Bill Caption

Relating to prices and fees charged by certain freestanding emergency medical care facilities during a declared state of disaster; providing administrative penalties.

Fiscal Notes

The fiscal implications of the bill cannot be determined at this time because it is unknown how many freestanding emergency medical centers (FEMCs) would violate the provisions of the bill.

Bill Analysis

SB 2038 would prohibit certain freestanding emergency medical care facilities from charging an "unconscionable price", a price of more than 200% of the average price for the same or a substantially similar product or service, for a product or service during a declared disaster.

The bill would impose massive penalties, starting at $10,000, for violations of this bill and ending in permanent license revocation.

SB 2038 would also require applicable freestanding emergency medical care facilities to disclose the prices they charge for testing or vaccination of an infectious disease based on a state of declared disaster.

Vote Recommendation Notes

Texas Action opposes SB 2038 because it violates the limited government and free market principles. While we sympathize with the bill's aim to keep medical costs down, price controls of any kind, except in the case of a government created monopoly, are an inherent overreach of state power. Moreover the penalties this bill would impose are overbearing and punitive.