SF1589

This bill, introduced in the Minnesota Senate, relates to healthcare pricing transparency and medical debt collection practices. It amends Minnesota Statutes and proposes new regulations for hospitals, outpatient surgical centers, and medical or dental practices.

Key Provisions:

1. Transparency in Standard Charges:

   • Expands requirements for hospitals, outpatient surgical centers, and large medical or dental practices to publicly disclose their standard charges for procedures and services.
   • Defines "standard charges" to include various negotiated rates, cash prices, and chargemaster prices.
   • Lowers the revenue threshold for practices required to comply (starting with those making over $50 million annually and lowering to any revenue by 2027).

2. Prohibition on Debt Collection for Noncompliant Providers:

   • Medical or dental practices that fail to comply with transparency requirements are prohibited from initiating or pursuing collections on patient debts.
   • Patients or guarantors can take legal action if a provider violates this prohibition, and courts can order refunds and penalties equal to the disputed debt amount.
   • Courts can dismiss collections lawsuits brought against noncompliant providers and require them to cover attorney fees.

3. Additional Safeguards in Medical Debt Collection:

   • Before a hospital can collect medical debt through court action, garnishment, or third-party debt collection, it must provide an affidavit certifying:
     • Compliance with pricing transparency requirements.
     • Proper billing of all insurance providers.
     • The patient had an opportunity to apply for financial assistance or establish a payment plan.
     • The debt is valid and unlikely to be exempt from garnishment.
   • Strengthens protections for patients against unfair debt collection practices.

This bill aims to improve price transparency in healthcare, prevent unreasonable debt collection practices, and provide legal avenues for patients to challenge improper billing actions.