Bill
HB 2286
Prevents dental plans from forcing a single payment method; lets dentists lock in their chosen method for the contract term, with clear fee disclosure and consent for ACH fees.
Summary
- Purpose: Protect dentists from being forced into a single payment method (especially credit/virtual card payments) and ensure that when a dentist selects an alternative payment method the choice remains in effect for the life of the contract. Require clear disclosure of fees and an affirmative consent rule for certain fees tied to ACH payments.
- Primary effect: Amends K.S.A. 2024 Supp. 40-2,227 (replacing prior language) to regulate how dental benefit plans, their contracted vendors, and health maintenance organizations may offer and charge for payment methods to dentists.
Key provisions
- Prohibits any dental benefit plan from restricting acceptable payment methods to only credit card payment.
- When a plan initiates or changes payments to a dentist using electronic funds transfer (including virtual credit card payments), the plan or its vendor/HMO must:
- Notify the dentist of any fees associated with a specific payment method;
- Advise the dentist of available payment methods and provide clear instructions for selecting an alternative method; and
- Require that a dentist’s decision to select an alternative payment method remain in force for the duration of the contract and any extensions.
- For payments transmitted through the Automated Clearing House (ACH) network (as codified at 45 C.F.R. §§162.1601–162.1602, as of July 1, 2025), a plan/vendor/HMO may not charge a fee solely for transmitting the payment unless the dentist has consented to that fee.
- A dentist’s agent, however, may charge reasonable fees for transaction/data/portal/value‑added services in addition to bank transmittal fees.
- Contract terms attempting to waive or alter these statutory requirements are null and unenforceable.
- The bill repeals the existing version of K.S.A. 2024 Supp. 40-2,227 (effectively replacing prior statutory language).
Who is affected
- Dentists who contract with dental benefit plans (including those paid by plans’ contracted vendors or HMOs).
- Dental benefit plans, third‑party vendors, and health maintenance organizations that manage payments to dentists.
- Dentists’ agents and banks when providing value‑added services or processing ACH/virtual card payments.
Procedural status and timeline
- Introduced: filed 1/30/2025 (requested by Rep. Reavis on behalf of the Kansas Dental Association).
- Referred to: House Committee on Insurance.
- Enacted: Signed by the Governor on 6/20/2025.
- Effective date: September 1, 2025.
Fiscal impact
- Kansas Division of the Budget fiscal note (2/20/2025): enactment would have no fiscal effect on the Department of Administration or the Kansas Insurance Department.
Potential effects and considerations
- Reduces plans’ ability to impose fee-bearing payment methods on dentists without disclosure/consent.
- Provides stability for dentists’ chosen payment method through a contract term, potentially lowering administrative friction and fee surprises.
- May require plans/vendors to update contracting and notification practices; could shift some administrative or transactional costs depending on negotiated consents for fees.
Compiled from official sources — confirm details with the bill’s official record.
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