California Gov. Jerry Brown has signed legislation that will place new disclosure requirements on dental plans and insurers when they make material changes to their contracts, rules, and procedures.
AB 2252, which was sponsored by the California Dental Association (CDA), takes effect January 1, 2013, and requires plans to provide written notice to providers within 45 business days of any material changes to a plan's rules, guidelines, policies, and procedures concerning dental provider contracting or coverage of or payment for dental services.
The new law will also require plans that automatically renew their provider contracts to provide annually, upon request within 60 business days, a copy of its current contract and a written summary of all material changes since the issuance or last renewal of the contract.
The CDA asked Assemblymember Richard Gordon to carry this bill in response to complaints it had received from numerous dentists about plans making unilateral contract and policy changes without any notification or rationale, CDA immediate past president Daniel Davidson, DMD, noted in a news release.
