California governor signs dental plan reform bill on direct billing, network oversight

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California Gov. Gavin Newsom signed Assembly Bill 1629, which requires dental plans to honor patients’ assignment of benefits requests and improves oversight of dental plan networks.

The bill ensures dentists can receive payment directly from dental plans, rather than requiring patients to pay full treatment costs upfront and seek reimbursement themselves, according to a Sept. 28 news release from the California Dental Association.

“Assignment of benefits legislation has been one of the biggest asks from CDA members, and we are thankful that lawmakers took meaningful action to address the growing inadequacy of dental plan networks,” Robert Hanlon, DMD, president of the California Dental Association, said in the release.

The bill also closes a gap in state oversight. Nearly half of Californians with commercial dental coverage are enrolled in plans governed by federal Employee Retirement Income Security Act, which are excluded from current state network adequacy assessments — leaving regulators unable to gauge whether dental plan networks are adequate across the full patient population. 

AB 1629 requires dental insurance companies to report provider network information for all dental plans they sell, which will help state regulators determine whether dental plans have enough dentists in their network to serve all enrollees.

The bill takes effect Jan. 1, 2027, the release said.

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