TX HB3538

Creates the Managed Care Consumer Choice Program allowing the Health and Human Services Commission to contract with any managed care organization that meets certification, financial solvency, and performance requirements, replacing the competitive procurement process

Applies to STAR, CHIP, STAR Kids, and STAR+PLUS Medicaid programs but excludes the STAR Health program; recipients may select any qualified managed care plan in their service delivery area

Requires the commission to establish quality and performance measures evaluating cost efficiency, quality of care, member and provider satisfaction, and provider network quality, with annual evaluations published on the commission website

Extends existing managed care contracts in effect as of January 1, 2025, and cancels pending procurements; new contracts under this program must begin services by September 1, 2027 for STAR and CHIP, and September 1, 2030 for STAR Kids and STAR+PLUS

Authorizes enforcement remedies including corrective action plans, damages recovery, suspension of automatic enrollment, and contract termination for managed care organizations that fail to meet performance requirements