S.B. No. 2038
AN ACT
relating to prices and fees charged by certain freestanding
emergency medical care facilities, including prices and fees
charged during a declared state of disaster; providing
administrative penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 241, Health and Safety Code, is amended
by adding Subchapter I-1 to read as follows:
SUBCHAPTER I-1. PRICES AND FEES CHARGED BY FREESTANDING EMERGENCY
MEDICAL CARE FACILITIES ASSOCIATED WITH CERTAIN HOSPITALS
Sec. 241.221. APPLICABILITY. (a) This subchapter applies
only to a freestanding emergency medical care facility, as that
term is defined by Section 254.001, that is:
(1) exempt from the licensing requirements of Chapter
254 under Section 254.052(5), (7), or (8); and
(2) associated with a hospital licensed under this
chapter that does not meet the conditions of participation for
certification under Title XVIII of the Social Security Act (42
U.S.C. Section 1395 et seq.).
(b) This subchapter does not apply to a freestanding
emergency medical care facility associated with a hospital licensed
under this chapter that:
(1) has been operating as a hospital for less than one
year;
(2) has submitted an application to a federally
recognized accreditation program for certification under Title
XVIII of the Social Security Act (42 U.S.C. Section 1395 et seq.);
and
(3) has not failed an accreditation for certification.
Sec. 241.222. CERTAIN FEES PROHIBITED. (a) A facility
described by Section 241.221 that provides a health care service,
including testing or vaccination, to an individual accessing the
service from the individual's vehicle may not charge the individual
or a third-party payor a facility or observation fee.
(b) This section may not be construed as expanding the type
of health care services a facility described by Section 241.221 is
authorized to provide.
Sec. 241.223. DISCLOSURE OF CERTAIN PRICES AND FEES DURING
DECLARED DISASTER; CONSTRUCTION. (a) A facility described by
Section 241.221 that provides testing or vaccination for an
infectious disease for which a state of disaster has been declared
under Chapter 418, Government Code, shall disclose to each patient
the prices the facility charges for the test or vaccine and any
facility fees, supply costs, and other costs associated with the
test or vaccine in accordance with the disclosure requirements
described by Section 254.156, as added by Chapter 1093 (H.B. 2041),
Acts of the 86th Legislature, Regular Session, 2019.
(b) This section may not be construed as expanding the type
of health care services a facility described by Section 241.221 is
authorized to provide.
Sec. 241.224. PROHIBITED PRICING PRACTICES DURING DECLARED
STATE OF DISASTER. (a) In this section, "unconscionable price"
means a price that is more than 200 percent of the average price for
the same or a substantially similar product or service provided to
other individuals by health care facilities located in the same
county or nearest county to the county in which the facility
described by Section 241.221 is located, as applicable, according
to data collected by the department under Chapter 108.
(b) During a state of disaster declared by the governor
under Chapter 418, Government Code, a facility described by Section
241.221 may not:
(1) charge an individual an unconscionable price for a
product or service provided at the facility; or
(2) knowingly or intentionally charge a third-party
payor, including a health benefit plan insurer, a price higher than
the price charged to an individual for the same product or service
based on the payor's liability for payment or partial payment of the
product or service.
(c) Subsection (b)(2) does not prohibit a facility
described by Section 241.221 from:
(1) offering an uninsured individual a cash discount
for a particular product or service; or
(2) accepting directly from an individual full payment
for a health care product or service in lieu of submitting a claim
to the individual's health benefit plan.
Sec. 241.225. ENFORCEMENT. Notwithstanding any
conflicting provision in this subchapter and except for good cause
shown, the commission shall impose the following penalty on a
person licensed under this chapter who violates Section 241.224 or
a rule adopted under that section:
(1) for the first violation, an administrative penalty
in an amount equal to $10,000;
(2) for the second violation:
(A) an administrative penalty in an amount equal
to $50,000; and
(B) a suspension of the person's license for 30
days; and
(3) for the third violation, a permanent revocation of
the person's license.
SECTION 2. Subchapter D, Chapter 254, Health and Safety
Code, is amended by adding Sections 254.1555 and 254.1556 to read as
follows:
Sec. 254.1555. CERTAIN FEES PROHIBITED. (a) A facility
that provides a health care service, including testing or
vaccination, to an individual accessing the service from the
individual's vehicle may not charge the individual or a third-party
payor a facility or observation fee.
(b) This section may not be construed as expanding the type
of health care services a facility is authorized to provide under
this chapter.
Sec. 254.1556. DISCLOSURE OF CERTAIN PRICES AND FEES DURING
DECLARED DISASTER; CONSTRUCTION. (a) A facility that provides
testing or vaccination for an infectious disease for which a state
of disaster has been declared under Chapter 418, Government Code,
shall disclose the price the facility charges for the test or
vaccine and any facility fees, supply costs, and other costs
associated with the test or vaccine in accordance with the
disclosure requirements described by Section 254.156, as added by
Chapter 1093 (H.B. 2041), Acts of the 86th Legislature, Regular
Session, 2019.
(b) This section may not be construed as expanding the type
of health care services a facility is authorized to provide under
this chapter.
SECTION 3. Subchapter D, Chapter 254, Health and Safety
Code, is amended by adding Section 254.160 to read as follows:
Sec. 254.160. PROHIBITED PRICING PRACTICES DURING DECLARED
STATE OF DISASTER. (a) In this section, "unconscionable price"
means a price that is more than 200 percent of the average price for
the same or a substantially similar product or service provided to
other individuals by health care facilities located in the same
county or nearest county to the county in which the freestanding
emergency medical care facility is located, as applicable,
according to data collected by the department under Chapter 108.
(b) During a state of disaster declared by the governor
under Chapter 418, Government Code, a facility may not:
(1) charge an individual an unconscionable price for a
product or service provided at the facility; or
(2) knowingly or intentionally charge a third-party
payor, including a health benefit plan insurer, a price higher than
the price charged to an individual for the same product or service
based on the payor's liability for payment or partial payment of the
product or service.
(c) Subsection (b)(2) does not prohibit a facility from:
(1) offering an uninsured individual a cash discount
for a particular product or service; or
(2) accepting directly from an individual full payment
for a health care product or service in lieu of submitting a claim
to the individual's health benefit plan.
SECTION 4. Subchapter E, Chapter 254, Health and Safety
Code, is amended by adding Section 254.207 to read as follows:
Sec. 254.207. ENFORCEMENT. Notwithstanding any
conflicting provision in this subchapter and except for good cause
shown, the Health and Human Services Commission shall impose the
following on a person licensed under this chapter who violates
Section 254.160 or a rule adopted under that section:
(1) for the first violation, an administrative penalty
in an amount equal to $10,000;
(2) for the second violation:
(A) an administrative penalty in an amount equal
to $50,000; and
(B) a suspension of the person's license for 30
days; and
(3) for the third violation, a permanent revocation of
the person's license.
SECTION 5. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2038 passed the Senate on
April 19, 2021, by the following vote: Yeas 31, Nays 0;
May 27, 2021, Senate refused to concur in House amendments and
requested appointment of Conference Committee; May 28, 2021, House
granted request of the Senate; May 30, 2021, Senate adopted
Conference Committee Report by the following vote: Yeas 30,
Nays 1.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2038 passed the House, with
amendments, on May 25, 2021, by the following vote: Yeas 127,
Nays 18, two present not voting; May 28, 2021, House granted
request of the Senate for appointment of Conference Committee;
May 30, 2021, House adopted Conference Committee Report by the
following vote: Yeas 127, Nays 14, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor