---
title: HB 1374. Insurance; methods of payment to healthcare providers; provide certain requirements
collection: bills
id: 2025-2026/hb1374
cite_as: HB 1374, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1374
md_url: https://georgiacommons.org/bills/2025-2026/hb1374.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1374/text
source_url: https://www.legis.ga.gov/legislation/73363
date: 2026-05-05
status: passed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 1283
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1374.md?full=1
bill_number: HB 1374
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-05-05
last_action: Effective Date 2026-07-01
sponsors:
- Lee Hawkins
- Ron Stephens
- Rick Jasperse
- Mark Newton
- David Clark
- Blake Tillery
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1374/2025
upstream_id: 2119496
summaries_model: claude-sonnet-5
topic_tags:
- health insurance
- medical billing
- healthcare providers
- state contracting
- government purchasing
---
# HB 1374. Insurance; methods of payment to healthcare providers; provide certain requirements
## Text
House Bill 1374 (AS PASSED HOUSE AND SENATE)
By: Representatives Hawkins of the 27th, Stephens of the 164th, Jasperse of the 11th, Newton
of the 127th, and Clark of the 100th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 24 of Title 33 of the Official Code of Georgia Annotated, relating to
insurance generally, so as to provide for certain requirements concerning methods of
payment to healthcare providers; to provide for definitions; to provide for notification; to
provide for the avoidance of additional fees; to prohibit contractual waivers of certain
statutory requirements; to amend Part 1 of Article 3 of Chapter 5 of Title 50 of the Official
Code of Georgia Annotated, relating to general authority, duties, and procedures relative to
state purchasing, so as to revise provisions for the award of contracts to prequalified
suppliers; to clarify competitive bidding requirements and procedures with respect to
prequalified suppliers; to provide for a report to the General Assembly; to prohibit the
renewal or extension of contracts under certain circumstances; to require the commissioner
of administrative services to adopt rules, regulations, and procedures; to provide for related
matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
PART I
SECTION 1-1.
Chapter 24 of Title 33 of the Official Code of Georgia Annotated, relating to insurance
generally, is amended by revising Code Section 33-24-59.24, relating to restrictions on
payment methods prohibited, waiver of provisions prohibited, and enforcement, as follows:
"33-24-59.24.
(a) As used in this chapter Code section, the term:
(1) 'Care management organization' means an entity that is organized for the purpose of
providing or arranging health care healthcare, which has been granted a certificate of
authority by the Commissioner as a health maintenance organization pursuant to Chapter
21 of this title, and which has entered into a contract with the Department of Community
Health to provide or arrange health care healthcare services on a prepaid, capitated basis
to members.
(2) 'Credit card payment' means a type of electronic funds transfer in which a health
insurance plan or health insurer or its contracted vendor issues a single-use series of
numbers associated with the payment of health care healthcare services performed by a
health care healthcare provider and chargeable to a predetermined dollar amount,
whereby the health care healthcare provider is responsible for processing the payment by
a credit card terminal or Internet internet portal. Such term shall include virtual or online
credit card payments, whereby no physical credit card is presented to the health care
healthcare provider and the single-use credit card expires upon payment processing.
(3) 'Electronic funds transfer' means an electronic funds transfer through the federal
Health Insurance Portability and Accountability Act of 1996, P.L. 104-191, standard
automated clearing-house network.
(4) 'Express acceptance' means a clear and direct agreement to the terms of payment
method, communicated explicitly by the health benefit plan to the healthcare provider,
in writing, signifying acceptance of the payment method.
(4)(5) 'Healthcare 'Health care provider' means any physician, dentist, podiatrist,
pharmacist, optometrist, psychologist, registered optician, licensed professional
counselor, physical therapist, chiropractor, hospital, or other entity or person that is
licensed or otherwise authorized in this state to furnish health care healthcare services.
(6) 'Healthcare provider's agent' means a third-party firm or individual contracted by a
healthcare provider to handle administrative tasks, particularly billing, insurance claims,
and payment processing, acting on the healthcare provider's behalf for financial
transactions and often providing value-added services like data management or portal
access. Such term shall also refer to a recruiter who acts as an agent for healthcare
providers seeking jobs or healthcare practices seeking to hire healthcare providers,
guiding them through hiring and contract negotiation.
(5)(7) 'Healthcare 'Health care services' means the examination or treatment of persons
for the prevention of illness or the correction or treatment of any physical or mental
condition resulting from illness, injury, or other human physical problem and includes,
but is not limited to:
(A) Hospital services which include the general and usual services and care, supplies,
and equipment furnished by hospitals;
(B) Medical services which include the general and usual services and care rendered
and administered by doctors of medicine, doctors of dental surgery, and doctors of
podiatry; and
(C) Other health care healthcare services which include appliances and supplies;
nursing care by a registered nurse or a licensed practical nurse; care furnished by such
other licensed practitioners; institutional services including the general and usual care,
services, supplies, and equipment furnished by health care healthcare institutions and
agencies or entities other than hospitals; physiotherapy; ambulance services; drugs and
medications; therapeutic services and equipment including oxygen and the rental of
oxygen equipment; hospital beds; iron lungs; orthopedic services and appliances
including wheelchairs, trusses, braces, crutches, and prosthetic devices including
artificial limbs and eyes; and any other appliance, supply, or service related to health
care healthcare.
(6)(8) 'Health insurance plan' means any hospital or medical insurance policy or
certificate; health plan contract or certificate; qualified higher deductible health plan;
health maintenance organization subscriber contract; any contract providing benefits for
dental care whether such contract is pursuant to a medical insurance policy or certificate;
stand-alone dental plan, health maintenance provider contract, managed health care
healthcare plan, self-insured plan, or otherwise; or any health insurance plan established
pursuant to Article 1 of Chapter 18 of Title 45.
