Several recent works have proposed that electron-electron interactions in bilayer graphene can be tuned with the help of external parameters, making it possible to stabilize different fractional quantum Hall states. In these prior works, phase diagrams were calculated based on a single Landau level approximation. We go beyond this approximation and investigate the influence of polarization effects and virtual interband transitions on the stability of fractional quantum Hall states in bilayer graphene. We find that for realistic values of the dielectric constant, the phase diagram is strongly modified by these effects. We illustrate this by evaluating the region of stability of the Pfaffian state.