senate Bill S4052

Relates to community based air ambulance subscription services

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 06 / Mar / 2013
    • REFERRED TO INSURANCE
  • 11 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 11 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1268
  • 21 / Jun / 2013
    • RECOMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO INSURANCE

Summary

Relates to community based air ambulance subscription services.

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Bill Details

Versions:
S4052
Legislative Cycle:
2013-2014
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §1108, ren §1124 to be §1125, add §1126, Ins L

Sponsor Memo

BILL NUMBER:S4052

TITLE OF BILL: An act to amend the insurance law, in relation to
community based air ambulance subscription services; and providing for
the repeal of such provisions upon expiration thereof

PURPOSE: To provide community-based air ambulance services to offer
subscription memberships to provide discounts or waivers of future air
transport costs while providing a needed funding stream to
philanthropic-based air ambulance providers.

SUMMARY OF PROVISIONS:

Adds a new subsection (m) to article 1180 and adds a new section 1126
to the insurance law to create the community-based air ambulance
subscription program.

JUSTIFICATION: New York's non-profit community-based air ambulance
service providers provide critical emergency response and medical
transport services that rely on philanthropic charitable donations to
provide the financial means to operate. Embracing their
community-based mission, not-for-profit air ambulance providers handle
the community's on-scene emergency calls which include car accidents,
skiing injuries, and industrial accidents. Not for profit air
ambulance providers relieve the tax burden of this critical and costly
community service.

It is important to note that when called, non-profit air ambulance
service providers transport ALL patients, without any regard to or
knowledge of a patient's ability to pay. Therefore, philanthropy
provides the fundamental means of a non-profit air ambulance provider
to fulfill its mission to the community. Philanthropy covers the
transport costs for an individual that does not have any insurance or
has reduced insurance reimbursements from public insurance programs
(such as Medicare and Medicaid). This bill supports the
philanthropy-based mission of non-profit air emergency medical
transport providers who are at constant exposure of minimal or no
payment.

The 60 minutes from accident to patient delivery to hospital care make
air ambulance services, particularity in rural areas of our state, a
critical part of our State's emergency response system. The rapid
transport and quality of care received in the air has saved thousands
of lives and improved recovery outcomes for thousands more. This
legislation would provide an additional funding stream to support
these essential services at no additional cost to the taxpayer.

This bill would also ensure an air ambulance subscription program that
focuses solely on community needs. The community already benefits from
less expensive non-profit air ambulance services because profit
margins need not be built into their overall operating costs. By
supporting non-profit community-based providers, the bill ensures
member subscription dues are reinvested into the community's needs,
not into dividends for profit-seeking shareholders.


Emergency and inter-facility air transportation is critical, yet the
cost many times is not covered by one's insurance. This legislation is
the proverbial "win-win": it provides a funding mechanism without cost
to the taxpayer to support critical air ambulance services to the
community while providing subscription members the ability to mitigate
financial exposure from costs not covered by insurance. The
subscription program created by this bill does not in any way
guarantee air ambulance service, instead it mitigates financial
exposure of the member after the fact should air ambulance service be
used.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None to the State or Local Governments.

EFFECTIVE DATE: This act shall take effect on the ninetieth day, with
provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 4052                                                  A. 5695

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                              March 6, 2013
                               ___________

IN  SENATE -- Introduced by Sen. GRIFFO -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Insurance

IN ASSEMBLY -- Introduced by M. of A. BRINDISI -- read once and referred
  to the Committee on Insurance

