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Bill > HB3508
TX HB3508
TX HB3508Relating to an insurer's responsibility to review and audit a third-party administrator.
summary
Introduced
02/28/2025
02/28/2025
In Committee
04/09/2025
04/09/2025
Crossed Over
Passed
Dead
06/02/2025
06/02/2025
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 Insurance Code to clarify an insurer's responsibilities for reviewing and auditing third-party administrators (TPAs). Specifically, if a TPA manages benefits for more than 100 certificate holders, injured employees, plan participants, or policyholders on behalf of an insurer, the insurer must now conduct a review of the administrator's operations at least twice a year (semiannually) and perform a comprehensive audit at least every two years (biennially). The bill removes the specific term "on-site" from the audit description, potentially allowing for more flexible audit methods. The changes aim to enhance oversight of third-party administrators by insurers, ensuring proper management and compliance of benefit administration. The bill is set to take effect on September 1, 2025, giving insurers and administrators time to prepare for the updated requirements.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Laid on the table subject to call (on 05/01/2025)
bill text
bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3508 |
| BillText | https://capitol.texas.gov/tlodocs/89R/billtext/html/HB03508H.htm |
| Analysis (House Committee Report) | https://capitol.texas.gov/tlodocs/89R/analysis/html/HB03508H.htm |
| Fiscal Note (Introduced) | https://capitol.texas.gov/tlodocs/89R/fiscalnotes/html/HB03508I.htm |
| BillText | https://capitol.texas.gov/tlodocs/89R/billtext/html/HB03508I.htm |
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