HF1077

HF1077 (Legislative Session 94 (2025-2026))

Requirements for making current standard charges available to the public modified, collection actions prohibited in certain circumstances, and actions by patients and guarantors authorized.

Related bill: SF1589

AI Generated Summary

This legislative bill in simple terms aims to regulate how medical and dental practices handle their billing and charge transparency, and it sets guidelines for collections practices for medical debts. Here’s a breakdown of the key changes proposed:

Transparency: Medical and dental practices must publicly share their standard charges for all services and items as listed in their chargemaster. This includes negotiated rates with third-party payers and cash prices.
Qualifying Practices: The transparency requirement applies to certain practices based on their annual revenue, which varies over time. Initially, practices earning over $50 million must comply, lowering to any revenue amount by 2027.
Prohibition of Collection Actions: If a medical or dental practice does not comply with the transparency requirements, they cannot engage in collection actions (like using a collections agency or taking legal action) for debts related to the services provided during non-compliance.
Rights of Patients and Guarantors: Patients or guarantors can take legal action if they believe a practice has unlawfully initiated collection actions. If the court agrees, the practice must refund any payments made and could be subject to penalties.
Medical Debt Collection in Hospitals: Hospitals must provide detailed compliance information before taking legal action for medical debt collection, including assurance of billing accuracy, third-party payer involvement, and reasonable payment plan options.

Overall, this bill aims to enhance transparency regarding medical and dental charges, protect patients from aggressive collection practices for charges they may not have been made aware of, and ensure fair treatment in debt repayment.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 16, 2025	House	Floor	Action	Introduction and first reading, referred to	Health Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "Addresses penalties for non-compliance with public charge posting."
      ],
      "removed": [
        "Eliminates ambiguity regarding posting format."
      ],
      "summary": "This bill modifies requirements for making current standard charges available to the public under section 62J.826.",
      "modified": [
        "Clarifies the scope of entities that must comply."
      ]
    },
    "citation": "62J.826"
  },
  {
    "analysis": {
      "added": [
        "Prohibits collection actions for non-compliant entities."
      ],
      "removed": [
        "Doesn't affect billing practices if no collection action occurs."
      ],
      "summary": "This section establishes consequences for failure to make standard charges available as required under section 62J.826.",
      "modified": [
        "Outlines patient recourse options."
      ]
    },
    "citation": "62J.827"
  },
  {
    "analysis": {
      "added": [
        "Specifies certification requirements for debt-related actions."
      ],
      "removed": [
        "Lessens paperwork for compliant hospitals."
      ],
      "summary": "Amends requirements related to the collection of medical debt as outlined in section 144.588.",
      "modified": [
        "Refines criteria for referring patient accounts to third-party debt collection."
      ]
    },
    "citation": "144.588"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References licenses for hospitals under sections 144.50 to 144.58.",
      "modified": []
    },
    "citation": "144.50 to 144.58"
  }
]