AN ACT to amend the insurance law, in relation to  community  based  air
  ambulance  subscription services; and providing for the repeal of such
  provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative intent. The legislature finds New York's non-
profit community based air ambulance  service  providers  provide  rapid
emergency response and medical transport services saving dozens of lives
annually,  particularly  in  remote  areas  of the state. Not-for-profit
community based ambulance service providers rely on philanthropic chari-
table donations for the financial means to provide such  vital  services
to  the  people  of the state. In doing so, not-for-profit air ambulance
providers relieve the taxpayers of the burden of this critical and cost-
ly yet vital community service.
  Therefore, the legislature finds it is  in  the  state's  interest  to
support  an  air ambulance subscription program that assists the philan-
thropic mission of not-for-profit community based air ambulance  provid-
ers.  Currently,  New York state's communities already benefit from less
expensive non-profit air ambulance services because profit margins  need
not  be built into their overall operating costs. By supporting not-for-
profit community based providers, this legislation intends to ensure air
ambulance subscription member dues are  reinvested  into  servicing  the
community, not into dividends for profit-seeking shareholders.
  S  2. Subsection (k) of section 1108 of the insurance law, as added by
chapter 246 of the laws of 2012, is renumbered subsection (l) and a  new
subsection (m) is added to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09437-01-3

S. 4052                             2                            A. 5695

  (M)  A  COMMUNITY BASED AIR AMBULANCE SERVICE THAT HOLDS A VALID AMBU-
LANCE SERVICE OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT  OF  HEALTH
PURSUANT  TO  SECTION  THREE  THOUSAND FIVE OF THE PUBLIC HEALTH LAW AND
THAT COMPLIES WITH SECTION ELEVEN HUNDRED TWENTY-SIX OF THIS ARTICLE.
  S 3. Section 1124 of the insurance law, as added by chapter 246 of the
laws of 2012, is renumbered section 1125 and a new section 1126 is added
to read as follows:
  S  1126.  COMMUNITY  BASED  AIR AMBULANCE SERVICE SUBSCRIPTION CERTIF-
ICATE. (A) A COMMUNITY BASED AIR AMBULANCE SERVICE THAT  HOLDS  A  VALID
AMBULANCE  SERVICE  OPERATING  CERTIFICATE  ISSUED  BY THE DEPARTMENT OF
HEALTH PURSUANT TO SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH  LAW
AND A VALID AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE ISSUED BY THE
SUPERINTENDENT PURSUANT TO SUBSECTION (B) OF THIS SECTION MAY ENTER INTO
A  SUBSCRIPTION  AGREEMENT  WITH  A PERSON OR OTHER ENTITY IN THIS STATE
UNDER WHICH THE COMMUNITY BASED AIR AMBULANCE SERVICE AGREES TO DISCOUNT
