First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0554.04 Kristen Forrestal x4217 SENATE BILL 23-252 Senate Committees House Committees Health & Human Services A BILL FOR AN ACT C ONCERNING HOSPITAL MEDICAL PRICE TRANSPARENCY .101 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill requires hospitals to make public a list of all standard charges for all hospital items and services provided to patients. The standard charges include the gross billed charge, the payer-specific negotiated charge, the minimum and maximum negotiated charges, and the discounted cash price. The bill also requires each hospital to maintain and make public a list of at least 300 shoppable services provided by the hospital or, if the hospital does not provide 300 shoppable services, all of the hospital's shoppable services. Each hospital is required to report its SENATE SPONSORSHIP Van Winkle and Gonzales, HOUSE SPONSORSHIP Daugherty and Hartsook, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. updated lists to the department of health care policy and financing (state department). The bill requires the state department to monitor hospital compliance with the price transparency requirements. If the state department determines that a hospital is not in compliance, the state department is required to issue a written notice to the hospital and require the hospital to submit a corrective action plan. The bill repeals sections of statute regarding hospital price transparency and debt collection that are currently under the administration and authority of the department of public health and environment and relocates these sections so that hospital price transparency and debt collection are under the state department. The bill makes a violation of the hospital transparency requirements outlined in the bill a deceptive trade practice under the "Colorado Consumer Protection Act". Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 6-1-105, add2 (1)(uuu) as follows:3 6-1-105. Unfair or deceptive trade practices. (1) A person4 engages in a deceptive trade practice when, in the course of the person's5 business, vocation, or occupation, the person:6 (uuu) V IOLATES SECTION 25.5-1-904.7 SECTION 2. Repeal of provisions being relocated in this act.8 In Colorado Revised Statutes, repeal part 8 of article 3 of title 25.9 SECTION 3. In Colorado Revised Statutes, add with amended10 and relocated provisions part 9 to article 1 of title 25.5 as follows:11 PART 912 HOSPITAL PRICE TRANSPARENCY13 25.5-1-901. [Formerly 25-3-801] Legislative declaration.14 (1) The general assembly finds and declares that:15 (a) Section 1001 of the "Patient Protection and Affordable Care16 Act", of 2010", Pub.L. 111-148, as amended by section 10101 of the17 SB23-252-2- "Health Care and Education Reconciliation Act of 2010", Pub.L.1 111-152, amended Title XXVII of the "Public Health Service Act",2 Pub.L. 78-410, in part, by adding a new section 2718 (e), requiring, in3 part, that each hospital operating within the United States establish,4 update, and make public a list of the hospital's standard charges for the5 items and services that the hospital provides;6 (b) Effective January 1, 2021, the federal centers for medicare and7 medicaid services published the final rule to implement the law, codified8 at 45 CFR 180;9 (c) In its summary of the final rule, CMS states that information10 on hospital standard charges is necessary for the public to "make more11 informed decisions about their care" and that the "impact of these final12 policies will help to increase market competition, and ultimately drive13 down the cost of