The bill: •
Requires a contract between a health insurance carrier (carrier) and a licensed health-care provider (provider) for the provision of health-care services to covered persons under a health coverage plan issued by the carrier (contract) to offer at least one method of payment to the provider for which there is not an associated fee; and
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Prohibits the contract from restricting the form or method of payment the carrier uses to make payments to the provider so that the only acceptable payment method is a credit card payment.
If a carrier initiates a payment to a provider using, or changes the
payment method to, electronic funds transfer payments, including virtual credit card payments, the bill requires the carrier to:
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Notify the provider of any fees associated with the particular payment method;
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Advise the provider of the available payment methods and include instructions on how to select an alternative available method; and
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With each payment, remit an explanation of benefits.
The bill prohibits a carrier from charging a fee for a change in the
payment method to a specified electronic transaction and allows a provider's billing service to charge a fee under certain circumstances.
The bill makes it an unfair method of competition and unfair or
deceptive act or practice in the business of insurance if a carrier violates or fails to comply with the requirements of the contract limitations and requirements.
