Dear Representative Keiser,
On behalf of a group of the below signed associations and companies, we respectfully submit comments and suggested edits to the model legislation on dental leasing and payment currently being considered by the National Council of Insurance Legislators (NCOIL). Our primary concern is the section of the model legislation that applies to electronic healthcare claim payments (Section E).
We fully support the idea that dentists and other providers should have full transparency as to the methods of payments available to them and any fees related to those methods. We also believe that providers are best served if they have choices between payment methods and the ability to freely choose the method that best fits their needs.
Our shared experience has found that, given a choice and knowing the associated fees, providers may choose virtual cards over other payment methods for the following reasons:
In the enclosed red-line strikeout of the model legislation, we suggest specific edits. Below, we explain why we think these edits would make the document a better piece of legislation.
We have also included an overview of the electronic healthcare payments environment.
Many parties that may assess a fee pursuant to an agreement with the provider may not be an “agent” as that term is generally understood under applicable law. In order to reflect the intent of the model legislation, this section should guarantee that any party that has made an agreement with the provider to provide any services associated with a payment should be required to disclose whether and what fees may apply. This broader guarantee is made in the first sentence of the section requiring the provider to consent to the fee.
Technical edit: Under Definitions, if the statement in Section E(I) on Dentist Agent is removed, then “Dentist Agent” does not need to be defined.
We are willing to meet and discuss or provide testimony on our suggestions.
Thank you for your time.
American Bankers Association
ECHO Health Inc.
Electronic Payments Coalition