Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF1589 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to health care; modifying requirements for making current standard charges
3	3	1.3 available to the public; prohibiting collection actions in certain circumstances;
4	4	1.4 authorizing actions by patients and guarantors; amending Minnesota Statutes 2024,
5	5	1.5 sections 62J.826, subdivisions 1, 2; 144.588, subdivisions 1, 2; proposing coding
6	6	1.6 for new law in Minnesota Statutes, chapter 62J.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. Minnesota Statutes 2024, section 62J.826, subdivision 1, is amended to read:
9	9	1.9 Subdivision 1.Definitions.(a) The definitions in this subdivision apply to this section
10	10	1.10and section 62J.827.
11	11	1.11 (b) "CDT code" means a code value drawn from the Code on Dental Procedures and
12	12	1.12Nomenclature published by the American Dental Association.
13	13	1.13 (c) "Chargemaster" means the list of all individual items and services maintained by a
14	14	1.14medical or dental practice for which the medical or dental practice has established a charge.
15	15	1.15 (d) "Collection action" means:
16	16	1.16 (1) attempting to collect a debt through in-house collections or by referring the debt to
17	17	1.17a collection agency, debt buyer, or collector, as those terms are defined in section 332.31;
18	18	1.18or
19	19	1.19 (2) bringing an action in court to collect a debt or initiating arbitration or formal, binding
20	20	1.20mediation to collect a debt.
21	21	1.21 (d) (e) "Commissioner" means the commissioner of health.
22	22	1Section 1.
23	23	25-02844 as introduced02/10/25 REVISOR SGS/MI
24	24	SENATE
25	25	STATE OF MINNESOTA
26	26	S.F. No. 1589NINETY-FOURTH SESSION
27	27	(SENATE AUTHORS: WIKLUND and Mann)
28	28	OFFICIAL STATUSD-PGDATE
29	29	Introduction and first reading02/20/2025
30	30	Referred to Health and Human Services 2.1 (e) (f) "CPT code" means a code value drawn from the Current Procedural Terminology
31	31	2.2published by the American Medical Association.
32	32	2.3 (f) (g) "Dental service" means a service charged using a CDT code.
33	33	2.4 (g) (h) "Diagnostic laboratory testing" means a service charged using a CPT code within
34	34	2.5the CPT code range of 80047 to 89398.
35	35	2.6 (h) (i) "Diagnostic radiology service" means a service charged using a CPT code within
36	36	2.7the CPT code range of 70010 to 79999 and includes the provision of x-rays, computed
37	37	2.8tomography scans, positron emission tomography scans, magnetic resonance imaging scans,
38	38	2.9and mammographies.
39	39	2.10 (i) (j) "Hospital" means an acute care institution licensed under sections 144.50 to 144.58,
40	40	2.11but does not include a health care institution conducted for those who rely primarily upon
41	41	2.12treatment by prayer or spiritual means in accordance with the creed or tenets of any church
42	42	2.13or denomination.
43	43	2.14 (j) (k) "Medical or dental practice" means a business that:
44	44	2.15 (1) earns revenue by providing medical care or dental services to the public;
45	45	2.16 (2) issues payment claims to health plan companies and other payers; and
46	46	2.17 (3) may be identified by its federal tax identification number.
47	47	2.18 (k) (l) "Outpatient surgical center" means a health care facility other than a hospital
48	48	2.19offering elective outpatient surgery under a license issued under sections 144.50 to 144.58.
49	49	2.20 (l) (m) "Standard charge" means the regular rate established by the medical or dental
50	50	2.21practice for an item or service provided to a specific group of paying patients. This includes
51	51	2.22all of the following:
52	52	2.23 (1) the charge for an individual item or service that is reflected on a medical or dental
53	53	2.24practice's chargemaster, absent any discounts;
54	54	2.25 (2) the charge that a medical or dental practice has negotiated with a third-party payer
55	55	2.26for an item or service;
56	56	2.27 (3) the lowest charge that a medical or dental practice has negotiated with all third-party
57	57	2.28payers for an item or service;
58	58	2.29 (4) the highest charge that a medical or dental practice has negotiated with all third-party
59	59	2.30payers for an item or service; and
60	60	2Section 1.
61	61	25-02844 as introduced02/10/25 REVISOR SGS/MI 3.1 (5) the charge that applies to an individual who pays cash, or cash equivalent, for an
62	62	3.2item or service.
