Colorado Gov. Jared Polis signed House Bill 1070 into law, establishing new requirements for dental insurance network leasing practices in the state. The legislation takes effect August 12, following advocacy from the Colorado Dental Association and support from the ADA, according to an ADANews article.
The law addresses network leasing, in which one insurance carrier shares or leases its dentist network with another carrier. It requires insurers to obtain dentists' affirmative consent before leasing their services to third parties, while allowing dentists to withdraw that consent.
In addition, carriers must provide regular updates on leased networks and the third parties accessing them, and third-party payers must adhere to the same contractual terms as the original carrier. The law bars insurers from canceling or refusing to contract with dentists who decline to opt in, and remittance advice must identify the source of any discounts taken by third parties.
The new requirements will apply to dental insurance contracts when they are entered into, renewed, extended, or materially modified to allow third-party access. According to the Colorado Dental Association, the law is intended to increase transparency and give dentists greater control over how their services are contracted and reimbursed.
