SB 438 Summary

• Prohibits health insurance plans, insurers, and health maintenance organizations from requiring credit card payments as the only acceptable payment method to health care providers for plans issued, amended, or renewed on or after January 1, 2020.

• Requires health insurers and their vendors to notify health care providers of any fees associated with credit card or electronic funds transfer payments and provide clear instructions on how to select alternative payment methods.

• Prohibits charging fees solely to transmit payments through the Automated Clearing House Network (ACH) unless the health care provider has consented to the fee, though health care provider agents may charge reasonable fees for value-added services.

• Establishes that the payment method provisions cannot be waived by contract and any conflicting contractual clauses are void.

• Effective November 1, 2025, with violations subject to enforcement by the Insurance Commissioner.