Hospitals, providers back bill to bar insurers from forcing virtual‑credit‑card payments
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Summary
LB1157 would require payers to provide alternative payment methods when reimbursing health‑care providers instead of forcing virtual credit‑card payments that impose processing fees on providers; hospitals testified for the bill and insurers offered neutral cooperation to refine language.
Senator Ben Hansen introduced LB1157, which would prohibit payers from making virtual credit card the sole method of reimbursement to providers and would require payers to provide an alternative such as an EFT or paper check. Proponents argued the rule preserves providers’ ability to choose more cost‑effective payment channels and avoid processing fees that erode tight margins for hospitals and small practices.
Ken Hopkins, VP/CFO of Madonna Rehabilitation Hospitals, testified the institution accepts virtual cards below thresholds but prefers EFT/check for larger reimbursements because virtual cards require manual reconciliation and the provider pays processing fees. The Nebraska Insurance Federation offered neutral testimony and indicated willingness to work on statutory language consistent with prior dental provisions.
The committee discussed security, speed of payment, and administrative burden; sponsors said the bill preserves payers’ ability to offer virtual cards but prevents them from being the only method available. No vote occurred at this hearing.
