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Committee advances bill to limit virtual credit card fees and require disclosure when networks are leased to third parties
Summary
Senate File 158 would restrict insurers from forcing dentists to accept virtual credit card payments and require notice/opt-out rights when insurers lease network access to third parties; the committee passed the bill after testimony from dentists and insurers.
The Labor, Health & Social Services Committee voted to advance Senate File 158, a measure the sponsor said is intended to reduce administrative and payment burdens on dental practices.
Sponsor Senator Jones told the committee the bill establishes a new section of the insurance code to regulate relations between dentists and dental carriers, addressing two practices dentists identified as harmful: (1) insurers sending reimbursements via virtual credit cards that carry per-transaction processing fees for the dentist, and (2) "network leasing," where a carrier leases access to its in-network agreements to other payers.
Senator Jones explained that virtual credit card payments can carry a 3–5% processing fee and that the bill gives dentists an opt-out right for virtual credit card payments and requires insurers to notify dentists of fees and alternative payment options. The bill also requires contracting entities to disclose third-party access to in-network fee schedules, provide written notice before leasing to a new third party, update a third-party list every 90 days, and prohibit retaliation against dentists who opt out.
Representatives of the Wyoming Dental Association and practicing dentists testified in support. Dr. Erica Tanso, president of the Wyoming Dental Association and a Cheyenne practitioner, told the committee that network leasing can change fee schedules without dentists' consent or notice to patients and that recurring virtual card defaults impose staff time and direct costs on practices. She said network leasing and unexplained payment changes can erode patient trust.
Delta Dental of Wyoming representatives testified the carrier supports the bill and does not use virtual credit cards or lease its network. Committee members said the measure aligns with committee goals to reduce administrative burden and stabilize reimbursements and discussed whether similar protections should be extended to other health professions.
On roll call the committee reported the bill passed as recorded (tally reported in committee: 6 yes, 1 no, 2 excused). The sponsor indicated who will carry the bill to the next stage.
