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Bill to ban many hospital-affiliated clinic "facility fees" advances after amendment clarifies enforcement role
Summary
Sen. Umu Verbatten sponsored a bill to ban facility fees charged by hospital-affiliated clinics and require annual reporting; the committee adopted an amendment specifying enforcement by the attorney general and MDH and laid the bill over to Health & Human Services.
Senate File 1503 would prohibit charging facility fees for non-emergency services at provider-based clinics and require hospitals to report facility-fee data annually to the Minnesota Department of Health (MDH). On March 28 the Judiciary Committee considered the bill'primarily to confirm enforcement provisions.
Melissa Finnegan, who described a personal family experience with an unexpected clinic facility fee, said current law requiring notice is inadequate and that consumers need an enforceable remedy. Finnegan recounted a pediatric specialty appointment where a $423 facility fee was added to a $201 professional charge and said the posted sign at the clinic did not meet the statutory notice requirement.
Sen. Umu Verbatten said enforcement of the ban would treat charging a prohibited facility fee as an unlawful business practice enforced by the Attorney General, while MDH would have authority to impose penalties for failure to meet reporting requirements. The A2 amendment removed rulemaking language and clarified that the Attorney General enforces the unlawful-practice prohibition and that MDH enforces reporting requirements.
Hospital representatives told the committee that Medicare and outpatient billing rules require hospitals to bill a separate facility component in many situations; committee members asked whether federal rules (Centers for Medicare and Medicaid Services, 42 CFR) would conflict with a state prohibition. The Minnesota Hospital Association noted Medicare requires a professional fee component and a facility fee component for hospital outpatient services.
Committee action: The A2 amendment, which clarified enforcement and removed MDH rulemaking authority, was adopted. The committee then recommended the bill to be returned to the Health & Human Services Committee for further action with the adopted amendment.
Why it matters: Supporters called the fee a surprise out-of-pocket cost for patients that can be substantial even for short clinic visits; opponents warned of potential conflict with federal billing rules and the need to resolve technical billing issues.
Next steps: The bill will be considered by Health & Human Services; sponsors and the committee said additional legal and technical review (including interactions with CMS rules) may be necessary as the bill advances.
