Transparency in Health Care Mandates: New Legislation Offers Relief for Texas Businesses and Families
Press Release
By: TAHP | Friday, January 17, 2025
Austin, TX, Jan 17, 2025 – Texas businesses and families face rising health care costs driven by state mandates that lack transparency. New proposals—Senate Bill 818, filed by Senator Paul Bettencourt, and House Bill 1906, filed by Representative Dennis Paul—aim to address these challenges by creating a fiscal note process to assess the cost impact of health care mandates before they are enacted. A broad group of stakeholders have stated their support.
Why it matters: Unlike most states, Texas passes health care coverage mandates without fully understanding the cost impact on employers and families. This lack of transparency drives up costs and limits flexibility for businesses and their employees.
What We’re Saying: “Texas businesses deserve transparency when it comes to the cost of health care mandates,” said Jamie Dudensing, CEO of the Texas Association of Health Plans. “Without it, we’re creating an unsustainable system that raises costs for employers and threatens families with higher premiums. SB 818 and HB 1906 are critical steps toward smarter, more accountable health care policies.”
🔍 What SB 818 and HB 1906 Would Do:
- Establishes the Health Impact, Cost, and Coverage Program (HICAPP) at the University of Texas Health Science Center Houston to provide Texas lawmakers with an independent evaluation of proposed health insurance mandates
- Uses health care cost data collected from insurers and other health care payers housed at the state’s all-payer claims database (APCD) within UT Health Houston.
- Analyze legislative proposals year-round to inform interim discussions and session decisions.
- Publicly post mandate reviews, including data on existing coverage, public health benefits, and medical evidence.
A missed opportunity for transparency: Lawmakers routinely exempt their own state-funded plans, like ERS and TRS, from mandates because the existing fiscal note process reveals the high costs. Yet, no such process exists to show how these mandates impact Texas employers and families before they are passed into law.
🇺🇸 What Other States Are Doing: At least 29 states require upfront cost analyses for health care mandates. These reviews provide transparency and help lawmakers make informed decisions.
What Texans want:
- Employers: Over 90% support requiring lawmakers to estimate mandate costs before passing them. (Source: Texas Association of Business 2024 Employer Healthcare Survey)
- Texans: Two-thirds of Texans favor requiring transparency on the cost impact of mandates. (Source: Texans for Affordable Healthcare 2024 Survey)
- Broad Support: Stakeholders across industries, including employers, health plans, and consumer advocates, back the push for transparency to protect Texans from rising health care costs.
The Bottom Line: Texas leads in health care mandates but lacks transparency. Passing SB 818 and HB 1906 will bring the state in line with best practices, ensuring lawmakers and the public understand the costs before adding to employers’ and families’ burdens.
These legislative proposals will protect Texans from unnecessary health care cost increases while fostering more responsible legislative decision-making.
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