Healthcare State Bill Legislation

In our 2021 Fall Newsletter, we shared state-level legislation that was either signed into law or was working its way through the process that could impact hospitals and their revenue. As we move further into 2022, we wanted to highlight additional legislation that was enacted so you know what to expect as you continue to provide the best care possible.

Overall, there were 18 bills enacted in 12 states, including the six bills and five states (New Mexico, Nevada, Maryland, Illinois, California) we covered previously. Below is a short rundown of the bills not covered in the earlier article including: Alabama, Arkansas, California, Colorado, Idaho, Illinois, and Maine. These bills affect how hospitals, healthcare systems and providers get paid, how long they have to recover revenue, indigent patient care and more. Read on to see if you are impacted by any of these new laws.

Alabama – H 279

In May, Alabama enacted H 279, the Health Insurance and Health Care Payors bill[1]. It provides for the circumstances under which a hospital may place a lien against a patient. It also removed a provision that allowed a hospital and a patient’s health insurance or other payer to supplant the current laws.  Lastly, it prohibits insurance companies and other payors from denying, delaying, or deferring payment to a patient being treated for injuries.

Arkansas – S 640

Arkansas’s Medical Debt Statute of Limitations bill[2] makes it so an action shall not be brought to recover charges for medical services performed or provided after March 31, 1985, after the expiration period of five (5) years from the date of service, or from the date of the most recent partial payment for the services, whichever is later.

California – A 532

In addition to A 1020, Health Care Debt and Fair Billing[3], California also passed A 532, the Health Care: Fair Billing Policies Act[4]. This act amends the existing law that deals with written notice about a hospital’s discount payment and charity care policies. It adds the requirement that the written patient notice includes a website for the hospital’s list of shoppable services. It also requires the written notice to include the website of specified health consumer assistance entities and information regarding Covered California and Medi-Cal presumptive eligibility.

Colorado – H 1198 & H 1300

Colorado put forth a pair of acts, H 1198, Health-Care Billing Requirements for Indigent Patients[5], and H 1300, Health Care Provider Liens For Injured Persons[6].

The first act, H 1198, sets billing requirements for indigent patients receiving services not reimbursed through the State Indigent Care Program. It establishes the procedures required before initiating collections against a patient while making and reducing appropriations

The second act, H 1300, deals with placing liens against patients who are injured as the result of negligence or wrongful acts of another person, regardless of insurance status. It allows injured patients to agree to delay payment for the services they receive in exchange for a lien on any money received as a result of a claim or claims they have against a third party or motorist insurance policy.

Connecticut – S 683

The Connecticut bill, Hospital Billing and Collection[7], which will go into effect October 1, 2022, expands the types of entities to which billing and collection restrictions apply. It also places further limitations on collection efforts by these same entities and makes several changes to Connecticut’s existing laws concerning facility fees. An article by JD Supra[8] goes into more depth on these changes.

Idaho – H 42

Idaho passed H 42 Patient Act[9], which provides a time extension for certain extraordinary medical collection actions requirement for section 48-306, Idaho Code, by creating Section 48-313.

It states that for goods and services provided to a patient prior to July 1, 2021, a party may take extraordinary collection action pursuant to section 48-306, Idaho Code, even if such party fails to satisfy the additional forty-five (45) and ninety (90) daytime periods prescribed in that section, as long as all of the other requirements of section 48-306, Idaho Code, have been satisfied.

Illinois – H 3803

While S 1840, the Community Benefits Act[10], received the most attention in Illinois recently, H 3803[11], which made amendments to the Fair Patient Billing Act, will also impact healthcare. This act requires hospitals to proactively offer information on the available charity care options available to patients, regardless of their immigration status, health insurance or residency. They must also obtain the signature of a patient that declines charity care if they do not intend to access financial assistance.

Maine – H 12

Maine is one of the 33 states that have laws pertaining to surprise or balance billing for patients. H 12[12] makes changes to existing laws that cover surprise medical bills.

We will continue to see new legislation at a state level in addition to the ones we have already covered. States like Virginia currently have legislation in the works that could drastically reduce the amount of time hospitals and healthcare providers have to recover revenue. Americollect will continue to track these changes and share them with you, and if you have any questions about these new laws, or anything else that can affect your early out or collections process, we are happy to help.