BILL ANALYSIS

S.B. 1784

By: Parker

Public Health

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that medical debt remains a significant financial burden for many Texans, often catching patients off guard when they are sent to collections without prior notice, and that unexpected medical bills and aggressive debt collection practices can cause financial distress and negatively impact credit scores, making it harder for individuals to recover financially. The bill sponsor has further informed the committee that many patients may not even be aware of outstanding balances or may be in the process of resolving billing disputes when collection actions are taken and that providing a clear, advance notice before initiating debt collection would give patients an opportunity to address outstanding medical expenses, explore payment options, or correct any billing errors. S.B. 1784 seeks to protect patients from sudden and unexpected debt collection actions, promote greater transparency in medical billing, and reduce financial hardship by requiring health care providers to provide written notice at least 60 days before initiating debt collection for medical services or supplies.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1784 amends the Health and Safety Code to require a health care provider that intends to pursue debt collection for a health care service or supply provided to a patient to provide written notice to the patient at least 60 days before the date the provider initiates debt collection. This requirement applies only to debt collection initiated on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2025.