health care services, making them more affordable for14 all patients";15 (d) On July 9, 2021, President Biden, building upon efforts of past16 presidents, issued the "Executive Order on Promoting Competition in the17 American Economy", directing the secretary of the United States18 department of health and human services to support new and existing19 price transparency initiatives for hospitals;20 (e) Health-care price transparency is in the best interest of all21 Coloradans, including:22 (I) The state government, which purchases health-care services for23 almost a quarter ONE-FOURTH of all Coloradans;24 (II) Colorado businesses, which fund employee medical expenses;25 and26 (III) Colorado residents, who ultimately bear the brunt of high27 SB23-252 -3- health-care costs in the form of higher taxes, lower wages, and residents'1 own out-of-pocket spending;2 (f) Moreover, health-care prices in Colorado are among the3 highest in the nation;4 (g) However, not all Colorado hospitals are in compliance with all5 of the disclosure requirements under federal law and other state laws6 governing health-care price transparency; and7 (h) This lack of compliance with health-care price transparency8 laws by Colorado hospitals decreases the likelihood that Colorado9 consumers will be fully aware of affordable health-care options before10 purchasing items and services from hospitals, placing health-care11 consumers at greater risk of collection actions and other adverse actions12 relating to unpaid medical bills.13 (2) Therefore, the general assembly finds and declares that it is14 imperative to protect Colorado health-care consumers from collection15 actions and other adverse actions taken by Colorado hospitals during the16 time when the hospital was not in material compliance with hospital price17 transparency laws intended to protect health-care consumers.18 25.5-1-902. [Formerly 25-3-802] Definitions. As used in this19 section PART 9, unless the context otherwise requires:20 (1) "A NCILLARY SERVICE" MEANS A HOSPITAL ITEM OR SERVICE21 THAT A HOSPITAL CUSTOMARILY PROVIDES AS PART OF A SHOPPABLE22 SERVICE.23 (2) "C HARGEMASTER" MEANS A UNIFORM SCHEDULE OF CHARGES24 REPRESENTED BY A HOSPITAL AS THE HOSPITAL 'S GROSS BILLED CHARGE25 FOR A GIVEN HEALTH-CARE SERVICE, REGARDLESS OF PAYER AND BEFORE26 ANY DISCOUNTS OR NEGOTIATIONS ARE APPLIED .27 SB23-252 -4- (3) "CODE" MEANS THE BILLING OR ACCOUNTING CODE THAT A1 HOSPITAL USES FOR A PARTICULAR HOSPITAL ITEM OR SERVICE . "CODE"2 INCLUDES THE CPT CODE, THE HCPCS CODE, THE DRG CODE, THE3 NATIONAL DRUG CODE, OR OTHER COMMON IDENTIFIER.4 (1) (4) "Collection action" means any of the following actions5 taken with respect to a debt for items and services that were purchased6 from or provided to a patient by a hospital on a date during which the7 hospital was not in material compliance with hospital price transparency8 laws:9 (a) Attempting to collect a debt from a patient or patient guarantor10 by referring the debt, directly or indirectly, to a debt collector, a collection11 agency, or other third party retained by or on behalf of the hospital;12 (b) Suing the patient or patient guarantor or enforcing an13 arbitration or mediation clause in any hospital documents, including14 contracts, agreements, statements, or bills; or15 (c) Directly or indirectly causing a report to be made to a16 consumer reporting agency.17 (2) (5) (a) "Collection agency" means any:18 (I) Person who engages in a business, the principal purpose of19 which is the collection of debts; or20 (II) Person who:21 (A) Regularly collects or attempts to collect, directly or