Bill requiring insurers to offer providers reimbursement options signed by Shapiro

Legislation requiring insurers to offer providers various reimbursement options has been signed into law by Gov. Josh Shapiro. 

Passed last week by the Pennsylvania House of Representatives, Act 58 of 2024 was signed by Shapiro on Tuesday. Introduced by Reps. Arvind Venkat, D-Allegheny, and Greg Scott, D-Montgomery, the bill ensures health care providers will no longer have to bear credit card transaction fees to receive reimbursement for their services. 

Act 58 of 2024 requires insurers to offer providers a variety of different reimbursement options and insurers can now select the method that works for them. 

Close to 60% of medical practices said they were compelled to pay fees for electronic payment at least some of the time, according to non-profit organization ProPublica. The fees can cost larger medical practices $1 million annually, and small clinics can lose up to $100,000 due to fees.

“No one should have to pay a fee just to be reimbursed for their services, but this has been the reality for many health care providers, who have been forced to accept insurer reimbursement payments through electronic credit cards that often carry transaction fees,” Venkat said in a statement. “It’s an unfair practice that prevents providers from receiving full compensation and penalizes patients, as well, when those costs are passed along as increased rates.

“Under the new law, insurers may no longer limit reimbursement to being provided by electronic credit cards but must offer health care providers a choice as to how they wish to be reimbursed. It’s time to make this aspect of health care fairer for providers and more cost-efficient for patients.”

The law was passed as H.B. 1664, which Scott introduced to apply to dental practices. The legislation was amended to add language from Venkat’s H.B. 1867 so the law will apply to all healthcare practices.

“I am grateful for the bipartisan support this bill received in the House and Senate and for Governor Shapiro’s recognition of its importance by signing it into law,” said Scott. “This legislation is a victory for dentists and their patients, ensuring that dental care remains accessible and affordable across the commonwealth. I remain committed to advocating for policies that protect small businesses and improve health care access for all Pennsylvanians.”