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SB 1392

DENTAL INSURANCE ASSIGNABILITY

104th Regular Session Introduced by Li Arellano and 9 co-sponsors

Allows insureds to assign dental insurance benefits and requires payors to pay the provider directly on valid assignments, with standard interest for late payment.

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Bill Summary · SB 1392

SB 1392 — Dental Insurance Assignability (Public Act 104‑0098)

Status: Enacted as Public Act 104‑0098. Governor approved Aug 1, 2025. Effective date: January 1, 2026.
Introduced: Feb 19, 2025. Sponsor(s): Sen. Javier L. Cervantes and multiple cosponsors.

Purpose / Intent

SB 1392 amends the Illinois Insurance Code to explicitly recognize and codify the right to assign benefits under dental insurance policies, aligning dental insurance with existing assignability rules for accident and health insurance. The bill also clarifies payment obligations when an enrollee assigns a dental claim to a provider.

Key provisions

  • Amends Section 370a of the Illinois Insurance Code (215 ILCS 5/370a):

    • Explicitly states that no law prohibits an insured under a dental insurance policy (in addition to accident and health insurance) — or any other owner of rights under such a policy — from assigning all or part of their rights and privileges under the policy.
    • Confirms that assignments (made before or after the 1969 amendatory act referenced) are valid, subject to the policy or contract terms, and will vest assigned rights in the assignee according to any timing provisions in the assignment.
    • Preserves insurer protections: assignments do not prejudice an insurer for payments or individual policies issued before the insurer receives notice of the assignment.
    • Provides that if an enrollee or insured assigns a claim to a health care or dental care provider or facility (including assignments involving insurers, HMOs, managed care plans, dental service plan corporations, dental insurers, or third‑party administrators), then payment shall be made directly to the provider or facility.
    • Direct payments include any interest required under Section 368a of the Insurance Code for failure to pay claims within 30 days after the insurer receives due proof of loss.
    • Clarifies that the section does not prevent parties from reconciling duplicate payments.

  • Amends the Dental Service Plan Act (adds 215 ILCS 110/38.1):

    • Requires every dental service plan corporation to comply with Section 370a of the Illinois Insurance Code.

  • Amends the Health Maintenance Organization Act (modifies 215 ILCS 125/5‑3):

    • Ensures HMOs remain subject to the Insurance Code provisions that include Section 370a.

Who is affected

  • Insured individuals covered by dental insurance policies (and owners of rights under those policies).
  • Dental care providers and dental care facilities that receive assigned claims.
  • Dental service plan corporations, dental insurers, HMOs, managed care plans, preferred provider organizations, and third‑party administrators — these entities must honor valid assignments and pay providers directly when claims are assigned.
  • Insurers and plans will need to adjust claims/payment processes to accept and act on assignments and to calculate/assess interest where applicable.

Procedural / timeline notes

  • Filed: Feb 19, 2025. Passed both houses (House passage noted May 21, 2025). Sent to the Governor June 18, 2025. Governor approved Aug 1, 2025.
  • Enacted as Public Act 104‑0098; effective Jan 1, 2026.

Practical impact

  • Clarifies legal authority for insureds to assign dental benefits and strengthens providers’ ability to obtain payment directly from payors following a valid assignment.
  • May reduce payment disputes where assignments are clear; requires payors to pay assigned providers within standards (including 30‑day payment timeline and interest under Section 368a).
  • Does not change policy coverage terms, reimbursement amounts, or override policy‑specific assignment conditions; insurers retain protection for payments made before notice of assignment.
  • Administrative changes for insurers/plans and dental service plan corporations likely necessary to implement assignment processing and interest calculations.

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

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