SB88 Summary

• Prohibits health insurers, contracted vendors, and regional care organizations from restricting health care provider payments to credit card payments only in contracts issued, amended, or renewed on or after July 1, 2015.

• Requires insurers and vendors to notify providers of all fees associated with any payment method and provide clear opt-out instructions before initiating or changing electronic funds transfer or credit card payments.

• Mandates written consent from health care providers before implementing new types of electronic payment methods, though consent need not be obtained for each subsequent transaction.

• Limits fees on HIPAA-standard ACH electronic funds transfer payments to a nominal amount equal to standard banking fees, prohibiting interchange, transaction, or processing fees.

• Makes any contractual clauses that conflict with these requirements void and non-waivable; act becomes effective immediately upon passage and approval.