| 2025 Texas Legislative Wrap-up |
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Pharmacy Scores Major Win on Priority PBM Reform Legislation
JUMP TO: Session in Brief | Notable Bills Passed Affecting Pharmacy | Pharmacy Losses | Pharmacy Defensive Victories | 2025 Bill Tracker
The 2025 Texas legislative session was a major success for Texas pharmacists, as the Texas Pharmacy Association worked closely with all pharmacy advocates to pass priority pharmacy benefit manager (PBM) reform legislation with overwhelming support from legislators. Senate Bill 1236 by Sen. Bryan Hughes (R–Tyler) was the result of numerous meetings seeking the input of TPA members throughout the interim and is among the most significant PBM reform bills ever passed in our state, building upon House Bill 1919 and House Bill 1763 from the 87th Legislature in 2021. Every legislative session presents unique challenges, and the 89th Legislature was no exception. In particular, new leadership and considerable turnover in the House resulted in new committee chairs in key health care committees including House Insurance, House Public Health, and House Human Services. In the Senate, turnover was relatively minor, but the broad jurisdiction of the Senate Health and Human Services Committee meant virtually every bill affecting pharmacy went to the same committee for review, which often creates challenges due to the sheer volume of bills introduced. While there were some disappointments detailed below, pharmacy worked as a united team to score major accomplishments for pharmacists in Texas. Thank you to the many TPA members who took time away from work and family to travel to Austin and visit with legislators about issues affecting pharmacy. Additionally, TPA thanks our legislative allies who fought for community pharmacy and championed our issues this session.
The Session in Brief
The election of Burrows meant the House would have its fourth Speaker in the last five legislative sessions—unusual turnover considering the previous 24 years saw just three different leaders in the lower chamber. Combined with a large number of freshmen legislators, particularly among Republicans, there was considerable uncertainty about how the session would shape up, particularly given the delicate balancing act Burrows would be required to play to increase cohesion in the House given his relatively narrow margin of election. In total, legislators filed a record 9,014 bills in total and passed 1,210. However, 904 of those were bills that only affected local political jurisdictions or that were completely uncontested. That means just 306 bills, or 3.3% of those filed, made it to the desk of Governor Abbott after full floor consideration in both chambers, underscoring how challenging it can be to pass a bill in Texas.
Notable Bills Passed Affecting PharmacyPharmacy scored a key win this session with its advocacy for legislation protecting patients and pharmacies from PBM abuses. TPA supported and worked on several other bills affecting pharmacy, as well, and tracked more than 150 bills that would have had a direct impact on pharmacies. A small percentage ultimately made it through the process to become law.
Comprehensive PBM Reform—TPA PRIORITYSenate Bill 1236 (Sen. Hughes/Rep. Hefner)SB 1236 by Sen. Hughes and Rep. Hefner builds upon the considerable PBM reform laws passed in 2021 by strengthening certain provisions, increasing contract protections, and ensuring compliance with existing PBM law. The legislation:
The legislation was signed into law by Governor Abbott on May 27, 2025. What does this mean for pharmacists?Senate Bill 1236 was the priority PBM legislation developed by TPA’s elected leadership with input from members. The bill will prohibit abusive audit practices by limiting the amount of recoupment if the correct patient gets the correct medication. The law will also provide considerable contract transparency and protections, such an outright prohibition on PBMs changing key terms such as reimbursement rates during the term of a contract. Additionally, by requiring all health benefit cards to include a unique group number if the plan is subject to Texas Department of Insurance oversight, pharmacists, patients, and regulators at TDI can easily ascertain whether Texas PBM laws apply to a particular patient. This will solve the challenge pharmacists have faced in filing valid complaints to TDI for violations of the significant laws regulating PBM steering and self-dealing that passed in 2021. Effective Date: Most provisions are effective for health benefit plans entered into or renewed on or after January 1, 2026.
Tangible Personal Business Property ExemptionHouse Bill 9 (Rep. Meyer/Sen. Bettencourt)TPA supported and testified in favor of legislation related to reducing the personal property tax paid by pharmacies on items such as perishable inventory. That proposal was ultimately rolled into HB 9 by Rep. Morgan Meyer (R-Highland Park) and Sen. Paul Bettencourt (R-Houston) and is awaiting the signature of Gov. Abbott. The bill increases the exemption for business personal property tax from $2,500 to $125,000 for items subject to the tax, including inventory, business equipment, and furniture. The legislation was signed into law by Governor Abbott on June 12, 2025. What does this mean for pharmacists?This will likely result in a personal property tax cut of around $3,000 annually for many pharmacies. Effective Date: January 1, 2026, but only if HJR 1 is approved by voters.