indirectly,22 debts owed or due or asserted to be owed or due to another;23 (B) Takes assignment of debts for collection purposes;24 (C) Directly or indirectly solicits for collection debts owed or due25 or asserted to be owed or due to another; or26 (D) Collects debt for the department of personnel.27 SB23-252 -5- (b) "Collection agency" does not include:1 (I) Any officer or employee of a creditor while, in the name of the2 creditor, collecting debts for such creditor;3 (II) Any person while acting as a collection agency for another4 person, both of whom are related by common ownership or affiliated by5 corporate control, if the person acting as a collection agency does so only6 for creditors to whom it is so related or affiliated and if the principal7 business of the person is not the collection of debts;8 (III) Any officer or employee of the United States or any state to9 the extent that collecting or attempting to collect any debt is in the10 performance of the officer's or employee's official duties;11 (IV) Any person while serving or attempting to serve legal process12 on any other person in connection with the judicial enforcement of any13 debt;14 (V) Any debt-management services provider operating in15 compliance with or exempt from the "Uniform Debt-Management16 Services Act", part 2 of article 19 of title 5;17 (VI) Any person collecting or attempting to collect any debt owed18 or due or asserted to be owed or due another to the extent that:19 (A) The activity is incidental to a bona fide fiduciary obligation20 or a bona fide escrow arrangement;21 (B) The activity concerns a debt that was extended by the person;22 (C) The activity concerns a debt that was not in default at the time23 it was obtained by the person; or24 (D) The activity concerns a debt obtained by the person as a25 secured party in a commercial credit transaction involving the creditor;26 (VII) Any person whose principal business is the making of loans27 SB23-252 -6- or the servicing of debt not in default and who acts as a loan1 correspondent, seller and servicer for the owner, or holder of a debt that2 is secured by a deed of trust on real property, whether or not the debt is3 also secured by an interest in personal property;4 (VIII) A limited gaming or racing licensee acting pursuant to5 article 33 of title 44.6 (c) Notwithstanding the provisions of subsection (2)(b) (5)(b) of7 this section, "collection agency" includes any person who, in the process8 of collecting the person's own debts, uses another name that would9 indicate that a third person is collecting or attempting to collect such10 debts.11 (3) (6) (a) "Consumer reporting agency" means any person that,12 for monetary fees or dues or on a cooperative nonprofit basis, regularly13 engages, in whole or in part, in the practice of assembling or evaluating14 consumer credit information or other information on consumers for the15 purpose of furnishing consumer reports to third parties. "Consumer16 reporting agency" includes any person defined in 15 U.S.C. sec. 1681a (f)17 or section 5-18-103 (4).18 (b) "Consumer reporting agency" does not include any business19 entity that provides check verification or check guarantee services only.20 (7) "CPT CODE" MEANS A MEDICAL CODE THAT IS USED TO REPORT21 MEDICAL, SURGICAL, AND DIAGNOSTIC PROCEDURES AND SERVICES FOR22 THE PURPOSE OF HEALTH-CARE BILLING.23 (4) (8) (a) "Debt" means any obligation or alleged obligation of24 a consumer to pay money arising out of a transaction, whether or not the25 obligation has been reduced to judgment.26 (b) "Debt" does not include a debt for business, investment,27 