[Congressional Record Volume 151, Number 129 (Thursday, October 6, 2005)]
[Senate]
[Pages S11219-S11220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DeMINT (for himself, Mr. Durbin, and Mr. Cornyn):
  S. 1827. A bill to amend the Public Health Service Act to provide for 
the public disclosure of charges for certain hospital services and 
drugs; to the Committee on Health, Education, Labor, and Pensions.
  Mr. DeMINT. Mr. President, I rise today to offer a bill that would 
require hospitals to disclose their charges for the most common 
procedures and drugs.

[[Page S11220]]

  This bill recognizes that consumers seeking routine hospital services 
need to know what they are paying so they can make educated decisions 
about their own health care. This legislation aims to give Americans 
that information in a user friendly format.
  Specifically, the bill would require hospitals to regularly report to 
the Secretary of U.S. Department of Health and Human Services the 
amount they charge for the 25 most commonly performed inpatient 
procedures, the 25 most common outpatient procedures, and the 50 most 
frequently administered medications. The Department would then post 
this information on the Internet for easy access.
  Under the current system, patients often have no idea what they will 
be charged until they receive a bill. This is a problem because 
hospital charges vary significantly based on facility and procedure. 
Some hospitals charge one-hundred and twenty dollars for a chest x-ray 
while others charge more than fifteen hundred. Uninsured patients and 
those who pay with cash are often surprised with unexpected hospital 
charges because there is no way for them to know what they will be 
charged up front.
  No other industry expects consumers to commit to buying before they 
know the true cost. Patients should have access to price information 
before they commit to a procedure.
  This bipartisan bill is good for the uninsured and for consumer 
driven healthcare. Individuals cannot be expected to get comfortable 
making their own health care decisions unless they know how much they 
will be expected to pay for different services.
  I am grateful to Senators Richard Durbin and John Cornyn for joining 
me as original cosponsors of this bi-partisan legislation. I am also 
pleased that Representatives Bob Inglis and Dan Lipinski have 
introduced companion legislation in the House. They recognize that 
information is power, and this bill is an important step in empowering 
Americans with the tools to be smart consumers. I urge my Senate 
colleagues to support this bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1827

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Hospital Price Reporting and 
     Disclosure Act of 2005''.

     SEC. 2. PUBLIC DISCLOSURE OF HOSPITAL DATA.

       Part B of title II of the Public Health Service Act (42 
     U.S.C. 238 et seq.) is amended by adding at the end the 
     following new section:


            ``DATA REPORTING BY HOSPITALS AND PUBLIC POSTING

       ``Sec. 249. (a) Semiannual Reporting Requirement.--Not 
     later than 80 days after the end of each semiannual period 
     beginning January 1 or July 1 (beginning more than one year 
     after the date of the enactment of this section), a hospital 
     shall report to the Secretary the following data:
       ``(1) The frequency with which the hospital performed each 
     service selected under subparagraph (A) or (B) of subsection 
     (c)(1) in an inpatient or outpatient setting, respectively, 
     during such period.
       ``(2) The frequency with which the hospital administered a 
     drug selected under subparagraph (C) of such subsection in an 
     inpatient setting during such period.
       ``(3) If the service was so performed or the drug was so 
     administered during such period, the average charge and the 
     medium charge by the hospital for such service or drug during 
     such period.
       ``(b) Public Availability of Data.--
       ``(1) Public posting of data.--The Secretary shall promptly 
     post, on the official public Internet site of the Department 
     of Health and Human Services, the data reported under 
     subsection (a). Such data shall be set forth in a manner that 
     promotes charge comparison among hospitals.
       ``(2) Notice of availability.--A hospital shall prominently 
     post at each admission site of the hospital a notice of the 
     availability of the data reported under subsection (a) on the 
     official public Internet site under paragraph (1).
       ``(c) Selection of Services and Drugs.--For purposes of 
     this section:
       ``(1) Initial selection.--Based on national data, the 
     Secretary shall select the following:
       ``(A) The 25 most frequently performed services in a 
     hospital inpatient setting.
       ``(B) The 25 most frequently performed services in a 
     hospital outpatient setting.
       ``(C) The 50 most frequently administered drugs in a 
     hospital inpatient setting.
       ``(2) Updating selection.--The Secretary shall periodically 
     update the services and drugs selected under paragraph (1).
       ``(d) Civil Money Penalty.--The Secretary may impose a 
     civil money penalty of not more than $10,000 for each knowing 
     violation of subsection (a) or (b)(2) by a hospital. The 
     provisions of subsection (i)(2) of section 351A shall apply 
     with respect to civil money penalties under this subsection 
     in the same manner as such provisions apply to civil money 
     penalties under subsection (i)(1) of such section.
       ``(e) Administrative Provisions.--
       ``(1) In general.--The Secretary shall prescribe such 
     regulations and issue such guidelines as may be required to 
     carry out this section.
       ``(2) Classification of services.--The regulations and 
     guidelines under paragraph (1) shall include rules on the 
     classification of different services and the assignment of 
     items and procedures to those services (including inpatient 
     diagnostic related groups (DRGs), outpatient procedures, and 
     tests) and classification of drugs. For purposes of the 
     preceding sentence, classification of drugs may include unit, 
     strength, and dosage information.
       ``(3) Computation of average and median charges.--
       ``(A) In general.--The regulations and guidelines under 
     paragraph (1) shall include a methodology for computing an 
     average charge and a median charge for a service or drug, in 
     accordance with subparagraph (B).
       ``(B) Methodology.--The methodology prescribed by the 
     Secretary under subparagraph (A) shall ensure that the 
     average charge and the median charge for a service or drug 
     reflect the amount charged before any adjustment based on a 
     rate negotiated with a third party.
       ``(4) Form of report and notice.--The regulations and 
     guidelines under paragraph (1) shall specify the electronic 
     form and manner by which a hospital shall report data under 
     subsection (a) and the form for posting of notices under 
     subsection (b)(2).
       ``(f) Rules of Construction.--
       ``(1) Non-preemption of state laws.--Nothing in this 
     section shall be construed as preempting or otherwise 
     affecting any provision of State law relating to the 
     disclosure of charges or other information for a hospital.
       ``(2) Charges.--Nothing in this section shall be construed 
     to regulate or set hospital charges.
       ``(g) Definitions.--For purposes of this section:
       ``(1) Hospital.--The term `hospital' has the meaning given 
     such term by the Secretary.
       ``(2) Drug.--The term `drug' includes a biological and a 
     non-prescription drug, such as an ointment.''.
                                 ______