Texas 2023 - 88th Regular

Texas House Bill HB2414

Filed
2/16/23  
Out of House Committee
4/20/23  
Voted on by House
5/2/23  
Governor Action
 
Bill Becomes Law
 

Caption

Relating to certain practices of a health maintenance organization or insurer to encourage the use of certain physicians and health care providers.

Impact

The legislation modifies existing provisions in the Texas Insurance Code, specifically on how insurers can structure cost-sharing for healthcare services. Advocates, including representatives from the Texas Association of Health Plans, argue that this flexibility will lead to better patient engagement and potentially lower healthcare costs for consumers. The alignment of patient incentives with cost and quality considerations is seen as a necessary step toward a more dynamic healthcare market that prioritizes consumer choices.

Summary

House Bill 2414 aims to empower patients by allowing health maintenance organizations (HMOs) and health insurers to provide incentives to enrollees for choosing certain physicians or healthcare providers. The bill seeks to adjust patient cost-sharing measures—such as deductibles, copayments, and coinsurance—depending on the chosen provider. This initiative is designed to encourage patients to shop for lower-cost and higher-quality healthcare options, thereby fostering a more competitive healthcare market without mandating such practices, thereby offering flexibility to insurers.

Sentiment

The sentiment around HB 2414 is notably polarized. Proponents assert that the bill will make healthcare more affordable and stimulate patient engagement. They emphasize that enabling patients to become smarter shoppers in healthcare can lead to enhanced service quality and cost-efficiency. Conversely, opponents, including the Texas Medical Association, have expressed concerns that the bill may inadvertently disadvantage certain providers and create an inequitable system where not all healthcare options are treated equally in terms of reimbursement and patient choice.

Contention

One notable point of contention involves the fiduciary duty established by the bill, which requires insurers to prioritize the interests of the enrollees when providing these incentives. Critics argue that this could lead to insurers selectively favoring certain providers or networks, thereby limiting patient options in the long run. The bill's impact on local healthcare practices and how it shapes the relationship between insurers and healthcare providers has raised deep concerns about the potential for unequal treatment and access to care across different demographics.

Texas Constitutional Statutes Affected

Insurance Code

  • Chapter 843. Health Maintenance Organizations
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
  • Chapter 1301. Preferred Provider Benefit Plans
    • Section: 0045
    • Section: New Section
    • Section: 0045
    • Section: New Section
    • Section: 0045
    • Section: New Section
    • Section: New Section
  • Chapter 101. Unauthorized Insurance
    • Section: 055

Companion Bills

No companion bills found.

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