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SB 701

Relating to mediation or arbitration of certain billing disputes between health benefit plan issuers or administrators and out-of-network facilities.

89th Legislature (2025) Introduced by Bryan Hughes

SB 701 establishes mediation and arbitration processes for resolving billing disputes between Texas health insurers and out-of-network medical facilities to reduce surprise billing issues.

Referred to Health & Human Services
#healthcareproviders(i0387) #insurance--health&accident(i0422) #insurance--insurers&agents(i0425) #mediation #disputeresolution #&arbitration(s8683)
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Bill Summary · SB 701

Legislative bill overview

SB 701 establishes a mediation or arbitration process for resolving billing disputes between health insurance companies and out-of-network medical facilities in Texas. The bill creates a structured mechanism to handle disagreements over charges and payments when patients receive care from providers not in their insurance network.

Why is this important

Out-of-network billing disputes can result in unexpected patient costs, provider payment delays, and unresolved claims that affect healthcare access and affordability. Establishing a formal dispute resolution process reduces litigation costs, accelerates claim resolution, and provides clarity on payment obligations—benefiting patients through lower surprise bills and providers through faster reimbursement.

Potential points of contention

  • Cost allocation: Whether mediation/arbitration fees should be split equally, paid by the losing party, or borne by insurers—affecting participation incentives
  • Arbitration binding vs. non-binding: Whether arbitration decisions are final or appealable, which impacts enforceability and access to courts
  • Scope and eligibility: What types of billing disputes qualify, which facilities are covered, and whether thresholds for dispute amounts apply

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

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