FORT WORTH, Texas — Gov. Greg Abbott raised the curtain on the third part of his plan to lower insurance costs for Texans. This section focuses on health insurance costs for small businesses and their employees.

In conversations with small business owners, Abbott said, he heard time and time again that the employers were having trouble providing health insurance to their workers due to rising premiums.

According to the Texas Association of Health Plans, insurance premiums for small businesses in Texas are jumping 15-20% in 2026 — 36-82% above the national average. As a result, only about 38% of the small businesses can afford to offer healthcare coverage to their employees.

Because Texas is one of the most heavily mandated states in the country, the state is one of most expensive for healthcare, says the Texas Association of Health Plans. Texas’ regulations mean health insurance policies in the state exceed what is required by the Affordable Care Act and federal regulations.

Abbott is suggesting to nix dozens of those mandates, equating to less coverage for Texans but at a more affordable price for the small businesses they work for.

He said at a press conference in Fort Worth on Wednesday that the health insurance policies offered would still cover the necessities.

In conversation with local entrepreneurs, Abbott heard from Vicki Cisneros, owner of the Stockyards’s staple Tex-Mex restaurant Los Vaqueros. She told him about 90% of their employees had insurance “not too long ago,” but today, only about 10% have insurance because of the rising cost.

Abbott’s solution would “cut the cost of health insurance for a family of four by more than $1,000 a year, cut the expense of healthcare insurance for employers by about 20% a year, and add more than a million more Texans to health insurance rolls across the state,” he said.

His Democratic opponent in the gubernatorial race, Gina Hinojosa, said if Abbott really wanted to lower healthcare costs, he would’ve done so in the 12 years since he began serving as governor.

Hinojosa promised to ensure every Texas child has quality healthcare, ban bad-faith denials by profiteering healthcare companies and strengthen the rural hospital system.

“Texas has the highest number of uninsured people and the most rural hospital closures in the country,” Hinojosa said in a statement. “Abbott has no credibility here as health insurance premiums continue to skyrocket, and an election-year stunt won’t solve problems for Texans who aren’t getting the care they need.”

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