SB23-252 -7- commercial, or agricultural purposes or a debt incurred by a business.1 (5) (9) "Debt collector" means any person employed or engaged2 by a collection agency to perform the collection of debts owed or due or3 asserted to be owed or due to another.4 (10) "D ISCOUNTED CASH PRICE" MEANS THE CHARGE THAT APPLIES5 TO AN INDIVIDUAL WHO PAYS CASH , OR A CASH EQUIVALENT , FOR A6 HOSPITAL ITEM OR SERVICE.7 (11) "DRG CODE" MEANS THE DIAGNOSIS-RELATED GROUP CODE,8 WHICH IS A PATIENT CLASSIFICATION SCHEME THAT PROVIDES A MEANS OF9 RELATING THE TYPE OF PATIENTS A HOSPITAL TREATS TO THE COSTS10 INCURRED BY THE HOSPITAL.11 (6) (12) "Federal centers for medicare and medicaid services" or12 "CMS" means the centers for medicare and medicaid services in the13 United States department of health and human services.14 (13) "G ROSS BILLED CHARGE" MEANS THE MAXIMUM CHARGE15 THAT ANY PATIENT WILL BE BILLED FOR A HOSPITAL ITEM OR SERVICE16 THAT IS REFLECTED ON A HOSPITAL 'S CHARGEMASTER, ABSENT ANY17 DISCOUNTS.18 (14) "HCPCS CODE" MEANS THE HEALTHCARE COMMON19 P ROCEDURE CODING SYSTEM DEVELOPED BY THE CMS FOR IDENTIFYING20 HEALTH-CARE SERVICES IN A CONSISTENT AND STANDARDIZED MANNER .21 (15) "H EALTH INSURANCE PLAN" MEANS THE HEALTH COVERAGE22 BENEFITS INCLUDED IN A HEALTH INSURANCE PRODUCT WITH A23 PARTICULAR COST-SHARING STRUCTURE, PROVIDER NETWORK , AND24 SERVICE AREA.25 (16) "H EALTH INSURANCE PRODUCT " MEANS A PACKAGE OF26 HEALTH INSURANCE BENEFITS THAT ARE OFFERED USING A SPECIFIC27 SB23-252 -8- NETWORK TYPE WITHIN A PARTICULAR HEALTH SERVICE AREA .1 (7) (17) "Hospital" means, consistent with 45 CFR 180.20, a2 hospital:3 (a) Licensed or certified by the department OF PUBLIC HEALTH AND4 ENVIRONMENT pursuant to section 25-1.5-103 (1)(a); or5 (b) Approved by the department OF PUBLIC HEALTH AND6 ENVIRONMENT as meeting the standards established for licensing a7 hospital.8 (18) "H OSPITAL ITEM OR SERVICE" MEANS AN ITEM OR SERVICE,9 INCLUDING AN INDIVIDUAL ITEM OR SERVICE OR A SERVICE PACKAGE ,10 THAT MAY BE PROVIDED BY A HOSPITAL TO A PATIENT IN CONNECTION11 WITH AN INPATIENT ADMISSION OR AN OUTPATIENT VISIT , AS APPLICABLE,12 FOR WHICH THE HOSPITAL HAS ESTABLISHED A STANDARD CHARGE ,13 INCLUDING:14 (a) S UPPLIES AND PROCEDURES;15 (b) R OOM AND BOARD;16 (c) U SE OF THE HOSPITAL AND OTHER AREAS , THE CHARGES FOR17 WHICH ARE GENERALLY REFERRED TO AS "HOSPITAL FACILITY FEES";18 (d) S ERVICES OF PHYSICIANS AND NONPHYSICIAN PRACTITIONERS19 EMPLOYED BY THE HOSPITAL, THE CHARGES FOR WHICH ARE GENERALLY20 REFERRED TO AS "PROFESSIONAL CHARGES"; AND21 (e) A NY OTHER ITEM OR SERVICE FOR WHICH A HOSPITAL HAS22 ESTABLISHED A STANDARD CHARGE .23 (8) (19) "Hospital price transparency laws" means section 2718 (e)24 of the "Public Health Service (PHS) Act", Pub.L. 78-410, as amended,25 and rules adopted by the United States department of health and human26 services implementing section 2718 (e).27 SB23-252 -9- (9) (20) "Items and services" or "items or services" means "items1 and services" as defined in 45 CFR 180.20.2 (21) "M ACHINE-READABLE FORMAT " MEANS A DIGITAL3 REPRESENTATION OF INFORMATION IN A FILE THAT CAN BE IMPORTED OR4 READ INTO A COMPUTER SYSTEM FOR FURTHER PROCESSING . THE TERM5 INCLUDES .XML, .JSON, AND .CSV FORMATS.6 (22) "M AXIMUM NEGOTIATED CHARGE " MEANS THE HIGHEST7 CHARGE THAT A HOSPITAL HAS NEGOTIATED WITH ALL THIRD -PARTY8 PAYERS FOR A HOSPITAL ITEM OR SERVICE.9 (23) "M INIMUM NEGOTIATED CHARGE " MEANS THE LOWEST10 CHARGE THAT A HOSPITAL HAS NEGOTIATED WITH ALL THIRD -PARTY11 PAYERS FOR A HOSPITAL ITEM OR SERVICE.12 (24) "N ATIONAL DRUG CODE " MEANS THE UNIQUE ,13 