State Affairs

2026 State Legislative Wrap Up

Throughout the session, NADP remained actively engaged across the country, coordinating advocacy, shaping bill language, and working with trade partners to influence outcomes on several key issues of interest to members.

DLR: NADP tracked 24 DLR bills across 15 states this session. 8 states considered bills establishing minimum percentages, while 6 more states pursued reporting-only approaches. The Massachusetts life insurance trade, LIAM, also pursued legislation focused on modifying DLR financial reporting provisions.

Mississippi was the only state to enact new DLR legislation, with HB 1117 establishing reporting requirements beginning June 30, 2026. A reporting-only proposal is still on the table in Pennsylvania through late 2026.

Virtual Credit Cards: 25 states considered electronic payments legislation, most of which included “express acceptance” opt-in provisions drawing from amended NCOIL model language adopted in late 2025. Georgia and Louisiana passed new opt-in bills in 2026, and a bill in Illinois is expected to be signed by the Governor in June. Despite significant movement, bills in Kansas and Rhode Island failed to cross the finish line prior to adjournment. Due to longer sessions, legislation in Massachusetts, Michigan, and Ohio may still be considered this year.

Network Leasing: 11 network leasing bills were introduced in 2026, with 8 proposing an opt-in framework or broader changes to existing leasing practices. Colorado HB 1070 became the first opt-in bill signed into law in April. An opt-in proposal in New York was amended to an opt-out late in the session, but the bill did not pass both houses prior to adjournment. Bills in West Virginia did not progress, and proposals in Massachusetts and Ohio remain pending.

Non-covered Services: 5 states considered non-covered services legislation, with a total of 15 bills in 2026. Oklahoma SB 1942 made changes to the definition of covered services, shifting from “reimbursable” to “reimbursed.” NCS language was amended into a dental practice bill in Kentucky, HB 776, just prior to passage in April without the opportunity for industry feedback. When the Governor signs the bill, New York will become the 45^th state to adopt a non-covered services law. Minnesota bills from 2025 carried over but did not progress, and Massachusetts has a proposal that could still be considered later this year.

Payment Recoupment: In 2026, states showed increased interest in shortening the timeframe for insurers to recoup overpayments, with 10 bills introduced across 8 states. Proposals in Indiana, Louisiana, and Ohio would have reduced recoupment periods to as little as 90 days, Proposals in Louisiana and Ohio were amended to allow 12 months. Indiana reduced the payment recovery timeline to 90 days.