The Health Care Compact is an agreement between states that moves the authority, responsibility, and control of funds of health care to the members of the states. Many influential Texas organizations promote this agreement, seeking to engage citizens in the development of a state based health care reform. The Texas Public Policy Foundation developed this idea using interstate compacts to balance the power between state and federal governments, this application of The Health Care Compact filed with the Texas legislature is the first of its kind and will put the states in control of both health care regulations and federal funding, allowing the states free to implement any systems they choose to utilize.

There is a large coalition of prominent Texas organizations from grass roots to Tea Party members,coming together to push the Health Care Compact in their state.This system will grant citizens greater influence over their own health care.