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Texas Medical Association: Testimony House Public Health
House Bill 1932 by Representative Thompson
March 31, 2009
By: Josie R. Williams, MD, MMM, CPE
Good morning. My name is Dr. Josie Williams. I am a gastroenterologist and president of the Texas Medical Association. Today, I stand before you representing nearly 44,000 physicians and medical student members. Currently, I am an associate professor in the Department of Internal Medicine at Texas A&M University Health Science Center College of Medicine, and director of the Rural and Community Health Institute and the Institute for Health Care Evaluation at Texas A&M, where I specialize in quality and patient safety initiatives.
I would like to thank Chairman Smithee and the committee members for the opportunity to testify in support of House Bill 1932 relating to consumer labeling requirements for health benefit plans. TMA strongly supports HB 1932 so that employers and our patients have reliable information when purchasing health insurance.
Why HB 1932 Is Needed
Purchasing health insurance coverage today is increasingly complex. Health insurance companies offer a wide range of plans with different benefits, exclusions, and costs. It is nearly impossible to decipher a health insurer’s sales literature then figure out a way to make a direct, product-to-product comparison.
Employers and patients need accurate, current, and honest information on copays, deductibles, and health plan networks to make decisions in today’s health care market.
The real need for this information is not when patients are sick or injured, but rather when Texas businesses and their employees are shopping for health insurance coverage. A California study in June 2008 examined what would make shopping for health insurance easier. It found that people wanted standardized information that made it easier to do a side-by-side comparison of each product, much like the nutritional label on a soup can. Furthermore, study participants wanted information that was accurate and complete, and that they could rely on when they need coverage.
Nutrition Label Concept
Standardized and reliable nutritional labeling has made it much easier for consumers to make better food choices. Consumers can examine 20 different boxes of cereal and easily compare the product benefits, such as number of calories and percentage of fat, sodium, sugar, or protein. TMA believes the same standardized system could aid employers and consumers when shopping for health insurance. The “health insurance product label” would enable employers and consumers to compare health plans easily based on standardized measures of value. For example, the label could identify the premium and copay, medical loss ratio, average annual amount paid by the health insurance company vs. out-of-pocket expense paid by the patient, and out-of-network benefit — to name a few.
Wide Public Support
As TMA president, I have traveled across the state and talked to editorial boards, Rotary Clubs, and Chambers of Commerce to discuss our legislative agenda. Among the many items we discussed, this concept — the insurance facts label — captured the public’s attention. In every part of the state we visited, this concept was found as a novel and needed solution to simplify the purchase of health insurance coverage. In fact, the Houston Chronicle and Dallas Morning News both did a large op-ed with the label itself that promoted the concept. I’m telling you, this idea has great support.
People were intrigued by this idea because oftentimes-important benefit and coverage information is lost in the marketing materials. For instance, a lot of important coverage information is in the “fine print.” Employers and consumers need to know what is in the fine print so they can make good purchasing decisions. Many insurers offer a large number of plans with different benefits, exclusions, and costs. This creates a complex array of information that does not aid consumer decision making. It is simply overwhelming.
Closing
Chairman Smithee and members of the committee, I want to thank you again for the opportunity to testify in support of HB 1932. TMA, as well as those who participated in our editorial boards, believe this is a good solution to help Texas employers and consumers when purchasing and using health insurance. Thank you again for the opportunity to testify. I will be happy to answer any questions.
Last Published: 3/30/2009 Print this page
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