U.S. Rep. Craig Goldman from Texas has introduced House Bill 9336, or the Better Care, Better Cost Act, to help create market incentives for health insurance companies to improve patient care and reduce costs.
The Better Care, Better Cost Act, introduced on June 18, would “require States to take into account performance when assigning individuals to managed care entities under the Medicaid program.”
Under the proposed law, states would create a system to evaluate Medicaid insur- providers and publish an annual report of their findings.
Insurers would receive a score based on factors such as patient care spending and overall patient satisfaction, including how often patients choose to leave their providers. Unnecessary and potentially avoidable hospital admissions, readmissions and emergency visits would also be factored into the score.
“We're just handing out money to the insurance companies,” Goldman stated. “Of course, they're taking it with no repercussions they don't provide good enough care or they overcharge. So this is our way of stepping in and saying, ‘Hey, if you guys will have oversight, if you will cut costs, one, you'll get more business out of it, and two, you’ll save the American taxpayer money.’” Should HB 9336 pass, it would take effect on Jan. 1, 2028.
Goldman said that other states besides Texas have also created this type of system, such as Michigan, Ohio, Pennsylvania, New York and North Carolina.