Georgia CommonsHouse · Passed · 2025-2026 Regular Session
HB 1374: Insurance; methods of payment to healthcare providers; provide certain requirements
Last action July 1, 2026 · Effective Date
House Bill 1374 would set new rules for how health insurers pay Georgia healthcare providers, banning credit-card-only payment plans and forced fees, and would also tighten state rules on prequalified suppliers bidding for government contracts.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.
In plain language
Georgia law already limits health insurers from forcing doctors and other healthcare providers to accept payment only by credit card. This bill rewrites that law (O.C.G.A. § 33-24-59.24) starting January 1, 2027. Insurers and their vendors could no longer require credit card payment or any payment method that carries fees. Before switching a provider to electronic funds transfer or virtual credit card payment, the insurer must disclose any fees, explain alternative fee-free options, and get the provider's written 'express acceptance' of the method. Providers keep whatever payment method they choose until they pick a new one. Insurers cannot charge a fee just to transmit payment unless the provider agrees, though providers or their billing agents may charge reasonable fees for related services like data management. A separate, unrelated part of the bill changes state purchasing law (O.C.G.A. § 50-5-68). It says government contracts can no longer be awarded simply because a supplier is prequalified, though prequalification can still count as one factor. It also blocks agencies from renewing or extending small contracts that avoided competitive bidding once their price grows past the bidding threshold, and requires new rules and a report to the General Assembly by November 1, 2026.
What the bill does
- Bans health insurance plans from requiring healthcare providers to accept payment only by credit card or any method that carries fees, effective for plans issued or renewed on or after January 1, 2027.
- Requires insurers to disclose fees, offer fee-free payment alternatives, and get the provider's written 'express acceptance' before switching them to electronic funds transfer or virtual credit card payment.
- Bars insurers from charging a fee just to transmit an electronic payment to a provider unless the provider consents, while letting providers charge reasonable fees for related services like data management.
- Makes clear that none of these payment-method protections can be waived by contract, voiding any contract clause that tries to override them.
- Prohibits state agencies from awarding contracts based solely on a supplier's prequalified status, though prequalification can still be one factor among several.
- Blocks renewal or extension of contracts that skipped competitive bidding because they were under the bidding threshold, once the contract price grows past that threshold.
Who it affects
Health insurers, care management organizations, and their payment vendors; doctors, dentists, hospitals, pharmacists, and other licensed healthcare providers and their billing agents; and, on the purchasing side, the Department of Administrative Services, the commissioner of administrative services, and companies that seek prequalification for state contracts.
Why it matters
Healthcare providers who currently get pushed onto fee-bearing virtual credit card payments would gain a right to fee-free alternatives and a say in how they're paid, potentially reducing processing costs passed on to them. Separately, state agencies would have less flexibility to hand contracts to prequalified suppliers without competitive bidding, which could affect which companies win government business.
Key provisions
- Section 1-1 rewrites O.C.G.A. § 33-24-59.24, adding a definition of 'express acceptance' meaning a clear, written agreement by the provider to a payment method.
- Subsection (b) bars any health plan issued, amended, or renewed on or after January 1, 2027 from making credit card payment or any fee-bearing method the only option for paying providers.
- Subsection (c) requires insurers to notify providers of fees, offer fee-free alternatives, and obtain express written acceptance before initiating or changing payment methods.
- Subsection (e) prohibits charging a fee solely to transmit an electronic funds transfer payment unless the provider has consented, while subsection (f) allows providers or their agents to charge for related value-added services.
- Section 2-1 amends O.C.G.A. § 50-5-68 to bar awarding state contracts solely on prequalification and requires new rules plus a report to the General Assembly by November 1, 2026.
- Section 2-2 adds O.C.G.A. § 50-5-69.1, barring renewal or extension of contracts that avoided competitive bidding once their price exceeds the bidding threshold, with an exception for emergency purchases.
From the bill
“No contract for any purchase that was effectuated without competitive bidding solely because the contract price did not exceed a threshold amount required for competitive bidding as set forth under this part shall be subsequently renewed or extended at any time for a contract price that exceeds such threshold amount.”
Discussed in meetings (14)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Health Committee, February 23, 2026
From 1:19:29 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1374 would require healthcare providers to sign an agreement before receiving payment through virtual credit cards. The sponsor said these payments can carry fees of roughly 4% to 6%, increasing providers' overhead. The sponsor explained that earlier legislation required other payment options, but providers were still reporting problems. The bill would preserve providers' ability to choose virtual credit cards while requiring an explicit opt-in. No questions were asked. The committee approved the bill by voice vote.
