SB 412 — AN ACT PROHIBITING HOSPITALS FROM CHARGING FACILITY FEES FOR TELEHEALTH SERVICES.

Senate General Assembly RaisedFile Bill No.

412360 February Session, 2022 LCOSenate Bill No.

3050412 ReferredtoCommitteeonINSURANCEANDREALSenate, ESTATEApril Introduced6, by:2022 The Committee on Insurance and Real Estate reported through SEN.

(INS)LESSER ANof ACTthe PROHIBITING9th HOSPITALSDist., FROMChairperson CHARGINGof FACILITYthe FEESCommittee FORon TELEHEALTHthe SERVICES.part of the Senate, that the bill ought to pass.

AN ACT PROHIBITING HOSPITALS FROM CHARGING FACILITY FEES FOR TELEHEALTH SERVICES.

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412360 LCO1 3050SB412 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00412-File 2No. of 2 R01-SB.docx }

360 INS Joint Favorable SB412 / File No.

360 2 SB412 File No.

360 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 FY 23 FY 24 Office of the GF - Potential See Below See Below See Below State Savings Comptroller Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 22 FY 23 FY 24 Various Potential See Below See Below See Below Municipalities Savings Explanation The bill, which prohibits hospitals from charging facility fees for telehealth services, would result in savings to the state employee and retiree health plans as well as municipalities, beginning in FY 22, to the degree such fees are currently charged.

The UConn Health Center's revenues are not impacted because it does not charge facility fees for telehealth services to commercial health plans or to Medicaid.

The health center only does so to Medicare and MedicareAdvantageplans,aspermittedbyfederalregulations,andthis practice is unaffected by the bill.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation in facility fees.

SB412 / File No.

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360 OLR Bill Analysis SB 412 AN ACT PROHIBITING HOSPITALS FROM CHARGING FACILITY FEES FOR TELEHEALTH SERVICES.

SUMMARY This bill prohibits hospitals from charging facility fees for telehealth services, whether those services are provided on or off the hospital campus.

By law, a “facility fee”isa feea hospital chargesor bills for outpatient services provided in a hospital-based facility to compensate the hospital for its operational expenses.

It is separate and distinct from a professional fee for medical services (CGS § 19a-508c).

EFFECTIVE DATE:

Upon passage COMMITTEE ACTION Insurance and Real Estate Committee Joint Favorable Yea 17 Nay 0 (03/22/2022) SB412 / File No.

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