Fee-Cap Ban Signed Into Law
Governor signs CDA-sponsored legislation that prohibits fee caps
CDA successfully sponsored legislation, AB 2275 (Hayashi), that prohibits dental plans from capping fees dentists may charge for non-covered services.
The bill, which was signed into law by Governor Schwarzenegger on September 30, 2010, allows dentists to reasonably cover their costs of providing non-covered services by by enabling them to charge up to their usual and customary fees that would apply to most private-pay patients. It also requires dental plans to provide a disclosure statement in their enrollees’ evidence-of-coverage document explaining the law and encouraging them to contact their plan or insurance broker for further information.
The law, which goes into effect January 1, 2011, is the result of a resolution passed by the CDA House of Delegates in November 2009 that directed CDA to consider options, including legislation, to ban these fee restrictions on non-covered services.
Read the September Update article on CDA’s efforts to pass the ban on fee caps for more information.