Committee hears bill aimed at curbing excessive charges for durable medical equipment used by Medicare beneficiaries
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Summary
Senate Bill 1330 would close a gap in federal Medicare rules that allows some durable medical equipment suppliers to bill far above Medicare-approved prices, sponsors said; insurers and a McKinney-headquartered firm supported the bill and the committee left it pending for a technical substitute.
Senate Bill 1330, sponsored by Sen. Hancock, would create a mechanism to limit excessive charges for durable medical equipment (DME) sometimes billed to Medicare beneficiaries or their insurers at many times Medicare-approved prices. The committee heard invited testimony from Sean Pollock of Globe Life Insurance Company in support.
Sen. Hancock told the committee the bill “causes a loophole in the Federal Medicare law” to be closed and curbs “artificial premium inflation” by preventing unreasonable charges for DME; the sponsor said the bill does not prohibit an insured individual from choosing a higher-priced nonparticipant supplier if they prefer that product and are willing to pay.
Sean Pollock, representing Globe Life (headquartered in McKinney, Texas), said the company supports SB 1330 because it protects seniors from balance billing and helps insurers avoid paying inflated charges that drive up costs for beneficiaries. Pollock provided national policy context about abuse and said his firm covers around 7,200 Texas Medicare-supplement policyholders.
Committee members indicated staff will prepare a committee substitute to clean up technical language and legislative counsel drafting. The chair left SB 1330 pending.
Why it matters: Committee sponsors said the bill targets abusive billing practices that can inflate out-of-pocket costs for Medicare beneficiaries and raise insurer claims costs.
