AB 351

Under this bill, an insurer that offers a health insurance policy may not require a health care provider to accept payments under the health insurance policy via virtual credit card payment. The bill requires an insurer to inform a health care provider of the fees associated with any available payment methods and how to select a payment method other than virtual credit card payments before providing a payment via virtual credit card payment. The bill defines “virtual credit card payment” as an electronic funds transfer in which an insurer issues a single-use series of numbers that are associated with a payment, are chargeable to a predetermined dollar amount, and expire upon payment processing.

Additionally, under the bill, if an insurer transmits a payment to a health care provider in accordance with certain federal standards for transmitting electronic funds, the insurer may not charge a fee solely for the transmission, unless the provider has consented to the fee.

Health insurance policies are referred to in the bill as disability insurance policies.