Most policymakers don’t understand how legal funding works. Fewer understand what happens when they get it wrong.
Georgia passed sweeping tort reform earlier this year. Texas nearly did the same. Senate Bill 30 failed to advance by just a few votes—an outcome that surprised nearly everyone in the room. But let’s be clear: this wasn’t a wholesale rejection of the bill’s logic. It was a procedural delay. And the forces behind it are already regrouping.
We’ve seen how this story plays out. If Texas doesn’t learn from Georgia, it’s going to repeat the same mistakes—and millions of patients and providers will pay the price.
A Quick Snapshot of Texas SB 30
- Bill: Texas Senate Bill 30 (SB 30)
- Introduced: March 13, 2025
- Passed Senate: April 16, 2025
- Postponed in House: May 28, 2025 (bill failed to pass this session)
- Focus: Reforms to disclosure and recovery of healthcare-related damages in civil lawsuits
Key Provisions Included:
- Mandatory disclosure of letters of protection (LOPs), referral sources, and full medical records
- Proposed (but later removed) cap on recoverable medical expenses at 300% of Medicare rates
- Increased administrative burden on providers treating patients under LOPs
Read the bill analysis
Track the bill on LegiScan
Texas Tribune coverage
Why the Defeat Doesn’t Mean It’s Over
SB 30 failed—but just barely. The insurance industry isn’t walking away. If anything, they’re doubling down. Lobbyists are already pushing alternative bills in Florida, Louisiana, and North Carolina. And it’s only a matter of time before a revised version of SB 30 makes its way back to the Texas legislature.
What happened this session wasn’t a win for legal funding—it was a warning. The opposition is well-organized, well-funded, and increasingly aggressive in its tactics. And they’ve figured out how to frame their agenda as “reform,” even when the only real beneficiaries are carriers and institutional investors.
What Lawmakers Got Wrong
Legal funding isn’t about jackpot verdicts or foreign hedge funds. It’s about access. For patients, it’s the difference between getting treated and going without care. For providers, it’s about whether they can continue seeing personal injury cases without being financially exposed.
SB 30 was written under the false assumption that legal funding distorts outcomes. But it’s not funding that distorts outcomes—it’s misinformation.
Let’s break down two major concerns:
- Disclosure mandates: Requiring full disclosure of referral relationships and medical records isn’t about transparency—it’s about intimidation. These mandates deter physicians from treating injury victims, breach patient confidentiality, and invite scrutiny that has nothing to do with the facts of the case.
- Caps on medical damages: While the explicit 300% Medicare cap was stripped from the bill, the underlying logic remains. It signals to providers that their work will be undervalued—and to investors that this is not a market worth financing. That’s how you lose access, one line item at a time.
What Georgia Taught Us—And Why It Matters
I was in the room when Georgia’s reform package was being shaped. I offered data. I offered insight. I offered to walk lawmakers through the downstream effects of lien servicing. And then one day, the phone stopped ringing.
The result?
- PI providers are backing away
- Reimbursements are down
- Insurance premiums are still going up
- And patients are left in limbo
Georgia promised reform and delivered regression. If Texas isn’t careful, it’ll inherit the same problems—only with less warning.
What Lawmakers Don’t Understand About Servicing and Capital
At Gain, we don’t just fund—we service. Independently, at arm’s length from providers and attorneys. That means we manage the revenue cycle with no conflicts of interest, no hidden incentives, and no gamesmanship.
That structure exists for a reason: it creates defensibility. It protects medical judgment. And it ensures transparency for all parties involved.
When funders like us are pushed out of the market, what fills the gap isn’t fairness—it’s chaos. Providers are left holding the bag. Patients get stuck between care and collections. And capital stops flowing into a system that already suffers from underinvestment.
Final Word: Texas Can Still Lead—If It Listens
There’s still time to get this right. The defeat of SB 30 gives Texas a rare opportunity: to pause, reconsider, and engage with people who’ve spent years building scalable, compliant, and transparent solutions.
I’m not asking for special treatment. I’m asking for informed policymaking.
- Don’t legislate based on fear.
- Don’t borrow bad bills from other states.
- And don’t call it reform unless it actually improves the system for the people in it.
Let’s get this right—before the next bill lands.