Bill
Bill > SB1151
TX SB1151
TX SB1151Relating to an insurer's responsibility to review and audit a third-party administrator.
summary
Introduced
02/06/2025
02/06/2025
In Committee
04/24/2025
04/24/2025
Crossed Over
04/16/2025
04/16/2025
Passed
05/05/2025
05/05/2025
Dead
Signed/Enacted/Adopted
05/19/2025
05/19/2025
Introduced Session
89th Legislature Regular Session
Bill Summary
AN ACT relating to an insurer's responsibility to review and audit a third-party administrator.
AI Summary
This bill modifies the Texas Insurance Code regarding an insurer's responsibilities for reviewing and auditing third-party administrators (TPAs). Specifically, the bill changes the requirements for insurers when a TPA manages benefits for more than 100 certificate holders, injured employees, plan participants, or policyholders. Under the revised law, insurers must conduct a review of the TPA's operations at least semiannually and perform an audit of those operations at least every two years. The bill removes the term "on-site" from the audit requirement, potentially allowing for more flexibility in how these audits are conducted. The changes aim to ensure ongoing oversight of third-party administrators by insurers, helping to maintain accountability and quality of service in managing insurance benefits. The bill is set to take effect on September 1, 2025, providing administrators and insurers time to prepare for the new requirements.
Committee Categories
Business and Industry, Health and Social Services
Sponsors (2)
Last Action
Effective on 9/1/25 (on 05/19/2025)
bill text
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1151 |
| Analysis (Enrolled) | https://capitol.texas.gov/tlodocs/89R/analysis/html/SB01151F.htm |
| BillText | https://capitol.texas.gov/tlodocs/89R/billtext/html/SB01151F.htm |
| BillText | https://capitol.texas.gov/tlodocs/89R/billtext/html/SB01151H.htm |
| Analysis (House Committee Report) | https://capitol.texas.gov/tlodocs/89R/analysis/html/SB01151H.htm |
| BillText | https://capitol.texas.gov/tlodocs/89R/billtext/html/SB01151E.htm |
| BillText | https://capitol.texas.gov/tlodocs/89R/billtext/html/SB01151S.htm |
| Fiscal Note (Introduced) | https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/SB01151I.htm |
| Analysis (Introduced) | https://capitol.texas.gov/tlodocs/89R/analysis/html/SB01151I.htm |
| BillText | https://capitol.texas.gov/tlodocs/89R/billtext/html/SB01151I.htm |
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