SB 1014 clarifies that health insurance plans in Texas may enter into value-based and capitated payment arrangements with primary care physicians and physician groups. These alternative payment models compensate doctors based on patient outcomes rather than traditional fee-for-service structures. The bill prohibits insurers from penalizing or excluding providers who choose not to participate in value-based contracts. It also requires that these contracts be transparent, allowing physicians access to financial and performance data, and prohibits payment structures that create disincentives for medically necessary care​.