HB 985 introduces site-neutral Medicaid reimbursement rates for outpatient services to align payments at hospital-owned outpatient facilities with those provided by independent, physician-owned practices. This measure applies when the services are not reliant on specialized facility technology or when no evidence-based justification exists for different rates. The bill also requires a feasibility study on extending site-neutral payment policies to private health insurance plans and mandates reports on potential cost savings for healthcare consumers. It includes provisions for regulatory adjustments and oversight by the Texas Health and Human Services Commission and other state entities.