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Panel adopts substitute and clears HB 2085 to require disclosure of third‑party processing fees to providers

January 16, 2025 | 2025 Legislature VA, Virginia


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Panel adopts substitute and clears HB 2085 to require disclosure of third‑party processing fees to providers
The House Committee on Labor and Commerce adopted a substitute and passed House Bill 2085, a disclosure bill aimed at requiring health insurers and their vendors to disclose processing or transaction fees charged to providers. The committee approved the measure 20-0 (date not specified).

Under the substitute — prepared with input from the Bureau of Insurance — the requirement covers all transaction‑processing or similar charge fees, not only credit‑card and electronic funds transfer fees included in the original draft. The sponsor and proponents said the substitute clarifies that carriers and third parties must disclose fees and offer an alternative payment option that does not include a surcharge.

Supporters told the committee that hidden administrative or processing charges can cumulatively cut into provider revenue. The sponsor referenced reports from health practices citing monthly processing costs that ranged from a few thousand dollars up to $3,000–$5,000 and average processing percentages around 3%–3.5%. Clark Bariner of the Medical Society of Virginia summarized the bill’s intent: “This is a transparency bill. It doesn't try to shrink or cap any kind of percentage. It just says if you're gonna charge us a fee, please let us know.”

Dental and provider groups testified in favor, including the Association of Dental Support Organizations and the Virginia Dental Association. The bill drew no speakers listed in opposition at the committee hearing.

The committee closed the roll and the measure passed 20-0. The panel’s action advances HB 2085 to the next stage of consideration.

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Scribe from Workplace AI
Scribe from Workplace AI