(7)(9) 'Health insurer' means any entity or person engaged as an indemnitor, surety, or
contractor that issues insurance, annuity or endowment contracts, subscriber certificates,
or other contracts of insurance by whatever name called. Health care Healthcare plans
under Chapter 20A of this title and health maintenance organizations are health insurers
within the meaning of this chapter.
(b) No Any health insurance plan issued, amended, or renewed on or after January 1, 2019
2027, between a health insurer or its contracted vendor or a care management organization
and a health care healthcare provider for the provision of health care healthcare services
to a plan enrollee shall not contain restrictions on methods of payment from the health
insurer or its vendor or the care management organization to the health care healthcare
provider in which the only acceptable payment method is a credit card payment or any
other form of payment that requires fees or similar charges.
(c) If initiating or changing payments to a health care provider using electronic funds
transfer payments, including virtual credit card payments, a health insurance plan, health
insurer or its contracted vendor, or care management organization shall:
(1) Notify the health care provider if any fees are associated with a particular payment
method; and
(2) Advise the provider of the available methods of payment and provide clear
instructions to the health care provider as to how to select an alternative payment method.
(c) A health insurance plan or its contracted vendor or a care management organization
may initiate or change payment methodology to a healthcare provider using electronic
funds transfer payments, including virtual credit card payments, only if:
(1) The health insurance plan notifies the healthcare provider if any fees are associated
with a particular payment method;
(2) The health insurance plan advises the healthcare provider of the available methods
of payment and provides clear instructions to the healthcare provider as to how to select
an alternative payment method that does not impose fees or similar charges on the
provider; and
(3) The healthcare provider or the healthcare provider's agent, through express
acceptance, accepts a payment for the claim using a credit card or electronic funds
transfer payment method.
(d) A healthcare provider's selected form of claim payment methodology remains effective
until such time as the healthcare provider chooses an alternative method of payment or by
making an election in a new contract.
(e) A health insurance plan or its contracted vendor or a care management organization
that initiates or changes payments to a healthcare provider through an electronic funds
transfer in accordance with 45 C.F.R. Section 162.1602, as effective on January 1, 2026,
shall not charge a fee solely to transmit the payment to a healthcare provider unless the
healthcare provider has consented to the fee.
(f) A healthcare provider or the healthcare provider's agent may charge reasonable fees
when transmitting an automated clearing-house network payment related to transaction
management, data management, portal services, and other value-added services in addition
to the bank transmittal.
(g) Any electronic funds transfer or remittance advice transaction under this Code section
shall be the transmission of any of the following from a health insurance plan to a
healthcare provider:
(1) Payment;
(2) Information about the transfer of funds;
(3) Payment processing information;
(4) Explanation of benefits; or
(5) Remittance advice.
(d)(h) The provisions of this Code section shall not be waived by contract, and any
contractual clause in conflict with the provisions of this Code section or that purports to
waive any requirements of this Code section are void.
(e)(i) Violations of this Code section shall be subject to enforcement by the
Commissioner."
PART II
SECTION 2-1.
Part 1 of Article 3 of Chapter 5 of Title 50 of the Official Code of Georgia Annotated,
relating to general authority, duties, and procedures relative to state purchasing, is amended
by revising Code Section 50-5-68, relating to prequalification of prospective suppliers, as
follows:
"50-5-68.
(a) Prospective suppliers may be prequalified for particular types of supplies, services,
goods, materials, and equipment at the discretion of the Department of Administrative
Services. Solicitation mailing lists of potential contractors shall include, but shall not be
limited to, such prequalified suppliers. The award of contracts, however, may shall not be
conditioned upon prequalification; provided, however, that prequalification may be
included among evaluation factors and criteria used in making an award.
(b)(1) The provisions of subsection (a) of this Code section shall not be construed or
applied to abrogate the competitive bidding requirements and procedures provided for in
Code Sections 50-5-67 and 50-5-69.
(2) The commissioner of administrative services shall adopt rules, regulations, and
procedures to ensure and clarify that the discretion of the Department of Administrative
Services to prequalify prospective suppliers for particular types of supplies, services,
goods, materials, and equipment does not extend and shall not be exercised to abrogate
or frustrate the competitive bidding requirements and procedures provided for in Code
Sections 50-5-67 and 50-5-69. Such rules, regulations, and procedures shall ensure that
the application of such competitive bidding requirements and procedures shall not be
obviated solely on the basis that a prospective supplier is prequalified for a particular type
of supply, service, good, material, or equipment.
(3) By November 1, 2026, the commissioner of administrative services shall prepare a
report of the rules, regulations, and procedures that have been adopted in compliance with
paragraph (2) of this subsection. Such report shall be submitted in writing to the Speaker
of the House of Representatives, the President of the Senate, and the chairpersons of the
House Committee on Appropriations and the Senate Appropriations Committee."
SECTION 2-2.
Said part is further amended by adding a new Code section to read as follows:
"50-5-69.1.
(a) 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.
(b) The commissioner of administrative services shall adopt rules, regulations, and
procedures necessary to carry out the intent of this Code section.
(c) Nothing in this Code section shall apply to or affect the laws, rules, and regulations
governing emergency purchases."
PART III
SECTION 3-1.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
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.
### Plain-language summary
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 it 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.
## Status
- Status: Passed (2026-05-05)
- Last action: Effective Date 2026-07-01 (2026-05-05)
- Sponsors: Lee Hawkins, Ron Stephens, Rick Jasperse, Mark Newton, David Clark, Blake Tillery
- Official page: https://www.legis.ga.gov/legislation/73363
> The history, votes, and amendments (1,283 characters) are at https://georgiacommons.org/bills/2025-2026/hb1374.md?full=1