Earlier this afternoon, the Senate unanimously adopted the committee substitutes of SB 7 and SB 8 (engrossed version already available) authored by Sen. Jane Nelson. SB 7 & SB 8 bills incentivize health care providers and hospitals to focus on best practices, wellness and healthy patient outcomes. SB 7 focuses more on Medicaid and Children’s Health Insurance Program (CHIP), while SB 8 is geared toward all types of health care, not just Medicaid and CHIP.
The goal of C.S.S.B. 7 is to improve the quality, safety, and efficiency of Medicaid and the Children’s Health Insurance Program (CHIP) in Texas. C.S.S.B 7 achieves this goal by transitioning the way the state pays for health care services under these programs to a performance-based payment system.
The goal of C.S.S.B. 8 is to improve the quality and efficiency of health care in Texas. The bill allows for, among other things, alternative payment mechanisms included bundled or global payment and quality-based payments as well as establishes the Texas Institute of Health Care Quality and Efficiency and a Health Care Collaborative.
It has been reported in the fiscal analysis of the bills implementing performance measures could help reduce Texas’ health care costs. CSSB 8 fiscal analysis shows a savings of $250,000 in the first year and around $700,000 for the following five years.