{"id":274534,"date":"2026-05-01T13:44:08","date_gmt":"2026-05-01T13:44:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/274534\/"},"modified":"2026-05-01T13:44:08","modified_gmt":"2026-05-01T13:44:08","slug":"health-care-is-getting-more-expensive-texas-lawmakers-want-to-understand-why-houston-public-media","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/274534\/","title":{"rendered":"Health care is getting more expensive. Texas lawmakers want to understand why \u2013 Houston Public Media"},"content":{"rendered":"<p>\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/05\/1777643048_102_.webp\" alt=\"Texas House Speaker Dustin Burrows called for the creation of the House Select Committee on Health Care Affordability earlier this year, tasking state representatives with examining factors that affect healthcare affordability in Texas. In a six-hour day that kicked off a two-day public hearing, lawmakers received a broad overview of the issue before focusing on the role that hospital and drug costs play.\"\/>Texas House Speaker Dustin Burrows called for the creation of the House Select Committee on Health Care Affordability earlier this year, tasking state representatives with examining factors that affect healthcare affordability in Texas. In a six-hour day that kicked off a two-day public hearing, lawmakers received a broad overview of the issue before focusing on the role that hospital and drug costs play.  (Bret Jaspers | KERA)<\/p>\n<p>More Texans are struggling to afford healthcare, and state lawmakers want to understand what\u2019s prompting costs to increase.<\/p>\n<p>Texas House Speaker Dustin Burrows called for the creation of the House Select Committee on Health Care Affordability earlier this year<a target=\"_blank\" href=\"https:\/\/www.house.texas.gov\/pdfs\/speaker\/Select-Committee-on-Health-Care-Affordability.pdf\" rel=\"noopener nofollow\">, tasking state representatives<\/a> with examining factors that affect healthcare affordability in Texas. In a six-hour day that kicked off a two-day public hearing, lawmakers received a broad overview of the issue before focusing on the role that hospital and drug costs play.<\/p>\n<p>\u201cOur goal for the committee is to eventually arrive at policy solutions that will help decrease the cost of quality healthcare for our constituents,\u201d said Rep. James Frank, the committee\u2019s chair. \u201cAnd, at the very least, stop the out-of-control healthcare inflation that is taking a bigger and bigger piece of every Texan\u2019s economic lives.\u201d<\/p>\n<p>Frank, who represents House District 69, which includes Wichita Falls and Paducah, said the goal of this hearing isn\u2019t to discuss policy solutions \u2013 instead he wants policymakers to gather an understanding to inform future conversations.<\/p>\n<p>\u201cMany of us know that healthcare pricing is largely broken,\u201d Frank said. \u201cBut I think sometimes it\u2019s difficult to know why&#8230;By truly taking our time, it is also my hope that we can address the root cause of pricing problems as opposed to playing whack-a-mole with the symptoms.\u201d<\/p>\n<p>The committee will return Friday, and will continue to hear invited testimony only. Frank said members of the public who wish to testify can submit written comments to the committee.<\/p>\n<p>Healthcare affordability<\/p>\n<p>Charles Miller, director of health and economic mobility policy at the public policy organization Texas 2036, said health insurance premiums have increased so much that voters are saying it\u2019s their number one priority \u201cfor the first time ever.\u201d<\/p>\n<p>\u201cWe launched a voter poll last fall, and this issue was more important than property taxes, than homeowners\u2019 insurance, than disaster response, than water infrastructure,\u201d Miller said. \u201cThese are all the topics that have been taking up a lot of time at the Capitol, and health affordability is more important to Texas voters than all of them.\u201d<\/p>\n<p>Even as <a target=\"_blank\" href=\"https:\/\/www.keranews.org\/texas-news\/2026-04-30\/high-gas-prices-eating-into-texans-budgets-fueling-inflation\" rel=\"noopener nofollow\">gas prices climb<\/a>, a recent poll from KFF \u2013 a nonprofit, nonpartisan organization that does research on health issues \u2013 showed the cost of <a target=\"_blank\" href=\"https:\/\/www.kff.org\/public-opinion\/poll-the-cost-of-health-care-remains-at-the-top-of-the-publics-list-of-economic-concerns-even-as-concerns-about-gas-prices-climb\/\" rel=\"noopener nofollow\">healthcare remains at the top<\/a> of economic concerns for the public.