Michigan Senate Bill SB0952

Michigan 2023-2024 Regular Session

• Introduced: 6/26/24
• Refer: 6/26/24
• Report Pass: 12/13/24
• Engrossed: 12/13/24
• Refer: 12/13/24

Caption

Health facilities: hospitals; collection of debts; prohibit if hospital is not in compliance with price transparency laws. Creates new act. TIE BAR WITH: SB 1179'24

Impact

The bill introduces significant changes in how hospitals operate within the healthcare system. Legally, it mandates that hospitals must be in material compliance with transparency regulations before they can take any collection actions against a patient or patient guarantor. If a patient asserts non-compliance by the hospital on the date of service and collection action is initiated, they are afforded the right to pursue a civil action to challenge this. The law holds hospitals accountable to compliance standards, thus enforcing financial protections for patients against unjust debt collections.

Summary

Senate Bill 952, known as the Hospital Price Transparency Act, seeks to protect patients by prohibiting hospitals from pursuing debt collection actions for services rendered when those hospitals are not in compliance with established price transparency laws. This legislation is aimed at ensuring hospitals are transparent in their pricing, simplifying the financial obligations of patients, and preventing potential financial distress caused by non-compliant billing practices. Under the bill, a hospital that fails to adhere to price transparency must not initiate or pursue collection actions against patients for incurred debts during periods of non-compliance.

Contention

Notable points of contention around SB 952 include how hospitals interpret what constitutes 'material compliance' and the implications for urgent and critical care situations where pricing may not be apparent at the time of service. Right-leaning stakeholders argue that such measures may impose additional burdens on hospitals, potentially leading to increased operational costs and reduced access to services for patients. Conversely, proponents contend that the legislation will create a fairer and more equitable healthcare environment, ultimately benefiting consumers and patients by ensuring clear communication of costs upfront.