House Bill 23-1116 Summary

• Adds new section 10-16-121.3 to Colorado Revised Statutes establishing limitations on insurance carrier contracts with health-care providers regarding electronic payment methods and associated fees.

• Requires carriers to offer at least one fee-free payment method to licensed health-care providers and prohibits restricting payments solely to credit card methods in contracts entered into, amended, or renewed on or after the bill's effective date.

• Prohibits carriers from charging fees solely to transmit electronic funds transfer or virtual credit card payments to health-care providers unless the provider consents, though billing services may charge reasonable fees for transaction management, data management, portal services, or other value-added services.

• Requires carriers to notify providers of any payment method fees, advise of available payment options with clear selection instructions, and remit an explanation of benefits with each payment when initiating electronic funds transfers.

• Appropriates $12,218 to the Division of Insurance in the Department of Regulatory Affairs for fiscal year 2023-24 to implement the act; takes effect 12:01 a.m. the day after the ninety-day period following final adjournment of the general assembly, subject to referendum petition.