RI 2026 S3156: Insurance - Accident and Sickness Insurance Policies

Plain-English Summary

This bill prevents dental insurance companies from forcing dentists to accept payments through methods that charge the dentist a processing fee, such as virtual credit cards. Insurance companies can only use these fee-charging payment methods if they inform the dentist about other free payment options, provide clear instructions on how to choose them, and get the dentist's explicit written consent to use the fee-charging method. It also prohibits insurance companies and payment platforms from charging dentists fees just to access their payment data, process payments, or receive a mailed check.

For younger readers

When you go to the dentist, your insurance company pays the dentist for fixing your teeth. Sometimes, insurance companies try to pay dentists using special credit cards that secretly charge the dentist a fee just to get their money. This bill makes a new rule that says insurance companies cannot force dentists to use these special cards. The insurance company has to offer a free way to pay the dentist, like a regular check. If they want to use the special card, they have to ask the dentist for permission first.

Who & Where It Applies

Impacted groups

DentistsDental insurance companiesHealthcare payment platformsDental patientsSmall business owners

Impacted communities

All

Constitutional & Fiscal Check

None Likely. The bill regulates commercial contracts and payment processing within the highly regulated insurance and healthcare industries. It does not appear to violate free speech, due process, or protection from unreasonable searches and seizures.

Estimated cost

None

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Protects small business healthcare providers from predatory corporate fees imposed by large insurance conglomerates, promoting economic fairness.
By reducing unnecessary overhead costs for dentists, it helps stabilize dental practice finances, which could make it easier for practices to accept lower-income patients or those on state-funded insurance.
Enhances transparency in corporate healthcare payments by requiring explicit, informed consent before fee-bearing payment methods can be utilized.
Focuses solely on protecting dentists' revenue rather than directly lowering out-of-pocket costs or expanding dental coverage for patients who need care.
Does not address broader systemic issues in the dental insurance industry, such as coverage denials or lack of access for marginalized communities.
Might lead insurance companies to offset their lost processing fee revenue by raising premiums or reducing benefit coverage for patients.

For Conservatives

Protects small business owners (private dental practices) from unfair financial burdens and hidden fees imposed by large insurance companies.
Promotes a free and transparent market by requiring explicit consent and clear alternatives for payment processing methods.
Reduces hidden overhead costs for private medical practices, allowing them to operate more efficiently without the need for government subsidies.
Imposes new government regulations on private contracts between insurance companies and healthcare providers, interfering with the free market.
Restricts the operational freedom of insurance companies and payment platforms to mandate innovative, electronic payment methods like virtual credit cards.
Creates additional compliance and administrative burdens for insurance companies, who must now track explicit written consent for payment methods.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 152 additions

SECTION 1. Chapter 27-18 of the General Laws entitled "Accident and Sickness Insurance Policies" is hereby amended by adding thereto the following section: 27-18-96. Methods of payment.

(a) No contract between a dental plan or other healthcare entity and a dentist for the provision of services to beneficiaries shall require the dentist to accept payment exclusively by means of any form of payment method that requires dentists to pay fees or charges to release payment including virtual credit cards. A dental plan or other healthcare entity may initiate or change to a payment methodology that requires dentists to pay fees or charges to release payment, including virtual credit card payments, if the dental plan or healthcare entity:

(1) Informs the dentist of all available methods of payment;

(2) Provides clear and accessible instructions for the selection of an alternative method of payment;

(3) Ensures that the dentist may exercise such selection without restriction; and

(4) The provider or a designee of the provider elects, through express acceptance, to accept a payment of the claim using the credit card or electronic funds transfer payment method. Violation of express acceptance nullifies any election on claim payment methodology until such time as express agreement is executed.

(b) Neither the dental plan, the healthcare entity, nor any affiliated healthcare payments platform shall impose any fee or charge upon the dentist for access to payment or claims data; the transmission or processing of payment; or the issuance or mailing of payment.

(c) As used in this section, the following terms have the following meanings, unless the context clearly indicates otherwise:

(1) "Alternative payment method" means any form of payment other than virtual credit cards such as electronic funds transfers ("EFT") or automated clearing house payment ("ACH") or paper check.

(2) "Dental plan" means a policy or program that provides a specified level of dental benefits for procedures rendered by a dentist or hygienist, to a member or subscriber.

(3) "Dentist" means a licensed individual under chapter 31.1 of title 5 ("dentists and dental hygienists").

(4) "Express acceptance" means a clear and direct agreement to the terms of payment method, communicated explicitly by the dental plan to the dentist, in writing, signifying acceptance of the payment method without any ambiguity or implied actions.

(5) "Healthcare entity" means any for profit or nonprofit dental service corporation or any for profit or nonprofit hospital service corporation providing dental plans or any other entity providing dental plans and entering into provider contracts with dentists in the State of Rhode Island.

(6) "Healthcare payments platform" means any form of payment processor directly linked to or under contract with a healthcare entity.

(7) "Virtual credit card" means a form of electronic funds transfer utilizing a single-use series of numbers and specific payment amount which the payee is required to process manually.

SECTION 2. Chapter 27-19 of the General Laws entitled "Nonprofit Hospital Service Corporations" is hereby amended by adding thereto the following section: 27-19-88. Methods of payment.