Relating to the disclosure of negotiated rates requested by members of the legislature from certain health care vendors that contract with this state.
Impact
If enacted, HB605 will revise Section 2252 of the Government Code by adding a new section that requires health care vendors to provide information on negotiated rates when requested by legislative members. This requirement applies to contracts entered into or renewed after the bill's effective date, which is September 1, 2023. By placing this obligation on health care vendors, the bill enhances legislative oversight and may influence how health care contracts are negotiated and administered in Texas, possibly leading to more competitive pricing and accountability from vendors.
Summary
House Bill 605 aims to enhance legislative transparency by mandating that health care vendors, who contract with the State of Texas, disclose negotiated rates upon request from members of the legislature. The bill specifically targets health benefit plan issuers and managed care organizations that operate under various state health programs, including Medicaid. The legislation is designed to ensure that lawmakers have access to crucial information regarding the costs associated with health benefit contracts, thereby facilitating informed decision-making for future health policy and budget appropriations.
Sentiment
The sentiment around HB605 appears largely positive, particularly among lawmakers advocating for increased transparency in health care spending. Supporters argue that the bill is a critical step toward ensuring that the funding allocated for health benefits is effectively monitored and utilized. However, there may be concerns from health care vendors about the implications of disclosing sensitive contractual information, potentially leading to pushback regarding privacy and the competitive landscape of health care services.
Contention
Despite its positive reception, the bill may encounter contention related to the confidentiality of pricing information and the extent to which such disclosures can impact competitive practices within the health care market. Critics might argue that opening up negotiated rates could undermine the bargaining power of health care vendors or disclose sensitive information that could lead to unintended consequences in pricing strategies. Balancing the need for transparency with the operational realities of health care contracting will be a crucial point of discussion as the bill progresses through the legislative process.
Texas Constitutional Statutes Affected
Government Code
Chapter 2252. Contracts With Governmental Entity
Section: 909
Insurance Code
Chapter 1551. Texas Employees Group Benefits Act
Section: New Section
Chapter 1575. Texas Public School Employees Group Benefits Program
Section: New Section
Chapter 1579. Texas School Employees Uniform Group Health Coverage
Section: New Section
Chapter 1601. Uniform Insurance Benefits Act For Employees Of The University Of Texas System And The Texas A&m University System
Relating to the establishment of a statewide all payor claims database and health care cost disclosures by health benefit plan issuers and third-party administrators.
Permits certain PERS members to collect pension while earning salary; makes certain local administrators and prosecutors eligible for PERS membership; permits State employees not covered by collective negotiations to enroll in negotiated health plans.
Permits certain PERS members to collect pension while earning salary; makes certain local administrators and prosecutors eligible for PERS membership; permits State employees not covered by collective negotiations to enroll in negotiated health plans.