House State Affairs Hearing Recap April 29, 2021 Roll Call Chris Paddie (Chair) Ana Hernandez (Vice Chair) Joe Deshotel Sam Harless Donna Howard Todd Hunter Phil King Eddie Lucio III Will Metcalf Richard Peña Raymond Matt Shaheen Shelby Slawson John T. Smithee Resources HB 1427 - TAHP NEUTRAL WITH CONCERNS. HB 2600 Rep. Paul lays out bill — 2nd greatest number of Mandates behind Massachusetts. INside LBB, creates fiscal statement so we can see how much a mandate will cost. Smithee: House passeed const benefit analysis panel through TDI for this exact purpose. This might have been repealed. Haven't seen it in a long time. But it's a very difficult analysis to make. Don't know if TDI is going to have the resources to make an accurate determination TEXAS ASSOCIATION OF HEALTH PLANS www.tahp.org Hearing Recap–April 29, 2021 (512) 476-2091 Jamie Dudensing, CEO [email protected] Paul: LBB says it will have no impact on them, they have the staff. Definitely have to see if they can do this. Howard: LBB already gives us fiscal impact statements about health care policies put in place. Paul: They will give us that analysis if ERS or TRS is included. This would make sure they could do it for all the private policies, a lot of times exclude ERS & TRS. Raymond: Seems pretty straightforward, but @Smithee, can you talk about what you were saying about TDI again? Smithee: If we mandate something, will mandate cost, will increase premiums. We know that a procedure may save money that will save money because of early detection, but we don't have the data to understand what's costed or saved. Information we should have to make an intelligent decision. Paul: They have the ability to do it — ERS & TRS Jamie Dudensing, TAHP Support Number one issue we hear is that officials don't have the information they need to make cdecisions. Health insurance costs are a priority concern, mandates bring up that cost. 48 mandates filed this session, every one of them costs. Important for officials to make these decisions. TDI was a one-time task force — this has LBB do it, they're familiar with this statistical and actuaial analysis. 26 other states are doing this. We believe LBB has the ability to do this. This is a huge issue for employers, we want to make coverage more affordable for Texans and to maintain that coverage. Raymond: Your view that the mandate bills passed this session...it would be some 40? Do you know how many are Medicaid related? JD: Didn't mention any Medicaid bills because those are already considered by LBB. Raymond: You're concerned more and more insurance companies won't want to cover people? TEXAS ASSOCIATION OF HEALTH PLANS www.tahp.org Hearing Recap–April 29, 2021 (512) 476-2091 Jamie Dudensing, CEO [email protected] JD: No, we will continue to provide coverage. The concern is whether the increased cost from mandate is worth it. Raymond: Concern is that whether those changes are worth the increase? Ex. many years ago passed bill to include mammogram coverage. Some thought we shouldn't do that. Ex of things being considered now? JD: Essential health benefit package from ACA – Mammograms, one aspect of the ACA — Sometimes bills files that have been graded as C or D, not worth the cost of doing this, but mandate shows up in bill. Raymond: I got prostate cancer, bill before to lower age for testing coverage — can you give us some examples of bills being considered that concern your association were they to pass they would increase costs? JD: Copay cap. CA's fiscal note process showed high impact. But legislature may decide that that amount is worth it to increase premiums for everyone. Need to get elected officials the information they need. Formulary freeze bill. Bill Hammond, TEIR Support Mandates you're talking about — LBB does these for ERS and TRS, able to do it for small business. Bills for ERS or TRS will get a fiscal note. But what's missed in this analysis is the cost for small businesses. Every time we increase costs, make it less likely an individual will be able to cover insurance. Most employers don't cover cost for dependents of employees. Important piece of legislation. Hope that it still has a chance if you vote it out and get it on the floor asap. Number one issue to employers is the cost of health insurance. TEXAS ASSOCIATION OF HEALTH PLANS www.tahp.org Hearing Recap–April 29, 2021 (512) 476-2091 Jamie Dudensing, CEO [email protected].