Regular Session
Government Affairs & Regulatory Compliance Analysis
SB926 fundamentally transforms the legal relationship between payers and enrollees by imposing a statutory fiduciary duty on insurers and HMOs when steering patients or tiering networks, effective September 1, 2025. This law creates significant new tort liability for "cost-only" steering and grants the Insurance Commissioner the authority to suspend an issuer's ability to use physician ranking systems entirely for 12 months if compliance fails.
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:
mediumModerate costs expected for implementation.
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 SB926
SB926 fundamentally transforms the legal relationship between payers and enrollees by imposing a statutory fiduciary duty on insurers and HMOs when steering patients or tiering networks, effective September 1, 2025. This law creates significant new tort liability for "cost-only" steering and grants the Insurance Commissioner the authority to suspend an issuer's ability to use physician ranking systems entirely for 12 months if compliance fails.
SB926 was authored by Texas Senator Kelly Hancock during the Regular Session.
SB926 was signed into law by Governor Greg Abbott on June 20, 2025.
SB926 is enforced by Texas Department of Insurance.
The regulatory priority for SB926 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB926 is estimated as "medium". This may vary based on industry and implementation requirements.
SB926 addresses topics including health care providers, insurance, insurance--health & accident, health maintenance organizations and physicians.
Key dates for SB926: Effective date is 2025-09-01. Rulemaking: Must adopt rules designating organizations that develop standards for ranking/classifying physicians (Section 1460.005). (Prior to 2025-09-01 (implied)). Consult with legal counsel regarding applicability.
SB926 establishes the following penalties: administrative penalty of Prohibition on using ranking/classification systems for at least 12 months for Engaging in a pattern of discrepancies, falsehoods, or violations regarding physician rankings (Section 1460.007(c)).; civil liability penalty of Unspecified damages (Litigation Risk) for Breach of newly established fiduciary duty to enrollees when steering/tiering providers not for the enrollee's primary benefit (Sections 843.322(b) and 1301.0047(b)).. Consult with legal counsel for specific applicability to your situation.
SB926 primarily affects healthcare providers and medical facilities, insurance companies and financial institutions. 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.
