Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1817 Compare Versions

Only one version of the bill is available at this time.
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5353 STATE OF OKLAHOMA
5454
5555 2nd Session of the 59th Legislature (2024)
5656
5757 SENATE BILL 1817 By: Dahm
5858
5959
6060
6161
6262
6363 AS INTRODUCED
6464
6565 An Act relating to hospitals; defining terms;
6666 requiring facilities to make public certain file and
6767 list; stating requirements for list of standard
6868 charges; requiring certain digital publication of
6969 specified information; requiring certain online
7070 display of list; stipulating requirements related to
7171 accessibility and formatting of list; requiring
7272 development of certain formatting template; requiring
7373 annual update of list; stating requirements for list
7474 of standard charges and selection of shoppable
7575 services; requiring list to include certain
7676 information; directing certain display and
7777 availability of list; requiring facility to submit
7878 certain updates to the State Department of Health;
7979 requiring certain compliance monitoring by the
8080 Department; directing certain actions for
8181 noncompliance; requiring the Department to create and
8282 update certain list of violations; making certain
8383 information subject to public disclosure; stipulating
8484 certain licensing consideration; defining materia l
8585 violation; requiring issuance of cert ain notice upon
8686 certain determination; specifying certain
8787 requirements for correcti ve action plans; directing
8888 imposition of certain administrative penalties;
8989 establishing minimum penalties; requiring certain
9090 considerations by the Department; repealing 63 O.S.
9191 2021, Sections 1-725.1, 1-725.2, 1-725.3, 1-725.4,
9292 and 1-725.5, which relate to the Transparency in
9393 Health Care Prices Act ; providing for codification;
9494 and providing an effective date .
9595
9696
9797
9898
9999 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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150150
151151 SECTION 1. NEW LAW A new section of law to be codified
152152 in the Oklahoma Statutes as Section 1-725.11 of Title 63, unless
153153 there is created a duplication in numbering, reads as follows:
154154 As used in this act:
155155 1. “Ancillary service” means a facility item or service that a
156156 facility customarily provides as part of a shoppable service;
157157 2. “Chargemaster” means the list of all facility items or
158158 services maintained by a facility for which the facility has
159159 established a charge ;
160160 3. “De-identified maximum negotiated charge ” means the highest
161161 charge that a facility has negotiated with all third -party payors
162162 for a facility item or se rvice;
163163 4. “De-identified minimum negotiated charge ” means the lowest
164164 charge that a facility has negotiated with all third -party payors
165165 for a facility item or service ;
166166 5. “Department” means the State Depar tment of Health;
167167 6. “Discounted cash pric e” means the charge that applies to an
168168 individual who pays cash, or a cash equivalent, for a facility item
169169 or service;
170170 7. “Facility” means a hospital licensed under Section 1-702 of
171171 Title 63 of the Oklahoma Statutes ;
172172 8. “Facility items or services ” means all items and services,
173173 including individual items and services and service packages, that
174174 may be provided by a facility to a pati ent in connection with an
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226226 inpatient admission or an outpatient department visit, as
227227 applicable, for which the facility has es tablished a standard
228228 charge, including:
229229 a. supplies and procedures ,
230230 b. room and board,
231231 c. use of the facility and other areas, the charges for
232232 which are generally referred to as facility fees ,
233233 d. services of physicians and non -physician
234234 practitioners, employed by the facility, the charges
235235 for which are generally referred to as professional
236236 charges, and
237237 e. any other item or service for which a facility has
238238 established a standard charge ;
239239 9. “Gross charge” means the charge for a facility item or
240240 service that is reflected on a facility’s chargemaster, absent any
241241 discounts;
242242 10. “Machine-readable format” means a digital representation of
243243 information in a file that can be imported or read into a computer
244244 system for further processing. The term includes Extensible Markup
245245 Language (.XML), JavaScript Object Notation (.JSON), and Comma-
246246 Separated Values (.CSV) formats;
247247 11. “Payor-specific negotiated charge ” means the charge that a
248248 facility has negotiated with a third -party payor for a facility item
249249 or service;
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301301 12. “Service package” means an aggregation of individual
302302 facility items or services into a single service with a single
303303 charge;
304304 13. “Shoppable service” means a service that may be scheduled
305305 by a health care consumer in advance ;
306306 14. “Standard charge” means the regular rate established by the
307307 facility for a facility item or service provided to a specific group
308308 of paying patients. The term includes all of the following, as
309309 defined under this section:
310310 a. the gross charge,
311311 b. the payor-specific negotiated charge ,
312312 c. the de-identified minimum negotiated charge ,
313313 d. the de-identified maximum negoti ated charge, and
314314 e. the discounted cash price ; and
315315 15. “Third-party payor” means an entity that is, by statute,
316316 contract, or agreement, legally responsible for payment of a claim
317317 for a facility item or service.
