HB 306 — PROHIBIT CERTAIN HEALTH CARE FACILITY FEES

HOUSE HEALTH AND HUMAN SERVICES COMMITTEE SUBSTITUTE FOR HOUSE BILL 306 57TH LEGISLATURE- STATE OF NEW MEXICO - SECOND SESSION, 2026 4 6 8 10 AN ACT RELATING TO HEALTH CARE;

167 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 SECTION 1.

[NEW MATERIAL] SHORT TITLE.--This act may be w l n d 18 cited as the "Fair Pricing for Routine Medical Care Act".

= = 19 a l SECTION 2.

[NEW MATERIAL] DEFINITIONS.--As used in the i a e r 20 Fair Pricing for Routine Medical Care Act:

a t m m 21 A.

d r e 22 (1) employed by a hospital or health system;

c e s k 23 or e a n b 24 (2) under a professional services agreement, u [ faculty agreement or management agreement with a hospital or .233948.2 HHHC/HB 306 health system that permits the hospital or health system to bill on behalf of the person;

or HHHC/HB 306 Page 1 (4) any other area that has been determined by the federal centers for medicare and medicaid services, on an individual case-by-case basis, to be part of a hospital's campus;

e t 17 (1) intended to compensate the health system w l n d 18 or hospital for operational expenses;

and = = 19 (2) separate and distinct from a professional a l i a e r 20 fee charged or billed by a hospital or health system for a t m m 21 professional medical services;

d r e 22 D.

"freestanding emergency department" means a c e s k 23 facility licensed by the health care authority that is separate e a n b 24 from an acute care hospital and that provides twenty-four-hour u [ emergency care to patients at the same level of care that a .233948.2 - 2 - HHHC/HB 306 hospital-based emergency department delivers;

or HHHC/HB 306 Page 2 (2) hospital and any person affiliated with the hospital through ownership, governance, membership or other means;

e t 17 I.

"rural" means a rural county or an w l n d 18 unincorporated area of a partially rural county, as designated = = 19 by the health resources and services administration of the a l i a e r 20 United States department of health and human services;

and a t m m 21 J.

"telehealth" means the use of electronic d r e 22 information, imaging and communication technologies, including c e s k 23 interactive audio, video, data communications and store-and-store-and-forward e a n b 24 forward technologies, to provide and support health care u [ delivery, diagnosis, consultation, treatment, transfer of .233948.2 - 3 - HHHC/HB 306 medical data and education when distance separates the patient and the health care provider.

[NEW MATERIAL] LIMITATIONS ON CHARGES FOR CERTAIN HEALTH CARE SERVICES PROVIDED IN CERTAIN SETTINGS.-- A.

Except as provided in Subsection D of this section, beginning January 1, 2027, a hospital or health system shall not charge, bill or collect a facility fee HHHC/HB 306 Page 3 directly from a patient for:

Nothing in this section prohibits a hospital or e t 17 health system from charging a facility fee for:

w l n d 18 (1) health care services provided in an = = 19 inpatient setting;

a l i a e r 20 (2) health care services provided at a a t m m 21 hospital emergency department;

or d r e 22 (3) health care services provided at a c e s k 23 freestanding emergency department.

e a n b 24 C.

Nothing in this section prohibits a hospital or u [ health system from charging, billing or collecting a facility .233948.2 - 4 - HHHC/HB 306 fee from a patient's insurer pursuant to an agreement between the hospital or health system and the insurer or as required by law.

Notwithstanding the provisions of Subsections HHHC/HB 306 Page 4 B, C and D of this section, a hospital or health system shall not charge, bill or collect a facility fee directly from a patient who does not have health insurance coverage and is provided the benefits of a health care service for which a facility fee would otherwise be charged.

[NEW MATERIAL] BILLING TRANSPARENCY AND PATIENT NOTIFICATION.-- A.

e t 17 (1) at the time an appointment is scheduled w l n d 18 and again at the time health care services are rendered, = = 19 provide notice to a patient that:

a l i a e r 20 (a) discloses that a facility fee may be a t m m 21 charged;

d r e 22 (b) indicates the amount of the facility c e s k 23 fee;

e a n b 24 (c) discloses that a facility fee may u [ not be covered in whole or in part by the patient's insurance;

.233948.2 - 5 - HHHC/HB 306 and (d) to the extent practicable, shall be provided in the patient's preferred language;

HHHC/HB 306 Page 5 (a) include information on the types of facility fees that the hospital or health system is prohibited from charging under the Fair Pricing for Routine Medical Care Act;

(c) be located within the health e t 17 facility in an area where patients seeking care register or w l n d 18 check in;

and = = 19 (d) include information on where a a l i a e r 20 patient may inquire further about facility fees;

and a t m m 21 (3) provide patients with a standardized bill d r e 22 that:

c e s k 23 (a) is clear, consumer-friendly and, to e a n b 24 the extent practicable, in the patient's preferred language;

u [ (b) includes itemized charges for each .233948.2 - 6 - HHHC/HB 306 health care service provided;