Gov. Greg Abbott (R-Texas) unveiled a proposed health insurance option Wednesday in Fort Worth that he said could cut premiums nearly 20% for Texas families and small businesses while helping more than 1 million additional Texans obtain coverage.
Speaking at Los Vaqueros Mexican Restaurant in the Fort Worth Stockyards, Abbott said the Essential Benefits Health Insurance Plan would allow insurers to offer employer group plans that meet federal requirements while omitting some state-mandated benefits. Employers could still choose fully mandated policies.
“It will allow Texans to get health insurance covering all the essentials without paying for expensive additional mandates imposed by the state,” Abbott said.
Abbott’s office projects the option could save a typical Texas family about $1,150 per year and small businesses more than $3,400 per employee annually, as previously reported by The Dallas Express.
Small businesses face rising costs
Abbott pointed to Los Vaqueros owner Vicki Cisneros as an example of the pressure rising premiums place on small employers. About 90% of the restaurant’s employees once carried health insurance, but only about 10% do now, Abbott said.
He said many small business owners want to offer coverage to support workers and compete for employees, but increasing costs have forced some companies to reduce or eliminate the benefit.
Abbott projected that the lower-cost option would reduce employer health insurance expenses by about 20% annually and expand coverage without eliminating more comprehensive plans.
Proposal requires legislative approval
Abbott emphasized during a question-and-answer session that the health proposal is not an executive action.
“If I could do things like that by executive orders, I would already issue an executive order eliminating property taxes in Texas,” Abbott said.
Abbott’s office has not released legislative language. Similar legislation carried by state Rep. Jay Dean (R-District 7) stalled in the Texas House in 2025. The committee version of House Bill 139 would have required plans to cover the 10 federal essential health-benefit categories, barred preexisting-condition exclusions and required insurers to disclose omitted state benefits.
The Texas Medical Association and more than 30 medical, pharmacy and patient groups opposed the 2025 measure. 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 new proposal will track that bill.
Broader affordability agenda
Abbott presented the health plan as the latest part of a wider affordability campaign. His five-point property tax plan would impose local spending limits, require two-thirds voter approval for property tax increases, let voters roll back taxes, cap annual appraisal growth at 3% instead of 10% and eliminate school district property taxes on homesteads.
He also highlighted his proposed home and auto insurance changes. A roof-fortification program modeled on programs in other states could reduce homeowners’ premiums by about 8% and save more than $15,000 over the life of a roof, Abbott said.
Abbott said his proposed “good driver rate” would allow all auto insurers to consider good-driving habits when setting premiums and could reduce rates by as much as 30%, based on industry estimates he cited. Texas Department of Insurance guidance says some companies already offer discounts for clean driving records and usage-based policies.
Abbott also cited the state’s multi-year freeze on tuition and fees at public colleges and universities, an increase in the business personal property tax exemption and Texas’ pace of new home construction as parts of the affordability push.
Data centers draw scrutiny
During media questions, Abbott said he supports ending the state directed state regulators in June to require data centers to pay for the electric infrastructure needed to serve them and to protect neighborhoods, water supplies and the power grid.
The Texas Legislature will consider the health insurance proposal and Abbott’s broader affordability agenda when lawmakers reconvene in January.
Provided by Dallas Express
