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Senate amends hospital pricing transparency bill, lowers daily fine and narrows enforcement language

2474029 · March 3, 2025
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Summary

On second reading, senators amended House Bill 121 to lower the maximum daily fine to $500 and approved a second division that removed other enforcement provisions; the bill was ordered to third reading.

Senators debated amendments Tuesday to House Bill 121, a measure addressing hospital pricing transparency and penalties for noncompliance. The Senate adopted a divided amendment that reduced a proposed daily fine and approved a second division that removed additional enforcement language; the bill was then ordered read a third time.

Senator Hutchings introduced Second Reading Amendment Number 1, which he said restored the standing committee's work and adjusted penalty language. Hutchings said the amendment "restores the good work of the standing committee" and noted members had concerns about a $1,000-per-day fine, so the amendment compromises to $500 per day.

The amendment was divisible. Division 1, which tightened the fine paragraph and set the daily fine at $500, carried on a voice vote. Division 2, covering the remainder of the amendment and removing multiple sections that had stronger enforcement and refund provisions, was more contested. Supporters argued the division balanced enforcement and avoided bankrupting hospitals; opponents said some of the division's changes would weaken protections for patients, including a provision that, before amendment, would have prevented collections for services rendered while a hospital was in material noncompliance.

Senators debated how the bill treats alleged material noncompliance, the 30-day cure period and whether patients could avoid collections if an entity is found immediately out of compliance. Senator Barlow and others pressed for clarity on whether the 30-day period applies only when a state oversight agency finds material noncompliance versus when an individual patient alleges noncompliance.

After a standing-count vote on Division 2 the chair called the count: 21 in favor. With both divisions adopted, the Senate ordered House Bill 121 read a third time.

Senator Hutchings framed the amendment as a compromise to secure the bill's passage; other senators urged more work on definitions and enforcement language on third reading.