WeVote
Log In

Bill

Bill

HB 230

AN ACT relating to health care price transparency.

2026 Regular Session Introduced by Matt Lockett

The bill requires hospitals to publicly post machine-readable chargemasters and consumer-friendly prices for standard and 300+ shoppable services, with enforcement and penalties fo

to Health Services (H)
#administrativeregulationsandproceedings #federallawsandregulations #healthandmedicalservices #hospitalsandhealthfacilities #insurance #health #medicaid #publichealth #stateagencies
0
WeVote Research Nonpartisan
Bill Summary · HB 230

Overview

HB 230 (2026 Regular Session, Kentucky) would establish comprehensive health care price transparency requirements for hospitals (referred to as facilities) and create new enforcement and consumer-protection provisions. The bill aims to require public posting of standard charges and selected shoppable service prices, mandate machine-readable chargemasters, provide consumer-friendly pricing information, and empower the state cabinet to monitor compliance with penalties and public disclosure for noncompliance. It also adds a consumer-propricing section concerning written pricing sheets prior to service delivery.

Main Purpose and Intent

  • Increase price transparency for hospital charges and selected services.
  • Make standard charges and negotiated prices more accessible to consumers, researchers, and third parties.
  • Provide regulatory oversight and penalties to ensure facilities publish and update pricing information.
  • Improve patient understanding of potential costs before receiving services, including for shoppable services.

Key Provisions and Changes

Definitions (Section 1)

  • Clarifies terms such as ancillary service, chargemaster, de-identified negotiated charges, discounted cash price, payor-specific negotiated charge, service package, shoppable service, standard charge, and third-party payor.

Public Disclosure Requirements (Section 2)

  • Facilities must publicly post:
    • A machine-readable digital file listing all standard charges for facility items/services.
    • A consumer-friendly list of standard charges for a limited set of shoppable services.
  • Public visibility must be on the facility’s homepage or via a prominently linked page.

Chargemaster Requirements (Section 3)

  • Facilities must maintain a chargemaster with:
    • Descriptions of items/services and their standard charges (inpatient vs. outpatient as applicable).
    • Gross charge, de-identified min and max negotiated charges, discounted cash price, and payor-specific negotiated charges by payor and plan.
    • Billing/CPT/HCPCS/DRG/NDC or similar codes.
  • Machine-readability, locational applicability, and accessibility features (free access, no login, no PII, indexable by search engines).
  • Annual updates with visible update date.
  • Cabinet for Health and Family Services (CHFS) to issue a template aligned with federal guidelines, enabling cross-facility comparability.

Shoppable Services Chargemaster (Section 4)

  • Facilities must maintain and publicly publish a chargemaster for at least 300 shoppable services, or the total number of shoppable services provided if fewer than 300.
  • Selection should prioritize frequently provided services and consider billing rates.
  • Chargemaster must include: plain-language service descriptions, payor-specific negotiated charges, discounted cash price (or gross charge if no discount), de-identified min and max negotiated charges, and relevant billing codes.
  • Location-specific details and availability across inpatient/outpatient settings as applicable.
  • Public posting in the same accessible, machine-readable format as Section 3, with searchability and search-engine indexing.

Monitoring and Enforcement (Section 5)

  • CHFS will monitor compliance via complaints, analyses, and website audits.
  • Noncompliance: written notice, corrective action plan request, and potential administrative penalties with public disclosure.
  • A publicly accessible list on CHFS’s site of hospitals found in violation or subject to penalties, updated at least every 30 days (beginning no later than 90 days after effective date).

Violations and Corrective Action (Section 6)

  • Defines “material violation” and outlines procedural steps: notice of violation, corrective action plan, submission deadlines, and ongoing compliance monitoring.

Administrative Penalties (Section 7)

  • CHFS may impose penalties for failure to respond or comply with corrective actions.
  • Penalties are structured by hospital size (e.g., ≤30 beds, 31–550 beds, >550 beds) with daily amounts and a provision that each day counts as a separate violation.
  • Consideration factors include prior violations, seriousness, and good-faith efforts.

Written Pricing Sheet for Emergency and Non-Emergency Services (Section 8)

  • Requires health care providers to give patients a written pricing sheet before providing services (to the extent permitted by federal law) and obtain a patient or representative signature.
  • If a service is provided without a pricing sheet:
    • Providers must not bill the patient directly for that service (though reimbursement by third-party payors remains possible).
    • Contracts cannot shield a payor from payment obligations; patients’ rights and third-party payor responsibilities are preserved.
  • Emergency services are exempt when necessary to screen, treat, stabilize, or facilitate care.
  • CHFS will promulgate regulations to standardize the pricing sheet template.

Federal Compliance (Section 9)

  • If federal authorization is needed to implement these provisions, the agencies will seek it within 90 days of the act’s effective date. Implementation may be delayed where federal authorization is required.

Effective Authorization (Section 10)

  • The act’s sections constitute the specific authorization under Kentucky law to implement these price transparency provisions.

Who Is Affected

  • Hospitals and other health care facilities licensed under Kentucky law.
  • Health care payors (private insurers and government programs) due to publicizing negotiated charges.
  • Consumers/patients and patient representatives who will access pricing information and sign the written pricing sheets.
  • The Kentucky Cabinet for Health and Family Services (CHFS) and the Department for Medicaid Services (if applicable for federal plan changes).

Procedural and Timeline Aspects

  • Facilities must maintain and publish chargemasters, refresh at least annually, with clear update dates.
  • CHFS authority to regulate, audit, and penalize noncompliance, including a public disclosure list beginning within 90 days of enactment.
  • Penalties are daily and scaled by hospital size; multiple violations can accumulate daily.
  • Section 8 creates a required pre-service pricing sheet, subject to federal law constraints, with regulations to implement.
  • If federal waivers/plans are required, the relevant agencies must seek them within 90 days; implementation may be delayed accordingly.

Potential Impacts

  • Increased price transparency for standard charges and a broad set of shoppable services.
  • Improved consumer ability to compare prices across facilities and payors.
  • Administrative and compliance burdens on hospitals to maintain detailed chargemasters and ensure accessibility.
  • Potential deterrent effect due to penalties for noncompliance.
  • Enhanced data for researchers and policymakers to study pricing patterns in Kentucky’s health care market.

Note: This summary reflects the bill text as written and does not constitute legal interpretation. For implementation, refer to the final enacted language and any administrative regulations issued by CHFS.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.