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SF1589 (Legislative Session 94 (2025-2026))

Requirements modification for making current standard charges available to the public

Related bill: HF1077

AI Generated Summary

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.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 19, 2025SenateFloorActionIntroduction and first reading
February 19, 2025SenateFloorActionReferred toHealth and Human Services

Citations

 
[
  {
    "analysis": {
      "added": [
        "Expands definitions and clarifies what constitutes a standard charge.",
        "Requires more medical practices to disclose standard charges."
      ],
      "removed": [],
      "summary": "This bill modifies the requirements for making current standard charges available to the public as stated in section 62J.826.",
      "modified": [
        "Adjustments to compliance requirements and penalties for non-compliance."
      ]
    },
    "citation": "62J.826"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definitions related to collection actions outlined in section 332.31.",
      "modified": [
        "Clarifies terms used in relation to debt collection within the bill."
      ]
    },
    "citation": "332.31"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Sections 144.50 to 144.58 are referenced to define what constitutes a hospital within the context of this bill.",
      "modified": [
        "Clarifies the scope of what qualifies as a hospital."
      ]
    },
    "citation": "144.50 to 144.58"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References section 144.587 in relation to hospital compliance requirements before taking collection actions.",
      "modified": [
        "Ensures compliance with existing financial and charity care regulations before pursuing debt collection."
      ]
    },
    "citation": "144.587"
  }
]

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