By: TAHP | Friday, February 14, 2025

Austin, TX, Feb. 14, 2025 – Texans are facing unexpected and unfair hospital facility fees for basic health care like preventive check-ups or virtual doctor visits—adding hundreds or even thousands of dollars to medical bills with little warning. Senator Kelly Hancock’s SB 1232 and Representative James Frank’s HB 2556 would stop these surprise fees, ensure honest billing practices, and protect patients from being overcharged for routine care.

What they’re saying: “Facility fees are hidden, unfair charges driving up Texans’ health care costs—especially for routine and virtual care provided outside of a hospital,” said Jamie Dudensing, CEO of the Texas Association of Health Plans. “SB 1232 and HB 2556 bring efficiency and transparency to the system—giving Texans the information they need to avoid these fees while protecting primary care access and affordability.”

What the legislation does:

• Prohibits facility fees for preventive care and telehealth services—ensuring patients don’t get hit with extra costs for routine or virtual visits.
• Requires hospitals to use location-specific NPIs (National Provider Identifiers) on bills, so insurers and employers can see where care was actually provided and prevent inappropriate fees.
• Ensures advance notice:
  • 10-day notice to patients before any outpatient service that will trigger a facility fee.
  • 90-day notice to insurers and employers before a hospital starts adding facility fees—allowing them to negotiate or steer patients toward lower-cost options.

💡 Why it matters: Families across Texas are blindsided by facility fees when hospitals buy up local doctor offices and start charging “hospital fees” for basic services—even though care is still provided in a clinic setting.

• Patients can’t shop around because fees are hidden until after the bill arrives.
• Employers and insurers struggle to protect patients when billing disguises the true location of care.
• Preventive care and telehealth are meant to reduce costs, but facility fees turn affordable services into expensive ones—discouraging Texans from seeking needed care.

By the numbers:

• Up to $1000: Common range for facility fees added to routine care like check-ups or virtual visits.
• 64% of Texans skipped or delayed care in 2023 due to cost concerns—unexpected fees only worsen this.
• Several states—including Colorado, Connecticut, Ohio, Georgia, and Maryland—have already passed laws to ban facility fees for telehealth and preventive care.

Broad support: Patients, employers, health plans, and consumer advocates back SB 1232 and HB 2556 as a balanced approach to protect families from surprise fees while ensuring doctors and hospitals can still provide quality care.

The Bottom Line: Texans deserve honest billing and fair pricing when seeking care. Protect patients from unfair facility fees, promote price transparency, and ensure Texans can access affordable primary and preventive care without hidden costs.

Read Coalition Letter

For more information or to schedule an interview with TAHP, contact Blake Hutson at bhutson@tahp.org.