For our healthcare clients who do business in Texas, there are some upcoming changes to required medical billing practices that must be followed before you can refer your past due accounts to a collection agency.
Texas SB 490 was signed into law by Governor Greg Abbott on May 29, 2023, and goes into effect on September 1, 2023, and is titled Health Care Billing.
Section 185.002 of this bill reads as follows:
ITEMIZED BILL REQUIRED:
(a) A health care provider that requests payment from a patient after providing a services or related supplies to the patient shall submit with the request a written, itemized bill of the alleged cost of each service and supply provided to the patient during the patient’s visit to the provider. The provider must submit the itemized bill not later than the 30th day after the provider receives a final payment on the provided service or supply from a third party.
(b) The itemized statement must include:
(1) A plain language description of each distinct health care service or supply the health care provider provided to the patient:
(2) If the provider sought or is seeking reimbursement from a third party, any billing code submitted to the third party and the amounts billed to and paid by that third party; and
(3) The amount the provider alleges is due from the patient for each service and supply provided to the patient.
(c) A health care provider may issue the itemized bill electronically, including through a patient portal on the provider’s internet website.
(d) A patient is entitled to obtain from the health care provider an itemized bill on request at any time after the itemized bill is initially issued under Subsection (a).
(e) A health care provider may not pursue debt collection against a patient for a provided health care service or supply unless the provider has complied with this section.
We recommend consulting with your billing company and/or attorney for guidance with implementing and compliance with this new law.