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HB 8381

AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES

2026 Regular Session Introduced by Brian Kennedy and 3 co-sponsors

Prohibits exclusive payment methods for dentists by plans, requires clear alternatives and written consent, and bars fees for data access/processing.

04/14/2026 Committee recommended measure be held for further study
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Bill Summary · HB 8381

Summary of HB 8381 (Rhode Island, 2026)

Overview

  • Title: AN ACT RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES
  • Purpose: Prohibits health plans and related healthcare entities from requiring dentists to accept payment exclusively through payment methods that levy fees or charges to release payment (notably including virtual credit cards). Establishes conditions under which alternative payment methods may be used and protects dentists from being forced into specific payment methods.
  • Effective date: January 1, 2027
  • Committee: House Corporations
  • Primary sponsors: Representatives McNamara, Kennedy, Read, and Marszalkowski; co-sponsors include Brian Kennedy, Earl Read, Alex Marszalkowski, Joseph McNamara (as listed in the bill text)

Key Provisions

The bill adds new sections to multiple chapters of the Rhode Island General Laws (27-18, 27-19, 27-20, and 27-41), all addressing “Methods of payment” between dental plans/healthcare entities and dentists. The core structure is consistent across chapters and can be summarized as follows:

  1. Protection against exclusive payment methods

    • No contract can require a dentist to accept payment exclusively by a method that imposes fees or charges to release payment, including virtual credit cards.
    • If a dental plan/healthcare entity wants to introduce or switch to a method with fees, they must:
      • Inform the dentist of all available payment methods.
      • Provide clear, accessible instructions for selecting an alternative method.
      • Ensure the dentist may choose the alternative method without restriction.
      • Require express acceptance by the provider (or designee) to accept the chosen payment method (explicit written agreement). If express acceptance is violated, the election on payment methodology is nullified until express agreement is re-executed.

  2. Fee/charge prohibitions on access and processing

    • The dental plan, healthcare entity, or any affiliated healthcare payments platform may not impose fees or charges on the dentist for:
      • Access to payment or claims data
      • Transmission or processing of payment
      • Issuance or mailing of payment

  3. Definitions (consistent across sections)

    • “Alternative payment method”: Any form of payment other than virtual credit cards (e.g., EFT, ACH, or paper checks).
    • “Dental plan”: A policy/program providing dental benefits for procedures by a dentist or hygienist.
    • “Dentist”: Licensed professional per Rhode Island standards.
    • “Express acceptance”: Clear, written agreement by the dentist to a payment method.
    • “Healthcare entity”: Any for-profit or nonprofit dental service/hospital service corporations engaging in dental plans and contracts with dentists in RI.
    • “Healthcare payments platform”: Payment processor linked to or under contract with a healthcare entity.
    • “Virtual credit card”: An EFT method using a single-use number series and specified payment amount requiring manual processing.

  4. Scope

    • Provisions apply to four types of organizational structures:
      • Chapter 27-18: Accident and Sickness Insurance Policies
      • Chapter 27-19: Nonprofit Hospital Service Corporations
      • Chapter 27-20: Nonprofit Medical Service Corporations
      • Chapter 27-41: Health Maintenance Organizations

Who is Affected

  • Dentists licensed in Rhode Island who contract with dental plans or other healthcare entities to provide services to beneficiaries.
  • Dental plans, nonprofit and for-profit healthcare entities, and any affiliated healthcare payments platforms that contract with dentists in Rhode Island.
  • The protections apply to multiple types of health plan organizations, ensuring uniformity across common RI dental/health plans.

Practical Impact and Implications

  • Dentists will have greater negotiating power and flexibility regarding payment methods, reducing potential coercion into high-cost (fee-laced) payment schemes such as virtual credit cards.
  • Patients generally should experience more consistent access to a variety of payment arrangements, though the bill focuses on the payment relationship between providers and plans rather than patient-facing billing processes.
  • Providers must give express, written acceptance to any chosen payment method; any misstep would revert to prior arrangements until re-affirmed in writing.
  • Fee-free access to payment data and processing remains a protection for providers, potentially reducing administrative costs and barriers.

Timeline and Status

  • Introduced: April 1, 2026
  • Committee action: April 14, 2026 — Committee recommended the measure be held for further study
  • Next steps: If advanced, would proceed through the standard Rhode Island legislative process toward final passage and signing, with the January 1, 2027, effective date aligning to a prospective implementation.

Notes

  • The bill codifies consistent protections across multiple chapters to ensure comprehensive coverage of dental-provider payment arrangements within RI’s insurance framework.
  • It explicitly defines key terms to avoid ambiguity in enforcement and interpretation.

Compiled from official sources — confirm details with the bill’s official record.

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