Government Relations
Legislative Action Alert : Virtual Credit Card Legislation
At PDA ’ s request , Rep . Greg Scott introduced “ virtual credit card ” legislation to prohibit dental insurers from adopting a policy that they pay dental claims using a credit or debit card equivalent only and requires that they provide proper notice and disclosure of payment options to dentists .
HB 1664 :
• Does not prohibit insurers from using virtual credit card payments altogether . It simply states that virtual credit cards cannot be the only option .
• Requires that insurers provide notice to dentists of all payment options , and any fees imposed by the insurer or its contracted vendors , whenever initiating or changing payment using electronic funds transfer .
• Gives dentists the ability to opt into the payment option that works best for their dental office or facility .
We need your help ! It ’ s possible the House and Senate will vote on HB 1664 when session resumes in early 2024 .
Call or email your legislators and request support for HB 1664 . YOU — a voter — will help determine whether this bill continues moving through the legislative process .
How to contact your legislators : Enter your home address at https :// www . legis . state . pa . us / cfdocs ... ourlegislator / for his / her contact information . Or contact PDA ’ s government relations team at ( 800 ) 223-0016 or jpb @ padental . org , and we ’ ll provide you with the information you need .
Please feel free to talk about your own experience with insurance companies . But we ’ ve also provided a few talking points to help guide your discussion .
Virtual Credit Card Talking Points :
• Some dental insurers have attempted to adopt a policy that dentists must accept claims payment using a credit or debit card equivalent , rather than a paper check or direct deposit . The transaction usually involves the insurer providing a series of numbers that the dentist enters on a website or credit card terminal to complete the claims payment . Dental practices must absorb the transaction fees , sometimes as high as five percent , or pass the additional cost on to patients . Adding insult to injury , insurers sometimes get a percentage of the transaction fee .
• Many dental offices are not fully equipped to handle end-toend electronic claims processing , in particular bulk claim payments . They may be forced to upgrade their payment system simply to be paid for services they provide to patients covered under an insurer ’ s plan . This unfairly restricts a dental office ’ s business practices and is particularly onerous for dentists who are small business owners .
• Adding additional costs in the form of transactional fees will not lower the cost of dental care for dental practices or for patients .
• Processing virtual credit card payments creates an administrative burden for dental offices because they come “ in bulk ” with little information to distinguish which claim is being paid . More administrative hassle leaves less time for patient care .
• This legislation does not prohibit insurers from using virtual credit card payments . It simply requires insurers to provide other payment options and gives dentists the ability to opt into the payment option that works best for their dental office or facility .
• 23 other states have already passed legislation prohibiting dental insurers from requiring virtual credit card payments only , including the neighboring state of Maryland .
NOVEMBER / DECEMBER 2023 | PENNSYLVANIA DENTAL JOURNAL 7