Testimony Opposing HB 4823: MDCP

TAHP opposes HB 4823 because it expands the use of out-of-network care in the Texas Medicaid program, which could create an incentive for providers to remain out of network. This would result in increased costs for the Medicaid program and reduced ability of a managed care organization (MCO) to ensure quality of care, coordinate care, and negotiate value-based contracts.

One of the reasons why the state moved to managed care was to contain costs and improve quality of care outcomes by leveraging health plans’ ability to build a network of lower cost, higher quality providers. The changes in HB 4823 undermine Medicaid networks and are contrary to the state’s goal of shifting Medicaid contracts to value-based payment arrangements.

Read TAHP’s full written testimony.

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