Prohibiting PBM Gag Clause ProvisionsSenate Bill 493 (Sen. Kolkhorst/Rep. Wharton)SB 493 by Sen. Lois Kolkhorst (R-Brenham) and Rep. Trey Wharton (R-Huntsville) prohibits PBMs from including gag clauses in contracts with pharmacies that would prohibit a pharmacist from informing an enrollee of any difference between the patient’s out-pocket-cost for a prescription drug using the PBM benefit and the out-of-pocket price when paying cash. TPA supported and testified in favor of this legislation. TPA also worked with the authors to strengthen the legislation by including language barring PBMs from prohibiting communications between pharmacies and plan sponsors or administrators regarding claims data or direct partnership opportunities. The legislation was signed into law by Governor Abbott on June 20, 2025. What does this mean for pharmacists?With the passage of Senate Bill 493, any provision in a PBM contract that attempts to limit or prohibit your communications with patients regarding the lowest out-of-pocket price for prescription medication are null and void. Any pharmacist who sees such a provision or receives any type of communication from a PBM that attempts to limit patient access to price information is encouraged to consider filing a complaint with the Texas Department of Insurance. Effective Date: September 1, 2025.
Prohibiting PBMs from Storing Patient Data Outside of the United StatesHouse Bill 3233 (Rep. Harris/Sen. Kolkhorst)HB 3233 by Rep. Cody Harris (R-Palestine) and Sen. Lois Kolkhorst prohibits PBMs from storing or processing patient data for a Texas resident in a location outside of the United States or its territories. TPA supported this bill. The PBM lobby fought to limit the impact of the bill in the House by changing the bill to only prohibit storing patient data in countries designated as state sponsors of terrorism, but Sen. Kolkhorst successfully fought to change the bill back to its original strong language before it was sent to Gov. Abbott. The legislation was signed into law by Governor Abbott on June 20, 2025. What does this mean for pharmacists?The bill could help improve security of sensitive patient data and also close loopholes that allow PBMs to process payments in other countries to avoid disclosure and transparency requirements for items like rebate payments from drug manufacturers. Effective Date: September 1, 2025.
Continuing the Texas Pharmaceutical InitiativeHB 4638 by Rep. Greg Bonnen (R-Houston) and Sen. Lois Kolkhorst will authorize the Texas Pharmaceutical Initiative to continue in existence until at least 2027, when it will be again considered for continuation by a subsequent legislature. TPA supported this legislation. The initiative was initially created by legislation in the 2023 legislative session to provide cost-effective access to prescription drugs and other medical supplies to individuals receiving health benefits paid for by the state through higher education institutions, the Employee Retirement System of Texas, Teacher Retirement System, correctional institutions, and individuals served by the Health and Human Services system such as Medicaid. The legislation was signed into law by Governor Abbott on June 20, 2025. What does this mean for pharmacists?TPA will continue to work closely with the entity as it looks for ways to lower prescription drug costs for state employees and beneficiaries. Effective Date: September 1, 2025.
Establishing the Health Impact, Cost, and Coverage Analysis ProgramHouse Bill 138 (Rep. Dean)HB 138 by Rep. Jay Dean (R-Longview) establishes a review program that seeks to estimate the impact of legislation aimed at changing health coverage mandates, including the impact on premium costs and health care. TPA and most other provider groups had concerns that the bill as filed relied too heavily on health insurer data and did not contain protections to ensure that all data and appropriate factors were considered. The bill author made considerable changes that improve the bill before it was finally passed. What does this mean for pharmacists?TPA will work closely to ensure that the program is developed in a way that fairly and accurately looks at future legislation. Effective Date: June 20, 2025.
Pharmacy LossesMost of TPA’s priority bills received committee hearings this session, allowing us to testify in support of legislation that we believe would greatly benefit pharmacists and their patients. However, some bills were not granted a hearing in one or both chambers and thus failed to pass the Legislature.
Extending Pharmacist Immunization Authority—TPA PRIORITYHouse Bill 3540 (Rep. Harless) / Senate Bill 254 (Sen. Flores)HB 3540 by Rep. Sam Harless (R-Houston) and Senate Bill 254 by Sen. Pete Flores (R-Pleasanton) would have extended much of the authority granted to pharmacists and pharmacy technicians under the federal Public Readiness and Emergency Preparedness (PREP) Act. House Bill 3540 passed the Texas House of Representatives with a super-majority vote thanks the tremendous work of Rep. Harless to help negotiate a compromise that brought the Texas Medical Association and the Texas Pediatric Society on board in support of the bill. The compromise would have allowed pharmacists to order and administer recommended childhood vaccines to individuals years and older (3 years and older for influenza) and allowed pharmacists to delegate vaccine administration to a certified pharmacy technician. Unfortunately, neither bill was granted a hearing in the Senate, which is likely due to some combination of unrelated political complications and stronger influence by anti-vaccine advocacy groups that opposed the bill once again this session.