318318 SECTION 2. NEW LAW A new section of law to be codified
319319 in the Oklahoma Statutes as Section 1-725.12 of Title 63, unless
320320 there is created a duplication in numbering, reads as follows:
321321 Notwithstanding any other law, a facility shall make public:
322322 1. A digital file in a machine -readable format that contains a
323323 list of all standard charges fo r all facility items or services as
324324 described by Section 3 of this act; and
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376376 2. A consumer-friendly list of standard c harges for a limited
377377 set of shoppable services as provided in Section 4 of this act.
378378 SECTION 3. NEW LAW A new section of law to be codified
379379 in the Oklahoma Statutes as Section 1-725.13 of Title 63, unless
380380 there is created a duplicat ion in numbering, reads as follows:
381381 A. A facility shall:
382382 1. Maintain a list of all standard charges for all facility
383383 items or services in accordance with this section; and
384384 2. Ensure the list required under paragraph 1 of this
385385 subsection is available at all times to the public, including by
386386 posting the list electronically in the manner pro vided by this
387387 section.
388388 B. The standard charges contained in the list required to be
389389 maintained by a facility under subsection A of this section shall
390390 reflect the standard charges applicable to that locati on of the
391391 facility, regardless of wheth er the facility operates in more than
392392 one location or operates under the same license as another facility.
393393 C. The list required under subsection A of this section shall
394394 include the following items, as applicable:
395395 1. A description of each facility item or service pro vided by
396396 the facility;
397397 2. The following charges for each individual facility item or
398398 service when provided in either an inpatient setting or an
399399 outpatient department se tting, as applicable:
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451451 a. the gross charge,
452452 b. the de-identified minimum neg otiated charge,
453453 c. the de-identified maximum negotiated charge ,
454454 d. the discounted cash price , and
455455 e. the payor-specific negotiated charge, listed by the
456456 name of the third-party payor and plan associated with
457457 the charge and displayed in a manner that clearly
458458 associates the charge with each third -party payor and
459459 plan; and
460460 3. Any code used by the facility for purposes of accounting or
461461 billing for the facility item or service, including the Current
462462 Procedural Terminology (CPT) code, the Healthcare Common Proce dure
463463 Coding System (HCPCS) code, the Diagnosis Related Group (DRG) code,
464464 the National Drug Code (NDC), or other common identifier.
465465 D. The information contained in the list required under
466466 subsection A of this section shall be published in a single digital
467467 file that is in a machine -readable format.
468468 E. The list required under subsection A of this section shall
469469 be displayed in a prominent location on the home page of the
470470 facility’s publicly accessible Internet website or accessible by
471471 selecting a dedicated li nk that is prominently displayed on the home
472472 page of the facility’s publicly accessible Internet website. If the
473473 facility operates multiple locations and maintains a single Interne t
474474 website, the list required under subsection A of this section shall
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526526 be posted for each location the facility operates in a manner that
527527 clearly associates the list with the applicable location of the
528528 facility.
529529 F. The list required under subsection A of this section shall:
530530 1. Be available:
531531 a. free of charge,
532532 b. without having to establish a user account or
533533 password,
534534 c. without having to submit personal identifying
535535 information, and
536536 d. without having to overcome any other impediment,
537537 including entering a co de to access the list;
538538 2. Be accessible to a common commercial operator of an Internet
539539 search engine to the extent necessary for the search engine to index
540540 the list and display the list as a result in response to a search
541541 query of a user of the search eng ine;
542542 3. Be formatted in a manner prescribed by the State Department
543543 of Health;
544544 4. Be digitally searchable; and
545545 5. Use the following naming convention specified by the Centers
546546 for Medicare and Medicaid Services :
547547 “<ein>_<facility-name>_standardcharges.[js onxmlcsv]”.
