The proposed bill, known as the "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 attempt to collect debts from patients or their guarantors. The bill outlines the definition of key terms such as "collection action," "hospital," and "debt," and establishes that patients can file a civil action if they have evidence of noncompliance. During the pendency of such civil actions, hospitals are barred from taking collection actions.

If a court finds that a hospital was indeed out of compliance with price transparency laws, the hospital is required to refund any payments made by the patient, pay a penalty equal to the total debt, dismiss any related court actions, and remove negative credit reports associated with the debt. The bill 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. The remedies provided in this act are exclusive to civil actions filed under its provisions.