2024 Senate Bill 952

AI Analysis – Experimental

Senate Bill No. 952 aims to enforce hospital compliance with price transparency laws by prohibiting debt collection actions for services provided during periods of non-compliance. The bill, referred to as the "Hospital Price Transparency Act," defines key terms such as "collection action," "collection agency," and "hospital price transparency laws," aligning with federal regulations and the Centers for Medicare and Medicaid Services (CMS) standards. The legislation stipulates that hospitals not materially compliant with price transparency laws cannot initiate or pursue debt collection actions against patients for services rendered during non-compliance periods. This includes prohibiting referrals to debt collectors, legal actions, and reporting to consumer reporting agencies.

The bill outlines specific exemptions for certain entities and activities, such as officers or employees of creditors collecting debts in the name of the creditor, and persons acting as collection agencies for related entities. It also provides a mechanism for patients to file civil actions if they believe a hospital was non-compliant at the time of service, during which the hospital must halt any collection actions. If a court finds the hospital non-compliant, the hospital must refund any payments made, pay penalties, dismiss related court actions, and remove any negative credit reports.

The act does not prevent hospitals from billing patients or third-party payers for services provided, nor does it require refunds if no collection action is taken in violation of the act. The legislation will apply to critical access hospitals six months after its effective date, ensuring a phased implementation. This bill aims to enhance transparency and protect patients from unfair debt collection practices, potentially benefiting patients while imposing compliance costs on hospitals.