California Gov. Gavin Newsom signed SB 386 into law, which requires dental plans to provide dentists with clear and easy ways for dentists to opt in and out of virtual credit card payments, according to an Oct. 3 news release from the California Dental Association.
Here are seven things to know:
- Under the law, dental plans cannot use any payment method that includes a fee as the default payment when reimbursing dentists.
- In many cases, dental plans used virtual credit cards as the default payment method, which often have fees as high as 10% per transaction.
- Dentists could previously opt out of VCC payments, but it was not always permanent and would reinstate VCC as the default payment.
- In addition, dental plans are now required to inform dental practices of alternative payment methods, how to select which payment option they want and any fees associated with each method.
- Dentists can continue to use VCCs as their primary method of payment if they choose, but can opt out at any time.
- SB 386 passed both houses of the state legislature unanimously.
- The law goes into effect April 1, 2026.
