AN ACT
 1-1     relating to billing policies of certain health care professionals
 1-2     and facilities; providing administrative penalties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsection (d), Section 241.154, Health and
 1-5     Safety Code, is amended to read as follows:
 1-6           (d)  A hospital may not charge a fee for:
 1-7                 (1)  providing health care information under Subsection
 1-8     (b) to the extent the fee is prohibited under Subchapter M, Chapter
 1-9     161;
1-10                 (2)  a patient to examine the patient's own health care
1-11     information;
1-12                 (3)  providing an itemized statement of billed services
1-13     to a patient or third-party payor, except as provided under Section
1-14     311.002(f) [311.002(e)]; or
1-15                 (4)  health care information relating to treatment or
1-16     hospitalization for which workers' compensation benefits are being
1-17     sought, except to the extent permitted under Chapter 408, Labor
1-18     Code.
1-19           SECTION 2.  Section 311.002, Health and Safety Code, is
1-20     amended to read as follows:
1-21           Sec. 311.002.  ITEMIZED STATEMENT OF BILLED SERVICES.
1-22     (a)  Each hospital shall develop, implement, and enforce a written
1-23     policy for the billing of hospital services and supplies.  The
1-24     policy must include:
 2-1                 (1)  a periodic review of the itemized statements
 2-2     required by Subsection (b); and
 2-3                 (2)  a procedure for handling complaints relating to
 2-4     billed services.
 2-5           (b)  Not later than the 30th [10th] business day after the
 2-6     date of the hospital discharge of a person who receives hospital
 2-7     services, the hospital shall provide on request [have available] an
 2-8     itemized statement of the billed services provided to the person.
 2-9     The itemized statement must:
2-10                 (1)  be printed in a conspicuous manner;
2-11                 (2)  list the date services and supplies were provided;
2-12                 (3)  state whether:
2-13                       (A)  a claim has been submitted to a third party
2-14     payor; and
2-15                       (B)  a third party payor has paid the claim;
2-16                 (4)  if payment is not required, state that payment is
2-17     not required:
2-18                       (A)  in a typeface that is bold-faced,
2-19     capitalized, underlined, or otherwise set out from surrounding
2-20     written material; or
2-21                       (B)  by other reasonable means so as to be
2-22     conspicuous that payment is not required; and
2-23                 (5)  contain the telephone number of the facility to
2-24     call for an explanation of acronyms, abbreviations, and numbers
2-25     used to describe the services provided or supplies used or any
2-26     other questions regarding the bill.
 3-1           (c) [(b)]  Before a person is discharged from a hospital, the
 3-2     hospital shall inform the person of the availability of the
 3-3     statement.
 3-4           (d) [(c)]  To be entitled to receive a statement, a person
 3-5     must request the statement not later than one year after the date
 3-6     on which the person is discharged from the hospital.  The hospital
 3-7     shall provide the statement to the person not later than the 30th
 3-8     [10th] day after the date on which the person requests the
 3-9     statement.
3-10           (e) [(d)]  A hospital shall provide an itemized statement of
3-11     billed services to a third party payor who is actually or
3-12     potentially responsible for paying all or part of the billed
3-13     services provided to a patient and who has received a claim for
3-14     payment of those services.  To be entitled to receive a statement,
3-15     the third party payor must request the statement from the hospital
3-16     and must have received a claim for payment.  The request must be
3-17     made not later than one year after the date on which the payor
3-18     received the claim for payment.  The hospital shall provide the
3-19     statement to the payor not later than the 30th [10th] day after the
3-20     date on which the payor requests the statement.  If a third party
3-21     payor receives a claim for payment of part but not all of the
3-22     billed services, the third party payor may request an itemized
3-23     statement of only the billed services for which payment is claimed
3-24     or to which any deduction or copayment applies.
3-25           (f) [(e)]  If a person, including a third party payor,
3-26     requests more than two copies of the statement, the hospital may
 4-1     charge a reasonable fee for the third and subsequent copies
 4-2     provided to that person.  The fee may not exceed the hospital's
 4-3     cost to copy, process, and deliver the copy to the person.
 4-4           (g) [(f)]  The Texas Department of Health or other
 4-5     appropriate licensing agency may enforce this section by assessing
 4-6     an administrative penalty, obtaining an injunction, or providing
 4-7     [by] any other appropriate remedy, including suspending, revoking,
 4-8     or refusing to renew a hospital's license.
 4-9           (h) [(g)]  In this section, "hospital" includes:
4-10                 (1)  a hospital licensed under Chapter 241;
4-11                 (2)  a treatment facility licensed under Chapter 464;
4-12     and
4-13                 (3) [(2)]  a mental health facility licensed under
4-14     Chapter 577.
4-15           (i) [(h)]  This section does not apply to a hospital
4-16     maintained or operated by the federal government.
4-17           SECTION 3.  This Act takes effect September 1, 1999, and
4-18     applies only to acts or omissions occurring on or after that date.
4-19           SECTION 4.  The importance of this legislation and the
4-20     crowded condition of the calendars in both houses create an
4-21     emergency and an imperative public necessity that the
4-22     constitutional rule requiring bills to be read on three several
4-23     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 830 passed the Senate on
         April 8, 1999, by the following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 830 passed the House on
         May 26, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor