The National Council of Insurance Legislators (NCOIL) has approved major changes to its 2020 Transparency in Dental Benefits Contracting Model Act, marking a significant win for state dental societies. The revisions focus on how dentists are paid by insurers and create new protections within Dental Insurance agreements.
During a recent Health Committee meeting, NCOIL members adopted an amendment that shifts virtual credit card payments from an opt-out system to an opt-in model. Under the new rule, dental plans must secure a dentist’s permission before issuing any payment method that carries fees, including virtual credit cards. The amendment also states that once a dentist chooses a payment method, it will remain in place until the dentist actively changes it.
New York Assemblymember Jarett Gandolfo, who sponsored the amendment, said the group initially aimed for broader reforms but reached a practical compromise. He called the virtual credit card change “a great step” toward improving Dental Insurance practices and reducing administrative burdens on dental providers.
The ADA has strongly supported the opt-in approach, arguing that it brings transparency to dentist–insurer relationships and helps dentists avoid unwanted processing fees. Dental plans opposed the amendment, and a last-minute attempt to preserve the opt-out system failed. The Health Committee ultimately approved the ADA-backed language.
ADA Trustee Randall Markarian, D.M.D., attended the meeting to explain how the changes would affect private practices. He said the previous system allowed insurers to reset payment preferences each time a provider agreement was renewed, forcing dentists to repeatedly navigate the opt-out process. The new opt-in rule makes a dentist’s choice permanent.
Dr. Markarian added that having dental leaders speak directly to lawmakers helps them understand how legislation shapes daily operations for dental practices. He said this collaboration is essential to improving Dental Insurance models nationwide.
Arkansas Sen. Justin Boyd, another sponsor of the amendments, noted that several states already use an opt-in system for virtual credit card payments. He expects more legislatures to follow NCOIL’s updated guidance.
Boyd said the amendment shows that NCOIL’s model laws can evolve as states reassess their regulatory needs. He called the vote an important precedent for strengthening oversight in the Dental Insurance industry.