During the last legislative session, the Texas House of Representatives made big strides when it came to healthcare policy. Amid a pandemic and some of the highest unemployment rates in the country, legislators took on a broken system with a series of transformative new laws that protected healthcare alternatives, demanded price transparency, and capped insulin costs. But, as the number of state unemployment claims still continue to go up, it’s clear that too many Texans are going without care. It’s time for Texas to tackle the cost of medical care by using free market ideals to drive down prices and ensure that all Texans can access healthcare.
After a 22 year career working in and around politics and public policy, I’ve found that politicians across the aisle agree on one thing: our healthcare system is broken. As increasingly complicated red tape keeps patients in the dark about their medical costs and coverage, prices have skyrocketed and quality of care has tanked. Today, throughout the United States, medical practice administrators and insurance middlemen set the cost to prioritize profit over affordability. This infringes upon the relationship between doctor and patient while leaving many unable to pay the bills. That’s why 66.5% of all bankruptcies in the United States are tied to medical issues.
As a self-employed consultant and a proud mother of two, I’ve faced the burden of these healthcare costs firsthand. Despite being fit and healthy, I’ve learned that healthcare is complicated for a lot of people even though it shouldn’t be. And I’ve learned that it becomes even more difficult when you have children in the mix. As a mother, I have the responsibility to not only make informed decisions for myself, but also for my children. The duty falls on me to raise independent-decision makers that are inquisitive, savvy, and checked-in when it comes to their health (that’s the dream!). But it’s hardly that easy.
It wasn’t until I got introduced to free market options, like medical cost sharing and direct primary care, that I felt comfortable going down an entrepreneurial path. Medical cost sharing enables people to share the costs of large and unexpected bills, while avoiding the inefficiencies that come from insurance plans. It’s definitely not insurance, but allowed me and my children to feel comfortable, knowing that we had a community behind us were something to happen.
Direct primary care (DPC) and virtual primary care (VPC) are alternative payment models that allow you to pay on a monthly membership basis. About 70 percent of all direct primary care practices have been established in the last four years. This rapid growth does not come as a surprise, likely due to the realization that the average family premium for traditional health insurance has increased by a shocking 54 percent since 2009. Conversely, the DPC and VPC models embody the idea of knocking down the layers of complexity to emphasize your family values, transparency in pricing, and a holistic experience.
Since joining a medical cost sharing group called Sedera, my monthly savings, on average, have been 25%. Ultimately, innovative approaches like medical cost sharing offer a viable alternative to insurance for many people. As Texas works to transform its healthcare system and improve medical care access across the state, lawmakers should consider how alternative programs can keep healthcare costs down.
In Montana, lawmakers recently led the way in encouraging alternative, market-based healthcare solutions. Pursuing policies that support “direct patient care” programs, the state recognized how free market healthcare options can help keep medical costs down while providing better, more affordable care.
Texas must follow suit. In the next legislative session, lawmakers must consider how market-based solutions can revolutionize the healthcare industry. Innovations can combat the rising cost of healthcare, and as more Texans find themselves without employer-provided health insurance, the state needs to identify a way to decrease medical costs.
These simple concepts of transparency and innovation will make our system better, and our families healthier — and set us on a path of achieving a healthcare system that we are proud to stand behind.
For Texans, I know that there’s nothing more precious than health and family. We have to entrust women, mothers, and everyone else with the tools they need to be informed and empowered to make the best decisions for themselves and their loved ones.
Annie Casteel is a self-employed consultant who advises non-profit organizations, professional associations, and political candidates. Based in Austin, Texas and a proud mother of two, Casteel holds a bachelor’s degree in political science from Ohio State University.
