Texas senator proposes expanding surprise billing law to free-standing EDs

A Texas legislator proposed extending the state’s surprise medical bill law to include state-assisted arbitration for out-of-network bills issued by free-standing emergency departments.

Advertisement

Under existing law, the Texas Department of Insurance provides mediation services to patients with state-funded health plans who have out-of-network hospital bills totaling a minimum of $500.

The bill, SB 507, would allow the state to mediate balance bills for care administered by out-of-network physicians at in-network free-standing EDs, in addition to in-network hospitals, according to a CBS DFW report. The balance billing mediation would be provided for all services from any emergency care facility or provider.

SB 507 also calls for expansion of the state’s disclosure requirements for balance billing and out-of-network status for healthcare providers, facilities and insurers. Specifically, the measure would require providers to include a disclosure stating “this is a balance bill that may be eligible for mediation.” 

State Sen. Kelly Hancock, R-North Richland Hills, introduced the bill in January. A senate committee is scheduled to hear public comment on the measure March 9. 

More articles on healthcare finance:
What the AHCA means for insurers: 7 things to know
Children’s Minnesota dumps contract with BCBS
Iowa Medicaid payers report more than $100M in losses in 2016

Advertisement

Next Up in Financial Management

  • Healthcare leaders are often expected to compartmentalize emotion to make difficult decisions, drive results, and maintain operational focus. For many years, I led…

  • Chicago-based CommonSpirit recorded an operating income of $2 million (0% operating margin) in the second quarter of fiscal 2026, down…

  • Amy Assenmacher, RN, senior vice president of revenue cycle at Grand Rapids, Mich.-based Corewell Health, is confident that healthcare is…

Advertisement

Comments are closed.