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Go back to First Page %u2022 Harris County Physician Newsletter %u2022 August 2025 %u2022 www.hcms.org 3 Medical debt reporting ban vacatedA Texas federal judge vacated in full a rule that went into effect in March that allowed medical debt to be removed from credit reports and prohibited lenders from using such debt in credit decisions. The court ruled that the Consumer Financial Protection Bureau (CFPB) exceeded its authority under the Fair Credit Reporting Act and lacked legal authority to mandate the removal, though it may encourage the use of alternative data. The CFPB and its acting director agreed with the argument that the CFPB%u2019s rule exceeded the bureau%u2019s authority and should be pulled. The rule was expected to eliminate nearly $50 billion in medical debt for around 15 million Americans. Presented by the HCMS Board on SocioeconomicsAnnual Business ExpoSave the date - Saturday, Oct. 25 - and join us at the Business Expo. It will include four CMEs, door prizes, and 50 companies with resources to meet the professional needs of physicians. Registration will open Sept. 1.Go to www.hcms.org/BusinessExpoto register. Texas healthcare law changes coming Sept.1The 89th Texas Legislature enacted several healthcare-related reforms that will take effect onSept.1,which will significantly impact physicians and patients across the state. Here%u2019s what you need to kno New Limits on Physician & Practitioner Non-CompetesSigned June20, SB1318 brings major changes to Texas%u2019 Covenants Not to Compete Act, extending enforceability rules to physiciansand%u2014for the first time%u2014dentists, nurses, and physician assistants. Key provisions of the new law include: %u2022Duration cap: restrictions enforceable for a maximum of one year after termination %u2022Geographic limit: enforceable only within a five mile radius of a physician%u2019s primary practice location %u2022Buyout cap: cannot exceed the physician%u2019s total annual salary and wages at termination %u2022Void on wrongful termination: noncompete becomes automatically void if a physician is involuntarily terminated without %u201cgood cause%u201d These provisions apply only to noncompetesentered into or renewedon or after Sept.1. Renewal of preexisting covenants counts as a new contract, triggering compliance. Implications for Physicians & EmployersContracts drafted on or after Sep. 1, must meet all statutory criteria or risk unenforceability. HR departments and legal advisors should review template agreements promptly to ensure compliance. Restricting AI Use in Utilization Review Also, effective Sept.1, SB815 addresses insurer and utilization review practices. Itprohibits reliance on an AI algorithm as the sole basisfor denials, delays, or modifications of healthcare services based on medical necessity. Only alicensed physician or healthcare providercan make such determinations. Adverse determination notices must now disclose the criteria and review process used, reinforcing transparency. The Texas Department of Insurance is tasked with auditing utilization review systems that involve AI component oversight. Impact on Practices Physicians should expect increased involvement in peer review and claims appeals processes. continued on page 6