Arizona Keeps Health Insurers From Paying Providers Only With Credit Cards

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.

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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.