Governor Greg Abbott has announced a new medical bill in Texas that aims to provide transparency and fairness to patients. The bill requires hospitals to supply patients with itemized bills that are easy to understand. This comes after an investigation revealed that many hospitals in the state were suing patients over unpaid bills without prior warning.

The investigation, conducted in 2021, found that numerous hospitals in Texas had been taking legal action against patients for unpaid bills dating back to 2019. Many patients claimed they were unaware of the risk of being sued. One hospital had a policy of not suing patients who earned less than $27,180 per year. However, they would initiate legal proceedings against those above this income threshold who they believed had the means to pay but had ignored attempts to communicate.

To address this issue, Rep. Nicole Collier introduced a bill in 2019 that aimed to prevent debt collectors from pursuing unpayable debts. Governor Abbott recently approved Senate Bill 490, which mandates hospitals to provide patients with itemized bills, starting from September 1st, 2023. The breakdown of expenses must be in clear language that can be understood by non-medical staff. The bill also requires hospitals to provide the itemized bill within thirty days of the patient's visit and allows for online portals to be used for bill sharing. Failure to comply with the new law can result in license revocation and fines ranging from $1,000 to $25,000.

Governor Abbott | Texas Governor

Lawmakers are offering assistance to hospitals in implementing this new requirement to ensure a smooth transition. The goal is to provide patients with a better understanding of their medical expenses and to prevent any hidden costs. By enforcing transparency, patients can make informed decisions about their healthcare and avoid any surprises when it comes to their medical bills.