63	63	3.3 Sec. 2. Minnesota Statutes 2024, section 62J.826, subdivision 2, is amended to read:
64	64	3.4 Subd. 2.Requirement; current standard charges.The following medical or dental
65	65	3.5practices must make available to the public a list of their current standard charges for all
66	66	3.6items and services, as reflected in the medical or dental practice's chargemaster, provided
67	67	3.7by the medical or dental practice:
68	68	3.8 (1) hospitals;
69	69	3.9 (2) outpatient surgical centers; and
70	70	3.10 (3) any other medical or dental practice that has revenue of greater than $50,000,000
71	71	3.11per year and that:
72	72	3.12 (i) derives the majority of its revenue by providing one or more of the following services:
73	73	3.13 (i) (A) diagnostic radiology services;
74	74	3.14 (ii) (B) diagnostic laboratory testing;
75	75	3.15 (iii) (C) orthopedic surgical procedures, including joint arthroplasty procedures within
76	76	3.16the CPT code range of 26990 to 27899;
77	77	3.17 (iv) (D) ophthalmologic surgical procedures, including cataract surgery coded using
78	78	3.18CPT code 66982 or 66984, or refractive correction surgery to improve visual acuity;
79	79	3.19 (v) (E) anesthesia services commonly provided as an ancillary to services provided at a
80	80	3.20hospital, outpatient surgical center, or medical practice that provides orthopedic surgical
81	81	3.21procedures or ophthalmologic surgical procedures;
82	82	3.22 (vi) (F) oncology services, including radiation oncology treatments within the CPT code
83	83	3.23range of 77261 to 77799 and drug infusions; or
84	84	3.24 (vii) (G) dental services.; and
85	85	3.25 (ii)(A) in calendar year 2024, has revenue of greater than $50,000,000;
86	86	3.26 (B) in calendar year 2025, has revenue of greater than $25,000,000;
87	87	3.27 (C) in calendar year 2026, has revenue of greater than $10,000,000; and
88	88	3.28 (D) in calendar year 2027 and each calendar year thereafter, has revenue of any amount.
89	89	3Sec. 2.
90	90	25-02844 as introduced02/10/25 REVISOR SGS/MI 4.1 Sec. 3. [62J.827] FAILURE TO MAKE CURRENT STANDARD CHARGES
91	91	4.2AVAILABLE.
92	92	4.3 Subdivision 1.Collection action prohibited.A medical or dental practice that is subject
93	93	4.4to section 62J.826 and that is not in material compliance with section 62J.826 is prohibited
94	94	4.5from initiating or pursuing a collection action against a patient or guarantor for debt owed
95	95	4.6for any items or services the medical or dental practice provided to the patient while the
96	96	4.7medical or dental practice was not in material compliance with section 62J.826.
97	97	4.8 Subd. 2.Action by patient or guarantor.(a) A patient or guarantor who believes that
98	98	4.9a medical or dental practice initiated or pursued a collection action against the patient or
99	99	4.10guarantor in violation of subdivision 1 may bring an action to determine whether the medical
100	100	4.11or dental practice initiated or pursued a collection action in violation of subdivision 1. While
101	101	4.12an action under this subdivision is pending between the patient or guarantor and the medical
102	102	4.13or dental practice, the medical or dental practice is prohibited from initiating or pursuing a
103	103	4.14collection action against the patient or guarantor.
104	104	4.15 (b) If the court determines that a medical or dental practice violated subdivision 1, the
105	105	4.16court must order the medical or dental practice to:
106	106	4.17 (1) refund any amount paid by the patient, guarantor, or other payer for the items or
107	107	4.18services that were the subject of the medical or dental practice's collection action that violated
108	108	4.19subdivision 1; and
109	109	4.20 (2) pay to the patient or guarantor a penalty equal to the amount owed by the patient or
110	110	4.21guarantor for the items or services that were the subject of the medical or dental practice's
111	111	4.22collection action that violated subdivision 1.
112	112	4.23 (c) If a medical or dental practice initiated a court action against a patient or guarantor,
113	113	4.24the court, when presented with evidence that a court found the action violated subdivision
114	114	4.251, must dismiss or cause to be dismissed with prejudice the court action against the patient
115	115	4.26or guarantor found to violate subdivision 1 and must order the medical or dental practice
116	116	4.27to pay all attorney fees and costs incurred by the patient or guarantor relating to the action
117	117	4.28that was dismissed.
118	118	4.29 Subd. 3.Billing and refunds.Nothing in this section:
119	119	4.30 (1) prohibits a medical or dental practice from billing a patient, guarantor, or other payer,
120	120	4.31including a health plan company, for items or services provided to the patient while the
121	121	4.32medical or dental practice was not in material compliance with section 62J.826; or
122	122	4Sec. 3.
