Senator Jane Nelson
P.O. Box 12068, State Capitol
Austin, Texas 78711
Tel. (512) 463-0112
Fax (512) 463-0923


February 16, 2011
Contact: Janet Elliott (512) 463-0112

Senator Nelson Files Bills to Lower Costs, Improve Health Care Quality

AUSTIN — Texas State Senator Jane Nelson, R-Flower Mound, today filed two bills to re-structure the health care payment system to increase savings and improve medical outcomes.

"These bills move us toward a payment system that rewards quality outcomes rather than quantity of services, along with reducing our costs for unnecessary tests and preventable hospital readmissions. We need to refocus our payment system on the true goal -- healthy outcomes for Texans," said Senator Nelson.

Senate Bill 7 re-focuses the payment system for Medicaid and the Children's Health Insurance Program to discourage waste and abuse and to encourage healthy outcomes for clients. Senate Bill 8 re-names and re-aligns the Health Care Policy Council into the Texas Institute of Health Care Quality and Efficiency, giving it a new mission of improving outcomes for state employees, teachers and others.

Key provisions of SB 7 would:

Key provisions of SB 8 would:

"If we fail to address these structural flaws, our health care costs will continue to soar, which either will mean ill-advised tax increases or deep cuts to funding for schools, roads, public safety and other priorities," said Senator Nelson.

Senator Nelson represents Senate District 12, which includes portions of Denton and Tarrant counties. She is Chairman of the Senate Health & Human Services Committee.