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Bill Analysis — Senate Bill 505, Medical Billing Transparency (April 26, 2021)

Summary

Bill analysis of the Second Edition of Senate Bill 505, Medical Billing Transparency, for the Senate Commerce and Insurance committee, dated April 26, 2021. It states the bill would require healthcare facilities to notify patients of any healthcare providers at the facility who may not be in the patients' insurance network. The notification would have to be given at least 72 hours prior to the appointment for appointments made that far in advance, on the day of the appointment for appointments made less than 72 hours in advance, and as soon as reasonably possible for emergency care. The bill would be effective January 1, 2022.

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“Bill Analysis — Senate Bill 505, Medical Billing Transparency (April 26, 2021).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-04-28-s505-smbc-50-e2-v1-ab1de71a8d/, SHA-256 dd7b641d62eba469485e54b1ac199e51b24c23e7ddea9f915c058ec07d776273.

Full text

                                                     SENATE BILL 505:
                                                     Medical Billing Transparency.
      2021-2022 General Assembly
     Committee:     Senate Commerce and Insurance. If favorable, Date:          April 26, 2021
                    re-refer to Rules and Operations of the Senate
     Introduced by: Sens. Krawiec, Burgin, Perry                   Prepared by: Jason Moran-Bates
     Analysis of:   Second Edition                                              Staff Attorney

     OVERVIEW: Senate Bill 505 would require healthcare facilities to notify patients of any healthcare
     providers at the facility who may not be in the patients' insurance network.
     BILL ANALYSIS: Under Senate Bill 505, when a patient makes an appointment for healthcare at an in-
     network health service facility, the facility would be required to notify the patient of any out-of-network
     health care providers who may be providing care to the patient. The notification would have to be given
     at least 72 hours prior to the appointment for appointments made that far in advance, on the day of the
     appointment for appointments made less than 72 hours in advance, and as soon as reasonably possible for
     emergency care. The notification would have to include all the out-of-network providers who will be
     involved in the patient's care and the approximate cost to the insured for that care.
     "Health care provider" would be defined to include anyone licensed under Chapter 90 to provide
     healthcare services. "Health services facility" would be defined to include a hospital; long-term care
     hospital; psychiatric facility; rehabilitation facility; nursing home facility; adult care home; kidney disease
     treatment center, including freestanding hemodialysis units; intermediate care facility for individuals with
     intellectual disabilities; home health agency office; chemical dependency treatment facility; diagnostic
     center; hospice office, hospice inpatient facility, hospice residential care facility; and ambulatory surgical
     facility.
     EFFECTIVE DATE: The bill would be effective January 1, 2022, and would apply to contracts entered
     into, amended, or renewed on or after that date.




                                                                                                                                                             Legislative Analysis
     Jeffrey Hudson
                                                                                                                                                                   Division
         Director                                           S505-SMBC-50(e2)-v-1                                                                               919-733-2578
This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.


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