The bill would force the organizations to pay for all emergency treatment required under federal standards.
Hospitals complain the organizations won't pay for procedures, such as a CT scan, if they fail to reveal a serious condition, such as a brain hemorrhage. Hospitals say they're federally required to perform these precautionary measures, which they say aren't financially viable without proper Medicaid reimbursement.
The Senate Committee on Health and Welfare approved the bill Tuesday morning. It will proceed to the Senate for full consideration.
A bill in the House would allow hospitals to appeal all disputes to the Department of Insurance.