Gov. Greg Abbott (R-Texas) will announce a health insurance proposal Wednesday in Fort Worth that his office says could cut premiums nearly 20% for Texas families and small businesses.
Abbott’s Essential Benefits Health Insurance Plan would allow insurers to offer employers group plans that omit some coverage requirements imposed under Texas law, according to details provided to The Dallas Express.
The governor’s office projects the option could save a typical Texas family about $1,150 per year. Small businesses could save more than $3,400 per employee annually, according to the office.
“Governor Abbott knows that healthcare costs continue to strain family budgets and small businesses across Texas,” Eduardo Leal, Abbott’s press secretary, told The Dallas Express.
“The Governor’s Essential Health Benefits plan will lower premiums by nearly 20%, saving Texas families about $1,150 and small businesses over $3,400 per employee per year. That is putting money back into hardworking Texans’ pockets. Governor Abbott’s mission is simple: deliver real savings for Texans, lower the cost of living, and keep Texas affordable.”
What the proposal would change
The proposal targets state insurance mandates that supporters say increase premiums by requiring coverage or plan features some employers and workers may not want. Abbott’s office describes the plan as an additional option for employers.
The governor’s office had not released legislative language as of Wednesday morning, leaving unanswered which state-mandated benefits or consumer protections the proposed plans could exclude.
State Rep. Jay Dean (R-District 7) carried similar legislation during the 2025 session. The committee version of House Bill 139 would have required the plans to cover the 10 federal essential health-benefit categories and barred preexisting-condition exclusions. It also required insurers to disclose omitted state benefits and offer employers at least one plan containing all state-mandated benefits.
The House postponed HB 139 on May 15, 2025, and the measure died without passing. Dean is expected to help advance Abbott’s proposal when the Legislature reconvenes in January.
The Texas Medical Association and more than 30 medical, pharmacy and patient groups opposed the 2025 bill. They argued it could weaken patient and physician protections, create coverage gaps and impose hidden costs without guaranteeing lower premiums. It remains unclear how closely Abbott’s forthcoming legislation will track that bill.
Broader affordability campaign
Abbott’s Fort Worth event follows a Houston announcement on home and auto insurance. He proposed a Texas roof-fortification program intended to reduce storm damage and insurance claims, along with changes allowing auto insurers to reward safe drivers with lower premiums.
The governor has paired those insurance proposals with his five-point plan to overhaul property taxes. As previously reported by The Dallas Express, Abbott said in May that he had secured support from enough Texas House Republicans and nominees to advance the plan next session.
Abbott is seeking a fourth term in November and has made affordability a central part of his campaign and 2027 legislative agenda.
Provided by Dallas Express
