Texas 2025 - 89th Regular

Texas Senate Bill SB1330

Filed
2/14/25  
Out of Senate Committee
3/24/25  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to billing and reimbursement for certain medical equipment, devices, and supplies provided to Medicare enrollees; creating a criminal offense.

Impact

The legislation will likely have a significant effect on how medical suppliers interact with Medicare enrollees, enhancing transparency in billing practices. By enforcing limits on charges, the intended outcome is to ensure that enrollees are not taken advantage of and that they are clearly informed about the costs associated with their medical equipment. The enforcement provisions include the application of deceptive trade practices laws, which could lead to legal consequences for suppliers who violate the new regulations. Notably, violations could result in misdemeanor charges punishable by fines, further reinforcing compliance.

Summary

Senate Bill 1330 addresses billing and reimbursement practices related to medical equipment, devices, and supplies provided to Medicare enrollees. The bill proposes new regulations that limit what nonparticipating suppliers (those not enrolled in Medicare) can charge Medicare recipients. Specifically, these suppliers cannot charge more than 115% of the Medicare-approved amount unless the enrollee has agreed in writing to cover additional costs and has entered into a payment plan or paid in full prior to receiving the items. This provision aims to protect consumers from excessive charges for essential medical supplies.

Sentiment

Comments around SB1330 suggest a generally positive sentiment towards the intent of the bill, with supporters emphasizing the importance of consumer protection in the healthcare sector. However, there may be concerns from nonparticipating suppliers regarding the financial implications of these regulations on their businesses. The balance between protecting consumers and supporting supplier practices seems to be a point of contention, with discussions reflecting a desire for regulations that not only safeguard enrollees but also maintain a viable environment for suppliers.

Contention

Despite the supportive nature of the bill, there are potential issues that could arise regarding how these regulations are implemented and enforced. Critics may argue that imposing such restrictions on nonparticipating suppliers could reduce the availability of services or create barriers for suppliers who cannot meet the new requirements. Moreover, some stakeholders may question the adequacy of fines as a deterrent against noncompliance, urging for a more robust framework to ensure adherence. The bill exemplifies the tension between necessary regulation and the operational realities faced by medical suppliers.

Texas Constitutional Statutes Affected

Insurance Code

  • Chapter 1652. Medicare Supplement Benefit Plans
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

TX HB3150

Identical Relating to billing and reimbursement for certain medical equipment, devices, and supplies provided to Medicare enrollees; creating a criminal offense.

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