WeVote
Log In

Bill

Bill

SD 694

An Act relative to the use of virtual credit cards by dental insurance providers

194th Legislature (2025-2026) Introduced by Jo Comerford and 3 co-sponsors

Requires dental insurers to permit provider-chosen payment methods (including EFT/virtual cards), disclose related fees, and attach EOBs, boosting transparency and autonomy.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 694

Summary: Senate Bill 694 (SD 694) — An Act relative to the use of virtual credit cards by dental insurance providers

Overview

  • Bill Number: SD 694
  • Title: An Act relative to the use of virtual credit cards by dental insurance providers
  • Status: House concurred (House has approved the Senate-passed version)
  • Introduced: February 27, 2025
  • Filed: January 14, 2025
  • Primary Sponsor: Senator John J. Cronin
  • Committee: Financial Services

Purpose and intent

The bill seeks to regulate how dental insurers pay dental care providers, particularly addressing the use of electronic payments and virtual credit cards. Its goal is to ensure provider choice in payment methods, increase transparency around payment-related fees, and require clear communications when electronic funds transfers (EFT) or virtual card payments are used.

Key provisions and changes

  • Payment method choice in contracts

    • A contract between a dental insurer and a dental care provider may not require that the only acceptable payment method be a credit card. If the insurer initiates payment via credit card, the dental care provider must consent to that method.
    • If a dental care provider chooses not to accept a given payment method, the provider’s decision remains in effect until the provider elects to receive a different method or a new contract is executed.

  • Electronic funds transfers (including virtual credit cards)

    • If a provider accepts EFT payments (including virtual card payments), the insurer must:
    • Notify the provider of any fees associated with a payment method.
    • Advise on all available payment methods and provide clear instructions on how to select alternatives.
    • Remit or attach an explanation of benefits (EOB) to each payment.

  • Fees related to EFT and remittance

    • An insurer that initiates or changes EFT and remittance advice transactions under 45 C.F.R. Parts 162.1601 and 162.1602 may not charge a fee solely to transmit the payment unless the provider has consented to the fee.
    • A dental care provider’s agent may charge reasonable fees for EFT/ACH-related activities that go beyond standard bank transmittal, such as transaction management, data management, portal services, or other value-added services.

  • Definitions (Section 29)

    • EFT payment: Any electronic funds transfer method other than standard dental care EFTs/remittance under 45 C.F.R. 162.1601–162.1602.
    • Dental care provider: Licensed, registered, or certified dental professional (or related laboratories/DMEs) that bills enrollees for services.
    • Dental care provider agent: An entity contracted to process bills for the provider under a contract with the provider.
    • Dental insurer: Various MA dental-related insurers and service organizations, including designees.

Who is affected

  • Dental insurers and their designates
  • Dental care providers (dentists, labs, DME providers billing for services)
  • Dental care provider agents (billing processors, intermediaries)

Procedural and timeline aspects

  • Legislative status: Introduced and referred to the Senate, with House concurrence on the Senate version achieved as of February 27, 2025.
  • If enacted, the provisions would apply to existing and future contracts between dental insurers and providers, along with ongoing payment processes involving EFTs and virtual credit cards.

Potential impact

  • Increased provider autonomy over payment method choices.
  • Greater transparency about fees tied to electronic payments.
  • Standardized requirements for insurers when offering EFT/virtual card payments, including clear communications and EOB linkage.
  • Possible administrative changes for insurers and provider agents to comply with notice, consent, and fee requirements.

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

Sign in to ask a question.