Page 1 April 28, 2022 HB 22-1285 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Revised Fiscal Note (replaces fiscal note dated April 11, 2022) Drafting Number: Prime Sponsors: LLS 22-0589 Rep. Neville; Esgar Sen. Moreno; Cooke Date: Bill Status: Fiscal Analyst: April 28, 2022 Senate HHS 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, allows a patient to pursue legal action, and requires certain remedies from hospitals for violations. The bill may increase state workload and revenue beginning in FY 2022-23. Appropriation Summary: No appropriation is required. Fiscal Note Status: The revised fiscal note reflects the reengrossed bill. Summary of Legislation Under federal law, hospitals are required to post standard charges on a publically available website as of January 1, 2021. On or after February 15, 2023, the bill prohibits a critical access hospital licensed and certified by the Department of Public Health and Environment (CDPHE) from pursuing a collection action against a patient owing debt if the hospital was not in material compliance with hospital price transparency laws on the date that the items or services were provided to the patient, and allows a patient to file suit to determine if the hospital was out of compliance with these laws. If a hospital is found to be out of material compliance, the hospital is required to: refund any amount of the debt that has been paid and pay a penalty to the payer 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. Page 2 April 28, 2022 HB 22-1285 State Revenue and Expenditures 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. Effective Date The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed. 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.