Relating to mediation or arbitration of certain billing disputes between health benefit plan issuers or administrators and out-of-network facilities.

SB 701 creates a process for resolving billing disputes between health insurers (issuers/administrators) and out-of-network healthcare facilities. It requires insurers to participate in good-faith mediation, and if they fail to provide necessary facts or send an authorized representative, the facility can request binding arbitration. The Texas Department of Insurance must appoint an arbitrator who must issue a decision within 30 days, and insurers must pay the facility within 30 days of the decision. This applies only to claims for care provided on or after January 1, 2026, and takes effect September 1, 2025. The bill directly affects insurers and out-of-network facilities by establishing a faster, more structured dispute resolution path.