ADA opposes insurance companies charging for paper checks

Association supports providers’ ability to choose how they receive payments without additional charges

The American Dental Association has voiced strong opposition to recent actions by Delta Dental of California to charge a weekly $15 fee as a “separate administrative charge” to dentists who want to be paid by paper checks to reimburse claims.

Delta Dental of California, which operates across several states as well as Washington, D.C., recently issued a newsletter announcing this policy change. The ADA received copies of the newsletter from member dentists in multiple states.

The Delta Dental of California enterprise includes the following organizations and service areas:

• Delta Dental of California — California.
• Delta Dental of the District of Columbia — Washington, D.C.
• Delta Dental of Pennsylvania — Pennsylvania and Maryland.
• Delta Dental of West Virginia Inc. — West Virginia.
• Delta Dental of Delaware Inc. — Delaware.
• Delta Dental of New York Inc. — New York.
• Delta Dental Insurance Company — Alabama; Washington, D.C.; Florida; Georgia; Louisiana; Mississippi; Montana; Nevada; Texas; and Utah.

In a July 8 letter to the National Association of Insurance Commissioners, the ADA asked the organization to take a stand against this payment policy shift and urged insurance commissioners around the country to support regulatory oversight. The ADA said it supports providers’ ability to choose how they receive payments and highlighted the hidden burden of coercing that choice to electronic funds transfer.

“Most dental practices operate as small businesses, so increases in administrative costs and demands on staff labor have a more acute impact,” said ADA President Richard Rosato, D.M.D., and Executive Director Nader Nadershahi, D.D.S., M.B.A., Ed.D., in the letter. “Supporting choice for providers, who are best equipped to understand the needs of the practices where they work, ensures that these practices remain viable in all settings — both urban and rural — and maintaining choice supports broad access for consumers.”

The ADA believes that dentists should have the freedom to choose their preferred method of payment and receive the full value of their reimbursement without being subjected to unnecessary administrative fees or payment processing charges. Below are three actions dentists can take to advocate for payment choice:

• Contact Delta Dental of California to express their concerns regarding payment options, provider choice and the proposed fees associated with receiving paper checks.

• Contact their state insurance commissioner regarding payment practices that may limit provider choice or impose fees on providers receiving claim payments. Ask regulators to review whether such practices are consistent with applicable state insurance laws and consumer protection standards and encourage oversight that preserves fair and accessible payment options.

• Review and advocate for state-specific payment legislation and consider working with their state dental association and policymakers to support legislation that protects dentists’ right to choose how they receive payments and prohibits plans from assessing fees for reimbursement by paper checks.

“Charging for paper checks increases the costs for patients to receive healthcare and for providers to administer it,” said Shelley Olson, D.D.S., chair of the ADA Council on Dental Benefit Programs. “While payers may view EFT as a ‘free’ solution to modernize payment and reduce their administrative costs, payers fail to consider the administrative burdens and cost shifting they are imposing on dental offices. In addition, these added administrative tasks effectively take time away from direct patient care. While as an Association we support administrative simplification, mandates by payers are not the solution.”

The ADA is also aware of Aetna moving fully away from paper checks for out-of-network providers in several states.

This is a developing story. The ADA and ADA News will share more information with members as it becomes available.