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A new Arizona law could keep health insurers from paying providers solely through credit cards, or virtual credit cards.

The new law, created by House Bill 2494, prohibits health insurers from paying providers solely with credit cards.

(Related: 10 Top States for High Earner Obesity)

The new law is set to affect provider contracts issued, amended or renewed in the state on or after Jan. 1, 2020.

The new law will apply to contracts issued, amended or renewed in Arizona on or after Jan. 1.

In addition, the new law precludes health insurers in the state from charging a fee solely to transmit payments to a health care provider without the provider’s consent. The law does permit health care provider agents to charge “reasonable fees” when transmitting funds via electronic transfer or automatic clearing house “related to transaction management, data management, portal services and other value-added services above and beyond the bank transmittal.”

HB2494 also requires insurers to notify health care providers of any fees associated with particular payment methods.

The History

HB2494 was introduced by Arizona House of Representatives member Regina Cobb, R-Kingman, who’s a dentist, earlier this year.

The state House passed the bill by a 60-0 vote Feb. 26, and the state Senate passed the bill by a 58-0 vote, with two abstentions, April 22. Republican Gov. Doug Ducey later signed the bill into law.

Resources

The history of the new law is available here.

The text of the bill is available here.

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