BILL ANALYSIS Senate Research Center S.B. 331 89R3696 JDK-D By: Kolkhorst Health & Human Services 3/28/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Healthcare spending in the United States is among the highest in the world and continues to rise. In 2023, the U.S. spent nearly 17.6 percent of its gross domestic product (GDP) on healthcare. The federal government predicts that the total national spending will reach $7.7 trillion by 2032. A major factor driving that spending is the pricing of healthcare services. Prices are established, largely, through agreements between insurers and healthcare providers. Health care represents one of the biggest economic sectors where consumers typically do not procure services based on comparison shopping and do not have easy access to market prices. The price that a hospital charges a patient for a specific procedure can vary widely based on the location of the hospital, the negotiated rates that a hospital may have with third-party payers, and the level of market competition. S.B. 331 seeks to expand price transparency disclosures, which are already required of hospitals, to freestanding ERs, urgent care or retail clinics, ambulatory surgical centers, outpatient clinics, birthing centers, and any other facility that provides health care services in the state of Texas. S.B. 331 will extend existing state law which currently requires price transparency and price disclosure by Texas hospitals. As proposed, S.B. 331 amends current law relating to the disclosure of health care cost information by certain health care facilities and imposes an administrative penalty. 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 327.001(7), Health and Safety Code, to redefine "facility." SECTION 2. Amends Section 327.008(a), Health and Safety Code, to authorize the Health and Human Services Commission (HHSC) to impose an administrative penalty on a facility if the facility fails to respond to HHSC's request to submit a corrective action plan, or comply with the requirements of a corrective action plan submitted to HHSC. Deletes existing text authorizing (HHSC) to impose an administrative penalty on a facility in accordance with Chapter 241 (Hospitals) if the facility fails to respond to HHSC's request to submit a corrective action plan, or comply with the requirements of a corrective action plan submitted to HHSC. SECTION 3. Requires a health care facility required to disclose billing information under Chapter 327 (Disclosure of Prices), Health and Safety Code, as amended by this Act, to disclose the information in accordance with that chapter not later than August 31, 2029. SECTION 4. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 331
89R3696 JDK-D By: Kolkhorst
Health & Human Services
3/28/2025
As Filed
Senate Research Center
S.B. 331
89R3696 JDK-D
By: Kolkhorst
Health & Human Services
3/28/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Healthcare spending in the United States is among the highest in the world and continues to rise. In 2023, the U.S. spent nearly 17.6 percent of its gross domestic product (GDP) on healthcare. The federal government predicts that the total national spending will reach $7.7 trillion by 2032.
A major factor driving that spending is the pricing of healthcare services. Prices are established, largely, through agreements between insurers and healthcare providers. Health care represents one of the biggest economic sectors where consumers typically do not procure services based on comparison shopping and do not have easy access to market prices. The price that a hospital charges a patient for a specific procedure can vary widely based on the location of the hospital, the negotiated rates that a hospital may have with third-party payers, and the level of market competition.
S.B. 331 seeks to expand price transparency disclosures, which are already required of hospitals, to freestanding ERs, urgent care or retail clinics, ambulatory surgical centers, outpatient clinics, birthing centers, and any other facility that provides health care services in the state of Texas. S.B. 331 will extend existing state law which currently requires price transparency and price disclosure by Texas hospitals.
As proposed, S.B. 331 amends current law relating to the disclosure of health care cost information by certain health care facilities and imposes an administrative penalty.
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 327.001(7), Health and Safety Code, to redefine "facility."
SECTION 2. Amends Section 327.008(a), Health and Safety Code, to authorize the Health and Human Services Commission (HHSC) to impose an administrative penalty on a facility if the facility fails to respond to HHSC's request to submit a corrective action plan, or comply with the requirements of a corrective action plan submitted to HHSC. Deletes existing text authorizing (HHSC) to impose an administrative penalty on a facility in accordance with Chapter 241 (Hospitals) if the facility fails to respond to HHSC's request to submit a corrective action plan, or comply with the requirements of a corrective action plan submitted to HHSC.
SECTION 3. Requires a health care facility required to disclose billing information under Chapter 327 (Disclosure of Prices), Health and Safety Code, as amended by this Act, to disclose the information in accordance with that chapter not later than August 31, 2029.
SECTION 4. Effective date: upon passage or September 1, 2025.