Senate Bill No. 1330, introduced by Hancock, aims to regulate billing and reimbursement practices for certain medical equipment, devices, and supplies provided to Medicare enrollees. The bill establishes Chapter 566 in the Insurance Code, which includes definitions for key terms such as "durable medical equipment," "enrollee," and "nonparticipating supplier." It sets limitations on how much nonparticipating suppliers can charge enrollees, capping the amount at 115 percent of the Medicare-approved amount unless specific conditions are met, such as obtaining written consent from the enrollee. Additionally, the bill mandates that any written agreement must inform the enrollee about Medicare's reimbursement policies.

The bill also introduces enforcement measures, classifying intentional violations by nonparticipating suppliers as a misdemeanor, punishable by fines ranging from $500 to $1,000. Furthermore, it amends Section 1652.059 of the Insurance Code to clarify that Medicare supplement benefit plan issuers are not required to reimburse for charges exceeding 115 percent of the Medicare-allowed amount. The provisions of this bill will apply only to durable medical equipment or related devices sold on or after its effective date of September 1, 2025.

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