The bill mandates that health care entities provide patients with a good faith estimate of costs associated with health care services prior to the services being rendered. It requires health care entities to inform patients about the availability of price information for frequently provided services and to post notices regarding patients' rights to request such information. Additionally, health insurance carriers must provide insured patients with an advanced explanation of benefits within three business days of receiving a good faith estimate from a health care entity. The legislation also stipulates that hospitals must comply with federal price transparency requirements and empowers the Department of Health and Human Services to establish rules for disclosure, including penalties for noncompliance.

Key provisions include the prohibition of collection actions against uninsured or self-pay patients if a health care entity fails to provide the required good faith estimate. Starting January 1, 2026, health carriers are required to develop a website and a toll-free number to provide enrollees with estimated costs for health care services and quality data for network providers. The bill introduces new legal language that emphasizes compliance with federal regulations on price transparency and establishes rules for standardized data disclosure, while also allowing for fines against hospitals that do not adhere to these requirements. Overall, the bill aims to enhance transparency in health care pricing and improve patient access to financial information regarding their medical services.