Health care bill aimed at unfair reimbursement passed by Pa. House

Legislation designed to protect health care practitioners and their patients from unfair reimbursement is headed to Gov. Josh Shapiro to be signed.

State Reps. Greg Scott, D-Montgomery, and Arvind Venkat, D-Allegheny, said House Bill 1664 addresses how certain insurers require claims payments to be made through credit or debit card equivalents. This practice requires the insurer to provide a series of numbers that the health care provider enters on a website or credit card terminal. The process forces health care practices to absorb transaction fees as high as 5% or pass these costs on to patients. Insurers sometimes receive a percentage of the transaction fee.

"In passing House Bill 1664, we're taking a significant step to ensure fairness in health care reimbursement practices,” Scott said in a statement. “This legislation would be a victory for dentists and their patients, ensuring that dental care remains accessible and affordable across the commonwealth. I remain committed to advocating for policies that protect small businesses and improve health care access for all Pennsylvanians."

According to a release, many health care offices, especially small businesses, are not fully equipped to handle end-to-end electronic claims processing, especially for bulk claim payments. These practices can be forced to upgrade their payment systems to be paid for the services provided to patients covered under an insurer’s plan. This requirement restricts business practices and increases operational costs.

As amended by the Senate and concurred by the House of Representatives, H.B. 1664 includes provisions from Venkat’s H.B. 1867 extending protections against the sole use of virtual credit cards to health care providers and health insurers.

“With the enactment of House Bill 1664, health care providers will not be forced to only use virtual credit cards to receive payment from insurers and will have transparency on the variety of options available to receive payment,” said Venkat. “This would be a win-win for health care providers and patients in Pennsylvania.”

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