HB 216

Overall Vote Recommendation
Yes
Principle Criteria
neutral
Free Enterprise
neutral
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
Digest
HB 216 modifies Section 185.002 of the Texas Health and Safety Code to enhance transparency and patient rights in healthcare billing. Under the bill, any healthcare provider who requests payment from a patient after delivering a service or supply must also provide a written, itemized bill outlining the specific charges for each component of care. This itemized bill must be submitted no later than 30 days after the provider receives final payment from a third party, such as an insurer. This requirement ensures that patients are not billed without clarity or justification for the charges incurred.

The bill outlines several methods by which providers may deliver the itemized bill: electronically through a patient portal, by mail or delivery service, or directly in person at the provider’s business location. If the provider chooses to deliver the bill electronically, they are first required to confirm that the patient has an active portal profile. If no active profile exists, a paper copy must be mailed to the patient. These measures are designed to ensure that all patients, regardless of technological access or literacy, receive their billing information.

Patients are also given the right to request an itemized bill at any time after the initial issuance, and the provider must honor this request in the patient’s preferred delivery format. This right remains valid for as long as the provider is required to retain billing records under law or internal policy. In addition, Section 185.003 is amended to mandate disciplinary action by a healthcare provider’s licensing authority in cases where providers fail to comply with the bill’s requirements, though providers who attempt good faith delivery and can demonstrate undeliverability are shielded from such penalties.

Finally, the bill repeals certain older provisions in Section 311.002 of the Health and Safety Code that are made redundant by these changes and sets an effective date. Overall, HB 216 aims to improve healthcare billing transparency and empower patients with timely, accessible information about the charges they incur.

The Committee Substitute version of HB 216 significantly expands and refines the originally filed version of the bill, introducing new patient protections and compliance mechanisms.

The originally filed version of HB 216 primarily focused on requiring that if a healthcare provider chooses to issue an itemized bill electronically via a patient portal, they must first verify that the patient has created a portal profile. If the patient has not, the provider is required to mail a hard copy of the bill. It also stated that the appropriate licensing authority shall take disciplinary action against a provider who violates these requirements, and it included standard language on applicability.

In contrast, the Committee Substitute version broadens the scope of the bill in several ways. First, it mandates that all healthcare providers who request payment from patients must issue an itemized bill detailing each service and supply, not just in cases of electronic billing. It also sets a specific deadline for issuing the bill—within 30 days of receiving final third-party payment. Moreover, the substitute outlines the acceptable delivery methods (electronic, mail, or in-person pickup), and allows patients to request the bill in their preferred format at any point as long as billing records are retained. A new subsection also protects providers from disciplinary action if they mail a bill in good faith and can prove it was returned as undeliverable.

Overall, the substitute version transforms the bill from a narrowly tailored electronic communication requirement into a broader consumer rights and transparency measure that applies to all healthcare billing practices. It introduces more concrete timelines, expanded patient access rights, and balanced enforcement provisions.
Author (2)
Caroline Harris Davila
James Frank
Sponsor (1)
Bryan Hughes
Co-Sponsor (1)
Cesar Blanco
Fiscal Notes

According to the Legislative Budget Board (LBB), the fiscal implications of HB 216 are currently indeterminate due to uncertainties surrounding the potential volume and complexity of enforcement actions resulting from the bill's implementation. According to the Legislative Budget Board's fiscal note, the requirement that health care providers verify patient portal access before delivering electronic itemized bills—and subsequently mail them when no portal exists—may lead to an increase in complaints. This, in turn, could expand the workload of licensing authorities, particularly the Texas Medical Board, which would be responsible for initiating disciplinary action against non-compliant providers.

The Texas Medical Board noted that the bill could lead to more investigations and complaints, potentially requiring additional staffing or resources. However, because the number and scope of these potential complaints are not currently predictable, the Board could not quantify the financial impact. The costs could range from negligible to substantial, depending on how widely the bill’s provisions are violated and reported.

On the other hand, the Health and Human Services Commission (HHSC) anticipates no significant fiscal impact from the bill. They expect any additional workload resulting from its provisions to be absorbed using existing agency resources. Furthermore, the fiscal note states that there would be no anticipated fiscal implications for local governments.

In summary, while HHSC expects to handle the bill’s requirements within its current capacity, the Texas Medical Board may face variable and potentially significant enforcement-related costs. However, the full fiscal impact cannot be calculated with certainty at this time.

Vote Recommendation Notes

HB 216 presents a meaningful and well-calibrated reform aimed at improving healthcare billing transparency for Texas patients. The bill addresses critical issues raised by constituents, such as difficulty accessing itemized bills due to technological or logistical barriers. By requiring health care providers to deliver a written, itemized bill through mail or in-person pickup if no active patient portal exists, the bill responds to real-world inequities, particularly affecting elderly, rural, or low-income patients who may not use or have access to digital portals.

The bill further reinforces patient rights by allowing individuals to request their billing information at any time during the provider’s document retention period and to receive it through their preferred delivery method. This flexibility ensures that patients maintain control over how they receive sensitive financial information and supports their ability to verify, dispute, or seek assistance with their medical bills. The inclusion of a good faith exception for providers who attempt to mail the bill but receive it back as undeliverable protects against overly punitive enforcement, maintaining a fair balance between compliance and operational reality.

From a policy standpoint, this legislation strengthens individual liberty and personal responsibility by equipping Texans with timely and detailed billing information. It avoids heavy-handed regulation, relying instead on disclosure and enforcement through existing licensing authorities. While the fiscal note indicates potential enforcement costs for state agencies like the Texas Medical Board, the Health and Human Services Commission expects to absorb any impact with current resources, and no burden is anticipated for local governments.

In sum, the bill advances transparency, protects consumers, and upholds core liberty principles without expanding government power unnecessarily. It is a reasonable and prudent measure, and as such, Texas Policy Research recommends that lawmakers vote YES on HB 216.

  • Individual Liberty: The bill enhances individual liberty by affirming patients’ right to full and timely access to the financial details of their healthcare. It ensures that individuals are not denied transparency simply because they do not or cannot access digital tools like patient portals. This access empowers Texans to make informed decisions, dispute questionable charges, and maintain control over their personal financial and health information—core elements of autonomy and liberty in a healthcare context.
  • Personal Responsibility: By requiring itemized billing, the legislation fosters greater accountability and financial awareness. Patients are better able to track and manage healthcare costs, detect errors, and budget appropriately. This transparency supports responsible behavior by both patients and providers, creating a clearer, more trustworthy system of financial exchange in healthcare.
  • Free Enterprise: The bill does not interfere with pricing structures or impose mandates that would distort market behavior. Instead, it complements the operation of free markets by requiring providers to disclose the costs of services rendered—encouraging more informed consumer choice and competition. It strikes a balance between market freedom and consumer protection.
  • Private Property Rights: There is no infringement upon ownership, use, or transfer of private property. Providers retain full discretion over how they structure and price services, as long as they clearly communicate those charges. The bill simply ensures transparency in the financial transaction between patient and provider.
  • Limited Government: The bill avoids creating new bureaucracies or imposing broad regulatory schemes. It leverages existing licensing authorities for enforcement and includes a “good faith” exception for providers who attempt to comply but encounter undeliverable mail. This approach reflects a restrained and targeted use of government power—intervening only to guarantee transparency, not to micromanage billing operations.
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