California Senate Bill SB1097

California 2019-2020 Regular Session

• Introduced: 2/19/20
• Refer: 2/27/20

Caption

Medical services: credit or loan.

Impact

The amendments proposed by SB 1097 are significant as they remove previous restrictions that only permitted credit applications to be arranged within treatment facilities. By allowing such arrangements outside of clinical settings, the bill presents an opportunity for patients to access financing options more freely, which could potentially lead to increased access to necessary medical treatments. Moreover, it reinforces the requirement that patients must receive written documentation regarding their treatment plans, encouraging transparency in medical billing and credit arrangements. This could also prompt healthcare providers to better coordinate financial discussions with patients to enhance informed decision-making.

Summary

Senate Bill No. 1097, introduced by Senator Durazo, seeks to amend Section 654.3 of the Business and Professions Code related to medical services and financing options available to patients. The bill explicitly allows healing arts licensees to facilitate the arrangement of credit or loans for medical services beyond the constraints of being limited to their offices. It mandates that patients be provided a written treatment plan before being referred to a financial product, ensuring full awareness of the services to be charged and their associated costs. This shift aims to enhance patient autonomy in decision-making by broadening the circumstances under which credit can be established for medical services.

Contention

Despite its intended benefits, the bill raises potential concerns among stakeholders about the implications for patient financial literacy and the risk of incurring debt. Critics may argue that eliminating the restriction on where credit can be established could lead to aggressive marketing of credit options, potentially preying on vulnerable patients who may not fully grasp the terms and conditions they are entering into. Furthermore, the inclusion of deferred interest provisions could lead to complications in understanding patient liabilities if not clearly communicated. Hence, while the bill aims to empower patients, it is crucial to ensure that adequate protections and educational resources are in place to prevent financial exploitation.