A. A dental plan shall establish policies and procedures for payment recovery, including providing:
(1) notice to the provider that identifies the error made in the processing or payment of the claim;
(2) an explanation of the recovery being sought; and
(3) an opportunity for the provider to appeal the recovery being sought as set forth in Subsection C of this section.
B. A dental plan shall not initiate payment recovery procedures more than twenty-four months after the original payment for a claim was made unless the claim was fraudulent or intentionally misrepresented.
C. A dental plan shall not attempt to recover an erroneously paid claim by withholding or reducing payment for a different claim unless the plan:
(1) notifies the provider, in writing, within twelve months of the erroneously paid claim; and
(2) advises the provider that an automatic deduction shall occur within forty-five days of receiving notification unless the provider submits a written appeal to the plan pursuant to the grievance rules prescribed by the superintendent of insurance.
D. The provisions of this section shall not apply to duplicate payments.