Assignment of Benefits in Technical Corrections Bill

nc-stampSB 582/HB 229 Agency Technical Corrections

Senate Sponsor: Sen. Tamara Barringer

House Sponsor: Rep. Ted Davis

On June 28, 2017 the House Rules and Operations Committee gave a favorable report to the second edition of SB 582.

The second edition of this bill included a provision that would have changed reimbursement contracts and assignment of benefits.

This edition stated that a reimbursement contract between a health care provider and an insurer should require that reimbursement be made directly to the provider for any service covered under the plan.

This edition stated that an insurer would honor a completed assignment of benefits agreement that gives the insured’s reimbursement benefits to a provider. This would only apply if there is no reimbursement contract between a provider an an insurer.

Unfortunately, when the bill made it to the House floor later that evening, an amendment to take out this section of the bill passed narrowly with a vote of 61-52.

Most of the opposition to this language was due to the fact that this section was not technical in nature, not on the substance of the section.


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