S.B. No. 963 amends Section 540.0055 of the Government Code to allow Medicaid managed care organizations to engage in marketing activities related to the availability of certain private health benefit plans. The bill introduces new guidelines that prohibit the commission from restricting these organizations from informing individuals, including current or former recipients, about qualified health plans available through an exchange, as well as advertising Medicare Advantage plans at community events. Additionally, the bill mandates that if a Medicaid managed care organization informs an individual about qualified health plans, it must also disclose potential deductibles, copayments, and other cost-sharing requirements associated with those plans.

Furthermore, the bill stipulates that organizations cannot offer material or financial incentives to individuals as an encouragement to enroll in a qualified health plan. The implementation of any provision of this Act may be delayed if a state agency determines that a federal waiver or authorization is necessary. The Act is set to take effect on September 1, 2025.