Senate advances bill to clarify insurance billing notices and claims practices

Utah State Senate · January 25, 1996

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Summary

Lawmakers advanced SB 87 to the third‑reading calendar after adopting an amendment to extend disclosure rules to multiple insurers; sponsors said the bill aims to reduce patient confusion from multiple bills and standardize insurer disclosures.

Senate Bill 87, described by lawmakers as a measure to clarify insurance billing and claims practices, was adopted by the Utah Senate and moved to the third‑reading calendar on Jan. 24.

Sponsor Senator Stewart said the bill would require clearer disclosure on medical bills so patients understand what portion is the insurer—s negotiated amount and what portion — if any — the patient owes. He and other sponsors said the change is meant to reduce billing disputes and frustration when patients receive multiple bills from different providers tied to the same episode of care.

On the floor a technical amendment was offered to ensure that where multiple insurers cover a patient, the same disclosure and obligations apply to the secondary insurer (so both carriers participate in the statutory protections). Senator Paul explained the amendment would close a gap in the original language and make the law function as intended for families with multiple coverages. The amendment was adopted and the Senate recorded 25 ayes, no nays, with four absent; the bill was placed at the bottom of the third‑reading calendar for further consideration.