§ 8.01-27.5.Duty of in-network providers to submit claims to health insurers; liability of covered patients for unbilled health care services.

Chapter 3. Actions · Article 2. Actions on Contracts Generally · Last amended 2022 · Last verified July 16, 2026

In one sentenceSection 8.01-27.5 requires an in-network health care provider to submit insurance claims on time once the patient supplies needed verification information, and excuses the patient from paying — while stripping the provider of lien and reimbursement rights — when the provider misses that deadline.

Full Text of § 8.01-27.5

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A. As used in this section:

"Covered patient" means a patient whose health care services are covered under terms of a health care policy.

"Health care policy" means any health care plan, subscription contract, evidence of coverage, certificate, health services plan, medical or hospital services plan, accident and sickness insurance policy or certificate, or other similar certificate, policy, contract, or arrangement, and any endorsement or rider thereto, offered, arranged, issued, or administered by a health insurer to an individual or a group contract holder to cover all or a portion of the cost of individuals, or their eligible dependents, receiving covered health care services. "Health care policy" includes coverages issued pursuant to (i) Chapter 28 (§ 2.2-2800 et seq.) of Title 2.2 (state employees); (ii) § 2.2-1204 (local choice); (iii) 5 U.S.C. § 8901 et seq. (federal employees); (iv) an employee welfare benefit plan as defined in 29 U.S.C. § 1002 (1) of the Employee Retirement Income Security Act of 1974 (ERISA) that is self-insured or self-funded; and (v) Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid), or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP). "Health care policy" does not include (a) Chapter 55 of Title 10 of the United States Code, 10 U.S.C. § 1071 et seq. (TRICARE); (b) subscription contracts for one or more dental or optometric services plans that are subject to Chapter 45 (§ 38.2-4500 et seq.) of Title 38.2; (c) insurance policies that provide coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accidents, including student accident, sports accident, blanket accident, specific accident, and accidental death and dismemberment policies; (d) credit life insurance and credit accident and sickness insurance issued pursuant to Chapter 37.1 (§ 38.2-3717 et seq.) of Title 38.2; (e) insurance policies that provide payments when an insured is disabled or unable to work because of illness, disease, or injury, including incidental benefits; (f) long-term care insurance as defined in § 38.2-5200; (g) plans providing only limited health care services under § 38.2-4300 unless offered by endorsement or rider to a group health benefit plan; (h) TRICARE supplement, Medicare supplement, or workers' compensation coverages; or (i) medical expense coverage issued pursuant to § 38.2-2201.

"Health care provider" has the same meaning ascribed to the term in § 8.01-581.1.

"Health care services" means items or services furnished to any individual for the purpose of preventing, alleviating, curing, or healing human illness, injury, or physical disability.

"Health insurer" means any entity that is the issuer or sponsor of a health care policy.

"In-network provider" means a health care provider that is employed by or has entered into a provider agreement with the health insurer that has issued the health care policy or is a participating provider with such health insurer, under which agreement or conditions of participation the health care provider has agreed to provide health care services to covered patients.

"Patient" means an individual who receives health care services from a health care provider, or any person authorized by law to consent on behalf of the individual incapable of making an informed decision, or, in the case of a minor child, the parent or parents having custody of the child or the child's legal guardian, or as otherwise provided by law.

"Provider agreement" means a contract, agreement, or arrangement between a health care provider and a health insurer, or a health insurer's network, provider panel, intermediary, or representative, under which the health care provider has agreed to provide health care services to patients with coverage under a health care policy issued by the health insurer and to accept payment from the health insurer for the health care services provided.