Medicaid Prescription Drug Reimbursement Transparency—TPA PRIORITYHouse Bill 4533 (Rep. Oliverson)HB 4533 by Rep. Tom Oliverson would have required Medicaid PBMs to reimburse pharmacies using a transparent acquisition cost benchmark such as NADAC plus a professional dispensing fee as would be paid for a fee-for-service Medicaid claim. The bill did not receive a hearing in the House Human Services Committee, but we are optimistic that either federal legislation or an interim study in the Texas Legislature can bring increased attention to this priority issue.
Commercial Reimbursement Floor for Commercial Prescription Drug ClaimsHouse Bill 2978 (Rep. Harris) / Senate Bill 1354 (Sen. Hughes)HB 2978 by Rep. Cody Harris and Senate Bill 1354 by Sen. Bryan Hughes would have required commercial PBMs to reimburse pharmacies at least the Medicaid fee-for-service amount as a floor for commercial prescription drug claims. Despite having powerful and influential committee chairmen as bill authors in both chambers, neither bill received a hearing in the House or Senate due to strong opposition from business groups.
Insulin PackagingHouse Bill 632 (Rep. Bucy)HB 632 by Rep. John Bucy would have allowed pharmacists to dispense more than a 30-day emergency supply of insulin if that is smallest available package size. TPA testified in support of the legislation. It passed the House, was reported favorably from the Senate Health and Human Services Committee, and was placed on the Senate intent calendar, but time ran out at the end of the session before the full Senate could vote on the bill.
Pharmacy Defensive VictoriesTPA closely monitored proposed legislation that would have a negative impact on pharmacists or pharmacies and their patients. Pharmacy worked to educate legislators and successfully defeated a number of provisions that could have hurt the profession.
Mandate-Free Health Insurance ProductsHouse Bill 3540 (Rep. Harless) / Senate Bill 254 (Sen. Flores)HB 139 by Rep. Jay Dean would have authorized a new type of health insurance product that is exempt from almost all Texas laws regulating health insurers and PBMs, including those intended to protect patients and providers. TPA opposed the bill, as did most other health care provider groups, as it would essentially exempt health insurers and PBMs from complying with reform bills passed in recent years. The bill was authored by the chairman of the House Insurance Committee, so while it ran out of time for debate on the House floor, it will undoubtedly return in some form next session.
Labeling Requirements for Compounded MedicationsHouse Bill 3785 (Rep. Gervin-Hawkins)HB 3785 by Rep. Barbara Gervin-Hawkins (D-San Antonio) would have established a number of onerous and impractical labeling requirements for compounded medications, including side effects. TPA testified in opposition to the legislation, offering constructive feedback to improve the bill. The bill failed to receive enough votes to advance from the House Public Health Committee.
Physician DispensingHouse Bill 4051 (Rep. Frank)HB 4051 by Rep. James Frank (R-Wichita Falls) is one of several bills introduced that would have allowed some form of physician dispensing, either as part of a larger bill encompassing other scope of practices changes, such as allowing pharmacists to test and treat for certain conditions, or limited bills aimed at specialty providers like ophthalmology. However, none of the bills received a hearing in the Senate, where there has been historical opposition to scope of practice changes.
Telepharmacy ExpansionHouse Bill 1027 (Rep. Shaheen)HB 1027 by Rep. Matt Shaheen (R-Plano) would have removed the current mileage restrictions on where telepharmacies may be located. The legislation passed the House but did not receive a hearing in the Senate.
2025 Bill TrackerTrack the progress of pharmacy priority bills from the 89th Texas Legislature (2025) with TPA's Bill Tracker.
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PharmPAC is the political action committee of the Texas Pharmacy Association, 3200 Steck Ave. #370, Austin, TX 78757. Call (512) 836-8350 for information. According to Texas Government Code 305.027, this material may be considered “legislative advertising.” Authorization for its publication is made by RoxAnn Dominguez, Chief Executive Officer, Texas Pharmacy Association. |
Heading into the 2025 legislative session, there was great uncertainty about internal political dynamics within the Texas House of Representatives.
Previous Speaker Dade Phelan (R-Beaumont) faced a serious challenge in his primary election, and narrowly escaped with a runoff victory against an opponent endorsed by President Trump. Phelan also faced considerable opposition in his campaign for
re-election as Speaker and eventually bowed out of the race. This ultimately resulted in the selection of Rep. Dustin Burrows (R-Lubbock) on the first day of the legislative session, albeit with controversy, as he was supported by almost all Democrats
but did not receive the official endorsement of the House Republican Caucus.
