As reported in the Dallas Morning News, the Texas Sunset Advisory Commission said the lack of state authority over PPOs is “outdated” in the current health care environment and may result in harm to a large number of consumers if the situation remains unchanged. This is a loophole that really needs to be closed, and it’s encouraging that the staff of the Commission recognizes this. Of course, that’s not at all the same as having the politically-appointed members of the Commission taking action. Here are excerpts from the story:
A report from the commission on the Texas Department of Insurance called for the state agency to begin licensing of all PPOs in the state similar to the way HMOs are now regulated.
It also called for changes in state regulation of auto and home insurance rates that Sunset Commission staffers said would improve the current system for setting rates. Under the current system, called “file-and-use,” insurers can put rate hikes into effect immediately after notifying the state Insurance Department.