<\/p>\n<p>In the U.S., data shows spending on healthcare is more than in any other large country with a similar sized economy.<\/p>\n<p>Cynthia Cox, senior vice president with KFF, said that doesn\u2019t result in better health outcomes.<\/p>\n<p>\u201cWe spend almost twice as much on average per person on healthcare,\u201d she said. \u201cAnd yet, we live shorter lives. And on both of these metrics, the U.S. stands out as being very different from other countries.\u201d<\/p>\n<p>At the same time, the cost of services has increased. Healthcare costs in the <a target=\"_blank\" href=\"https:\/\/www.kff.org\/health-costs\/health-policy-101-health-care-costs-and-affordability\/?entry=table-of-contents-introduction\" rel=\"noopener nofollow\">U.S. generally rise faster than inflation<\/a>, leaving people to pay significant amounts of their paycheck toward health coverage.<\/p>\n<p>Zack Cooper, a professor of public health and economics at Yale University, told lawmakers that since 2000, health care spending in the U.S. has grown three times faster than inflation \u2013 driving 90% of the growth in premiums.<\/p>\n<p>For a family of four, Cooper said the average premiums for employer-sponsored health insurance is about $27,000 annually.<\/p>\n<p>\u201cEvery family is basically buying a new Toyota Corolla worth of health insurance,\u201d he said.<\/p>\n<p>Cooper noted rising healthcare costs are one of the leading causes of income inequality in the U.S.<\/p>\n<p>The average family in the U.S. has about $8,000 in \u201cliquid assets,\u201d or funds that can be quickly accessed, according to Cooper.<\/p>\n<p>\u201cYou\u2019re spending more on health care than you are on your mortgage,\u201d he said. \u201cIf you get sick, chances are you\u2019re going to literally go through everything that you have.\u201d<\/p>\n<p>In 2022, spending on hospital <a target=\"_blank\" href=\"https:\/\/pmc.ncbi.nlm.nih.gov\/articles\/PMC11916091\/\" rel=\"noopener nofollow\">services accounted for 42%<\/a> of personal healthcare spending for people with private insurance \u2013 like employer-sponsored plans or coverage through the federal health insurance marketplace. That represents the largest portion of healthcare spending \u2013 with physician services accounting for 31% and prescription drugs taking up 23%.<\/p>\n<p>Based on data from the U.S. Bureau of Labor Statistics, Cooper said hospital prices have increased faster than \u201cvirtually every other sector of the economy.\u201d<\/p>\n<p>High prices not only increase healthcare premiums but tend to drive people away from receiving needed care. While coverage can alleviate some of that cost, Cox said the issue of higher healthcare costs isn\u2019t solved by expanding the number of people with insurance.<\/p>\n<p>\u201cOf the $200 billion in medical debt that is owed in this country, most of it is owed by people who have health insurance,\u201d she said.<\/p>\n<p>Hospital consolidation<\/p>\n<p>Cooper highlighted the lack or the loss of competition among hospitals as a growing concern that could be increasing prices.<\/p>\n<p>Since 2000, Cooper said there\u2019s been more than 1,300 mergers among the nation\u2019s approximately 5,000 hospitals.<\/p>\n<p>Anthony DiGiorgio, a neurosurgeon and healthcare policy researcher at University of California, San Francisco, said that consolidation contributes to a payment system heavily regulated by third party payers that can create policies \u201cso heavy-handed\u201d they shape where care is delivered. Over time, he said those policies have \u201csteadily weakened\u201d independent physicians.<\/p>\n<p>\u201cWhen these independent physician practices disappear, patients lose their local options, their direct relationships,\u201d DiGiorgio said. \u201cInstead, the patients are directed to these large systems, where the physicians are more loyal to a corporate hierarchy.\u201d<\/p>\n<p>DiGiorgio, who works at a county level hospital, said strong hospitals are necessary for emergency care, teaching, transplant services and safety net functions.<\/p>\n<p>\u201cBut, patients need a strong independent sector,\u201d he said. \u201cBecause it provides patient choice, creates local price competition, and keeps a lot of care closer to home if you live far away from academic centers.