Legislation Regarding Virtual Credit Card Payment Fees Is Introduced in California
The California Dental Association (CDA) continues its push for dental benefit plan reform with the introduction of SB 1369, sponsored legislation aimed at addressing coercive fee collection practices associated with virtual credit card (VCC) payments. The bill targets predatory practices by dental plans and VCC companies, which often charge dentists up to 10% per transaction in addition to standard merchant fees. Dentists face challenges opting out of VCC services, leading to increased overhead costs and potential delays in patient care. SB 1369 mandates that VCC payments cannot be the default method, requiring providers to opt in via signature before payment is sent. It also demands transparency from plans regarding associated fees and offers clear instructions for opting into alternative payment methods. This legislation is part of CDA’s broader, long-term strategy for dental plan reform, which includes previous successful bills aimed at increasing transparency, prohibiting fee capping, and notifying dentists of coverage changes. Click here to read more.
