According to the Legislative Budget Board (LBB), HB 3747 is not expected to have any fiscal impact on the State of Texas. The bill’s provisions, which prevent the Health and Human Services Commission (HHSC) from restricting Medicaid managed care organizations (MCOs) from marketing or informing individuals about private health coverage options, are characterized as regulatory clarifications rather than mandates involving new spending or administrative costs.

The analysis indicates that allowing MCOs to share information about qualified health plans or Medicare Advantage products does not require additional state resources for implementation, oversight, or enforcement. Since MCOs are already active contractors within the Medicaid system, enabling them to expand their marketing activities under state-approved guidelines is viewed as a policy change with no associated budgetary burden.

Similarly, the bill is expected to have no fiscal impact on local governments. Local entities do not bear responsibility for Medicaid marketing regulations and are not anticipated to incur any new administrative duties or financial obligations as a result of the bill’s implementation. Overall, HB 3747 is considered fiscally neutral, posing no cost to either state or local taxpayers.

Texas Policy Research recommends that lawmakers vote YES on HB 3747 based on its alignment with key liberty principles and its practical benefits for improving access to private health coverage in Texas. The bill addresses regulatory restrictions that currently prevent Medicaid managed care organizations (MCOs) from informing individuals, especially those transitioning out of Medicaid, about alternative health insurance options available on the federal exchange or through Medicare Advantage plans. By removing these communication barriers, SB 963 empowers MCOs to better support continuity of care and prevent lapses in coverage.

Importantly, a concern some may raise is whether the bill could inadvertently expand participation in government welfare programs. However, SB 963 does not expand Medicaid eligibility or enrollment in any welfare-based program. On the contrary, it facilitates the shift of individuals off of Medicaid and into private health plans, many of which are partially subsidized through income-based tax credits rather than fully government-funded mechanisms. This helps reduce long-term reliance on public assistance and promotes individual responsibility in health coverage choices.

Additionally, the fiscal note confirms that HB 3747 poses no financial impact to state or local governments, reinforcing that it is a deregulatory measure rather than a funding expansion. The bill also refrains from granting new rulemaking authority, underscoring its limited scope and administrative simplicity. Overall, HB 3747 promotes a more informed, market-driven approach to healthcare access.

• Individual Liberty: The bill enhances individual liberty by empowering people with greater access to information about their health coverage options. It ensures that Medicaid managed care organizations (MCOs) can inform individuals, including former recipients, about private insurance alternatives, such as plans available on Healthcare.gov or Medicare Advantage. This increases the individual’s ability to make informed, independent decisions about their healthcare, free from unnecessary government-imposed communication restrictions.
• Personal Responsibility: The bill encourages personal responsibility by equipping individuals, especially those no longer eligible for Medicaid, with the tools and knowledge to secure their own health insurance through private channels. By promoting transitions from public programs to individual marketplace plans, the bill supports the notion that individuals are ultimately responsible for managing their healthcare and well-being rather than depending solely on government assistance.
• Free Enterprise: The bill reinforces the principle of free enterprise by leveling the playing field for private health plans and insurers. It allows private entities like MCOs to actively market qualified health plans and Medicare Advantage options, thereby fostering competition in the healthcare marketplace. This deregulation enables private insurers to reach potential customers more effectively and promotes consumer-driven health coverage.
• Private Property Rights: The bill does not involve land or physical property rights, so this principle is not meaningfully affected. However, by supporting free enterprise and reducing barriers to private sector communication, it indirectly upholds the integrity of market-based ownership and transactions.
• Limited Government: The bill limits government overreach by preventing the Health and Human Services Commission (HHSC) from imposing restrictive marketing guidelines on MCOs. It reduces bureaucratic interference in how private companies communicate with consumers, aligning with the principle that the government should not hinder voluntary, lawful economic activity.

• SB 963 (Same As)