TX SB1753

Requires Medicaid managed care organization contracts to permit offering medically appropriate, cost-effective, evidence-based mental health, substance use, or food and nutrition assistance services as alternatives to standard state Medicaid plan services

Services must be approved by the state Medicaid managed care advisory committee and included in the contract before being offered to enrolled recipients

Recipients retain the choice to use standard state Medicaid plan services and are not required to accept alternative services from the approved list

Health and Human Services Commission must submit annual reports to the legislature on utilization of these alternative services and consider actual costs when setting capitation rates for managed care organizations

Takes effect September 1, 2025, applying to contracts entered into or renewed on or after that date, with implementation potentially delayed pending any required federal waivers or authorizations