Testimony Supporting HB 2414: Health Plan Shopping Incentives

Recent state and federal price transparency laws show that prices for the same services and procedures vary significantly between health care providers within the same geographic area. As an example, in Dallas, the cost for a total knee replacement was found to vary from $16,000 to $61,000. While price transparency initiatives have revealed these variations, patients still lack incentives to become informed shoppers. For example, a patient with a $5,000 deductible lacks an incentive to select a different provider. That’s where incentives are needed and state laws inhibit health plan arrangements that can encourage patients to be smart shoppers.

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