Texas is a renowned destination for businesses and entrepreneurs seeking low tax rates, economic freedom, and a stable regulatory environment. Most of us have no other choice. After all, our reputation for being business-friendly has helped us become the ninth largest economy in the world, contributing to GDP growth that consistently outperforms the national average.
But when it comes to how our legislators craft health care policy, all too often, as we say here, “all hats and no cows” pro-business talk. In fact, soaring health care costs and the poor policies that have caused them are the greatest threat to the continued growth and prosperity of the United States, and the reputation of being “business friendly” is becoming more of a myth than a reality. I have.
Consider these amazing facts:
- According to data compiled from the Centers for Medicare and Medicaid Services, the average price of health insurance in Texas will rise nearly 13% in 2022, making it the fifth highest in the nation. At this pace, the average price of health insurance will double every six years.
- At $15.3 billion annually, Texas spends more on prescription drugs than any other state. 2022 Prescription Drug Report from NiceRx.
- Over the past decade, the Health Cost Institute reports that emergency room prices have risen 83%, making ERs in Texas the most expensive in the nation.
Texas’ out-of-control health care costs are borne by families and businesses, and it’s a crisis for both.
Individual patients are dealing with higher prices that sometimes step into obscenity.It’s Not Hard to Find Healthcare Horror Stories in Texas: Watch the Billed Families $54,000 for COVID testing or $41,000 hip replacement You can have surgery for less than half the cost out of state.Obviously, this kind of price gouging can be financially devastating for most families, but it also takes a toll on their health. AARP report Four in 10 Texans report skipping or discontinuing prescribed medications.
At the same time, businesses carry a huge financial burden that hinders their growth and prosperity. More than 13.5 million Texans (about 4 in 10 working adults) receive medical benefits from their employers, and the cost of those benefits is rapidly becoming unsustainable. Since 1986, Texas companies surveyed by the National Federation for Independent Business has consistently cited the price of healthcare as its biggest challenge, but that decades-old problem is now a legitimate crisis. Nearly one-fifth of small businesses have now completely stopped providing health care benefits to their employees, and many more have had to reduce or eliminate jobs.
Sadly, this crisis is largely self-defeating. While it’s true that healthcare prices are a national issue, Texas legislators have consistently pursued policies that offer narrower special interests than the rest of the electorate, and the results have been predictable. .
Texas’ 87th Congress introduced nearly 100 bills to increase the price of employer health care. The House Insurance Committee has passed 30 of these bills and 7 have been enacted.
One of these laws forces health insurance companies to use pharmacies that are more expensive, even if they could get better deals for their subscribers elsewhere. In fact, lawmakers saved about $70 million over two years by waiving state employee and teacher plans from this costly requirement.
As such, they have exempted civil servants and teachers from the plan, leaving the financial impact on teachers alone at about $70 million over two yearsUnfortunately, they did not show such concern to private sector companies.
In 2023, lawmakers are once again considering more costly government mandates for health care. HB 2021 identical to SB1137For example, it could undermine the tools employers use to negotiate affordable prescription drugs, pushing up prices and causing some companies to drop coverage altogether.
Texas has long been considered a great place to live, work and raise a family. That’s still true in many ways, but it’s no longer the case when it comes to health policy. Residents, meanwhile, suffer higher costs and worse medical outcomes. Legislators urgently need to get this ship right before our business begins to collapse under the weight of bad public policy.
Mia McCord is Executive Director of Texans for Affordable Health Care. She wrote this column for her Dallas Morning News.
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