Legislation Passes that Shapes Regulations for Third-Party Financing in the Dental Office

Oct 15, 2024

In response to a growing trend nationwide, legislation was introduced in Illinois this past legislative session to regulate third-party financing options offered in dental offices. Initially the legislation aimed to prevent dental practices from offering, brokering, or establishing deferred interest financial products, which could complicate patient payment options.

The initial proposal sought to eliminate these deferred interest financing plans. It would have required dentists to provide patients with detailed disclosures and written treatment cost estimates before proceeding with any treatment.

However, the Illinois State Dental Society (ISDS) raised significant concerns about how these restrictions would affect patient access to necessary dental care and the administrative burden on dental offices. After substantial negotiations and discussions addressing these concerns, the final legislation was significantly revised to focus specifically on practices that could lead to conflicts of interest or reduce transparency.

The finalized law includes the following measures:

  • Prohibits dentists or their employees from filling out financing applications on behalf of patients.
  • Prohibits submission of these applications by dental office staff.
  • Prohibits dental offices from providing patients with electronic devices to fill out financing applications.
  • Dental staff are prohibited from promoting or advertising third-party financing during patient treatments or in sensitive settings, such as when under anesthesia.
  • Dental offices are required to provide disclosures to patients to ensure the patient is aware the product is from a third-party financing coming.

Thanks to these efforts, the final legislation aims to protect patients while maintaining access to care, leading ISDS and the coalition to adopt a neutral stance on the amended bill.

The disclosure required under the law is supposed to be provided by the Illinois Department of Financial and Professional Regulation (IDFPR). ISDS will notify members when the disclosure is available.

The legislation will become effective on January 1, 2025.