Sponsor touts shared‑savings shopping program for health care; insurers warn of unintended incentives
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Sen. Kolkhorst described Senate Bill 884 as a market “disruptor” that would require insurers to share savings with enrollees who shop and find lower-cost care; public- and private-sector witnesses debated administrative costs, incentives and safeguards.
Senator Lois Kolkhorst, sponsor of Senate Bill 884, told the committee the bill would require health plans governed by Texas law to create a shared‑savings program that rewards enrollees who shop for lower-cost care and arrange to split savings 50/50 when an enrollee and provider agree to a lower cash price than the insurer’s negotiated rate.
Proponents, including Jonathan Wolfson of Cicero Action and Noah Torres of the Texas Public Policy Foundation, argued the change would incentivize price shopping, reduce costs and increase utilization of needed services. Speakers said shopping can reveal substantial price disparities and that patients under high deductibles currently have incentives to shop but chronically high‑spending patients do not.
Opponents, including Blake Hudson with Texas Health Plans, and insurers warned the committee the model act underlying the bill has not been widely adopted and could create perverse incentives to increase utilization or raise administrative costs; Hudson suggested evidence-based designs such as benefit tiers or deductible waivers are proven tools. Business and employer groups voiced support for consumerism and savings. The committee closed public testimony and left the bill pending; sponsor said a committee substitute is expected.