Michigan Senate Bill SB0095

Michigan 2025-2026 Regular Session

• Introduced: 2/20/25
• Refer: 2/20/25
• Report Pass: 2/26/25
• Refer: 2/26/25
• Report Pass: 3/5/25
• Engrossed: 3/6/25
• Refer: 3/6/25

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 0094'25

Impact

The introduction of SB 0095 is expected to significantly impact how hospitals manage their billing and collection practices. Hospitals found to be non-compliant with price transparency laws face strict repercussions, including potential refunds to patients and legal penalties. This aligns with a growing movement towards greater financial fairness in healthcare, where patients should not bear the burden of unexpected medical bills stemming from a lack of transparency. Moreover, the bill allows patients to take legal action if a hospital violates this law, providing a new avenue for them to seek justice and accountability.

Summary

Senate Bill 0095, also known as the Hospital Price Transparency Act, is designed to enhance consumer protections by prohibiting hospitals from pursuing debt collection actions for services rendered when they are not in compliance with established price transparency laws. The bill establishes that hospitals cannot engage in collection activities if they fail to meet these transparency requirements on the date services are provided. This legislation aims to hold hospitals accountable for compliance with federal guidelines and protect consumers from unjust debt collection efforts.

Sentiment

The sentiment around SB 0095 appears largely favorable among consumer advocacy groups, who view it as a necessary legislative measure to protect patients from aggressive debt collection practices. However, there are mixed feelings among hospital administrators and legal experts, who might be concerned about the financial implications and operational burdens that compliance with these regulations might impose. Proponents argue that enhancing transparency is crucial for equitable healthcare, while opponents worry about the potential unintended consequences on hospital revenues and overall healthcare access.

Contention

A notable point of contention surrounding SB 0095 is its enforcement mechanism and the potential ramifications for hospitals that fail to comply with price transparency laws. Critics express concerns that the strict prohibitions on debt collection could lead to financial instability for healthcare providers, especially smaller hospitals or those operating in underserved areas. Additionally, questions remain on how effectively the bill will be enforced and whether it will truly lead to greater compliance with transparency regulations in the long run.