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Bill

SB 742

Relating to the adequacy and effectiveness of managed care plan networks.

89th Legislature (2025) Introduced by Charles Schwertner

SB 742 establishes network adequacy standards for Texas managed care plans to ensure patients have sufficient provider access and timely healthcare availability.

Referred to Health & Human Services
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Bill Summary · SB 742

Legislative bill overview

SB 742 addresses network adequacy and effectiveness standards for managed care plans operating in Texas. The bill establishes requirements to ensure that health insurance networks include sufficient providers and maintain quality standards for patient access to care.

Why is this important

Managed care networks directly affect millions of Texans' ability to access timely, quality healthcare. Inadequate networks can force patients to travel long distances for care, delay necessary treatments, or limit their choice of providers, particularly in rural areas and underserved communities.

Potential points of contention

  • Compliance costs: Insurers may argue that stricter network adequacy standards increase administrative expenses, potentially raising premiums for consumers
  • Rural healthcare challenges: Meeting access standards in sparsely populated areas may be economically unfeasible without additional state subsidies or regulatory flexibility
  • Enforcement mechanisms: Unclear how the state will monitor compliance and what penalties apply to non-compliant plans, raising questions about real-world effectiveness

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

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