Providing for the election of alternative payment methods by a dental provider and allowing such payment method to remain in force for the duration of a contract with a dental benefit plan.

As Amended by Senate Committee
Session of 2026
HOUSE BILL No. 2564
By Committee on Health and Human Services
Requested by Representative Reavis on behalf of the Kansas Dental Association
1-27
AN ACT concerning insurance; relating to dental benefit plans; providing
for the use of alternative forms of payment; allowing such payment to
remain in force for the duration of the contract between a dentist and a
dental benefit plan; amending K.S.A. 2025 Supp. 40-2,227 and
repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 40-2,227 is hereby amended to read as
follows: 40-2,227. (a) No dental benefit plan shall contain restrictions on
methods of payment to a dentist from the dental benefit plan, such plan's
contracted vendor or health maintenance organization in which the only
acceptable payment method is a credit card payment.
(b) If initiating or changing payments to a dentist using electronic
funds transfer payments, including virtual credit card payments, a dental
benefit plan, such plan's contracted vendor or health maintenance
organization shall:
(1) Notify the dentist if any fees are associated with a particular
payment method; and
(2) advise the dentist of the available methods of payment and
provide clear instructions to the dentist as to how to select an alternative
payment method; and
(3) require that the provider dentist or the designee of such provider
dentist elect, through express acceptance, to accept a payment of the claim
using the credit card or electronic funds transfer payment method.
Violation of express acceptance nullifies any election on claim payment
methodology until such time as express agreement is executed. Express
acceptance shall be expressed through clear and direct agreement to the
terms of the payment method, communicated explicitly by the dental plan
to the dentist, in writing, signifying acceptance of such payment method
without ambiguity or implied actions.
(c) A dentist's selected form of claim payment methodology remains
effective until such time as the dentist chooses an alternative method of
payment or a new contract is executed.
(c)(d) A dental benefit plan, such plan's contracted vendor or health
maintenance organization that initiates or changes payments to a dentist
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HB 2564—Am. by SC 2
through the automated clearing house network, as codified in 45 C.F.R. §§
162.1601 and 162.1602, as in effect on July 1, 2026, shall not charge a fee
solely to transmit the payment to a dentist unless the dentist has consented
to such fee. A dentist's agent may charge reasonable fees when
transmitting an automated clearing house network payment related to
transaction management, data management, portal services and other
value-added services in addition to the bank transmittal.
(d)(e) The provisions of this section shall not be waived by contract.
Any contractual arrangement in conflict that conflicts with the provisions
of this section or that purports to waive any requirements of this section
shall be null and void and unenforceable.
Sec. 2. K.S.A. 2025 Supp. 40-2,227 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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