123	123	25-02844 as introduced02/10/25 REVISOR SGS/MI 5.1 (2) requires a medical or dental practice to refund any payments made to the medical or
124	124	5.2dental practice for items or services provided to the patient while the medical or dental
125	125	5.3practice was not in material compliance with section 62J.826, so long as the medical or
126	126	5.4dental practice does not initiate or pursue a collection action in violation of subdivision 1.
127	127	5.5 Sec. 4. Minnesota Statutes 2024, section 144.588, subdivision 1, is amended to read:
128	128	5.6 Subdivision 1.Requirement; action to collect medical debt or garnish wages or bank
129	129	5.7accounts.(a) In an action against a patient or guarantor for collection of medical debt owed
130	130	5.8to a hospital or for garnishment of the patient's or guarantor's wages or bank accounts to
131	131	5.9collect medical debt owed to a hospital, the hospital must serve on the defendant with the
132	132	5.10summons and complaint an affidavit of expert review certifying that:
133	133	5.11 (1) unless the patient declined to participate, the hospital complied with the requirements
134	134	5.12in section 144.587;
135	135	5.13 (2) the hospital was in material compliance with section 62J.826 when the hospital
136	136	5.14provided the patient with the items and services for which the patient or guarantor owes the
137	137	5.15debt;
138	138	5.16 (2) (3) there is a reasonable basis to believe that the patient owes the debt;
139	139	5.17 (3) (4) all known third-party payors have been properly billed by the hospital, such that
140	140	5.18any remaining debt is the financial responsibility of the patient, and the hospital will not
141	141	5.19bill the patient for any amount that an insurance company is obligated to pay;
142	142	5.20 (4) (5) the patient has been given a reasonable opportunity to apply for charity care, if
143	143	5.21the facts and circumstances suggest that the patient may be eligible for charity care;
144	144	5.22 (5) (6) where the patient has indicated an inability to pay the full amount of the debt in
145	145	5.23one payment and provided reasonable verification of the inability to pay the full amount of
146	146	5.24the debt in one payment if requested by the hospital, the hospital has offered the patient a
147	147	5.25reasonable payment plan;
148	148	5.26 (6) (7) there is no reasonable basis to believe that the patient's or guarantor's wages or
149	149	5.27funds at a financial institution are likely to be exempt from garnishment; and
150	150	5.28 (7) (8) in the case of a default judgment proceeding, there is not a reasonable basis to
151	151	5.29believe:
152	152	5.30 (i) that the patient may already consider that the patient has adequately answered the
153	153	5.31complaint by calling or writing to the hospital, its debt collection agency, or its attorney;
154	154	5Sec. 4.
155	155	25-02844 as introduced02/10/25 REVISOR SGS/MI 6.1 (ii) that the patient is potentially unable to answer the complaint due to age, disability,
156	156	6.2or medical condition; or
157	157	6.3 (iii) the patient may not have received service of the complaint.
158	158	6.4 (b) The affidavit of expert review must be completed by a designated employee of the
159	159	6.5hospital seeking to initiate the action or garnishment.
160	160	6.6 Sec. 5. Minnesota Statutes 2024, section 144.588, subdivision 2, is amended to read:
161	161	6.7 Subd. 2.Requirement; referral to third-party debt collection agency.(a) In order to
162	162	6.8refer a patient's account to a third-party debt collection agency, a hospital must complete
163	163	6.9an affidavit of expert review certifying that:
164	164	6.10 (1) unless the patient declined to participate, the hospital complied with the requirements
165	165	6.11in section 144.587;
166	166	6.12 (2) the hospital was in material compliance with section 62J.826 when the hospital
167	167	6.13provided the patient with the items and services for which the patient or guarantor owes the
168	168	6.14debt;
169	169	6.15 (2) (3) there is a reasonable basis to believe that the patient owes the debt;
170	170	6.16 (3) (4) all known third-party payors have been properly billed by the hospital, such that
171	171	6.17any remaining debt is the financial responsibility of the patient, and the hospital will not
172	172	6.18bill the patient for any amount that an insurance company is obligated to pay;
173	173	6.19 (4) (5) the patient has been given a reasonable opportunity to apply for charity care, if
174	174	6.20the facts and circumstances suggest that the patient may be eligible for charity care; and
175	175	6.21 (5) (6) where the patient has indicated an inability to pay the full amount of the debt in
176	176	6.22one payment and provided reasonable verification of the inability to pay the full amount of
177	177	6.23the debt in one payment if requested by the hospital, the hospital has offered the patient a
178	178	6.24reasonable payment plan.
179	179	6.25 (b) The affidavit of expert review must be completed by a designated employee of the
180	180	6.26hospital seeking to refer the patient's account to a third-party debt collection agency.
181	181	6Sec. 5.
182	182	25-02844 as introduced02/10/25 REVISOR SGS/MI