Texas Health Care Committee: A Two-Day Deep Dive Into Rising Costs

Recently, I spent two days observing a new Texas House Select Committee on Health Care Affordability, chaired by Representative James Frank. What I witnessed was something I don't say lightly: a genuinely serious, bipartisan effort by Texas legislators to understand why healthcare costs have become backbreaking for everyday Texans, and to build the factual foundation to fix it.

Here's what stood out to me.

The committee made clear from the start that it would not rush to policy proposals or assign blame. Instead, members said they want to understand the data and root causes. This framing is exactly right: until we agree on the problem, we're unlikely to find any lasting solutions.

Experts from Yale University, the Kaiser Family Foundation, and Texas 2036 laid out the data: the U.S. spends nearly twice as much on healthcare per person as comparable countries, and Americans live shorter lives on average. As Dr. Zach Cooper of Yale University put it: rising health care spending is "killing the American dream."

According to Dr. Cooper, hospital prices are the leading driver of a 320% increase in insurance premiums Americans have experienced over the past 25 years. Hospital prices have risen faster than prices in nearly every other sector of the economy. Physician prices, by contrast, have largely tracked with inflation.

These data matter as underlying causes of healthcare increases are often overlooked.

Here in Texas, a family with employer-sponsored coverage is now facing premiums approaching $27,000 a year. That's roughly what you'd pay for a new car, every single year. And the average family has about $8,000 in liquid assets to their name. Roughly 42% of privately insured healthcare dollars go to hospital care, 31% to physician services, and 23% to prescription drugs.

Dr. Cooper echoed Warren Buffett's famous line that the American healthcare system is a tapeworm on economic competitiveness.

In fact, one of the most powerful themes across both days was that the healthcare market, as currently structured, does not function like a normal market. Consumers have almost no ability to shop or compare. Prices are not transparent.

The committee heard that roughly 1,300 hospital mergers have occurred since 2000, and that about 20% of those were likely to raise prices by reducing competition. When hospitals gain market power, prices go up. When premiums rise, workers absorb those costs in reduced wages and, in some cases, job losses. The burden falls hardest on working Texans.

I was glad to hear committee members across the aisle pushing on this.it’s exactly the kind of market structure problem that TAHC exists to address.

Day two focused on the insurance market, and the testimony was eye-opening.

An actuary representing the American Academy of Actuaries did not mince words: premiums reflect costs, they don't drive them. If we want premiums to come down, we have to focus on what's driving costs. That means keeping every effective market-based tool available and not taking options off the table before we've had a chance to evaluate them.

I'm also pleased to share that I will be testifying before the Texas Senate Health and Human Services Committee, chaired by Senator Lois Kolkhorst, at the end of this month. I'll be representing the voice of individuals, families, and small business owners who need the Texas Legislature to deliver real solutions this session.

The data are on the table. The next step will be policy, and TAHC will be there every step of the way to advocate for market-based approaches that put consumers first.

Thank you for your continued trust and support. As always, I welcome your feedback and encourage you to share this newsletter with anyone who cares about the future of healthcare in Texas.