BILL ANALYSIS Senate Research Center S.B. 1270 89R2961 AB-D By: Hughes Health & Human Services 3/28/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Following the passage of S.B. 490 in the 88th Legislature, certain healthcare providers are required to provide an itemized bill when requesting payment from a patient for healthcare services or supplies. The bill must include a detailed list of charges for all services and supplies provided during the patient's visit, including the amount the health care provider agrees to accept as full payment for each service and supply provided, a plain language description of each distinct health care service or supply, and any billing code submitted to a third party for reimbursement, along with the amounts billed to and paid by that third party. While healthcare providers are permitted to issue itemized bills electronically, including through a patient portal on their website, there have been reports of this being problematic due to Texans potentially lacking Internet access, having difficulty navigating healthcare portals, or experiencing delays in receiving paper statements. This lack of access to an itemized bill can create difficulties in verifying charges and identifying billing errors. Without clear and timely access, patients face unnecessary hardship in budgeting medical costs or utilizing financial assistance programs. S.B. 1270 aims to amend existing sections of the Health and Safety Code to ensure transparency and accountability in billing practices by certain healthcare providers. Subsection (c-1) requires healthcare providers to determine whether a patient has created a profile on the patient portal. If not, the provider must mail the patient a copy of the itemized bill. Section 185.003 is amended to require the appropriate licensing authority to take disciplinary action against any healthcare provider that violates the chapter, treating such violations as a breach of applicable licensing laws. As proposed, S.B. 1270 amends current law relating to itemized billing for health care services and supplies provided by health care providers. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 185.002, Health and Safety Code, by amending Subsection (c) and adding Subsection (c-1), as follows: (c) Authorizes a health care provider, except as provided by Subsection (c-1), to issue the itemized bill electronically, including through a patient portal on the provider's Internet website. Makes a nonsubstantive change. (c-1) Requires a health care provider that issues an itemized bill to a patient electronically through a patient portal under Subsection (c) to determine whether the patient has created a patient profile on the portal and, if the health care provider determines that the patient has not created a patient portal, mail a copy of the itemized bill to the patient. SECTION 2. Amends Section 185.003, Health and Safety Code, as follows: Sec. 185.003. DISCIPLINARY ACTION BY LICENSING AUTHORITY. Requires the appropriate licensing authority to take disciplinary action against a health care provider that violates Chapter 185 (Health Care Billing), rather than against the provider for the violation, as if the provider violated an applicable licensing law. SECTION 3. Makes application of Section 185.002, Health and Safety Code, as amended by this Act, prospective. SECTION 4. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1270
89R2961 AB-D By: Hughes
Health & Human Services
3/28/2025
As Filed
Senate Research Center
S.B. 1270
89R2961 AB-D
By: Hughes
Health & Human Services
3/28/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Following the passage of S.B. 490 in the 88th Legislature, certain healthcare providers are required to provide an itemized bill when requesting payment from a patient for healthcare services or supplies. The bill must include a detailed list of charges for all services and supplies provided during the patient's visit, including the amount the health care provider agrees to accept as full payment for each service and supply provided, a plain language description of each distinct health care service or supply, and any billing code submitted to a third party for reimbursement, along with the amounts billed to and paid by that third party.
While healthcare providers are permitted to issue itemized bills electronically, including through a patient portal on their website, there have been reports of this being problematic due to Texans potentially lacking Internet access, having difficulty navigating healthcare portals, or experiencing delays in receiving paper statements.
This lack of access to an itemized bill can create difficulties in verifying charges and identifying billing errors. Without clear and timely access, patients face unnecessary hardship in budgeting medical costs or utilizing financial assistance programs.
S.B. 1270 aims to amend existing sections of the Health and Safety Code to ensure transparency and accountability in billing practices by certain healthcare providers. Subsection (c-1) requires healthcare providers to determine whether a patient has created a profile on the patient portal. If not, the provider must mail the patient a copy of the itemized bill.
Section 185.003 is amended to require the appropriate licensing authority to take disciplinary action against any healthcare provider that violates the chapter, treating such violations as a breach of applicable licensing laws.
As proposed, S.B. 1270 amends current law relating to itemized billing for health care services and supplies provided by health care providers.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 185.002, Health and Safety Code, by amending Subsection (c) and adding Subsection (c-1), as follows:
(c) Authorizes a health care provider, except as provided by Subsection (c-1), to issue the itemized bill electronically, including through a patient portal on the provider's Internet website. Makes a nonsubstantive change.
(c-1) Requires a health care provider that issues an itemized bill to a patient electronically through a patient portal under Subsection (c) to determine whether the patient has created a patient profile on the portal and, if the health care provider determines that the patient has not created a patient portal, mail a copy of the itemized bill to the patient.
SECTION 2. Amends Section 185.003, Health and Safety Code, as follows:
Sec. 185.003. DISCIPLINARY ACTION BY LICENSING AUTHORITY. Requires the appropriate licensing authority to take disciplinary action against a health care provider that violates Chapter 185 (Health Care Billing), rather than against the provider for the violation, as if the provider violated an applicable licensing law.
SECTION 3. Makes application of Section 185.002, Health and Safety Code, as amended by this Act, prospective.
SECTION 4. Effective date: September 1, 2025.