishes the following penalties: civil/contractual penalty of Contractual provision rendered void and unenforceable for Inclusion of 'gag clauses' prohibiting pharmacists from disclosing lower cash prices or communicating with plan sponsors about network/reimbursement issues. Consult with legal counsel for specific applicability to your situation.
SB493 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.
