The bill, H.B. No. 2865, introduces a new section, 532.0456, to the Government Code, which prohibits the use of ex parte renewals for Medicaid eligibility. An ex parte renewal is defined as an automatic redetermination of a recipient's Medicaid eligibility that does not require information from the recipient but relies on verifiable electronic data sources. The bill specifies that, except as required by federal law, the Health and Human Services Commission or any state agency administering Medicaid cannot accept information from applications for other public assistance programs, such as the Supplemental Nutrition Assistance Program, as valid data for conducting these renewals.

Additionally, the bill allows the commission to receive and review information from other public assistance applications if it indicates a change in circumstances that could affect Medicaid eligibility. The Health and Human Services Commission is required to seek any necessary federal waivers or authorizations to implement this new section within 180 days of the bill's effective date. The bill will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.