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SB 2548

Relating to awarding contracts to managed care organizations under Medicaid and the child health plan program.

89th Legislature (2025) Introduced by Chuy Hinojosa

SB 2548 modifies Texas's process for awarding Medicaid and CHIP contracts to managed care organizations, affecting healthcare access for millions of low-income residents and children.

Referred to Health & Human Services
#competitivebidding(s0267) #health&humanservicescommission(v0177) #health--children'sinsurance(i0388) #hospitals(i0400) #humanservices--general(i0920) #humanservices--medicalassistance(i0905) #managedcare(s0454) #medicaid(s4885)
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Bill Summary · SB 2548

Legislative bill overview

SB 2548 modifies the process by which Texas awards contracts to managed care organizations (MCOs) that provide health services under Medicaid and the Child Health Plan Program (CHIP). The bill establishes or revises requirements for how the state evaluates and selects these private healthcare providers to serve low-income Texans.

Why is this important

Texas Medicaid and CHIP serve millions of vulnerable residents, primarily children and low-income families. How the state contracts with MCOs directly affects healthcare access, quality of care, and costs for these populations. Contract award procedures influence which insurers participate, the rates they negotiate, and ultimately the care that beneficiaries receive.

Potential points of contention

  • Selection criteria clarity: Questions about whether new contract standards will prioritize cost-savings versus care quality, and how transparent these criteria will be to stakeholders
  • Market competition: Changes to contracting procedures could favor larger, established MCOs or create barriers for smaller providers, affecting market diversity
  • Implementation timeline: The bill was just filed in March 2025 with a referral to committee; its practical effects on ongoing or future MCO contracts remain unclear without detailed provisions

Compiled from official sources — confirm details with the bill’s official record.

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