Texas Senate Bill SB2418

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to timely billing requirements for health care service providers.

Impact

The bill's enforcement will bring significant changes to how healthcare service providers manage their billing processes. By establishing a clear timeline for billing, SB2418 seeks to reduce delays and disputes between providers and payors, such as insurance companies. Furthermore, it can help in reducing the financial burden on patients by preventing unexpected billing occurrences. The law applies to all health services provided after its effective date, ensuring that compliance becomes an integral part of healthcare practice in Texas.

Summary

Senate Bill 2418 introduces new requirements for health care service providers regarding the timely billing of patients and other responsible parties. The legislation mandates that providers must issue a bill within 90 days after services are rendered. This timeframe is applicable unless an agreement specifies a different billing date or if the patient requires billing through a third-party payor. The aim is to ensure prompt billing, thereby streamlining the revenue cycle for healthcare providers and encouraging more efficient payment processes from health benefit plans and other payors.

Contention

Though the bill aims to improve efficiency, there may be points of contention among healthcare providers, especially regarding the practicality of the 90-day billing requirement. Some providers may feel that this timeframe is too restrictive, particularly for complex medical services that require prolonged billing negotiations or clarifications with insurance companies. Additionally, discussions around the implications of the changes on smaller healthcare practices, which may lack the administrative resources to comply swiftly, could arise during legislative debates.

Texas Constitutional Statutes Affected

Civil Practice And Remedies Code

• Chapter 146. Certain Claims By Health Care Service Providers Barred
  • Section: New Section