Assigned to FICO AS PASSED BY COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
FACT SHEET FOR S.B. 1070
virtual credit cards; payment methods
Purpose
Requires a health insurer (insurer) to accept tangible checks as a form of payment and
stipulates that, if a health care provider (provider) opts out of a method of payment, that decision
remains in effect until either the provider opts back in to the prior payment method or a new
contract is executed between the insurer and provider.
Background
Statute governs contracts between providers and insurers and prescribes payment and
notification requirements for payments made by providers to insurers. Any contract issued,
amended or renewed beginning January 1, 2020, may not restrict the payment method to only
credit card transactions. If an insurer opts for electronic funds transfer payments, the insurer must
inform providers of the associated fees, provide alternative payment options and include
explanations of benefits with each payment. An insurer that initiates or changes payment with a
provider using electronic funds transfer may not charge fees solely for transmitting payments to
providers unless the provider consents (A.R.S § 20-241).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a health insurer to accept tangible checks as a form of payment.
2. Stipulates that, if a provider opts out of a method of payment, that decision remains in effect
until either the provider opts back in to the prior payment method or a new contract is executed
between the insurer and provider.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Amendments Adopted by Committee
• Makes a technical change.
Senate Action
FICO 2/12/24 DPA 6-1-0
Prepared by Senate Research
February 13, 2024
MG/JC/cs