SB 132 / Chamber Opposes

This week, the Senate passed Senate Bill 132, authored by Sen. Liz Brown (R-Fort Wayne), innocuously titled “Professions and Professional Services.” However, this bill contained a provision regarding assignment of benefits (AOB) for dentists that runs contrary to the Chamber’s longstanding position opposing such legislation.

The Chamber testified in opposition to the dental AOB provisions of SB 132 along with the Indiana Manufacturers Association, Indiana Insurance Institute and the National Association of Business and Insurance Professionals. The Chamber believes AOB could weaken or destroy health care networks that negotiate on behalf of employers, individuals and other private payers with medical providers to provide health care at reasonable rates.

As a reminder, AOB is the practice by which insurers would be compelled to make reimbursements directly to out-of-network medical providers, eliminating much of the incentive for providers to agree to reduce rates to join a network. Non-contract/out-of-network care providers insist they find it difficult to collect payment for insured individuals after the patient has been reimbursed by the health plan. Some dentists want the ability to receive direct payment (a benefit of joining the network) without joining the network and adhering to the patient protections/cost savings it provides.

Currently, there is little way for an individual to negotiate price directly with a medical provider. Without health networks to negotiate rates on the behalf of an individual, there are few economic forces to regulate prices set by medical providers. Maintaining the integrity of health insurance networks is critical to the employer’s ability to be able to provide employee benefits at a reasonable cost to attract and retain quality employees.

In the House, this legislation is sponsored by Rep. Dennis Zent (R-Angola). The Chamber continues to oppose this bill and will continue to work with legislators who are cognizant of health care costs to remove the dental AOB provision in the House.

Ashton Eller is the Indiana Chamber’s vice president of health care and employment law. For the prior 14 years, Eller worked at the organization in other roles – the last five as manager of political affairs. Previously, he spent two years at the Indiana Department of Labor. Eller also is a former president and member of the Indiana State Fair Board of Directors, elected from District 7.