Rep. Greg Scott has introduced “virtual credit card” legislation to prohibit dental insurers from adopting a policy that they pay dental claims using a credit or debit card equivalent only, rather than a paper check or direct deposit.

This legislation does not prohibit insurers from using virtual credit card payments altogether. It simply states that virtual credit cards cannot be the only option, requires notice to dentists of all payment options, and gives dentists the ability to opt into the payment option that works best for their dental office or facility.

We need your help!

How to contact your legislators: Enter your home address here to find their contact information. Or contact PDA's government relations team at (800) 223-0016 or djw@padental.org, and we'll provide you with the information you need.

What we’re asking for: Support for legislation that prohibits dental insurers from adopting a policy that they pay dental claims exclusively with virtual credit cards, requires insurers to notify dentists of other payment options, and gives dentists the ability to pick which one works for them.

Need a few talking points to help guide your discussion? See below. Thank you for being an advocate for your profession and patients!


Virtual Credit Card Talking Points (updated 3/26/24):

  • Some dental insurers have adopted a policy that dentists must accept claims payment using a credit or debit card equivalent, rather than a paper check or direct deposit. The transaction usually involves the insurer providing a series of numbers that the dentist enters on a website or credit card terminal to complete the claims payment. Dental practices must absorb the transaction fees, sometimes as high as five percent, or pass the additional cost on to patients. Adding insult to injury, insurers sometimes get a percentage of the transaction fee

     

  • Many dental offices are not fully equipped to handle end-to-end electronic claims processing, in particular bulk claim payments. They may be forced to upgrade their payment system simply to be paid for services they provide to patients covered under an insurer’s plan. This unfairly restricts a dental office’s business practices and is particularly onerous for dentists who are small business owners.

     

  • Adding additional costs in the form of transactional fees will not lower the cost of dental care for dental practices or for patients. Given that the payments from dental plans almost always represent a steep discount off dentists’ regular charges, the additional cost of these fees make staying in networks more challenging for the many dental practices with shrinking margins. It is only fair that these fees be fully disclosed so that dentists can assess their impact on the practice and determine which payment method is more financially viable.

  • Processing virtual credit card payments creates an administrative burden for dental offices because they come “in bulk” with little information to distinguish which claim is being paid. More administrative hassle leaves less time for patient care.

     

  • This legislation does not prohibit insurers from using virtual credit card payments. It simply requires insurers to provide other payment options and gives dentists the ability to opt into the payment option that works best for their dental office or facility.

     

  • Twenty-four other states have already passed legislation prohibiting dental insurers from requiring virtual credit card payments only and requiring fee disclosure. Pennsylvania is experiencing a net loss of dentists, and we need to enact third policy payer reforms to attract more dentists. 

Where does this bill stand now?

Follow the progress on the infograph and see more details about actions taken thus far in 2024.




It’s critical you contact your Representative before the session resumes on April 8th.