Illinois Law to Protect Physicians from Hidden Processing Fees Takes Effect January 1

November 8, 2024

Illinois Senate Bill 2735, which was signed into law last July (Public Act 103-0618), requires that insurers offer physicians and other healthcare professionals multiple payment options for reimbursements, including paper checks and the electronic funds transfer (EFT) process.

The law also prohibits insurers from mandating that physicians accept reimbursement via a “virtual credit card,” a one-time use credit card number that physicians must enter into their own credit card machines, thus incurring service charges for credit card processing.

The intent of the law is to protect healthcare professionals from hidden and unfair fees that benefit insurers and effectively further erode reimbursement rates. The provisions of the law take effect Jan. 1, 2025, and include transparency requirements to ensure physicians know in advance how to choose their preferred payment method and whether a particular payment option also includes a fee.

ISMS will be tracking how this law impacts Illinois physicians starting in 2025. If your practice continues to experience issues with fees being charged for your preferred reimbursement method, please send us an email.