\u201d<\/p>\n<p>DiGiorgio said in many cases, doctors don\u2019t have the ability to benefit from the same programs hospitals do, which can put them at a disadvantage and lead to higher costs for the same services.<\/p>\n<p>In addition, he said regulatory burden prevents physicians from being able to run their own practice. For every one hour that doctors spend with patients, DiGiorgio said studies have shown doctors spend two hours on the computer filling out paperwork.<\/p>\n<p>When a hospital system offers to internalize the bureaucratic processes for doctors, DiGiorgio said that can be paired with the \u201csubsidy streams\u201d that hospitals get, which he says makes saying no \u201cjust impossible.\u201d<\/p>\n<p>Drug prices<\/p>\n<p>In addition to concerns about rising drug costs and spending, lawmakers also focused part of the day on pharmacy benefit managers, or PBMs \u2013 companies that act as the \u201cmiddleman\u201d in the drug supply chain.<\/p>\n<p>\u201cLiterally every state has passed at least one pharmacy benefit manager law,\u201d said Maureen Hensley-Quinn, a senior program director with the National Academy for State Health Policy.<\/p>\n<p>PBMs were created to help insurers control prescription drug spending and manage pharmacy benefits. A PBM will negotiate with drug manufacturers, approve or deny claims and manage drug utilization. It can also determine at which pharmacies people are able to get benefits.<\/p>\n<p>The idea was they would negotiate for better prices and limit unnecessary prescriptions and pass those savings on to the consumer.<\/p>\n<p>However, consolidation and vertical integration have led many experts and policymakers to question what value PBMs offer.<\/p>\n<p>In 2023, the four largest PBMs \u2013 OptumRx, CVS Health, Express Scripts and Prime Therapeutics <a target=\"_blank\" href=\"https:\/\/www.ama-assn.org\/health-care-advocacy\/access-care\/these-4-big-names-are-largest-pbms-us\" rel=\"noopener nofollow\">\u2013 owned a combined 67% of the national market<\/a>.<\/p>\n<p>In addition, many experts and policy makers are concerned with \u201cvertical integration\u201d in the U.S. drug supply chain \u2013 which refers to when one company owns multiple parts of the supply chain. Vertical integration is typically linked to higher costs for consumers.<\/p>\n<p>For example, CVS Health owns an insurance company, PBM, drug manufacturer, as well as retail and specialty pharmacies and provider clinics.<\/p>\n<p>The vertical integration in the drug space has led state lawmakers across the country to take on PBM reform as a policy issue.<\/p>\n<p>Rep. Trey Wharton, who represents House District 12 north of Houston, said the limited network of pharmacy options can be particularly difficult for people in rural areas.<\/p>\n<p>\u201cSometimes your insurance plan doesn\u2019t have a pharmacy in the small town you live in, so you have to go out of town because it\u2019s not covered,\u201d he said. \u201cThen, that\u2019s also causing the local independent pharmacist to have to sell out, because they can\u2019t even buy the drugs as cheap the drug is sold by the big pharmacy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Texas House Speaker Dustin Burrows called for the creation of the House Select Committee on Health Care Affordability&hellip;\n","protected":false},"author":2,"featured_media":274535,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[1865,1562,12525,65751,2244,66,223,287,65753,27,29,28,101723],"class_list":["post-274534","post","type-post","status-publish","format-standard","has-post-thumbnail","category-texas","tag-dustin-burrows","tag-health-care","tag-health-care-costs","tag-health-care-workforce","tag-healthcare","tag-local","tag-news","tag-politics","tag-rural-health-care","tag-texas","tag-texas-headlines","tag-texas-news","tag-tx-legislature"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/274534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=274534"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/274534\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/274535"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=274534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=274534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=274534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}