OR WAIVE ANY PART OF ITS FEES FOR SERVICE IN THE EVENT THAT THE COMMUNI-
TY BASED AIR AMBULANCE SERVICE TRANSPORTS A PERSON BY AIRCRAFT TO,  FROM
OR BETWEEN GENERAL HOSPITALS OR OTHER HEALTH CARE FACILITIES.
  (B)  THE  SUPERINTENDENT  MAY  ISSUE  A  COMMUNITY BASED AIR AMBULANCE
SERVICE SUBSCRIPTION CERTIFICATE TO ANY ENTITY THAT  IS  TRUSTWORTHY  TO
ACT IN SUCH CAPACITY AND THAT HAS COMPLIED WITH THE PREREQUISITES HEREIN
PRESCRIBED.  THE COMMUNITY BASED AIR AMBULANCE SERVICE MUST HOLD A VALID
AMBULANCE SERVICE OPERATING CERTIFICATE  ISSUED  BY  THE  DEPARTMENT  OF
HEALTH  PURSUANT TO SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW
THAT AUTHORIZES THE AMBULANCE SERVICE TO PROVIDE SERVICES  BY  AIRCRAFT.
THE  COMMUNITY BASED AIR AMBULANCE SERVICE MUST BE A REGISTERED NOT-FOR-
PROFIT CORPORATION PROVIDING SERVICES IN NEW YORK STATE.  THE  COMMUNITY
BASED  AIR  AMBULANCE  SERVICE MUST ALSO OBTAIN, AND MAINTAIN THROUGHOUT
THE TERM OF ITS  COMMUNITY  BASED  AIR  AMBULANCE  SERVICE  SUBSCRIPTION
CERTIFICATE,  A  SURETY BOND ISSUED BY AN AUTHORIZED INSURER AND PAYABLE
TO COMMUNITY BASED AIR AMBULANCE SERVICE SUBSCRIBERS TO REFUND  UNEARNED
SUBSCRIPTION FEES PAID TO THE COMMUNITY BASED AIR AMBULANCE SERVICE.
  (C)  THE  APPLICATION  FOR  A  COMMUNITY  BASED  AIR AMBULANCE SERVICE
SUBSCRIPTION CERTIFICATE SHALL BE IN  SUCH  FORM  OR  FORMS,  AND  SHALL
CONTAIN  SUCH  INFORMATION  AS  THE  SUPERINTENDENT SHALL PRESCRIBE. THE
COMMUNITY BASED AIR AMBULANCE SERVICE SHALL WITH THE SUBMISSION  OF  THE
APPLICATION  ALSO  SUBMIT  PROOF  THAT  IT  HAS OBTAINED THE SURETY BOND
REQUIRED IN SUBSECTION (B) OF THIS SECTION AND A COPY OF  ITS  AMBULANCE
SERVICE  OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSU-
ANT TO SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW.
  (D) AN AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE SHALL  BE  VALID
FOR  A  TERM OF TWO YEARS TO RUN CONCURRENTLY WITH, AND TERMINATE ON THE
SAME DATE AS, THE TERM OF THE AIR AMBULANCE SERVICE'S OPERATING  CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW. AT THE TIME OF APPLICATION FOR EVERY
SUCH  CERTIFICATE, AND FOR EVERY RENEWAL THEREOF, AN APPLICANT SHALL PAY
TO THE SUPERINTENDENT THE SUM OF ONE THOUSAND DOLLARS.
  (E) IF AN APPLICANT FILES AN APPLICATION  FOR  A  RENEWAL  CERTIFICATE
WITH  THE SUPERINTENDENT BEFORE THE EXPIRATION OF SUCH CERTIFICATE, THEN
THE CERTIFICATE SOUGHT TO BE RENEWED SHALL CONTINUE IN  FULL  FORCE  AND
EFFECT  EITHER  UNTIL  THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
CERTIFICATE APPLIED FOR OR UNTIL  FIVE  DAYS  AFTER  THE  SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL CERTIFICATE AS PROVIDED IN THIS
SECTION.
  (F)  THE  SUPERINTENDENT  MAY  REFUSE  TO  RENEW, REVOKE, OR SUSPEND A
COMMUNITY BASED AIR AMBULANCE SERVICE  SUBSCRIPTION  CERTIFICATE  FOR  A