548548 G. In prescribing the format of the list under paragraph 3 of
549549 subsection F of this section, the Department shall:
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601601 1. Develop a template that each facility shall use in
602602 formatting the list; and
603603 2. In developing the template under paragraph 1 of this
604604 subsection:
605605 a. consider any applicable federal guidelines for
606606 formatting similar lists required by federal law or
607607 rule and ensure that the design of the template
608608 enables health care researchers to compare the charges
609609 contained in the lists maintain ed by each facility,
610610 and
611611 b. design the template to be substantially similar to the
612612 template used by the Centers for Medicare and Medicaid
613613 Services for purposes similar to those of this act, if
614614 the Department determines that designing the template
615615 in that manner serves the purposes of subparagraph a
616616 of this paragraph and that the Department benefits
617617 from developing and requiring that s ubstantially
618618 similar design.
619619 H. The facility shall update the list required under subsection
620620 A of this section at least once each year. The facility shall
621621 clearly indicate the date on which the list was most recently
622622 updated, either on the list or in a manner that is clearly
623623 associated with the list.
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674674
675675 SECTION 4. NEW LAW A new section of law to be codifie d
676676 in the Oklahoma Statutes as Section 1-725.14 of Title 63, unless
677677 there is created a duplication in numbering, reads as follows:
678678 A. Except as provided by subsection C of this section, a
679679 facility shall maintain and make publicly available a list of the
680680 standard charges described by subparagraphs b through e of paragraph
681681 2 of subsection C of Section 3 of this act for each of at least
682682 three hundred shoppable services provided by the facility. The
683683 facility may select the shoppable services to be included in the
684684 list, except that the list shall include:
685685 1. The seventy services specified as shoppable services by the
686686 Centers for Medicare and Medicaid Services; or
687687 2. If the facility does not provide all of the shoppable
688688 services described by paragraph 1 of this subsection, as many of
689689 those shoppable services the facility does provide.
690690 B. In selecting a shoppable service for purposes of inclusion
691691 in the list required under subsection A of this section, a facility
692692 shall:
693693 1. Consider how frequently the facility p rovides the service
694694 and the facility’s billing rate for that service; and
695695 2. Prioritize the selection of services that are among t he
696696 services most frequently provided by the facility.
697697 C. If a facility does not provide three hundred shoppable
698698 services, the facility shall maintain a list of the total number of
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750750 shoppable services that the facility provides in a manner that
751751 otherwise complies with the requirements of subsection A of this
752752 section.
753753 D. The list required under subsection A or C of this section,
754754 as applicable, shall:
755755 1. Include:
756756 a. a plain-language description of each shoppable service
757757 included on the list ,
758758 b. the payor-specific negotiated charge that applies to
759759 each shoppable service included on the list and any
760760 ancillary service, listed by the name of the third-
761761 party payor and plan associated with the charge and
762762 displayed in a manner that clearly associates the
763763 charge with the third -party payor and plan ,
764764 c. the discounted cash price that applies to each
765765 shoppable service included on the list and any
766766 ancillary service or, if the fac ility does not offer a
767767 discounted cash price for one or more of the shoppable
768768 or ancillary services on the list, the gross charge
769769 for the shoppable service or ancillary service, as
770770 applicable,
771771 d. the de-identified minimum negotiated charge that
772772 applies to each shoppable service included on the list
773773 and any ancillary service ,
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825825 e. the de-identified maximum negot iated charge that
826826 applies to each shoppable service included on the list
827827 and any ancillary service , and
828828 f. any code used by the facility for purposes o f
829829 accounting or billing for each shopp able service
830830 included on the list and any ancillary serv ice,
831831 including the Current Procedural Terminology (CPT)
832832 code, the Healthcare Common Procedure Coding System
833833 (HCPCS) code, the Diagnosis Related Group (DRG) code,
834834 the National Drug Code (NDC), or other common
835835 identifier; and
836836 2. If applicable:
