Rising health care costs are straining Texas businesses, with many passing on higher premiums and deductibles to employees. For Kyle Citrano, co-owner of three restaurants in Waco, the expenses to operate are rising across the board, but providing employee health insurance is a growing cost that feels nearly impossible to manage.

Rising Health Care Costs

The health insurance costs to Citrano’s business have risen about 5% since reopening from COVID-19 shutdowns. However, this increase is because he has been forced to share the burden with his employees by passing on higher premiums and deductibles. Citrano employs roughly 425 people across his three locations, but only 19 employees have opted in to the health insurance policy due to low participation and high costs.

Experts and employers say consolidation in the health care industry, such as among hospitals and companies acting as middlemen between providers and employers, is driving up insurance premiums and the cost of health services. A lack of transparency around how providers, insurance companies, and other industry players set prices for medical care and prescriptions makes it harder for patients and employers to negotiate the best price, further raising costs.

The Texas Legislature is seeking solutions to address the rising health care costs. State Rep. James Frank, chair of the House Select Committee on Affordable Healthcare, said the goal is to help foster a healthier health care market and make care more affordable. With 89% of Texas voters concerned about the cost of health care, according to a January Texas Politics Project poll, the issue is a top priority for the state.

Original reporting: Texarkana Gazette — read the source article.