Texas House passes bill by Rep. Hull to expedite credentialing for health care providers at FQHCs

Passed bill authored by State Rep. Lacey Hull aims to streamline credentialing for licensed providers at federally qualified health centers, ensuring quicker network access and provisional benefits while protecting enrollees from extra charges, according to the Texas Legislature website.

In the House, 59 Democrats and 80 Republicans voted in favor of the bill, while one Republican opposed it.

Meanwhile, in the Senate, 11 Democrats and 20 Republicans voted in favor, with no opposing votes.

Lacey Hull introduced the bill in the Texas House on Friday, Feb. 21, during the 89th regular legislative session.

Hull graduated from the University of Houston with a BS.

Hull, a Republican, was elected to the Texas State House in 2021 to represent the state’s 138th House district, replacing previous state representative Dwayne Bohac.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to expedited credentialing of certain federally qualified health center providers by Medicaid managed care organizations’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill establishes an expedited credentialing process for certain health care providers at federally qualified health centers (FQHCs) by managed care plan issuers and Medicaid managed care organizations, effective Sept. 1, 2025. It outlines eligibility requirements, including the necessity for providers to be licensed, in good standing, and part of a contracted FQHC with managed care plans. The bill mandates that credentialing decisions be made within 10 business days after an application is complete, and pending credentialing, the provider will receive provisional network benefits and payments. If credentialing fails, managed care plans can recover overpayments, but enrollees will not bear extra charges. The plan issuer’s liability for damages related to provisional payment is limited. If federal waivers are needed, implementation can be delayed until granted.

The bill was co-authored by Rep. Penny Morales Shaw (Democrat – District 148) and Rep. Richard Raymond (Democrat – District 42).

The bill received its final legislative approval on Monday, May 26, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.