By: Menéndez S.B. No. 2038

(In the Senate - Filed March 12, 2021; April 1, 2021, read first time and referred to Committee on Business & Commerce; April 9, 2021, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; April 9, 2021, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR S.B. No. 2038 By: Hancock

A BILL TO BE ENTITLED

AN ACT

relating to fees and prices charged by freestanding emergency medical care facilities; providing administrative penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter D, Chapter 254, Health and Safety Code, is amended by adding Section 254.1555 to read as follows:

Sec. 254.1555. CERTAIN FEES PROHIBITED. (a) A facility that provides a health care service, including testing or vaccination, to an individual accessing the service from the individual's vehicle may not charge the individual or a third-party payor a facility or observation fee.

(b) This section may not be construed as expanding the type of health care services a facility is authorized to provide under this chapter.

SECTION 2. Subchapter D, Chapter 254, Health and Safety Code, is amended by adding Section 254.160 to read as follows:

Sec. 254.160. PROHIBITED PRICING PRACTICES DURING DECLARED STATE OF DISASTER. (a) In this section, "unconscionable price" means a price a facility charges for a health care service provided to an individual in an amount that is more than 200 percent of the average price charged for the same or a substantially similar product or service provided to other individuals by health care facilities located in the same county or nearest county to the county in which the freestanding emergency medical care facility is located, as applicable, according to data collected by the department under Chapter 108.

(b) A facility, during a state of disaster declared under Chapter 418, Government Code, may not:

(1) charge an individual an unconscionable price for a product or service provided at the facility; or

(2) knowingly or intentionally charge a third-party payor, including a health benefit plan insurer, a price higher than the price charged to an individual for the same product or service based on the payor's liability for payment or partial payment of the product or service.

SECTION 3. Subchapter E, Chapter 254, Health and Safety Code, is amended by adding Section 254.207 to read as follows:

Sec. 254.207. MANDATORY ENFORCEMENT. Notwithstanding any conflicting provision in this subchapter and except for good cause shown, the Health and Human Services Commission shall impose the following on a person licensed under this chapter who violates Section 254.160 or a rule adopted under that section:

(1) for the first violation, an administrative penalty in an amount equal to $10,000;

(2) for the second violation:

(A) an administrative penalty in an amount equal to $50,000; and

(B) a suspension of the person's license for 30 days; and

(3) for the third violation, a permanent revocation of the person's license.

SECTION 4. This Act takes effect September 1, 2021.

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