Allowing Medicaid managed care organizations to engage in marketing about the availability of certain private health benefit plan coverage

Texas House Bill 3747 (HB3747) aimed to allow Medicaid managed care organizations (MCOs) to inform individuals about private health insurance options. Specifically, the bill proposed that MCOs could: 1) inform individuals, including current or former Medicaid recipients, about qualified health plans available through health insurance exchanges; and 2) advertise Medicare Advantage plans at community enrollment or other events. The bill was introduced on March 4, 2025, by Representative Christian Manuel and was laid on the table subject to call on April 28, 2025. A companion bill, Senate Bill 963, was considered in its place and became effective on September 1, 2025.

Supporters of HB3747 argued that allowing Medicaid MCOs to inform individuals about private health insurance options would enhance healthcare access and continuity. By enabling MCOs to market qualified health plans and Medicare Advantage plans, the bill aimed to provide Medicaid recipients with more information about available coverage options, potentially leading to better health outcomes and increased enrollment in suitable health plans.

Critics of HB3747 expressed concerns that permitting Medicaid MCOs to market private health plans could lead to conflicts of interest and potential exploitation of vulnerable populations. They argued that MCOs might prioritize promoting plans that are more profitable for them, rather than those that best meet the needs of individuals. Additionally, there were worries about the adequacy of oversight and the potential for misleading marketing practices.