AB 542

This bill sets requirements on certain health insurance plans that rent their networks of dental service providers to other entities. Under the bill, a defined network plan (which includes a health maintenance organization), a preferred provider plan, a limited service health organization, or other insurer that covers dental services and engages in the practice of renting its network of dental service providers must include in any contract with a dental service provider a notification that it engages in the practice of network rental and a list of all current entities to which the network may be rented. The bill also requires the plan, organization, or insurer to notify a dental service provider that it has entered into an agreement with an entity under which the dental service provider’s contract is rented to the entity. The notification must identify the entity and be provided within 45 days of the date of the rental of the contract on which the plan, organization, or insurer enters into the agreement.

The bill requires a person who obtains a network of dental service providers to abide by all terms and conditions of a dental service provider’s original contract. Additionally, the bill allows a dental service provider to terminate his or her participation in the contract with the entity to which his or her contract has been rented without terminating the original contract.