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HB 2750

AN ACT relating to use of a pharmacy benefit manager in which a health

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

This Texas bill prohibits health benefit plan issuers with a financial interest in a pharmacy benefit manager from requiring enrollees to exclusively use that specific pharmacy benefit manager. The legislation applies to various types of health plans, including individual, group, and nonprofit health coverage, and aims to prevent potential conflicts of interest where a health plan might mandate using a pharmacy benefit manager in which they have a financial stake. The bill will take effect for health plans delivered or renewed on or after January 1, 2026, giving insurance providers time to adjust their practices.

Subject Areas

Bill Text

relating to use of a pharmacy benefit manager in which a health
benefit plan issuer has a financial interest.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 1369, Insurance Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R.  USE OF CERTAIN PHARMACY BENEFIT MANAGERS
Sec. 1369.801.  DEFINITIONS.  In this subchapter:
(1)  "Financial interest" means an ownership or
investment interest through equity, debt, or other means, including
an interest in an entity that holds an ownership or investment
(2)  "Pharmacy benefit manager" has the meaning
Sec. 1369.802.  APPLICABILITY OF SUBCHAPTER.  (a)  This
subchapter applies only to a health benefit plan that provides
benefits for medical or surgical expenses incurred as a result of a
health condition, accident, or sickness, including an individual,
group, blanket, or franchise insurance policy or insurance
agreement, a group hospital service contract, or an individual or
group evidence of coverage or similar coverage document that is
(2)  a group hospital service corporation operating
(3)  a health maintenance organization operating under
(4)  an approved nonprofit health corporation that
holds a certificate of authority under Chapter 844;
(5)  a multiple employer welfare arrangement that holds
a certificate of authority under Chapter 846;
(6)  a stipulated premium company operating under
(7)  a fraternal benefit society operating under
(8)  a Lloyd's plan operating under Chapter 941; or
(9)  an exchange operating under Chapter 942.
(b)  Notwithstanding any other law, this subchapter applies
(1)  a small employer health benefit plan subject to
Chapter 1501, including coverage provided through a health group
cooperative under Subchapter B of that chapter;
(2)  a standard health benefit plan issued under
(3)  a basic coverage plan under Chapter 1551;
(4)  a basic plan under Chapter 1575;
(5)  a primary care coverage plan under Chapter 1579;
(6)  a plan providing basic coverage under Chapter
(7)  group health coverage made available by a school
district in accordance with Section 22.004, Education Code;
(8)  a regional or local health care program operated
under Section 75.104, Health and Safety Code; and
(9)  a self-funded health benefit plan sponsored by a
professional employer organization under Chapter 91, Labor Code.
Sec. 1369.803.  PROHIBITION ON REQUIRING USE OF CERTAIN
PHARMACY BENEFIT MANAGERS.  A health benefit plan issuer that has a
financial interest in a pharmacy benefit manager may not require an
enrollee to use the pharmacy benefit manager.
SECTION 2.  Subchapter R, Chapter 1369, Insurance Code, as
added by this Act, applies only to a health benefit plan delivered,
issued for delivery, or renewed on or after January 1, 2026.
SECTION 3.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to use of a pharmacy benefit manager in which a health