The proposed "Hospital Price Transparency Act" aims to prohibit hospitals from initiating or pursuing collection actions for debts incurred when they are not in compliance with established price transparency laws. Specifically, if a hospital fails to comply with these laws on the date services are provided, it cannot take actions such as referring the debt to a collection agency, suing the patient, or reporting the debt to credit agencies. Patients who believe a hospital has violated these transparency laws can file a civil action to challenge the collection efforts, and while the case is pending, the hospital is barred from pursuing collection.

If a court finds that a hospital was indeed non-compliant with price transparency laws, the hospital is required to refund any payments made by the patient, pay a penalty equal to the debt amount, dismiss any related court actions, and remove any negative credit reports associated with the debt. The act clarifies that it does not prevent hospitals from billing patients or third-party payers for services rendered, nor does it require refunds if no collection action is taken in violation of the act.