Coalition Letter Supporting HB 1073/SB 1135: Value-Based Care

On behalf of the undersigned organizations, we write to strongly support House bill 1073 by Representative Lacey Hull & SB 1135 by Senator Charles Schwertner.

The legislation simply clarifies in statute that physicians and health plans are allowed to voluntarily enter into value-based or risk-based contracts with preferred provider organizations (PPOs) and exclusive provider organizations (EPOs). The bill also sets out certain contractual provisions that must be included in a contract, if a health plan and a physician or physician group enters into a risk-based contract.

Adoption of value-based care has accelerated in recent years as there has been a fundamental shift away from the traditional fee-for-service model to one that utilizes analytics, care coordination, provider integration, and patient engagement to improve quality and address avoidable and unnecessary health care costs. This trend is expected to accelerate in the coming years as payers, employers, and the government embrace value-based models.

See full letter.

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