By Bailey H.B. No. 761 74R2294 KLL-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to cost estimates for procedures and services by hospitals 1-3 and nursing homes and to reports on the status of health care 1-4 services. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter A, Chapter 241, Health and Safety 1-7 Code, is amended by adding Sections 241.006 and 241.007 to read as 1-8 follows: 1-9 Sec. 241.006. COST ESTIMATE. (a) The commissioner of 1-10 health shall require hospitals to publish cost estimates for 1-11 procedures and services provided by the hospital. 1-12 (b) The commissioner shall require hospitals to furnish on 1-13 request a written estimate to a prospective patient of the average 1-14 charges for health services related to a particular diagnostic 1-15 condition or medical procedure to be provided by the hospital to 1-16 the prospective patient. 1-17 (c) A request for a cost estimate by a prospective patient 1-18 must be in writing and include in the request a written medical 1-19 diagnosis made by a health care practitioner licensed to provide 1-20 the diagnosis. A hospital may require the prospective patient to 1-21 provide the hospital with information about the prospective 1-22 patient's age and gender and any other information that will allow 1-23 the hospital to provide a more accurate estimate. 1-24 (d) A hospital shall provide notice to the public that the 2-1 hospital will provide an estimate of charges for diagnostic 2-2 conditions or medical procedures. Notice may be given by posting 2-3 in a public area of the hospital a statement of the procedure for 2-4 requesting a cost estimate. 2-5 (e) A hospital shall publish notice that the hospital will 2-6 provide an estimate of charges for diagnostic conditions or medical 2-7 procedures in any advertisement or promotional material of the 2-8 hospital. 2-9 Sec. 241.007. REPORT. The commissioner of health shall 2-10 prepare a report regarding the status and operations of hospitals 2-11 in the state. The report must be submitted to the governor and 2-12 legislature not later than February 1 of each odd-numbered year. 2-13 The report must contain information, analysis, and recommendations 2-14 concerning: 2-15 (1) the status of the health care cost problem, 2-16 including the costs faced by employers and individuals; 2-17 (2) the status of competitive forces in the market for 2-18 health services, the market for health plans, and the effect of 2-19 competitive forces on the health care cost problem; 2-20 (3) the feasibility and cost-effectiveness of 2-21 facilitating development of strengthened competitive forces through 2-22 state initiatives; 2-23 (4) the feasibility of limiting health care costs by 2-24 means other than competitive forces, including direct forms of 2-25 government intervention, such as price regulation; 2-26 (5) the overall status of access to adequate health 2-27 services by citizens of the state, the scope of financial and 3-1 geographic barriers to access, the effect of competitive forces on 3-2 access, and the prospects for access to health care services 3-3 improving or degenerating; and 3-4 (6) the feasibility and cost-effectiveness of 3-5 enhancing access to adequate health services for citizens of this 3-6 state through state initiatives. 3-7 SECTION 2. Subchapter A, Chapter 242, Health and Safety 3-8 Code, is amended by adding Sections 242.015 and 242.016 to read as 3-9 follows: 3-10 Sec. 242.015. COST ESTIMATE. (a) The commissioner of human 3-11 services shall require nursing homes to publish cost estimates for 3-12 procedures and services provided by the nursing home. 3-13 (b) The commissioner shall require nursing homes to furnish 3-14 on request a written estimate to a prospective patient of the 3-15 average charges for health services related to a particular 3-16 diagnostic condition or medical procedure to be provided by the 3-17 nursing home to the prospective patient. 3-18 (c) A request for a cost estimate by a prospective patient 3-19 must be in writing and include in the request a written medical 3-20 diagnosis made by a health care practitioner licensed to provide 3-21 the diagnosis. A nursing home may require the prospective patient 3-22 to provide the nursing home with information about the prospective 3-23 patient's age and gender and any other information that will allow 3-24 the nursing home to provide a more accurate estimate. 3-25 (d) A nursing home shall provide notice to the public that 3-26 the nursing home will provide an estimate of charges for diagnostic 3-27 conditions or medical procedures. Notice may be given by posting 4-1 in a public area of the nursing home a statement of the procedure 4-2 for requesting a cost estimate. 4-3 (e) A nursing home shall publish notice that the nursing 4-4 home will provide an estimate of charges for diagnostic conditions 4-5 or medical procedures in any advertisement or promotional material 4-6 of the nursing home. 4-7 Sec. 242.016. REPORT. The commissioner of human services 4-8 shall prepare a report regarding the status and operations of 4-9 nursing homes in the state. The report must be submitted to the 4-10 governor and legislature not later than February 1 of each 4-11 odd-numbered year. The report must contain information, analysis, 4-12 and recommendations concerning: 4-13 (1) the status of the health care cost problem, 4-14 including the costs faced by employers and individuals; 4-15 (2) the status of competitive forces in the market for 4-16 health services, the market for health plans, and the effect of 4-17 competitive forces on the health care cost problem; 4-18 (3) the feasibility and cost-effectiveness of 4-19 facilitating development of strengthened competitive forces through 4-20 state initiatives; 4-21 (4) the feasibility of limiting health care costs by 4-22 means other than competitive forces, including direct forms of 4-23 government intervention, such as price regulation; 4-24 (5) the overall status of access to adequate health 4-25 services by citizens of the state, the scope of financial and 4-26 geographic barriers to access, the effect of competitive forces on 4-27 access, and the prospects for access to health care services 5-1 improving or degenerating; and 5-2 (6) the feasibility and cost-effectiveness of 5-3 enhancing access to adequate health services for citizens of this 5-4 state through state initiatives. 5-5 SECTION 3. This Act takes effect September 1, 1995. 5-6 SECTION 4. The importance of this legislation and the 5-7 crowded condition of the calendars in both houses create an 5-8 emergency and an imperative public necessity that the 5-9 constitutional rule requiring bills to be read on three several 5-10 days in each house be suspended, and this rule is hereby suspended.