On Wednesday, April 17, 2013, the Wisconsin Assembly, by a vote of 89 to 8, passed a bill that prohibits insurers who provide limited-scope dental benefit policies from setting fees for dental and related services not covered by those policies. Similar laws, commonly known as “non-covered services legislation” have already been passed in 29 other states, including Minnesota, which passed similar legislation in 2011, and Illinois, where non-covered services legislation went into effect on January 1st of this year.
IDFPR Says Voucher Advertising Is Not Fee-Splitting If Advertising Fee Is Reasonable and Required Disclosures Are Made
On April 10th, the Illinois Department of Financial and Professional Regulation (the “IDFPR”) issued a position statement concluding that, under Illinois law, voucher advertising (also known as social coupon advertising), like that provided by Groupon and Living Social, does not constitute unethical fee-splitting or a prohibited solicitation or referral fee, as long as two conditions are satisfied:
1. The negotiated fee paid for the voucher advertising constitutes reasonable compensation for the cost of that advertising; and