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April 11, 2022 HB 22-1285
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0589
Rep. Neville; Esgar
Sen. Moreno; Cooke
Date:
Bill Status:
Fiscal Analyst:
April 11, 2022
House Health & Insurance
Annie Scott | 303-866-5851
Annie.Scott@state.co.us
Bill Topic: PROHIBIT COLLECTION HOSPITAL NOT DISCLOSING PRICES
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
This bill prohibits a hospital from pursuing a collection action against a patient owing
debt if the hospital was not in compliance with federal price transparency laws on the
date that the items or services were provided to the patient, and requires certain
remedies from hospitals for violations. The bill will increase state expenditures
beginning in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $18,015 to the Department of
Public Health and Environment.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 22-1285
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue
- -
Expenditures Cash Funds $18,015 -
Centrally Appropriated $9,237 -
Total Expenditures $27,252 -
Total FTE 0.2 FTE -
Transfers - -
Other Budget Impacts - -
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April 11, 2022 HB 22-1285
Summary of Legislation
Under federal law, hospitals are required to post standard charges on a publically available website
as of January 1, 2021. The bill prohibits a hospital and related entities from pursuing a collection action
against a patient owing debt if the hospital was not in compliance with hospital price transparency
laws on the date that the items or services were provided to the patient, and requires that a hospital:
refund the any amount of the debt that has been paid and pay a penalty to the patient in an amount
equal to the total amount of the debt;
dismiss any court action and pay any attorney fees and costs incurred by the patient relating to
the action; and
remove any report made to a consumer reporting agency relating to the debt from the patient's
credit report.
The bill adds an unfair practice for debt collectors to the Colorado Consumer Credit Code for attempts
to collect a debt in violation of the provisions of this bill. The Department of Public Health and
Environment (CDPHE) may consider whether the hospital is or has been in compliance with hospital
price transparency laws during the renewal process for a hospital's license or certification.
State Expenditures
The bill increases state expenditures in the CDPHE by $27,252 in FY 2022-23 only, paid from the
General Licensure Cash Fund. Expenditures are shown in Table 2 and detailed below.
Department of Public Health and Environment. In FY 2022-23 only, the CDPHE will require 0.2 FTE
to conduct stakeholder engagement and complete the rulemaking process under the Board of Health.
This fiscal notes assumes that it is necessary to update rules to clarify that a hospital’s compliance with
the bill may be examined upon license renewal.
Department of Law. The department is responsible for enforcing the Consumer Credit Code and may
see an increase in complaints due to this bill. Any increase in workload can be accommodated within
existing resources.
Judicial Department. Workload in the Judicial Department may increase to the extent that civil cases
are filed to seek the remedies allowed under the bill. The number of cases are expected to be minimal
and no additional appropriations are required. Revenue from civil filing fees may also increase
minimally, and are subject to TABOR.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 2.
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April 11, 2022 HB 22-1285
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State Appropriations
For FY 2022-23, the bill requires an appropriation of $18,015 from the General Licensure Cash Fund to
the Department of Public Health and Environment, and 0.2 FTE.
State and Local Government Contacts
Health Care Policy and Financing Information Technology
Judicial Law
Public Health and Environment
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.