BILL NUMBER: AB 2334	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Salas

                        FEBRUARY 19, 2010

   An act to add Section 657.5 to the Business and Professions Code,
relating to health care.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2334, as introduced, Salas. Health care: billing: interest and
fees.
   Existing law provides for the licensure and regulation of various
health care practitioners by various boards under the Department of
Consumer Affairs, and the licensure and regulation of health
facilities by the State Department of Public Health. Existing law
provides that a creditor who is entitled to recover damages, as
specified, is also entitled to recover interest on the damages prior
to entry of a judgment for damages, as specified. Existing law also
provides that interest accrues at the rate of 10% per annum on the
principal amount of a money judgment remaining unsatisfied.
   This bill would prohibit a medical care provider, as defined, or
health facility, as defined, from charging, assessing, or collecting,
directly or through a collection agency or other intermediary, or
pursuant to any judgment, any interest on, or late fees or charges
with respect to or arising out of, any unpaid balance on a bill for
medical services rendered. The bill would also require those
providers and facilities to include in a bill for medical services a
notice to this effect, in at least 12-point type, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 657.5 is added to the Business and Professions
Code, to read:
   657.5.  (a) Notwithstanding Section 3287 of the Civil Code and
Section 685.010 of the Code of Civil Procedure, it is unlawful for
any medical care provider, or any health facility to charge, assess,
or collect, directly or through a collection agency or other
intermediary, or pursuant to any judgment, any interest on, or late
fees or charges with respect to or arising out of, any unpaid balance
on a bill for any medical services provided.
   (b) (1) For purposes of this section, "medical care provider"
means a person licensed under Chapter 5 (commencing with Section
2000), Chapter 5.7 (commencing with Section 2600), Chapter 6
(commencing with Section 2700), Chapter 6.5 (commencing with Section
2840), Chapter 6.6 (commencing with Section 2900), Chapter 7.7
(commencing with Section 3500), Chapter 8 (commencing with Section
3600), or Chapter 8.2 (commencing with Section 3610), any medical
group, and any independent practice association.
   (2) For purposes of this section, "health facility" means a health
facility as defined in Section 1250 of the Health and Safety Code,
and also includes all wholly owned subsidiaries of the facility, a
parent company that wholly owns the facility, and any subsidiaries
wholly owned by the same parent that wholly owns the facility.
   (c) A billing statement for medical care services rendered by a
medical care provider or health facility shall include the following
notice in a legible font in at least 12-point type:

   "You are responsible to pay this bill. However, California law
prohibits us from charging, assessing, or collecting, directly or
through a collection agency or other intermediary, or pursuant to any
judgment, any interest on, or late fees or charges with respect to
or arising out of, any unpaid balance on this bill."