Value-based care bill clears major hurdle in Texas House

This week the Texas House of Representatives voted unanimously to pass a bill that would modernize Texas insurance laws to promote innovative, alternative payment models in employer-based health plans. House Bill 2254 by Rep. Lacey Hull, (R-Houston), would allow employers to offer value-based plans with options like advanced and direct primary care to their employees.

“This bill would allow primary care physicians and only primary care physicians or primary care physician groups to voluntarily enter value-based or capitated contracts with EPO and PPO insurance plans, just like they already can for HMOs,” Rep. Hull said when introducing the bill. “These arrangements allow for providers to receive a set amount per patient and incentivizes keeping patients healthy through primary care and preventive services.”

This legislation has been a priority for TAFP for multiple sessions. Current statute prevents employer-sponsored health plans from partnering with doctors through value-based arrangements as opposed to fee-for-service. The Academy has argued that permitting these types of contracts can improve patient outcomes and lower health care costs overall.

Now the bill will go to the Senate for consideration, where its companion bill, S.B. 1014., by Sen. Kevin Sparks, (R-Midland), has been referred to the Health and Human Services Committee.