B. An in-network provider that provides health care services to a covered patient shall submit its claim to the health insurer for the health care services in accordance with the terms of the applicable provider agreement or as permitted under applicable federal or state laws or regulations, provided that the covered patient provides the in-network provider with information required by the terms of the covered patient's health care policy's plan documents, including the information that is required to verify the individual's coverage under the health care policy, within not fewer than 21 business days before the deadline for the in-network provider to submit its claim to the health insurer as required by the terms of the provider agreement. If an in-network provider does not submit its claim to the health insurer in accordance with the requirements of this subsection, then (i) the covered patient shall have no obligation to pay for health care services for which the in-network provider was required to submit its claim, (ii) the in-network provider shall not have the benefit of the liens provided by §§ 8.01-66.2 and 8.01-66.9 with regard to health care services for which the in-network provider was required to submit its claim, and (iii) the in-network provider shall be prohibited from recovering payment for any of the health care services for which it was required to submit its claim from an insurer providing medical expense benefits to the covered patient under a policy of motor vehicle liability insurance pursuant to § 38.2-2201, by exercising an assignment of the covered patient's rights to the medical expense benefits or by other means. If the in-network provider submits its claim to the health insurer in accordance with the requirements of this subsection, the covered patient or the health insurer shall be obligated to pay for the health care services in accordance with the terms of the provider agreement or health care policy's plan documents. To the extent that self-insured or self-funded plans governed by ERISA or Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid), or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP) provide otherwise, health care providers shall be permitted to submit claims and coordinate benefits as provided for in the provider agreements or plan documents or as required under applicable federal and state laws and regulations.

C. Any knowing violation of the provisions of this section shall constitute a prohibited practice in accordance with § 59.1-200 and shall be subject to any and all of the enforcement provisions of the Virginia Consumer Protection Act (§ 59.1-196 et seq.).

End

Plain-English Summary

Section 8.01-27.5 opens with definitions that frame the rest of the section. A “covered patient” is someone whose care falls under a “health care policy,” a term the statute defines broadly to include most employer, individual, state, and federal health plans, while expressly excluding certain coverages such as stand-alone dental or vision plans, disability income insurance, TRICARE, long-term care insurance, and workers’ compensation. An “in-network provider” is a health care provider under contract with, or participating with, the patient’s health insurer, obligated by that provider agreement to furnish care to covered patients.

Subsection B requires an in-network provider to submit its claim to the health insurer as the provider agreement or applicable law requires, once the covered patient has supplied the verification information the health care policy’s plan documents call for, at least twenty-one business days before the provider’s own submission deadline. If the provider fails to submit the claim as required, three consequences follow: the patient owes nothing for those services, the provider loses the benefit of the health care liens Sections 8.01-66.2 and 8.01-66.9 would otherwise give it, and the provider cannot recover payment for those services from a motor vehicle insurer’s medical expense benefits by assignment or any other means.

When the provider does submit the claim properly, the covered patient or the health insurer must pay for the services under the terms of the provider agreement or the policy’s plan documents. Self-funded plans governed by ERISA, Medicare, Medicaid, or CHIP follow their own governing law where it provides otherwise for claims submission and coordination of benefits. Subsection C then makes a knowing violation of the section a prohibited practice under Section 59.1-200, enforceable through the Virginia Consumer Protection Act.

Frequently Asked Questions

What happens if my in-network provider misses the deadline to submit my insurance claim?

You owe nothing for those services, the provider loses its lien rights under Sections 8.01-66.2 and 8.01-66.9, and the provider cannot recover payment from your auto insurer’s medical payments coverage instead.

What do I have to do as a patient to trigger the provider’s duty to submit a claim?

Give the provider the information your health care policy’s plan documents require, including what is needed to verify your coverage, at least twenty-one business days before the provider’s claim submission deadline.

Does this section apply to my dental or vision plan?

Generally no. The statute’s definition of “health care policy” excludes stand-alone dental or optometric subscription contracts, along with several other coverages, such as disability income insurance, TRICARE, long-term care insurance, and workers’ compensation.

What happens to my bill if the provider submits the claim correctly?

You or your health insurer must pay for the health care services under the terms of the provider agreement or the policy’s plan documents.

What are the consequences for a provider that knowingly violates this section?

The violation counts as a prohibited practice under Section 59.1-200 and is subject to enforcement under the Virginia Consumer Protection Act.

Amendment History

2013, c. 700; 2014, cc. 157, 417; 2018, c. 788; 2022, c. 351.

Source & verification. Section text and amendment history are reproduced verbatim from the Code of Virginia, published by the Code of Virginia, Virginia Division of Legislative Automated Systems. Last verified July 16, 2026. · Official source

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