89th Legislature Regular Session

HB 2587

Overall Vote Recommendation
Yes
Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
HB 2587 seeks to establish a formal mechanism for the State of Texas to assess the financial burden on hospitals that provide uncompensated care to individuals who are not lawfully present in the United States. The bill amends Subchapter G, Chapter 525 of the Government Code to add Section 525.0304, which requires the Health and Human Services Commission (HHSC) to collect and report data annually on the costs incurred by hospitals that provide health services to this population without receiving full payment.

Under the bill, qualifying hospitals—those licensed under Chapter 241 of the Health and Safety Code and enrolled as Medicaid or CHIP providers—must modify their patient intake forms to include a question regarding the patient's citizenship or immigration status. The form must also include a disclaimer stating that a patient's answer will not affect their eligibility for care, consistent with federal law. Hospitals are then required to submit quarterly reports to HHSC detailing both the number of emergency room visits and inpatient discharges for non-lawfully present patients, and the corresponding financial impact on the hospital.

The HHSC is tasked with compiling this information and delivering a written report to the Governor and the Legislature each year, beginning December 1, 2026. Importantly, the bill stipulates that no personal identifying information may be included in these reports. The overall aim is to create data transparency around the cost of undocumented healthcare access, presumably to inform future policy discussions or legislative action.

The originally filed version of HB 2587 and its Committee Substitute both aim to create an annual reporting requirement for the financial impact of uncompensated care provided by hospitals to individuals not lawfully present in the United States. However, several key differences distinguish the two versions in scope, implementation timeline, and reporting specifics.

One significant change is in the language and framing of the data collected. The original bill required hospitals to report broadly on the "cost" and "impact" of uncompensated care for non-lawfully present individuals. It emphasized overall cost analysis and the resulting effects on hospital operations. The Committee Substitute refines this focus, narrowing the required reporting to more granular data: the number of emergency room visits and inpatient discharges specifically attributable to these individuals, along with the associated financial impact. This adjustment shifts the bill’s emphasis from general cost impact to measurable service-specific encounters.

Additionally, the timeline for the initial report submission was extended in the committee substitute. While the original version required the Health and Human Services Commission (HHSC) to deliver the first report by November 1, 2027, the substitute bill moves that date up to December 1, 2026, accelerating implementation by a full year. This reflects a legislative intent to begin analysis and oversight sooner than initially proposed.

Finally, terminology updates and clarity improvements were introduced in the substitute version. For example, the definition of "financial impact" was added to clarify the term's meaning, whereas the original used broader phrasing. Likewise, the Committee Substitute adds more precise rulemaking language and emphasizes compliance with federal law regarding nondiscrimination in care based on immigration status.

Overall, while both versions pursue the same policy goal, the Committee Substitute offers more specificity, an accelerated timeline, and clarified implementation parameters. These revisions likely aim to enhance legal precision, administrative feasibility, and policy transparency.
Author
Mike Olcott
J. M. Lozano
Tom Oliverson
Co-Author
Daniel Alders
Cecil Bell, Jr.
Bradley Buckley
Ben Bumgarner
Briscoe Cain
Giovanni Capriglione
David Cook
Charles Cunningham
Mark Dorazio
James Frank
Gary Gates
Stan Gerdes
Caroline Harris Davila
Richard Hayes
Janis Holt
Andy Hopper
Carrie Isaac
Helen Kerwin
Jeff Leach
Mitch Little
Janie Lopez
A.J. Louderback
David Lowe
Shelley Luther
Don McLaughlin
William Metcalf
Brent Money
Matt Morgan
Angelia Orr
Dennis Paul
Katrina Pierson
Keresa Richardson
Nate Schatzline
Alan Schoolcraft
Matthew Shaheen
Joanne Shofner
Shelby Slawson
Valoree Swanson
Tony Tinderholt
Steve Toth
Ellen Troxclair
Cody Vasut
Wesley Virdell
Trey Wharton
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 2587 is not expected to have a significant fiscal impact on the State of Texas. The bill requires the Health and Human Services Commission (HHSC) to produce an annual report detailing the financial impact on hospitals of providing uncompensated care to individuals not lawfully present in the United States. Although this task introduces new data collection and reporting obligations, it is assumed that the associated administrative responsibilities and operational costs can be absorbed within HHSC's existing budget and staffing resources.

