A new Delaware law eliminates a recurring cost that independent practitioners pay to multiple insurance carriers every year.
Most health care professionals in Delaware don't realize they're paying for the privilege of being paid by insurance companies. But they are—and that's about to change.
Under a provision in Delaware's SB334 (An Act To Amend Titles 18 And 29 Of The Delaware Code Relating To Health Care), insurance carriers—including third-party administrators and credentialing intermediaries—are now prohibited from charging health care professionals any fee to process a credentialing or recredentialing application. The ban takes effect January 1, 2028.
Credentialing fees are a hidden cost that most solo practitioners and small independent practices pay repeatedly. Every time you apply to participate with a new carrier, or renew your credentials with an existing one, you've likely been charged a processing fee. For practitioners managing multiple payer relationships—which is nearly everyone in private practice—these fees add up quickly across the year.
These aren't large individual charges, but they're direct out-of-pocket costs that don't reimburse patients or improve care. They're simply the cost of accessing a payer's network. Under the new law, that cost disappears.
The prohibition applies broadly. It covers insurance carriers themselves, third-party administrators (TPAs), and credentialing intermediaries—any entity processing the application. So whether you work directly with a carrier or through a middleman, the fee is banned.
Effective date: January 1, 2028. Carriers cannot charge credentialing fees on or after that date.
Scope: The ban covers both initial credentialing applications and recredentialing applications—the periodic renewals most practitioners must complete every few years.
Who it covers: All health care professionals in Delaware subject to credentialing requirements by insurance carriers.
Legal citation: § 3305B(d), Section 1 of SB334.
If you're a Delaware-based health care professional, mark your calendar for January 1, 2028. Starting that date, if a carrier or credentialing intermediary charges you a fee to submit or renew your credentialing application, that charge violates Delaware law.
You don't need to take action today, but it's worth understanding this change as you budget for 2028 and beyond. If you're currently paying these fees, you'll want to factor the savings into your practice planning.
For practices managing credentialing across multiple payers, this elimination of per-carrier fees can represent meaningful annual savings, particularly for solo practitioners and small group practices where every direct cost matters.
For a detailed, practice-specific summary of SB334's credentialing provisions, contact your state professional association or local business resource center.