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SB 3156

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

2026 Regular Session Introduced by Lou DiPalma and 1 co-sponsor

Rhode Island bill requires dental plans to offer multiple payment methods and obtain explicit dentist consent before switching, prohibiting exclusive or fee-heavy methods like virt

06/05/2026 Referred to House Corporations
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Bill Summary · SB 3156

Overview

  • Jurisdiction: Rhode Island
  • Legislature: 2026 Session
  • Bill: SB 3156
  • Title: AN ACT RELATING TO INSURANCE — ACCIDENT AND SICKNESS INSURANCE POLICIES
  • Sponsors: Senators Gallo and DiPalma
  • Introduced: March 27, 2026
  • Referred to: Senate Health & Human Services
  • Status: Scheduled for consideration; previously recommended for held for further study
  • Effective date: January 1, 2027

Purpose and intent

The bill seeks to ensure that dentists and dental providers are not required to accept payment exclusively through payment methods that impose fees on providers to release payment (notably including virtual credit cards). It requires dental plans and related healthcare entities to offer multiple payment methods and to obtain explicit acceptance from the dentist for the chosen method. The aim is to protect providers from being effectively compelled into specific, potentially less favorable or fee-heavy, payment arrangements.

Key provisions and changes

The bill adds a new section to four chapters of the Rhode Island General Laws concerning insurance and health plans:

  • Chapters amended:

    • 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)

  • Core requirements (applicable to contracts between a dental plan/healthcare entity and a dentist):

    • No contract may require exclusive acceptance of a payment method that imposes fees on the provider to release payment (including virtual credit cards).
    • A dental plan/healthcare entity may change payment methods only if: 1) It informs the dentist of all available methods. 2) It provides clear, accessible instructions for selecting an alternative method. 3) It ensures the dentist can exercise the selection without restriction. 4) The provider (or their designee) elects, via express acceptance, to be paid using the new method (credit card or EFT/ACH).
    • Express acceptance must be explicit, written, and without ambiguity. If express acceptance is violated, the election on the payment method is nullified until explicit agreement is re-executed.
    • No party in the payment ecosystem (the plan, the entity, or any affiliated platform) may impose fees or charges for:
    • Access to payment or claims data
    • Transmission/processing of payment
    • Issuance/mailing of payment
    • Definitions clarified within the act:
    • “Alternative payment method” = any method other than virtual credit cards (e.g., EFT, ACH, or paper checks).
    • “Express acceptance” = explicit, written agreement to the payment method by the dentist.
    • “Healthcare entity” = any dental service or hospital service corporation providing dental plans and contracting with dentists in Rhode Island.
    • “Healthcare payments platform” = payment processor connected to the healthcare entity.
    • “Virtual credit card” = a single-use electronic funds transfer with a specific payment amount requiring manual processing.

  • Scope: The same provisions are replicated for:

    • 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 and dental service providers in Rhode Island who contract with:
    • Dental plans
    • Nonprofit or for-profit hospital service corporations
    • Nonprofit or for-profit medical service corporations
    • Health maintenance organizations
  • Dental plans, healthcare entities, and affiliated healthcare payments platforms that administer and process payments to dentists
  • Members/subscribers to these dental plans may indirectly be affected through how providers receive payments (less limitation on payment methods)

Procedural and timeline aspects

  • Effective date: January 1, 2027
  • Legislative action history:
    • Introduced March 27, 2026
    • Referred to Senate Health & Human Services
    • Staged actions: scheduled for hearing/consideration; Committee recommended it be held for further study
    • Action history indicates ongoing deliberation with potential amendments prior to passage

Practical impact and considerations

  • Positive impact for dentists seeking flexibility in payment methods and protection from mandatory, fee-heavy payment schemes (notably those involving virtual credit cards).
  • Requires clear notices and explicit consent processes for any shift in payment method, potentially reducing abrupt or unilateral changes.
  • Caps or eliminates certain fee impositions related to payment data access, transmission, and issuance, which could reduce provider costs.
  • Administrative burden may increase to ensure compliance with explicit acceptance requirements and updated contracts across multiple types of health plans.

If you’d like, I can add a brief comparison to similar statutes in neighboring states or outline potential compliance steps for dental practices.

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

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