Similarly, no substantial fiscal impact is anticipated for local units of government. Hospitals—while required to gather and submit additional data—are not government-owned entities in most cases and are typically accustomed to complex reporting structures as part of their regulatory compliance. As a result, while the bill imposes new reporting duties on hospitals, it is not expected to trigger additional costs for county or municipal governments.

Overall, the legislation is designed to increase transparency and data availability on a specific healthcare cost issue without requiring new funding appropriations or structural program changes at the state or local government levels. This cost-neutral implementation approach is one reason the bill may appeal to lawmakers focused on fiscal restraint.

Vote Recommendation Notes

HB 2587 advances the principle of fiscal accountability by equipping state policymakers with concrete data to evaluate the financial strain on hospitals serving undocumented individuals. This aligns with the principle of limited government by enabling targeted policy decisions based on empirical evidence, rather than anecdote or assumption. The bill does not create new entitlements or criminal offenses and is expected to have no significant fiscal impact on the state or local governments.

The legislation also respects personal responsibility, as it addresses the downstream effects of federal immigration and healthcare policy gaps at the state level. By shining a light on the costs absorbed by hospitals, the state can better consider whether relief, support, or policy reform is appropriate, without presuming a punitive posture toward patients or providers. The inclusion of a disclaimer on the intake form reassures that individual liberty is preserved, ensuring that care is not denied based on immigration status in compliance with federal law.

While some concerns around privacy and access are valid, the bill’s safeguards, such as prohibiting the inclusion of personal identifying information in reports, help mitigate those risks. Moreover, the bill's structure reflects a responsible use of existing administrative channels to gather critical data without adding regulatory weight or unfunded mandates.

HB 2587 offers a prudent, policy-driven response to a legitimate concern: the unknown financial burden borne by hospitals for treating undocumented patients. It provides a framework for informed legislative action, upholds care access standards, and protects taxpayer interests. For these reasons, Texas Policy Research recommends that lawmakers vote YES on HB 2587.

  • Individual Liberty: While the bill stipulates that immigration status cannot affect the provision of care, requiring patients to disclose this information at intake may discourage undocumented individuals from seeking critical health services. Even with assurances of confidentiality, fear or mistrust of government involvement may have a chilling effect, particularly among vulnerable populations. This could be perceived as an indirect limitation on the individual's ability to access emergency or lifesaving medical care—a concern rooted in preserving personal autonomy and dignity. However, it is important to note that the bill does not authorize enforcement or penalties based on the response, and it explicitly forbids the use of personal identifiers in submitted data. These provisions help mitigate the liberty risks while balancing the state’s interest in data transparency.
  • Personal Responsibility: The bill promotes accountability at the institutional and systemic level. It seeks to quantify the costs associated with providing uncompensated care to non-lawfully present individuals, highlighting the fiscal consequences of current federal and state healthcare policies. By surfacing this data, the legislature can more responsibly evaluate how resources are allocated and whether reforms are needed. This aligns with the principle that individuals and institutions should understand and bear the consequences of decisions made at the policy level.
  • Free Enterprise: Private hospitals enrolled in Medicaid or CHIP would bear additional administrative burdens under the bill. Collecting immigration data and submitting quarterly reports, though not inherently complex, adds compliance costs that may be particularly burdensome for smaller or rural facilities. These requirements, though modest, introduce another layer of state involvement in private-sector operations, slightly impinging on the freedom of enterprise.
  • Private Property Rights: Hospitals, while privately operated in most cases, are acting under state licensing and receive public funds through Medicaid and CHIP. Requiring data collection and reporting as a condition of participation in public programs is within the state’s authority. However, the imposition of these duties without additional compensation may be seen as a slight intrusion into how these entities manage their internal operations and patient relations.
  • Limited Government: On one hand, the bill exemplifies prudent, data-driven governance. It does not expand state entitlements, authorize new enforcement powers, or increase spending. Instead, it mandates a reporting framework that equips lawmakers with the information needed to make more informed, limited-government decisions regarding healthcare policy and immigration impact. On the other hand, it expands the regulatory footprint of the state into a sensitive area of healthcare practice. The requirement for all qualifying hospitals to standardize intake questions about immigration status could be viewed as an expansion of government authority into healthcare privacy.
View Bill Text and Status