BILL ANALYSIS

Senate Research Center	S.B. 945
88R9657 LRM-D	By: Kolkhorst
	Health & Human Services
	4/6/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

American healthcare prices are at record levels and continue to grow. According to recent Centers for Medicare and Medicaid data, national health expenditures grew to $4.3 trillion in 2021, or $12,914 per person, and accounted for 18.3 percent of the gross domestic product (GDP). National health spending is projected to grow at an average annual rate of 5.4 percent for 2019�2028 and to reach $6.2 trillion by 2028.

Despite 91 percent of Americans having health insurance, almost half of insured adults report difficulty paying out-of-pocket costs, while one in three patients report not being able to cover their deductible.

In the last several decades, current laws and regulations contributing to healthcare spending have outpaced income and inflation. Without systemic changes, a greater number of Texans will not be able to afford health care services, even if they have access to health insurance.

S.B. 945 seeks to remedy these issues and lower healthcare costs by expanding existing state law that requires price transparency and price disclosure by Texas hospitals. This expansion will extend to requiring public disclosure of standard pricing information by healthcare facilities, including freestanding emergency medical care facilities, urgent care or retail clinics, outpatient clinics, birthing centers, and ambulatory surgical centers.

As proposed, S.B. 945 amends current law relating to the disclosure of certain health care cost information by certain health care facilities and authorizes 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, as follows:

(7) Provides that "facility" means a hospital, freestanding emergency medical care facility, urgent care or retail clinic, outpatient clinic, birthing center, ambulatory surgical center, or other facility that is licensed to provide health care services in this state, rather than a hospital licensed under Chapter 241 (Hospitals).

SECTION 2. Amends Section 327.008(a), Health and Safety Code, as follows:

(a) Deletes existing text authorizing the Health and Human Services Commission to impose an administrative penalty on a facility in accordance with Chapter 241 if the facility fails to meet certain criteria.

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 December 31, 2023.

SECTION 4. Effective date: upon passage or September 1, 2023.