SB 2388 restructures managed care contracts for Medicaid and the Children’s Health Insurance Program (CHIP) in Texas. It creates a client choice program that ensures Medicaid recipients and CHIP enrollees have multiple managed care plans to choose from in all health service regions. The bill requires annual procurement of managed care contracts, sets performance and quality benchmarks for providers, and mandates automatic enrollment in a chosen plan for eligible applicants. The Health and Human Services Commission (HHSC) must post performance reviews online, and underperforming providers may face contract termination.