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House approves bill requiring hospitals to itemize assessment on patient bills; insurers and hospitals warn of consequences
Summary
House Bill 84, requiring hospitals to list the hospital assessment on patient bills, passed the Utah House 55–19 after debate in which supporters said itemization ensures "truth in taxation" and opponents warned insurers might stop covering itemized assessment charges.
Representative Margaret Dayton introduced House Bill 84, saying the measure "simply requires that the hospitals list this tax on their bill" so patients know what they are being charged. Dayton described the hospital assessment as currently hidden in "inflated hospital costs" and said itemization would improve transparency and accountability.
Supporters, including Representative Lockhart, argued that consumers have a right to know what taxes are embedded in their bills and that listing the assessment promotes honesty. Representative Wei compared the proposal to gas-pump tax stickers and called the proposal an example of "truth in taxation." Representative Lockhart said the bill would make people aware of the charges now wrapped into hospital bills.
Opponents, including Representative Beck, warned that itemizing the assessment could lead insurance companies not to pay the listed tax because insurers do not pay taxes and therefore might pass the cost directly to patients or increase administrative burdens. Beck said a hospital administrator testified that changing billing systems would be a burden, impose costs, and add confusion. Supporters responded that the Department of Health sets the assessment and that transparency would also improve oversight of how assessments are applied.
After extended debate, the House approved House Bill 84 by a roll-call vote of 55–19. The bill will be referred to the Senate for further action.
