The proposed legislation, General Assembly Substitute Bill No. 7227, establishes new regulations regarding the fees that healthcare providers can charge for patient health records when entering into state contracts. Effective October 1, 2025, providers or parties in possession of a patient's health records are prohibited from charging more than the lesser of the fees allowed under federal regulations or $250, plus applicable postage and reasonable costs for copies of imaging. Additionally, any provider that does not comply with these fee requirements will be deemed ineligible to enter into state contracts. The bill clarifies that patients and their representatives are still responsible for paying reasonable charges for copies of health records.

Furthermore, the bill outlines the requirements for state contracts, which are defined as agreements exceeding $1,000 in value between state agencies and other entities. Starting October 1, 2025, state agencies must ensure that contracts include a representation from bidders that they comply with the fee requirements established in the bill. If a bidder does not agree to these representations, their proposal will be rejected. The bill also mandates that state agencies include notice of these representation requirements in their bid specifications and establishes a memorandum of understanding between the Commissioners of Public Health and Administrative Services to facilitate the verification of compliance.