Governor signs Venkat, Scott bill requiring insurers to provide fairer reimbursement practices for health care providers

Requires insurers to offer providers a choice of payment methods so they can avoid transaction fees

Rep. Arvind Venkat    July 16, 2024 | 9:50 AM

HARRISBURG, July 16 – Health care providers will no longer be forced to shoulder credit card transaction fees just to receive reimbursement for their services, thanks to a newly signed law introduced by Reps. Arvind Venkat and Greg Scott that requires insurers to offer providers a variety of different reimbursement options.

Act 58 of 2024, signed yesterday by Gov. Josh Shapiro, provides that insurers may no longer limit reimbursement methods exclusively to electronic credit cards – which often carry high transaction fees – and must instead offer a variety of reimbursement options so providers can choose the method best suited to them.

“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,” said Venkat, D-Allegheny. “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 new law was passed as H.B. 1664, which was introduced by Scott to apply to dental practices. It was later amended to add language from Venkat’s H.B. 1867 to make the legislation apply broadly to all health care 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, D-Montgomery. “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.”

According to a ProPublica article, almost 60% of medical practices said they were compelled to pay fees for electronic payment at least some of the time. These fees can also cost larger medical practices $1 million a year, and small clinics can lose as much as $100,000 due to the fees.