Texas Codes

Tex. Ins. Code § 1204.053 (2026)

Assignment Of Benefits

✓ current as of May 2026
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Sec. 1204.053. ASSIGNMENT OF BENEFITS. (a) An insurer may not deliver, renew, or issue for delivery in this state a health insurance policy that prohibits or restricts a covered person from making a written assignment of benefits to a physician or other health care provider who provides health care services to the person.

(b) This section does not:

(1) provide a coverage or benefit that is not otherwise available under the health insurance policy;

(2) allow assignment of a benefit to:

(A) a person who is not legally entitled to receive such a direct payment; or

(B) another person if, under the health insurance policy or plan, the benefit must be provided to the covered person by a physician or other health care provider who is a contractor or preferred provider under the policy; or

(3) prohibit an insurer from verifying, through the insurer's normal process, the health care services the physician or other health care provider provides to the covered person.

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 3, eff. April 1, 2005.

Notes of Decisions
Cited in 3 cases (2 in the last 5 years), 2019–2025 · leading case: Dialysis Newco, Inc. v. Commty Hlth Sys Tr, 938 F.3d 246 (5th Cir. 2019).
Dialysis Newco, Inc. v. Commty Hlth Sys Tr, 938 F.3d 246 (5th Cir. 2019). “§ 56-7-120 (a) (discussing requirements for providing the administrator with notice of such assignments), with Tex. Ins. Code § 1204.053(a) (not discussing similar notice requirements).”
ER Addison LLC v. Aetna Health Inc (N.D. Tex. 2025). “And the Texas law on which ER relies—Tex. Ins. Code Ann. § 1204.053 (West 2005)4— is preempted by ERISA.”
— Tex. Ins. Code § 1204.053(a) — 2 cases
Dialysis Newco, Inc. v. Commty Hlth Sys Tr, 938 F.3d 246 (5th Cir. 2019). “§ 56-7-120 (a) (discussing requirements for providing the administrator with notice of such assignments), with Tex. Ins. Code § 1204.053(a) (not discussing similar notice requirements).”
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