HB 23-1116

House Bill 23-1116, which has been signed into law and will take effect on August 7, 2023, aims to improve how health insurance companies pay healthcare providers for services. The bill requires insurance companies to offer at least one payment method without fees and prohibits them from forcing providers to accept payments only through credit cards. It also mandates that insurers inform providers about any associated fees with different payment methods and provide clear instructions on switching to alternative options if needed. This law will benefit healthcare providers by giving them more flexibility in how they receive payments for services covered under health insurance plans.

Official Summary

With regard to a contract between a health insurance carrier (carrier) and a licensed health-care provider (provider) for the provision of health-care services to covered persons under a health coverage plan issued by the carrier (contract), the act: Requires the carrier to offer at least one method of payment to the provider for which there is not an associated fee; and Prohibits the carrier from restricting the form or method of payment the carrier uses to make payments to the provider so that the only acceptable payment method is a credit card payment. If a carrier initiates a payment to a provider using, or changes the payment method to, electronic funds transfer payments, including virtual credit card payments, the act requires the carrier to: Notify the provider of any fees associated with the particular payment method; Advise the provider of the available payment methods and include instructions on how to select an alternative available method; and With each payment, remit an explanation of benefits. The act prohibits a carrier from charging a fee for a change in the payment method to a specified electronic transaction and allows a provider's billing service to charge a fee under certain circumstances. The act grants enforcement authority to the commissioner of insurance. APPROVED by Governor April 10, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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