837837 a. state each location at which the facility provides the
838838 shoppable service and whether the standard charges
839839 included in the list apply at that location to the
840840 provision of that shoppable service in an inpatient
841841 setting, an outpatient department setting, or in both
842842 of those settings, as applicable , and
843843 b. indicate if one or more of the shoppable services
844844 specified by the Centers for Medicare and Medicaid
845845 Services is not provided by the facility.
846846 E. The list required under subsection A or C of this section,
847847 as applicable, shall be:
848848
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899899 1. Displayed in the manner prescribed by subsection E of
900900 Section 3 of this act for the list required under that section;
901901 2. Available:
902902 a. free of charge,
903903 b. without having to register o r establish a user account
904904 or password,
905905 c. without having to submit personal identifying
906906 information, and
907907 d. without having to overcome any other impediment,
908908 including entering a co de to access the lis t;
909909 3. Searchable by service description, billing code, and payor;
910910 4. Updated in the manner prescribed by subsection H of Section
911911 3 of this act for the list required under that section;
912912 5. Accessible to a common commercial operator of an Internet
913913 search engine to the ext ent necessary for the search engine to index
914914 the list and display the list as a result in response to a search
915915 query of a user of the search engine; and
916916 6. Formatted in a manner that is consistent with the format
917917 prescribed by the State Department of Health under paragraph 3 of
918918 subsection F of Section 3 of this act .
919919 SECTION 5. NEW LAW A new section of law to be codified
920920 in the Oklahoma Statutes as Section 1-725.15 of Title 63, unless
921921 there is created a duplication in numbering, reads as follows:
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973973 Each time a facility upd ates a list as required under subsection
974974 H of Section 3 of this act and paragraph 4 of subsection E of
975975 Section 4 of this act , the facility shall submit the updated list to
976976 the State Department of Health. The Department shall prescribe the
977977 form in which the updated list shall be submitted to the Department.
978978 SECTION 6. NEW LAW A new section of law to be codified
979979 in the Oklahoma Statutes as Section 1-725.16 of Title 63, unless
980980 there is created a duplication in numbering, reads as follo ws:
981981 A. The State Department of Health shall monitor each facility ’s
982982 compliance with the requirements of this act using any of the
983983 following methods:
984984 1. Evaluating complaints made by persons to the Department
985985 regarding noncompliance with this act;
986986 2. Reviewing any analysis prepared regarding noncompliance with
987987 this act;
988988 3. Auditing the Internet websites of facilities for compliance
989989 with this act; and
990990 4. Confirming that each facil ity submitted the lists required
991991 under Section 5 of this act.
992992 B. If the Department determines that a facility is not in
993993 compliance with a pro vision of this act, the Department shall take
994994 the following actions:
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10461046 1. Provide a written notice to the facility that clearly
10471047 explains the manner in which the facility is not in compliance with
10481048 this act;
10491049 2. Request a corrective action plan from the facility if the
10501050 facility has materially violated a provision of this act, as
10511051 determined under Section 7 of this act; and
10521052 3. Impose an administrative penalty as determined in Section 8
10531053 of this act on the facility and publicize the penalty on the
10541054 Department’s Internet website if the facility fails to:
10551055 a. respond to the Department’s request to submit a
10561056 corrective action plan , or
10571057 b. comply with the requirements of a corrective action
10581058 plan submitted to the Department.
10591059 C. Beginning not later than ninety (90) days after the date of
10601060 the enactment of this act, the Department shall create and maintain
10611061 a publicly available list on i ts website of hospitals that have been
10621062 found to have violated the hospital price transparency rule, that
10631063 have been issued an administrative penalty or sent a warning notice,
10641064 a request for a corrective action plan, or any other written
10651065 communication from th e Department. Such penalties, notices, and
10661066 communications shall be subject to public disclosure under 5 U.S.C. ,
10671067 Section 552, notwithstanding any exemptions or exclusions to the
10681068 contrary, in full without redaction. Such list shall be updated at
10691069 least every thirty (30) days thereafter.
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11211121 D. Notwithstanding any provision of law to t he contrary, in
11221122 considering an application for renewal of a hospital ’s license or
11231123 certification, the Department shall consider whether the hospital is
11241124 or has been in compliance wit h hospital price transparency laws.
11251125 SECTION 7. NEW LAW A new section of law to be codified
11261126 in the Oklahoma Statutes as Section 1-725.17 of Title 63, unless
11271127 there is created a duplication in numbering, reads as follows:
11281128 A. A facility materially violates this act if the facility
11291129 fails to:
11301130 1. Comply with the requirements of Section 2 of this act; or
11311131 2. Publicize the facility ’s standard charges in the form and
11321132 manner required by Sections 3 and 4 of this act.
