AZ LEG Provider Payment Methods

On Mar. 25, AZ LEG proposed bill on tangible checks as payments.

  • AZ LEG passed Bill SB 1070 mandating health insurers to accept tangible checks as payment; included stipulation relating to opting out of a payment method.
  • Amended AZ INS 20-241, contracts to provide health care services; form of payment.
  • Background
  • Per existing law, any contract between health insurer, care provider to provide services to enrollees cannot restrict acceptable method of payments to only credit cards.
  • For insurer/provider contract issued, amended or renewed beginning Jan. 1, 2020.
  • Health insurer that changes payment method to using electronic funds transfers (EFT), must notify provider of associated fees; advise provider of available payment methods.
  • Insurer must also advise provider on how to select alternative payment method.
  • Additionally, must remit or associate with each payment the explanation of benefits.
  • Bill Provisions
  • Required health insurers to accept tangible checks as a form of acceptable payment.
  • Stipulated health care provider's decision to opt out of method of payment remains in effect until provider opts back into prior method of payment or new contract executed.
  • Legislative History
  • On Jan. 16, 2024, bill was introduced in Senate; on Feb. 29, 2024, bill passed Senate.
  • On Mar. 12, 2024, bill was introduced in House; on Mar. 21, 2024, bill passed House.
  • On Mar. 25, 2024, bill was sent to the governor and awaits governor's action.
  • Effectiveness
  • Bill effective on Sep. 14, 2024 (91 days after Jun. 15 adjournment).
  • Mar. 29, 2024 AZ LEG Governor Approval
  • On Mar. 29, 2024, AZ LEG governor approved bill SB 1070, assigned Chapter 48.

Regulators AZ LEG
Entity Types Ins
Reference Ch. 48, 3/29/2024; Bill, SB1070, 3/25/2024; Citation: AZ INS 20-241;
Functions Claims/Accelerated Benefits; Compliance; Financial; Legal; Operations; Technology
Countries United States of America
Products Insurance; Insurance-Health
Regions Am
Rule Type Final
Rule Date 3/25/2024
Effective Date 9/14/2024
Rule Id 206083
Linked to N/A
Reg. Last Update 3/29/2024
Report Section US Consumer

Last substantive update on 04/05/2024