Virtual credit card payments in health insurance policies, the official text

2025 - 2026 LEGISLATURE
LRB-3836/1
KMS:cdc

2025 SENATE BILL 367
July 9, 2025 - Introduced by Senators Cabral-Guevara, Feyen, Larson, Nass and Wall, cosponsored by Representatives Moses, VanderMeer, Armstrong, Brooks, Dittrich, Murphy, Mursau, O'Connor and Penterman. Referred to Committee on Insurance, Housing, Rural Issues and Forestry.

An Act to create 632.872 of the statutes; relating to: virtual credit card payments in health insurance policies.

Analysis by the Legislative Reference Bureau
Under this bill, an insurer that offers a health insurance policy may not require a health care provider to accept payments under the health insurance policy via virtual credit card payment. The bill requires an insurer to inform a health care provider of the fees associated with any available payment methods and how to select a payment method other than virtual credit card payments before providing a payment via virtual credit card payment. The bill defines “virtual credit card payment” as an electronic funds transfer in which an insurer issues a single-use series of numbers that are associated with a payment, are chargeable to a predetermined dollar amount, and expire upon payment processing.
Additionally, under the bill, if an insurer transmits a payment to a health care provider in accordance with certain federal standards for transmitting electronic funds, the insurer may not charge a fee solely for the transmission, unless the provider has consented to the fee.
Health insurance policies are referred to in the bill as disability insurance policies.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 632.872 of the statutes is created to read:
632.872 Restrictions relating to virtual credit card payments for disability insurance policies. (1) Definitions. In this section:
(a) “Disability insurance policy” has the meaning given in s. 632.895 (1) (a).
(b) “Health care provider” has the meaning given in s. 146.81 (1).
(c) “Virtual credit card payment” means an electronic funds transfer in which an insurer, or a contracted vendor, issues a single-use series of numbers associated with payment for services performed by a health care provider and chargeable to a predetermined dollar amount, in which the health care provider is responsible for processing the payment through a credit card terminal or internet portal, and in which the single-use series of numbers expires upon payment processing. “Virtual credit card payment” does not include a payment in which a physical credit card is used.
(2) Method of payment. (a) An insurer offering a disability insurance policy may not require a health care provider to accept payments under the disability insurance policy by virtual credit card payment.
(b) Beginning on the effective date of this paragraph .... [LRB inserts date], an insurer offering a disability insurance policy shall do all of the following before the first time the insurer provides a payment to a health care provider under the disability insurance policy via a virtual credit card payment:
1. Notify the health care provider of any fees associated with each payment method option available.
2. Inform the health care provider of the payment method options available
and provide clear instructions to the health care provider for selecting a payment method other than virtual credit card payment.
(c) An insurer, or a contracted vendor, that transmits a payment to a health care provider under a disability insurance policy in accordance with the standards under 45 CFR 162.1602 may not charge a fee solely for the transmission of the payment to the health care provider unless the health care provider has consented to payment of the fee.
(3) Waiver prohibited. The requirements under sub. (2) may not be waived. Any provision of a contract contrary to sub. (2) is void and unenforceable.
Section 2. Initial applicability.
(1) The treatment of s. 632.872 (3) first applies to a contract that is entered into, renewed, or modified on the effective date of this subsection.
(end)