78th Legislative Session in Focus

FAMILY BUDGET CRISIS ALSO NEEDS ATTENTION

Texas families under increased assault by high fees, rates as markets deregulate

AUSTIN, TX -- "Did the Legislature work to fix the family budget crisis?" -- will be the question by which the success or failure of the 78th legislative session will be judged amidst the state's fiscal crisis and temptation by lawmakers to seek quick fixes that threaten family finances.

Reggie James, director of the Southwest Regional Office of Consumers Union, told reporters at a briefing Friday that there is plenty the Legislature can do in 2003 to improve the lot for consumers, starting with low to moderate income families. "The family budget crisis is just as real and urgent to Texans as the state's financial crisis," he said. "Let's make sure not to fix the state budget crisis by busting the family budget even further."

A key area will be ensuring the excesses of deregulated or inadequately regulated industries -- such as insurance, telecommunications, and electric -- are kept in check and even reversed, according to James.

"Consumers won't be better off if we nickel-and-dime them with fees galore, if we fail to close the loopholes that allow insurance companies to raise rates at will, or if we limit their access to the courts when they are wronged by medical practitioners," James said.

"They won't be better off if the Legislature cuts regulatory agencies budgets or cuts programs or if it leaves thousands of Texas children in the cold without medical insurance," he added.

Consumers Union will focus early in the session on seeking real solutions to the two emergency items: insurance reform and changes in the medical malpractice system.

"The insurance industry and its powerful lobby have been busy lately clouding the issue of insurance reform," James said. "We will measure any proposed bill against our five-point plan for real insurance reform. Our bottom line is simple: we must work to bring rates down dramatically."

On the issue of medical malpractice, James said that real reform must take into account all elements that affect the cost of insurance -- primary quality of care and insurance regulation -- and secondarily, legal reforms. "Let's reduce rates, not rights," he said. "The system cannot be fixed by leaving quality of care out of the equation. Reforms should start there."

A few other key consumer issues for the session, detailed in Consumers Union's issues booklet available at http://www.consumersunion.org/finance/swro_pp_intro.htm, include:

• Strengthening consumer protections related to the telephone and electric markets.
  
• Expanding access to Texas' health care independent review system.
  
• Lowering the cost of prescription drugs for families and state government.
  
• Reforming sales and ownership practices related to manufactured homes.
  
• Closing usury loopholes used by out-of-state banks to market pay day loans.
  
• Curbing the high cost of vehicle finance add-ons.
  
• Reforming Texas' funeral regulatory agency and adopting a "bill of rights."

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NOTE TO NEWS MEDIA: Our issue papers for the 2003 legislative session are available by calling (512) 477-4431, ext. 114.

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.

View Files Sorted By Office: Consumers Union OPI, New York - Washington DC Office
West Coast Regional Office - Southwest Regional Office - Consumer Policy Institute

  
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