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Back to SB 438
Oklahoma Legislature· SB 438Approved by Governor 05/03/2025

An act relating to health insurance, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                  STATE OF OKLAHOMA

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2                 1st Session of the 60th Legislature (2025)

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3 SENATE BILL 438                By: Coleman

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6                                AS INTRODUCED

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7   An Act relating to health insurance; amending 36 O.S.

7   2021, Section 1219.6, which relates to methods of

8   payments to providers; requiring notice of certain

8   fee; requiring certain instructions; requiring

9   submission of certain annual report; updating

9   statutory language; and providing an effective date.

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1 2 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

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13  SECTION 1.     AMENDATORY    36 O.S. 2021, Section 1219.6, is

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1 4 amended to read as follows:

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15  Section 1219.6. A. As used in this section:

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16  1. "Health maintenance organization" means an entity that is

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1 7 organized for the purpose of providing or arranging health care,

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1 8 which has been granted a certificate of authority by the Insurance

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1 9 Commissioner as a health maintenance organization pursuant to the

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2 0 Health Maintenance Organization Act of 2003;

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21  2. "Credit card payment" means a type of electronic funds

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2 2 transfer in which a health insurance plan or health insurer or its

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2 3 contracted vendor issues a single-use series of numbers associated

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2 4 with the payment of health care services performed by a health care

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    Req. No. 657                                              Page 1
1 provider and chargeable to a predetermined dollar amount, whereby

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2 the health care provider is responsible for processing the payment

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3 by a credit card terminal or Internet portal. Such term shall

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4 include virtual or online credit card payments, whereby no physical

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5 credit card is presented to the health care provider and the single-

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6 use credit card expires upon payment processing;

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7   3. "Electronic funds transfer payment" means a payment by any

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8 method of electronic funds transfer other than through the Automated

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9 Clearing House Network (ACH), as codified in 45 CFR C.F.R., Sections

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1 0 162.1601 and 162.1602;

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11  4. "Health care provider" means any physician, dentist,

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1 2 pharmacist, optometrist, psychologist, registered optician, licensed

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1 3 professional counselor, physical therapist, chiropractor, hospital

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1 4 or other entity or person that is licensed or otherwise authorized

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1 5 in this state to furnish health care services;

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16  5. "Health care provider agent" means a person or entity that

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1 7 contracts with a health care provider establishing an agency

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1 8 relationship to process bills for services provided by the health

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1 9 care provider under the terms and conditions of a contract between

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2 0 the agent and health care provider. Such contracts may permit the

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2 1 agent to submit bills, request reconsideration and receive

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2 2 reimbursement;

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23  6. "Health care services" means the examination or treatment of

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2 4 persons for the prevention of illness or the correction or treatment

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    Req. No. 657                                                Page 2
1 of any physical or mental condition resulting from illness, injury

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2 or other human physical problem and includes, but is not limited to:

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3   a. hospital services which include the general and usual

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4                 services and care, supplies and equipment furnished by

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5                 hospitals,

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6   b. medical services which include the general and usual

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7                 services and care rendered and administered by doctors

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8                 of medicine, doctors of dental surgery and doctors of

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9                 podiatry, and

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10  c. other health care services which include appliances

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11                and supplies; nursing care by a registered nurse or a

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12                licensed practical nurse; care furnished by such other

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13                licensed practitioners; institutional services

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14                including the general and usual care, services,

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15                supplies and equipment furnished by health care

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16                institutions and agencies or entities other than

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17                hospitals; physiotherapy; ambulance services; drugs

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18                and medications; therapeutic services and equipment

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19                including oxygen and the rental of oxygen equipment;

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20                hospital beds; iron lungs; orthopedic services and

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21                appliances including wheelchairs, trusses, braces,

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22                crutches and prosthetic devices including artificial

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23                limbs and eyes; and any other appliance, supply or

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24                service related to health care;

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    Req. No. 657                                   Page 3
1   7. "Health insurance plan" means any hospital or medical

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2 insurance policy or certificate; qualified higher deductible health

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3 plan; health maintenance organization subscriber contract; contract

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4 providing benefits for dental care whether such contract is pursuant

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5 to a medical insurance policy or certificate; stand-alone dental

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6 plan, health maintenance provider contract or managed health care

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7 plan; and

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8   8. "Health insurer" means any entity or person that issues

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9 health insurance plans, as defined in this section.

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10  B. Any health insurance plan issued, amended or renewed on or

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1 1 after January 1, 2020, between a health insurer or its contracted

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1 2 vendor or a health maintenance organization and a health care

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1 3 provider for the provision of health care services to a plan

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1 4 enrollee shall not contain restrictions on methods of payment from

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1 5 the health insurer or its vendor or the health maintenance

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1 6 organization to the health care provider in which the only

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1 7 acceptable payment method is a credit card payment.

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18  C. If initiating or changing payments to a health care provider

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1 9 using a credit card, a health insurance plan, health insurer or its

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2 0 contracted vendor, or health maintenance organization shall:

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21  1. Notify the health care provider of any fees associated with

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2 2 a particular payment method; and

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    Req. No. 657                                                Page 4
1   2. Advise the health care provider of the available methods of

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2 payment and provide clear instructions on how to select a preferred

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3 method of payment.

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4   D. If initiating or changing payments to a health care provider

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5 using electronic funds transfer payments, including virtual credit

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6 card payments, a health insurance plan, health insurer or its

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7 contracted vendor, or health maintenance organization shall:

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8   1. Notify the health care provider if of any fees that are

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9 associated with a particular payment method; and

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10  2. Advise the provider of the available methods of payment and

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1 1 provide clear instructions to the health care provider as to how to

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1 2 select an alternative payment method.

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13  D. E. A health insurance plan, health insurer or its contracted

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1 4 vendor, or health maintenance organization that initiates or changes

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1 5 payments to a health care provider through the Automated Clearing

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1 6 House Network, as codified in 45 CFR C.F.R., Sections 162.1601 and

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1 7 162.1602, shall not charge a fee solely to transmit the payment to a

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1 8 health care provider unless the health care provider has consented

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1 9 to the fee. A health care provider agent may charge reasonable fees

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2 0 when transmitting an Automated Clearing House Network payment

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2 1 related to transaction management, data management, portal services

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2 2 and other value-added services in addition to the bank transmittal.

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    Req. No. 657                                    Page 5
1   E. F. Beginning January 1, 2026, health insurers shall submit

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2 an annual report to the Insurance Department no later than January

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3 31 that includes:

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4   1. The percentage of payments provided by credit card and

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5 electronic funds transfer; and

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6   2. The total amount of payments that were reduced to cover fees

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7 for payment by credit card or electronic funds transfer.

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8   G. The provisions of this section shall not be waived by

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9 contract, and any contractual clause in conflict with the provisions

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1 0 of this section or that purport to waive any requirements of this

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1 1 section are void.

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12  F. H. Violations of this section shall be subject to

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1 3 enforcement by the Insurance Commissioner.

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14  SECTION 2. This act shall become effective November 1, 2025.

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16  60-1-657           CAD  1/14/2025 3:51:26 PM

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    Req. No. 657                                            Page 6
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