THREE-SEGMENT IDENTIFIER NUMBER USED BY THE FEDERAL FOOD AND14 DRUG ADMINISTRATION TO IDENTIFY DRUGS THAT ARE MANUFACTURED ,15 PREPARED, PROPAGATED, COMPOUNDED, OR PROCESSED FOR SALE IN THE16 U NITED STATES.17 (25) "P AYER-SPECIFIC NEGOTIATED CHARGE" MEANS THE CHARGE18 THAT A HOSPITAL HAS NEGOTIATED WITH A SPECIFIC THIRD -PARTY PAYER19 UNDER EACH SPECIFIC HEALTH INSURANCE PLAN FOR A HOSPITAL ITEM OR20 SERVICE.21 (26) "S ERVICE PACKAGE" MEANS AN AGGREGATION OF INDIVIDUAL22 HOSPITAL ITEMS OR SERVICES INTO A SINGLE SERVICE WITH A SINGLE23 CHARGE FOR EACH SPECIFIC HEALTH INSURANCE PLAN .24 (27) "S HOPPABLE SERVICE" MEANS A SERVICE THAT MAY BE25 SCHEDULED BY A HEALTH-CARE CONSUMER IN ADVANCE .26 (28) "S TANDARD CHARGE " MEANS THE REGULAR CHARGE27 SB23-252 -10- ESTABLISHED BY THE HOSPITAL FOR A HOSPITAL ITEM OR SERVICE1 PROVIDED TO A SPECIFIC GROUP OF PAYING PATIENTS . THE TERM2 INCLUDES:3 (a) T HE GROSS BILLED CHARGE;4 (b) T HE PAYER-SPECIFIC NEGOTIATED CHARGE;5 (c) T HE MINIMUM NEGOTIATED CHARGE ;6 (d) T HE MAXIMUM NEGOTIATED CHARGE ; AND7 (e) T HE DISCOUNTED CASH PRICE.8 (29) "T HIRD-PARTY PAYER" MEANS AN ENTITY THAT IS , BY9 STATUTE, CONTRACT, OR AGREEMENT , LEGALLY RESPONSIBLE FOR10 PAYMENT OF A CLAIM FOR A HOSPITAL ITEM OR SERVICE .11 25.5-1-903. [Formerly 25-3-803] Failure to comply with12 hospital price transparency laws - prohibiting collection of debt -13 penalty. (1) (a) Except as provided in subsection (1)(b) of this section, 14 on and after August 10, 2022, A hospital that is not in material15 compliance with hospital price transparency laws on the date that items16 or services are purchased from or provided to a patient by the hospital17 shall not initiate or pursue a collection action against the patient or patient18 guarantor for a debt owed for the items or services.19 (b) This part 8 applies, on and after February 15, 2023, to critical20 access hospitals licensed and certified by the department pursuant to 4221 CFR 485 subpart F.22 (2) If a patient believes that a hospital was not in material23 compliance with hospital price transparency laws on a THE date on or24 after August 10, 2022, that items or services were purchased by or25 provided to the patient, and the hospital takes a collection action against26 the patient or patient guarantor, the patient or patient guarantor may file27 SB23-252 -11- suit to determine if:1 (a) The hospital was materially out of compliance with the2 hospital price transparency laws, and rules, and OR regulations on the date3 of service THE ITEMS OR SERVICES WERE PROVIDED ; and if4 (b) The noncompliance is related to the items or services. The5 hospital shall not take a collection action against the patient or patient6 guarantor while the lawsuit is pending.7 (3) A hospital that has been found by IF a judge or jury,8 considering compliance standards issued by the federal centers for9 medicare and medicaid services, FINDS A HOSPITAL to be materially out of10 compliance with hospital price transparency laws, and rules, and OR11 regulations, THE HOSPITAL SHALL:12 (a) Shall Refund the payer any amount of the debt the payer has13 paid and shall pay a penalty to the patient or patient guarantor in an14 amount equal to the total amount of the debt;15 (b) Shall Dismiss or cause to be dismissed any court action with16 prejudice and pay any attorney fees and costs incurred by the patient or17 patient guarantor relating to the action; and18 (c) Remove or cause to be removed from the patient's or patient19 guarantor's credit report any report made to a consumer reporting agency20 relating to the debt; AND21 (d) N OTIFY THE STATE DEPARTMENT