House Rules Committee, February 25, 2026
From 1:39:47 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The presenter said HB 1374 would require healthcare providers to opt in to payment arrangements involving virtual credit cards that charge providers fees. The presenter said health plans and care management organizations had resumed using these arrangements and that the bill would make the choice clear to providers and their staff. No questions or scheduling decision followed.
House floor session, March 4, 2026 (legislative day 27, PM, part 2)
From 1:53:56 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1939
Summary by Georgia Commons: The sponsor said HB 1374 would require healthcare providers or their agents to sign up affirmatively for virtual credit card payments from insurers, with that choice remaining in place until the provider changes it. Drawing on dental practice experience, the sponsor said these payments can carry fees of 2% to 5% and that existing notification requirements had not adequately prevented unwanted charges. The sponsor argued those charges increase healthcare costs. There were no questions. The House passed the bill 159–0.
House Rules Committee, March 4, 2026
From 0:27:13 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1929
Summary by Georgia Commons: The committee placed HB 1374 on the supplemental calendar after a motion and second, with no objection. Members did not discuss its substance.
Senate Health and Human Services Committee, March 16, 2026
From 0:09:08 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1374 would require providers to agree in writing before receiving insurance payments through virtual credit cards that carry processing fees. The sponsor said workarounds had weakened earlier legislation and that providers were losing 2% to 5% on payments representing roughly 80% to 90% of their income, contributing to higher fees. A second presenter explained a substitute provision requiring state contract renewals above competitive bidding thresholds to follow the same procurement process as new contracts. That presenter said this would prevent contractors from entering with a low bid and later receiving much larger renewals without competition. In response to a member's question, the presenter confirmed that this was the purpose of the renewal restriction. Another member questioned payment terminology, which the sponsor attributed to legislative counsel's drafting. The chair recorded support from the Medical Association of Georgia and Georgia Dental Association. The committee unanimously recommended passage of the substitute.
Senate Rules Committee, March 19, 2026
From 0:39:10 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said insurers sometimes pay health care providers through virtual credit cards that charge providers fees of up to 5%, increasing health care costs. The sponsor said the bill would require a signed opt-in before providers could be paid through that method, addressing a gap in earlier legislation. No questions followed. The committee later unanimously included it in the floor calendar.
Senate floor session, March 20, 2026 (legislative day 35)
From 4:50:01 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)
Summary by Georgia Commons: The presenter said HB 1374 would require healthcare providers to opt into credit-card payments from insurers rather than opt out. The presenter said processing fees reduced payments by 3 to 5 percent. The presenter also described substitute provisions intended to prevent state contracts from avoiding purchasing review through low initial prices followed by larger renewals, and to let builders compete for school construction without having previously built a school. Asked about local government contracts, the presenter said the changes were intended only for state purchasing and would welcome a clarifying amendment. Another senator offered an amendment barring insurers from removing participating providers during a plan year if patients would lose access to covered services. That senator cited concerns from patients and providers about disrupted care. After the president pro tempore requested a ruling, the chair ruled the amendment unrelated to the bill. The Senate adopted the committee substitute and passed the bill 46-0.
House floor session, March 31, 2026 (legislative day 39, part 2)
From 3:21:53 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Agreed Senate Amend or Sub)
Summary by Georgia Commons: The clerk described the underlying bill as setting requirements for payments to health care providers. The presenter said the Senate added clarification of competitive bidding requirements and procedures for suppliers prequalified to do business with the state. No members asked questions. The House agreed to the Senate substitute, 165 to 0.
- Read aloud: House floor session, February 19, 2026 (legislative day 21), 0:30:36
- Read aloud: House floor session, February 20, 2026 (legislative day 22), 0:42:01
- Read aloud: House floor session, February 24, 2026 (legislative day 23), 0:50:53
- Read aloud: Senate floor session, March 6, 2026 (legislative day 28, part 1), 0:41:00
- Read aloud: Senate floor session, March 18, 2026 (legislative day 33), 0:31:19
- Read aloud: Senate floor session, March 19, 2026 (legislative day 34), 0:48:35
Status timeline
- Effective Date
- Act 406
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- House Agreed Senate Amend or Sub (House)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Read Second Time (Senate)
Show full history (16 actions)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Lee Hawkins (R, HD-27)
- Ron Stephens (R, HD-164)
- Rick Jasperse (R, HD-11)
- Mark Newton (R, HD-127)
- David Clark (R, HD-100)
- Blake Tillery (R, SD-19)
Votes
- House voteMarch 4, 2026
159 yea, 0 nay (2 not voting, 16 excused)
- Senate voteMarch 20, 2026
46 yea, 0 nay (0 not voting, 8 excused)
- House voteMarch 31, 2026
165 yea, 0 nay (4 not voting, 7 excused)
Topics
- health insurance
- medical billing
- healthcare providers
- state contracting
- government purchasing