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Bill

HB 2655

Relating to operation by certain nonprofit organizations of certain regional health care programs for employees of small employers.

89th Legislature (2025) Introduced by Chuy Hinojosa and 2 co-sponsors

Texas law now allows nonprofits to operate regional health programs for small employer employees, creating alternative insurance options but potentially reducing regulatory oversight compared to traditional insurers.

Effective on 9/1/25
#business&commerce--smallbusiness&minoritybusiness(i0051) #charitable&nonprofitorganizations(i0055) #insurance--health&accident(i0422)
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Bill Summary · HB 2655

Legislative bill overview

HB 2655 authorizes certain nonprofit organizations to operate regional health care programs that provide health insurance or medical services to employees of small employers in Texas. The bill creates a new framework allowing nonprofits to establish these programs without meeting certain traditional insurance regulatory requirements, effective September 1, 2025.

Why is this important

Small employers often struggle to afford group health insurance due to high premiums and administrative costs. This bill aims to expand affordable health care options by allowing nonprofits to create alternative coverage models, potentially increasing access to health benefits for small business employees who might otherwise be uninsured or underinsured.

Potential points of contention

  • Regulatory oversight: Allowing nonprofits to operate health programs outside traditional insurance regulations raises questions about consumer protections, solvency requirements, and recourse if the nonprofit fails to pay claims
  • Market disruption: Traditional insurers may argue this creates unfair competition by exempting nonprofits from the same compliance costs and capital reserves they must maintain
  • Definition ambiguity: The bill's scope depends heavily on how "certain nonprofit organizations" and "regional health care programs" are defined in practice, which could lead to implementation disputes or unintended expansion

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

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