Amended

March 25, 2025

 

H. 4069

 

Introduced by Reps. Sessions, Magnuson and Wickensimer

 

S. Printed 3/25/25--H.

Read the first time February 20, 2025

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 44-7-327 SO AS TO ESTABLISH CERTAIN REQUIREMENTS PERTAINING TO PATIENT BILLING FOR HEALTH SERVICES AND SUPPLIES.

    Amend Title To Conform

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Article 3, Chapter 7, Title 44 of the S.C. Code is amended by adding:

 

    Section 44-7-327.  (A) For purposes of this section:

       (1) "Debt collection" means an action, conduct, or practice in collecting, or in soliciting for collection, consumer debts that are due or alleged to be due a creditor.

       (2) "Healthcare facility" means:

           (a) acute care hospitals;

           (b) psychiatric hospitals;

           (c) alcohol and other substance-use disorder hospitals;

           (d) ambulatory surgical facilities;

           (e) hospice facilities;

           (f) radiation therapy facilities;

           (g) rehabilitation facilities;

           (h) residential treatment facilities for child and adolescents;

           (i) intermediate care facilities for individuals with intellectual disabilities; or

           (j) narcotic treatment programs.

       (3) "Healthcare service" means a service a healthcare facility provides to an individual to diagnose, prevent, treat, alleviate, cure, or heal a human health condition, illness, injury, or disease.

    (B)(1) Beginning January 1, 2026, a healthcare facility that requests payment from a patient after providing a healthcare service or related supply to the patient shall:

           (a) provide to the patient an electronic version of the itemized bill of the alleged remittance sought for each service and supply provided to the patient during the patient's visit to the healthcare facility; or

           (b) provide to the patient a copy of the written itemized bill of the alleged remittance sought for each service and supply provided to the patient during the patent's visit to the healthcare facility.

       (2)(a) The healthcare facility must notify the patient in clear and conspicuous language, electronically or in writing, of the availability of obtaining an itemized copy electronically or in writing pursuant to subsection (B)(1) and must offer the patient the ability to indicate the preferred form of the itemized bill.

        (b) A patient may waive the right to receive an itemized bill electronically or in writing. An initial waiver of the right to an itemized bill does not prevent the patient from later receiving an itemized bill upon request.

       (3) The itemized bill must include:

           (a) a plain language description, in accordance with the most current billing reading-level requirements and guidance provided by the Centers for Medicare and Medicaid Services, for each distinct healthcare service and quantity of supply the healthcare facility provided to the patient;

           (b) the amount the healthcare facility alleges is due from the patient; and

           (c) if the healthcare facility sought or is seeking reimbursement from a third party, any billing code submitted to the third-party, and the patient's responsibility amount due to the healthcare facility pursuant to the third-party insurer's explanation of benefits.

       (4)(a) A healthcare facility is legally authorized to issue itemized bills electronically, including through a patient portal on the healthcare facility's website.

           (b) In accordance with items (1) and (2), a patient may obtain from the healthcare facility an itemized bill upon request any time after the itemized bill is initially issued.

       (5) A healthcare facility may not pursue debt collection against a patient for a provided healthcare service or supply unless the healthcare facility has provided an itemized bill to the patient or the patient has waived the right to receive an itemized bill.

       (6) A collection agency is not liable under this section for billing inaccuracies provided by the healthcare facility. If any inaccuracies are determined, the collection agency must cease collection activities and return the account back to the healthcare facility.

    (C) The appropriate licensing authority shall take disciplinary action against the healthcare facility for the violation as if the healthcare facility violated an applicable licensing law.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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