Modifies provisions relating to hospital price transparency laws
Effective from August 28, 2025, the bill mandates that hospitals must abide by federal and state price transparency laws to initiate collection proceedings. If a patient believes the hospital was not compliant, they can file a lawsuit to determine compliance. Should a hospital be found to have violated these laws, they are required to refund any payments made by the patient, pay penalties equivalent to the debt amount, and address credit reporting issues related to the debt. This could lead to significant changes in hospital billing practices as facilities must ensure adherence to transparency requirements.
Senate Bill 336 aims to enhance hospital price transparency laws in Missouri by adding new provisions to Chapter 197 of the Revised Statutes of Missouri. Specifically, it prohibits hospitals from initiating collection actions against patients for debts owed for items or services if they were not in material compliance with applicable price transparency laws on the date services were provided. This measure is intended to empower patients by allowing them to challenge collection actions if they can establish that the hospital was out of compliance with transparency requirements at the relevant time.
SB336 represents a significant shift in the legal landscape governing medical billing and hospital practices in Missouri. By prioritizing price transparency, the bill aims to enhance patient protection and address longstanding issues related to hospital debt collection practices. As the implementation date approaches, hospitals will need to reassess their compliance measures and ensure that they are adequately prepared to meet the new transparency mandates.
The legislation may face contention regarding how 'material compliance' is defined and enforced. Critics may argue that the bill could complicate medical billing processes, especially for smaller hospitals that might struggle to comply with extensive transparency requirements. There is also the concern among healthcare providers about the implications of potential litigation from patients claiming noncompliance, which could hinder their financial recovery from services rendered. Supporters, however, maintain that the bill is a necessary step in protecting patients' financial rights and ensuring fair billing practices in healthcare.