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Summary: Many Insurance providers offer network discounts to customers - if a customer chooses a physician in the network, they receive a discount. Many insurance companies use a third party organization (preferred provider organization or PPO) to manage these networks. HB 620 would create regulations for these third party entities, which supporters of the bill say will increase transparency. HB 620 also authorizes the Texas Department of Insurance (TDI) to charge fees to insurance companies and the PPO in order to cover the costs of the extra regulation.
Analysis: This legislation would increase regulations on private business without evidence that new regulations are necessary. We are generally opposed to expanding the scope of government regulation, especially in the absence of evidence that this is a problem in need of a legislative solution. Additionally, while the TDI may be charging fees to the insurance companies and PPOs, the cost will be passed on the consumer, adding to the already high cost of health care. HB 620 represents an expansion of government and a further regulation of free markets that TPPA does not support. We encourage legislators to oppose HB 620.