Medical billing transparency legislation signed by Gov. Abbott
This report is an update to KXAN's "Medical Debt Lawsuits" investigation. Our team followed this bill during Texas' legislative session.
AUSTIN (KXAN) — Gov. Greg Abbott signed a bill into law that will require hospitals requesting payment from patients to provide a written, understandable itemized invoice before sending them to collections.
The Senate approved SB 490 in May, sending it to Abbott for his signature. This was the second session the bill was filed.
The legislation was amended to only include health care facilities and hospitals but not doctors or federally qualified health care centers. The bill explained that a health care provider may issue the itemized bill electronically, including through a patient portal.
Rep. Caroline Harris, R-Round Rock, and Sen. Bryan Hughes, R-Mineola, worked together to pass the legislation, which received pushback in the early stages from the Texas Hospital Association over the cost of providing an itemized bill for every patient.
"I am honored to author SB 490, which calls for transparency in the medical billing process. Working alongside Representative Caroline Harris, this legislation shows that Texas puts patients first," Hughes said to KXAN investigators.
KXAN asked THA about the amended legislation but was told by a spokesperson, "We don't have anything to add."
A fiscal note for the bill said there is no significant costs anticipated for the state, and implementation could be accomplished by utilizing existing resources.
The bill follows a KXAN investigation into a Central Texas hospital that sued hundreds of patients over unpaid medical bills. Several of those patients told KXAN they received vague bills and were unable to get itemized receipts before being served with a lawsuit.
The bill says the appropriate licensing authority can take disciplinary action against the provider for any violations.
The bill goes into effect Sept. 1.