OF THE MATERIAL22 NONCOMPLIANCE WITH HOSPITAL PRICE TRANSPARENCY LAWS , RULES, OR23 REGULATIONS.24 (4) Nothing in this part 8 PART 9:25 (a) Prohibits a hospital from billing a patient, patient guarantor,26 or third-party payer, including a health insurer, for items or services27 SB23-252 -12- provided to the patient; or1 (b) Requires a hospital to refund any payment made to the hospital2 for items or services provided to the patient, so long as no collection3 action is taken in violation of this part 8 PART 9.4 25.5-1-904. Transparency - hospitals - standard charges -5 shoppable services - enforcement. (1) O N OR BEFORE OCTOBER 1, 2023,6 EACH HOSPITAL SHALL MAKE PUBLIC :7 (a) A DIGITAL FILE IN A MACHINE-READABLE FORMAT THAT8 CONTAINS A LIST OF ALL STANDARD CHARGES FOR ALL HOSPITAL ITEMS OR9 SERVICES AS DESCRIBED IN SUBSECTION (2) OF THIS SECTION; AND10 (b) A CONSUMER-FRIENDLY LIST OF STANDARD CHARGES FOR A11 LIMITED SET OF SHOPPABLE SERVICES AS PROVIDED IN SUBSECTION (5) OF12 THIS SECTION.13 (2) (a) A HOSPITAL SHALL:14 (I) M AINTAIN A LIST OF ALL STANDARD CHARGES FOR ALL15 HOSPITAL ITEMS OR SERVICES IN ACCORDANCE WITH THIS SECTION ; AND16 (II) E NSURE THE LIST REQUIRED UNDER SUBSECTION (1)(b) OF THIS17 SECTION IS AVAILABLE AT ALL TIMES TO THE PUBLIC , INCLUDING BY18 POSTING THE LIST ELECTRONICALLY IN THE MANNER PROVIDED BY THIS19 SECTION.20 (b) T HE STANDARD CHARGES IN THE LIST REQUIRED BY21 SUBSECTION (1)(a) OF THIS SECTION MUST REFLECT THE STANDARD22 CHARGES APPLICABLE TO THAT LOCATION OF THE HOSPITAL , REGARDLESS23 OF WHETHER THE HOSPITAL OPERATES IN MORE THAN ONE LOCATION OR24 OPERATES UNDER THE SAME LICENSE AS ANOTHER HOSPITAL .25 (c) T HE LIST REQUIRED BY SUBSECTION (1)(a) OF THIS SECTION26 MUST INCLUDE, AS APPLICABLE:27 SB23-252 -13- (I) A DESCRIPTION OF EACH HOSPITAL ITEM OR SERVICE PROVIDED1 BY THE HOSPITAL; AND2 (II) T HE STANDARD CHARGES FOR EACH INDIVIDUAL HOSPITAL3 ITEM OR SERVICE WHEN PROVIDED IN EITHER AN INPATIENT SETTING OR AN4 OUTPATIENT SETTING, AS APPLICABLE, WITH:5 (A) T HE HOSPITAL'S MEDICARE REIMBURSEMENT RATE ;6 (B) T HE PAYER-SPECIFIC NEGOTIATED CHARGE LISTED BY THE7 NAME OF THE THIRD-PARTY PAYER AND THE HEALTH INSURANCE PLAN8 ASSOCIATED WITH THE CHARGE, DISPLAYED IN A MANNER THAT CLEARLY9 ASSOCIATES THE CHARGE WITH EACH THIRD -PARTY PAYER AND EACH10 HEALTH INSURANCE PLAN; AND11 (C) A CODE USED BY THE HOSPITAL FOR THE HOSPITAL ITEM OR12 SERVICE.13 (d) T HE LIST REQUIRED BY SUBSECTION (1)(a) OF THIS SECTION14 MUST BE DISPLAYED IN A PROMINENT LOCATION ON THE HOME PAGE OF15 THE HOSPITAL'S PUBLICLY ACCESSIBLE WEBSITE OR ACCESSIBLE BY16 SELECTING A DEDICATED LINK THAT IS PROMINENTLY DISPLAYED ON THE17 HOME PAGE OF THE HOSPITAL 'S PUBLICLY ACCESSIBLE WEBSITE. IF THE18 HOSPITAL OPERATES MULTIPLE LOCATIONS AND MAINTAINS A SINGLE19 WEBSITE, THE LIST REQUIRED BY SUBSECTION (1)(a) OF THIS SECTION MUST20 BE POSTED FOR EACH LOCATION THE HOSPITAL OPERATES IN A MANNER21 THAT CLEARLY ASSOCIATES THE PARTICULAR LIST WITH THE APPLICABLE22 LOCATION OF THE HOSPITAL.23 (e) T HE LIST REQUIRED BY SUBSECTION (1)(a) OF THIS SECTION24 MUST BE:25 (I) A VAILABLE FREE OF CHARGE;26 (II) A VAILABLE WITHOUT HAVING TO ESTABLISH A USER ACCOUNT27 SB23-252 -14- OR PASSWORD;1 (III) A VAILABLE WITHOUT HAVING TO SUBMIT PERSONAL2 IDENTIFYING INFORMATION;3 (IV) A VAILABLE WITHOUT HAVING TO OVERCOME ANY OTHER4 IMPEDIMENT, INCLUDING ENTERING A CODE TO ACCESS THE LIST ;5 (V) A CCESSIBLE TO A COMMON COMMERCIAL OPERATOR OF AN6 INTERNET SEARCH ENGINE TO THE EXTENT NECESSARY FOR THE SEARCH7 ENGINE TO INDEX THE LIST AND DISPLAY THE LIST AS A RESULT IN8 RESPONSE TO A SEARCH QUERY OF A