SACRAMENTO — California enacted new protections for dentists Tuesday as Gov. Gavin Newsom signed SB 386, a measure aimed at curbing fee-based virtual credit card payments from dental plans.
The law, which takes effect April 1, 2026, bars dental plans from using any payment method that charges a fee as the default way to reimburse dentists.
Plans must offer an easy opt-in and opt-out process for virtual credit card payments so dentists receive full payment for contracted services.
The measure was sponsored by the California Dental Association (CDA). CDA President Dr. Max Martinez said the association secured bipartisan legislative support after earlier setbacks, including a veto of a similar proposal last year.
He credited more than 700 CDA members who responded to calls to action and local dental societies for raising the issue.
“Dentists finally have clear choices and real protection,” Martinez said, framing the bill as a response to “predatory and unfair practices” in the current dental benefits system.
Martinez and the CDA say the change addresses only one symptom of a larger problem. They point to stagnant reimbursement rates, plans that provide limited benefits, and contract provisions they describe as burdensome to both practices and patients.
To tackle those broader concerns, the CDA board is forming a workgroup on comprehensive dental plan reform. The group will include dentists from across California and industry experts.
Its remit will include designing plan structures and coverage standards, analyzing costs and existing models, and engaging brokers and employers who purchase dental coverage.
The CDA also noted a record of recent legislative achievements. Martinez said 11 impactful bills have become law in recent years and signaled more initiatives are in development.
The association urged members to stay engaged with reform efforts. “We’re fired up for this fight,” Martinez said, calling on dentists to remain active in advocacy as the CDA pursues legal, legislative, economic and public-health strategies to reshape dental insurance in California.