11331133 B. If the State Department of Health determines that a facility
11341134 has materially violated this act, the Department shall issue a
11351135 notice of material violation to the facility and request that the
11361136 facility submit a corrective action plan. The notice shall indicate
11371137 the form and manner in which the corrective action plan shall be
11381138 submitted to the Department, and clearly state the date by whic h the
11391139 facility shall submit the plan.
11401140 C. A facility that receives a notice under subsection B of this
11411141 section shall:
11421142 1. Submit a corrective actio n plan in the form and manner , and
11431143 by the specified date, prescribed by the notice of violation; and
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11951195 2. As soon as practicable after submission of a corrective
11961196 action plan to the Department, act to comply with the plan.
11971197 D. A corrective action plan submit ted to the Department shall:
11981198 1. Describe in detail the corrective action th e facility will
11991199 take to address any violation identified by the Department in the
12001200 notice provided under subsection B of this section ; and
12011201 2. Provide a date by which the facility w ill complete the
12021202 corrective action described by paragraph 1 of this subsection.
12031203 E. A corrective action plan is subject to review and approval
12041204 by the Department. After the Department reviews and approves a
12051205 facility’s corrective action plan, the Department shall monitor and
12061206 evaluate the facility ’s compliance with the plan.
12071207 F. A facility is considered to have fai led to respond to the
12081208 Department’s request to submit a corrective action plan if the
12091209 facility fails to submit a corrective action plan:
12101210 1. In the form and manner specified in the notice provided
12111211 under subsection B of this section ; or
12121212 2. By the date specified in the notice provided under
12131213 subsection B of this section .
12141214 G. A facility is considered to have failed to comply with a
12151215 corrective action plan if the facility fails to address a violation
12161216 within the specified period of time contained in the plan.
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12681268 SECTION 8. NEW LAW A new section of law to be codified
12691269 in the Oklahoma Statutes as Section 1-725.18 of Title 63, unless
12701270 there is created a duplication in numbering, reads as follows:
12711271 A. The State Department of Health shall impose an
12721272 administrative penalty on a facility in accordance with applicable
12731273 law and rules promulgated by the S tate Commissioner of Health if the
12741274 facility fails to:
12751275 1. Respond to the Department’s request to submit a corrective
12761276 action plan; or
12771277 2. Comply with the requirements of a corrective action plan
12781278 submitted to the Department.
12791279 B. The Department shall impose an administrative penalty on a
12801280 facility for a violation of each requirement of this act. The
12811281 Department shall set the penalty in an amount sufficient to ensure
12821282 compliance by facilities with the provisions of this act subject to
12831283 the limitations prescribed by subsection C of this section .
12841284 C. For a facility with one of the following total g ross
12851285 revenues as reported to the Centers for Medicare and Medicaid
12861286 Services or to another entity designated by the Commissioner through
12871287 rule in the year preceding the year in which a penalty is imposed,
12881288 the penalty imposed by the Department shall not be lower than:
12891289 1. In the case of thirty or fewer, Six Hundred Dollars
12901290 ($600.00) for each day in which the hospital fails to comply with
12911291 such requirements;
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13431343 2. In the case of a hospital with a bed count that is greater
13441344 than thirty and equal to or fewer than five hundred fifty, Twenty
13451345 Dollars ($20.00) per bed for each day in which th e hospital fails to
13461346 comply with such requirements; or
13471347 3. In the case of a hospital with a bed count that is greater
13481348 than five hundred fifty, Eleven Thousand Dollars ( $11,000.00) for
13491349 each day in which the hospit al fails to comply with such
13501350 requirements.
13511351 D. Each day a violation continues is considered a separate
13521352 violation.
13531353 E. In determining the amount of the penalty, the Department
13541354 shall consider:
13551355 1. Previous violations by the facility ’s operator;
13561356 2. The seriousness of the v iolation;
13571357 3. The demonstrated good faith of the facility ’s operator; and
13581358 4. Any other matters as justice may require.
13591359 SECTION 9. REPEALER 63 O.S. 2021, Sections 1-725.1, 1-
13601360 725.2, 1-725.3, 1-725.4, and 1-725.5, are hereby repealed.
13611361 SECTION 10. This act shall become effective November 1, 2024.
13621362
13631363 59-2-3151 DC 1/17/2024 4:01:28 PM