USER OF THE SEARCH ENGINE ;9 (VI) F ORMATTED IN A MANNER PRESCRIBED BY THE STATE10 DEPARTMENT; AND11 (VII) D IGITALLY SEARCHABLE.12 (f) T HE LIST REQUIRED BY SUBSECTION (1)(a) OF THIS SECTION13 MUST USE THE NAMING CONVENTION SPECIFIED BY THE FEDERAL CENTERS14 FOR MEDICARE AND MEDICAID SERVICES , SPECIFICALLY THE TERMS AS15 STATED IN 45 CFR 180.16 (3) I N DETERMINING THE FORMAT OF THE LISTS REQUIRED BY17 SUBSECTION (1)(a) OF THIS SECTION PURSUANT TO SUBSECTION (2)(e)(VI)18 OF THIS SECTION, THE STATE DEPARTMENT SHALL DEVELOP A TEMPLATE19 THAT EACH HOSPITAL MUST USE IN FORMATTING THE LISTS . THE STATE20 DEPARTMENT SHALL:21 (a) C ONSIDER ANY APPLICABLE FEDERAL GUIDELINES FOR22 FORMATTING SIMILAR LISTS REQUIRED BY FEDERAL LAW OR REGULATION23 AND ENSURE THAT THE DESIGN OF THE TEMPLATE ENABLES HEALTH -CARE24 RESEARCHERS TO COMPARE THE CHARGES CONTAINED IN THE LISTS25 MAINTAINED BY EACH HOSPITAL ; AND26 (b) D ESIGN THE TEMPLATE TO BE SUBSTANTIALLY SIMILAR TO THE27 SB23-252 -15- TEMPLATE USED BY THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID1 SERVICES FOR PURPOSES SIMILAR TO THE PURPOSES OF THIS SECTION , IF2 THE STATE DEPARTMENT DETERMINES THAT DESIGNING THE TEMPLATE IN3 THAT MANNER SERVES A RELEVANT PURPOSE AND THERE IS A BENEFIT TO4 DEVELOPING AND REQUIRING A SUBSTANTIALLY SIMILAR DESIGN .5 (4) E ACH HOSPITAL SHALL UPDATE THE LISTS REQUIRED BY6 SUBSECTION (1) OF THIS SECTION AT LEAST MONTHLY . THE HOSPITAL7 SHALL CLEARLY INDICATE THE DATE ON WHICH EACH LIST WAS MOST8 RECENTLY UPDATED, EITHER ON THE UPDATED LIST OR IN A MANNER THAT9 IS CLEARLY ASSOCIATED WITH THE UPDATED LIST .10 (5) (a) E XCEPT AS PROVIDED IN SUBSECTION (5)(c) OF THIS11 SECTION, A HOSPITAL SHALL MAINTAIN AND MAKE PUBLICLY AVAILABLE12 A LIST OF STANDARD CHARGES FOR EACH OF AT LEAST THREE HUNDRED13 SHOPPABLE SERVICES PROVIDED BY THE HOSPITAL . THE HOSPITAL MAY14 SELECT THE SHOPPABLE SERVICES TO BE INCLUDED IN THE LIST ; EXCEPT15 THAT THE LIST MUST INCLUDE ALL OF THE SEVENTY SHOPPABLE SERVICES16 SPECIFIED BY THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID17 SERVICES THAT THE HOSPITAL PROVIDES AND ANY OTHER SERVICES18 SPECIFIED BY THE STATE DEPARTMENT .19 (b) I N SELECTING THE SHOPPABLE SERVICES FOR INCLUSION IN THE20 LIST REQUIRED BY THIS SUBSECTION (5), A HOSPITAL SHALL:21 (I) C ONSIDER HOW FREQUENTLY THE HOSPITAL PROVIDES THE22 SERVICE; AND23 (II) P RIORITIZE THE SELECTION OF SERVICES THAT ARE AMONG THE24 SERVICES MOST FREQUENTLY PROVIDED BY THE HOSPITAL .25 (c) I F A HOSPITAL DOES NOT PROVIDE THREE HUNDRED SHOPPABLE26 SERVICES, THE HOSPITAL SHALL MAINTAIN A LIST OF ALL SHOPPABLE27 SB23-252 -16- SERVICES THAT THE HOSPITAL PROVIDES .1 (d) T HE LIST DESCRIBED IN THIS SUBSECTION (5) MUST INCLUDE:2 (I) A PLAIN-LANGUAGE DESCRIPTION OF EACH SHOPPABLE SERVICE3 INCLUDED ON THE LIST;4 (II) T HE PAYER-SPECIFIC NEGOTIATED CHARGE THAT APPLIES TO5 EACH SHOPPABLE SERVICE INCLUDED ON THE LIST AND TO ANY ANCILLARY6 SERVICE, LISTED BY THE NAME OF THE THIRD-PARTY PAYER AND EACH7 HEALTH INSURANCE PLAN ASSOCIATED WITH THE CHARGE AND DISPLAYED8 IN A MANNER THAT CLEARLY ASSOCIATES THE CHARGE WITH EACH9 THIRD-PARTY PAYER AND EACH HEALTH INSURANCE PLAN ;10 (III) T HE DISCOUNTED CASH PRICE THAT APPLIES TO EACH11 SHOPPABLE SERVICE INCLUDED ON THE LIST AND TO ANY ANCILLARY12 SERVICE OR, IF THE HOSPITAL DOES NOT OFFER A DISCOUNTED CASH PRICE13 FOR ONE OR MORE OF THE SHOPPABLE SERVICES OR ANCILLARY SERVICES14 ON THE LIST, THE GROSS BILLED CHARGE FOR THE SHOPPABLE SERVICE OR15 ANCILLARY SERVICE;16 (IV) T HE MINIMUM NEGOTIATED CHARGE THAT APPLIES TO EACH17 SHOPPABLE SERVICE INCLUDED ON THE LIST AND TO ANY ANCILLARY18 