TX SB701

Allows out-of-network healthcare facilities to request arbitration if the opposing party (health benefit plan issuer or administrator) participates in bad faith during billing dispute mediation

Defines bad faith participation in mediation as failing to provide material facts necessary for meaningful mediation or failing to send a representative authorized to negotiate

Requires the department to select an arbitrator who must make a determination within 30 days of receiving necessary information when arbitration is requested due to bad faith

Mandates health benefit plan issuers or administrators pay any additional amount owed to out-of-network facilities within 30 days after receiving the arbitrator's written decision

Applies only to claims for healthcare services or supplies provided on or after January 1, 2026, with an effective date of September 1, 2025