AN ACT to create and enact a new section to chapter 26.1-47 of the North Dakota Century Code, relating to method of dental payment options in preferred provider arrangements.

69th Legislative Assembly (2025-26) Introduced by Brad Bekkedahl and 11 co-sponsors

Prohibits credit-card-only payments in dental PPOs; requires notices and method choice for electronic payments; bans ACH fees without consent.

Filed with Secretary Of State 03/18

Summary — HB 1471 (North Dakota): Method of dental payment options in preferred provider arrangements

Status and timeline
- Introduced: November 26, 2024
- Legislative action: Passed both chambers with recorded unanimous votes (House 93–0; Senate 45–0).
- Enrolled/transmitted and filed with the Secretary of State (documented 03/18/2025). Notification lists the measure as Act 966 (April 2025).
- Creates and adds a new section to ND Century Code chapter 26.1‑47 (preferred provider arrangements).

Purpose
- To protect dental providers from being forced to accept only credit‑card payment methods under preferred provider arrangements and to increase transparency and choice in how insurers and payors remit payments.

Key provisions
1. Prohibition on credit‑card‑only payment requirements
- A preferred provider arrangement may not restrict payment methods so that the only acceptable payment method from the dental insurer or third‑party payor vendor to the dental provider is a credit‑card payment.

Notice and choice when initiating or changing electronic payments

If an insurer, contracted vendor, or HMO initiates or changes payments to a dental provider using electronic funds transfer (including virtual credit card payments), the payer must:
- Notify the dental provider if any fees are associated with a particular payment method;
- Advise the provider of available payment methods and give clear instructions how to select an alternative method that does not impose fees or similar charges on the provider; and
- Notify the provider if the dental insurer is sharing part of the profit from the fee charged by the credit‑card company to pay the claim.

Restrictions on transmission fees for ACH payments

A payer (or contracted vendor) using the Automated Clearing House (ACH) network (citing 45 C.F.R. §162.1601–.1602) may not charge a fee solely to transmit a payment to a dental provider unless the provider has consented to the fee.
A dental provider’s agent may charge reasonable fees for transaction management, data/portal services, or other value‑added services in addition to bank transmittal.

Definitions and cross‑references
- “Dental insurer” and “dental provider” are defined by reference to NDCC §26.1‑36.9‑01.
- The new section is placed within NDCC chapter 26.1‑47, which governs preferred provider arrangements.

Who is affected
- Dental providers (clinics, dentists) operating under preferred‑provider arrangements in North Dakota;
- Dental insurers, third‑party payor vendors, HMOs, and contracted payment processors that remit provider payments;
- Agents and vendors offering value‑added services related to electronic payment transmission.

Potential effects and implementation notes
- Intended to reduce fee pressure on providers and increase transparency about payment costs and profit‑sharing tied to virtual credit card transactions.
- Requires payers/vendors to implement notice and payment‑selection processes and to obtain consent before charging ACH transmission fees — operational changes for payers and vendors.
- The provision references existing federal ACH rules for electronic payments (45 C.F.R. §§162.1601–162.1602).