SERVICE;19 (V) T HE MAXIMUM NEGOTIATED CHARGE THAT APPLIES TO EACH20 SHOPPABLE SERVICE INCLUDED ON THE LIST AND TO ANY ANCILLARY21 SERVICE;22 (VI) A NY CODE USED BY THE HOSPITAL FOR EACH SHOPPABLE23 SERVICE INCLUDED ON THE LIST AND FOR ANY ANCILLARY SERVICE ;24 (VII) I F THE HOSPITAL HAS MORE THAN ONE LOCATION , EACH25 LOCATION AT WHICH THE HOSPITAL PROVIDES THE SHOPPABLE SERVICE26 AND WHETHER THE STANDARD CHARGES INCLUDED IN THE LIST APPLY AT27 SB23-252 -17- THAT LOCATION TO THE PROVISION OF THAT SHOPPABLE SERVICE IN AN1 INPATIENT SETTING, AN OUTPATIENT SETTING, OR IN BOTH OF THOSE2 SETTINGS, AS APPLICABLE; AND3 (VIII) I F APPLICABLE, AN INDICATION OF THE SHOPPABLE SERVICES4 SPECIFIED BY THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID5 SERVICES THAT ARE PROVIDED BY THE HOSPITAL .6 (e) T HE LISTS OF SHOPPABLE SERVICES REQUIRED BY THIS7 SUBSECTION (5) MUST BE:8 (I) A VAILABLE, ACCESSIBLE, AND FORMATTED AS DESCRIBED IN9 SUBSECTION (2)(e) OF THIS SECTION;10 (II) D IGITALLY SEARCHABLE BY SERVICE DESCRIPTION , BILLING11 CODE, AND PAYER; AND12 (III) U PDATED WITHIN NINETY DAYS AFTER THE RENEWAL DATE OF13 AN EXISTING CONTRACT OR AFTER A NEW CONTRACT TAKES EFFECT THAT14 CONCERNS A THIRD-PARTY PAYER OR HEALTH INSURANCE PLAN OR A PRICE15 CHANGE FOR A PRODUCT.16 (6) E ACH HOSPITAL SHALL SUBMIT THE INITIAL LISTS AND ANY17 UPDATED LISTS AS REQUIRED BY THIS SECTION TO THE STATE DEPARTMENT18 IN A FORM AND MANNER DETERMINED BY THE STATE DEPARTMENT .19 (7) (a) T HE STATE DEPARTMENT SHALL MONITOR EACH HOSPITAL 'S20 COMPLIANCE WITH THIS SECTION BY:21 (I) R EVIEWING RELEVANT INFORMATION PROVIDED TO THE STATE22 DEPARTMENT CONCERNING A HOSPITAL 'S NONCOMPLIANCE WITH THIS23 SECTION;24 (II) A UDITING HOSPITAL WEBSITES FOR COMPLIANCE WITH THIS25 SECTION; AND26 (III) C ONFIRMING THAT EACH HOSPITAL SUBMITTED THE LISTS27 SB23-252 -18- REQUIRED BY THIS SECTION.1 (b) I F THE STATE DEPARTMENT DETERMINES THAT A HOSPITAL IS2 NOT IN COMPLIANCE WITH THIS SECTION, THE STATE DEPARTMENT MAY :3 (I) I SSUE A WRITTEN NOTICE TO THE HOSPITAL THAT CLEARLY4 EXPLAINS THE MANNER IN WHICH THE HOSPITAL IS NOT IN COMPLIANCE5 WITH THIS SECTION; AND6 (II) R EQUEST A CORRECTIVE ACTION PLAN FROM THE HOSPITAL .7 (8) O N OR BEFORE FEBRUARY 1, 2024, THE STATE DEPARTMENT8 SHALL CREATE AND MAINTAIN A PUBLICLY AVAILABLE LIST ON ITS9 WEBSITE OF HOSPITALS THAT HAVE BEEN FOUND TO HAVE VIOLATED THIS10 SECTION OR THAT HAVE BEEN ISSUED A WARNING NOTICE , A REQUEST FOR11 A CORRECTIVE ACTION PLAN, OR ANY OTHER WRITTEN COMMUNICATION12 FROM THE STATE DEPARTMENT . SUCH NOTICES AND COMMUNICATIONS13 ARE SUBJECT TO PUBLIC DISCLOSURE UNDER 5 U.S.C. SEC. 552, AS14 AMENDED, NOTWITHSTANDING ANY EXEMPTIONS OR EXCLUSIONS TO THE15 CONTRARY, IN FULL WITHOUT REDACTION. THE STATE DEPARTMENT SHALL16 UPDATE THE LIST AT LEAST ANNUALLY .17 (9) A PERSON THAT VIOLATES SUBSECTION (1) OR (5) OF THIS18 SECTION COMMITS A DECEPTIVE TRADE PRACTICE UNDER SECTION 6-1-105.19 SECTION 4. Act subject to petition - effective date. This act20 takes effect at 12:01 a.m. on the day following the expiration of the21 ninety-day period after final adjournment of the general assembly; except22 that, if a referendum petition is filed pursuant to section 1 (3) of article V23 of the state constitution against this act or an item, section, or part of this24 act within such period, then the act, item, section, or part will not take25 effect unless approved by the people at the general election to be held in26 SB23-252 -19- November 2024 and, in such case, will take effect on the date of the1 official declaration of the vote thereon by the governor.2 SB23-252 -20-