Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
HB 1942 aims to enhance the inclusion of Advanced Practice Registered Nurses (APRNs) as healthcare providers within Health Maintenance Organizations (HMOs) and Preferred Provider Benefit Plans (PPBPs). The bill allows HMOs to contract directly with APRNs to deliver healthcare services, even if the supervising physician is not affiliated with the HMO. This provision ensures that APRNs can independently enter agreements with HMOs, thereby expanding the range of available healthcare providers.
Similarly, the bill authorizes insurers offering Preferred Provider Benefit Plans to designate APRNs as preferred providers, regardless of whether the supervising physician is also a preferred provider. This flexibility facilitates greater access to healthcare services by allowing APRNs to participate directly in insurance networks. However, the bill explicitly states that these provisions do not grant HMOs or insurers the authority to supervise or control the practice of medicine, maintaining compliance with the Occupations Code that restricts non-physicians from overseeing medical practices.
The bill’s intent is to increase healthcare accessibility by allowing more direct participation of APRNs within insurance networks. By removing barriers related to physician affiliation, it broadens patient choice and promotes efficient healthcare delivery. The effective date of the bill is September 1, 2025.
The original version of House Bill 1942 and the Committee Substitute both aim to expand the ability of Advanced Practice Registered Nurses (APRNs) to participate as providers within Health Maintenance Organizations (HMOs) and Preferred Provider Benefit Plans (PPBPs). Both versions allow direct contracting between HMOs and APRNs, regardless of whether the supervising physician is affiliated with the HMO. Similarly, both versions permit insurers offering PPBPs to designate APRNs as preferred providers without requiring the supervising physician to also be a preferred provider.
The primary difference between the original bill and the Committee Substitute lies in the language precision and clarification. The original bill clearly establishes the rights of APRNs to contract directly with HMOs and to be designated as preferred providers, while also emphasizing that this does not grant authority for HMOs or insurers to supervise or control the practice of medicine. The Committee Substitute, however, slightly refines this language to enhance legal clarity and better align with existing regulations. These refinements do not alter the core intent of the bill but make the provisions more explicit and enforceable.
Additionally, the Committee Substitute may address stakeholder concerns or feedback gathered during the legislative process by emphasizing the independence of APRN practice within the scope of their agreements with HMOs and insurers. While the original bill was relatively clear in its intent, the substitute improves upon the structure and language to ensure that the separation of medical practice and insurance oversight is distinctly maintained. In summary, the Committee Substitute makes the bill more precise and implementable while retaining its original purpose of enhancing APRN participation in healthcare networks. Texas Policy Research recommends that lawmakers vote YES on HB 1942.
- Individual Liberty: HB 1942 strongly supports individual liberty by expanding the ability of Advanced Practice Registered Nurses (APRNs) to practice independently within Health Maintenance Organizations (HMOs) and Preferred Provider Benefit Plans (PPBPs). By allowing APRNs to contract directly with HMOs and be designated as preferred providers regardless of their supervising physician’s affiliation, the bill removes restrictive barriers that previously limited APRNs' participation in healthcare networks. This change enables APRNs to exercise their professional autonomy while giving patients greater freedom of choice when selecting healthcare providers. In essence, it upholds the principle that individuals and healthcare professionals should have the liberty to form direct contractual relationships without unnecessary regulatory obstacles.
- Personal Responsibility: The bill supports personal responsibility by acknowledging the competency and qualifications of APRNs as healthcare providers. By permitting them to contract directly with insurance networks, HB 1942 treats APRNs as capable and accountable professionals, rather than subordinating their roles to supervising physicians. This policy shift reflects the recognition that APRNs are licensed and trained to deliver healthcare independently, thereby promoting a system where professionals are held responsible for their own practice rather than being tethered to another provider’s network status.
- Free Enterprise: HB 1942 significantly enhances free enterprise by reducing regulatory restrictions that previously hindered APRNs from independently entering healthcare networks. This reform fosters competition among healthcare providers, leading to more options for patients and increased efficiency within insurance plans. By enabling APRNs to directly contract with HMOs and be designated as preferred providers, the bill encourages a more dynamic and competitive healthcare market. This not only benefits APRNs as they can expand their practices but also empowers insurers to diversify their networks, ultimately driving innovation and consumer choice in healthcare delivery.
- Private Property Rights: The bill has a neutral impact on private property rights. It does not alter ownership or control over physical or intellectual property. Instead, it primarily affects contractual relationships between healthcare providers and insurance networks. While indirectly influencing the business operations of HMOs and insurers by broadening the pool of eligible providers, it does so without infringing on the rights of private entities to structure their networks as they see fit.
- Limited Government: HB 1942 exemplifies limited government by reducing bureaucratic barriers and not expanding regulatory control over healthcare providers. Instead of imposing new mandates or regulations, the bill simply removes an outdated restriction that linked an APRN’s ability to join a network to their supervising physician’s participation. By doing so, it decreases government interference in how healthcare providers and insurance companies manage their professional affiliations and contracts. Additionally, it aligns with the goal of minimizing government involvement in professional practice while maintaining safety and quality standards as prescribed by existing licensing laws.
Author
John Smithee
Co-Author
Briscoe Cain
Penny Morales Shaw
Contact the Author
Rep. John Smithee
Capitol Phone:
(512) 463-0702
Capitol Office:
CAP 1W.10
E-Mail:
