Modifies provisions regarding hospital pricing practices

SB 724 prohibits hospitals from pursuing debt collection actions against patients if the hospital was not in material compliance with federal price transparency laws (as defined by CMS) on the date services were provided, effective August 28, 2025. Hospitals found non-compliant must refund payments, pay penalties up to $5,000 per violation plus 1% daily interest, and remove negative credit reports related to the debt. Patients can sue to challenge a hospital’s compliance status, and hospitals must halt collection efforts during such lawsuits. The law does not prevent hospitals from billing patients or collecting payments for services provided without violating transparency rules.