House passes substitute bill assigning insurers primary responsibility for claims and protecting patients from immediate collection

The House passed substitute House Bill 83 on Feb. 5, 1991, adopting amendments intended to protect insured patients from immediate collection actions while insurers process claims.

Sponsor Representative Joseph L. Hall said the bill addresses complaints from constituents who receive high medical bills before insurers have paid their share and can face credit reporting or collection action. Hall explained the bill assigns the insurer the primary responsibility to pay valid claims, disallows providers from billing patients for services covered under a valid policy during the insurer's processing period, and preserves providers' ability to bill for deductibles, coinsurance and uncovered services.

Representative Osler offered a floor amendment requiring insurers to honor assignments of benefits signed by the insured — an amendment Hall accepted; members said the change would ease providers' concerns about being left unpaid when patients sign over insurance proceeds. Representative Short proposed but later withdrew an amendment about delaying collections until disputes are resolved. Supporters described the proposal as a patient-advocacy measure that reduces emotional stress on patients; critics warned it could duplicate or confuse existing insurance and credit-reporting law.

After debate the House closed voting. Substitute HB 83 received 56 affirmative votes and 13 negative votes and passed; the bill will be forwarded to the Senate for further action.