TPPF: Texas Leading the Way on Health Care Price Transparency

The Texas Public Policy Foundation celebrated a unanimous vote in the Texas Senate for reform that requires hospitals to disclose negotiated rates. The bill, SB 1137, is a huge step forward in creating a transparent market for health care that obligates providers to tell patients what treatments and procedures cost before they are performed. According to a TPPF survey in February, 89% of Texans support this reform.   

TPPF’s Director of Right on Health Care David Balat released the following statement: 

“Giving Texans the information they need to make the best decisions will put patients in charge of their health care.  Sen. Kolkhorst’s bill is a strong step toward eliminating surprise billing, hidden fees, and inconsistent pricing for health care services. It will dramatically lower costs, create a genuine market for services, and give patients the control and peace of mind they deserve.” 

In depth: 

• The legislation requires hospitals to provide a list of “shoppable services” and include the payor-specific negotiated charge, the discounted cash price, and the minimum negotiated charge.  
• If a hospital is not in compliance, it may be subject to a number of consequences including an administrative penalty.  
• The new rule would take effect September 1, 2021.