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Bill

SB 95

Health facilities: hospitals; collection of debts; prohibit if hospital is not in compliance with price transparency laws. Creates new act. TIE BAR WITH: SB 0094'25

2025-2026 Regular Session Introduced by Rosemary Bayer and 9 co-sponsors

Michigan bars hospitals from debt collection unless they comply with price transparency laws, using financial penalties to enforce healthcare pricing disclosure requirements.

LAID OVER ONE DAY UNDER THE RULES
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Bill Summary · SB 95

Legislative bill overview

SB 95 prohibits hospitals from collecting debts (through lawsuits, wage garnishment, or other collection actions) unless the hospital complies with state price transparency laws. The bill creates a new enforcement mechanism linking debt collection privileges to regulatory compliance with healthcare pricing disclosure requirements.

Why is this important

Hospital debt is a leading cause of personal bankruptcy in the U.S., and many patients lack information about procedure costs before treatment. This bill uses debt collection as leverage to enforce transparency, potentially giving patients better price information upfront and reducing surprise billing situations. It also ties hospital compliance incentives directly to financial consequences rather than relying solely on regulatory fines.

Potential points of contention

  • Impact on hospital operations: Hospitals argue that restricting debt collection may reduce revenue recovery, affecting their financial stability and ability to provide services, particularly for uncompensated care
  • Definitional clarity: The bill's effectiveness depends on how "price transparency compliance" is defined and measured—ambiguous standards could create legal disputes about what constitutes adequate compliance
  • Disproportionate burden: Smaller rural hospitals may struggle more with compliance costs than large health systems, potentially creating unequal enforcement outcomes
  • Patient billing disputes: Unclear how the law handles situations where patients dispute charges or where collection is appropriate despite transparency issues

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

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