S. 4052                             3                            A. 5695

PERIOD  THE  SUPERINTENDENT DETERMINES, IF AFTER NOTICE AND HEARING, THE
SUPERINTENDENT DETERMINES THAT AN APPLICANT OR CERTIFICATE HOLDER HAS:
  (1)  NOT OBTAINED OR MAINTAINED THE SURETY BOND REQUIRED BY SUBSECTION
(B) OF THIS SECTION; OR
  (2) DEMONSTRATED UNTRUSTWORTHINESS,  INCLUDING  HAVING  VIOLATED  THIS
SECTION.
  (G)  THE  COMMISSIONER  OF  HEALTH SHALL IMMEDIATELY NOTIFY THE SUPER-
INTENDENT WHEN SUCH COMMISSIONER HAS  REVOKED,  SUSPENDED,  LIMITED,  OR
ANNULLED  AN  AIR  AMBULANCE  SERVICE OPERATING CERTIFICATE. A COMMUNITY
BASED AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE ISSUED PURSUANT  TO
THIS SECTION SHALL TERMINATE BY OPERATION OF LAW UPON THE EFFECTIVE DATE
OF  THE  REVOCATION, SUSPENSION, OR ANNULMENT OF THE COMMUNITY BASED AIR
AMBULANCE SERVICE'S OPERATING CERTIFICATE BY THE COMMISSIONER OF HEALTH.
  (H)  A  COMMUNITY  BASED  AIR  AMBULANCE  SERVICE   SHALL   FILE   ITS
SUBSCRIPTION  AGREEMENT FORMS WITH THE SUPERINTENDENT IN CONNECTION WITH
ITS APPLICATION OR ANY RENEWAL APPLICATION FOR  A  COMMUNITY  BASED  AIR
AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE.  A COMMUNITY BASED AIR AMBU-
LANCE  SERVICE  THAT  AMENDS ITS SUBSCRIPTION AGREEMENT FORMS SHALL FILE
THE REVISED FORMS WITH THE SUPERINTENDENT PRIOR TO USING  THE  FORMS  IN
THIS  STATE,  PROVIDED  THAT  WHERE THE AMENDMENTS TO THE FORMS ARE ONLY
TECHNICAL OR NON-SUBSTANTIATIVE, THE AIR AMBULANCE SERVICE MAY FILE  THE
REVISED  FORMS  AT  OR BEFORE THE TIME IT RENEWS ITS COMMUNITY BASED AIR
AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE.
  (I) THE SUBSCRIPTION AGREEMENT FORMS SHALL:
  (1) EXPRESSLY STATE THAT THE SUBSCRIPTION IS NOT A GUARANTEE  FOR  THE
PROVISION OF MEDICAL TREATMENT OR TRANSPORT;
  (2)  LIST THE CONDITIONS UNDER WHICH THE AIR AMBULANCE SERVICE MAY NOT
PROVIDE MEDICAL TREATMENT OR TRANSPORT; AND
  (3) STATE THAT A SUBSCRIBER MAY FILE A COMPLAINT WITH THE  DEPARTMENT,
AND INCLUDE THE DEPARTMENT'S WEBSITE AND MAILING ADDRESS.
  (J) A COMMUNITY BASED AIR AMBULANCE SUBSCRIPTION AGREEMENT MAY:
  (1)  CONDITION  A  DISCOUNT OR WAIVER OF ANY PART OF THE FEES UPON THE
AIR AMBULANCE SERVICE RECEIVING AN ASSIGNMENT OF INSURANCE PAYMENTS,  OR
OTHER  RIGHT  TO  REIMBURSEMENT  OR  RECOVERY,  FOR  THE  AIR  AMBULANCE
SERVICES;
  (2) PROVIDE FOR A DISCOUNT OR WAIVER OF ANY PART OF THE FEES  FOR  AIR
AMBULANCE  SERVICE  PROVIDED  BY AN ENTITY AFFILIATED WITH THE COMMUNITY
BASED AIR AMBULANCE SERVICE THAT IS DULY AUTHORIZED TO PROVIDE THE AMBU-
LANCE SERVICES IN THE JURISDICTION IN WHICH THE SERVICES  ARE  RENDERED;
AND
  (3)  COVER  TWO  OR  MORE  PERSONS, SUCH AS FAMILY MEMBERS, EMPLOYEES,
OCCUPANTS OF A SPECIFIED PREMISES, OR ANOTHER GROUP OF  PERSONS  WITH  A
COMMON RELATIONSHIP WITH ONE ANOTHER.
  FOR PURPOSES OF THIS SECTION, AN ENTITY IS AFFILIATED WITH A COMMUNITY
BASED AIR AMBULANCE SERVICE WHERE THE ENTITY AND THE COMMUNITY BASED AIR
AMBULANCE  SERVICE  HAVE ENTERED INTO AN AGREEMENT TO PROVIDE RECIPROCAL
AIR AMBULANCE SERVICES TO EACH OTHER'S SUBSCRIBERS.
  (K) A SUBSCRIBER'S INSURER, WITH RESPECT TO A HEALTH INSURANCE  POLICY
OR  CONTRACT  DELIVERED  OR ISSUED FOR DELIVERY IN THIS STATE, SHALL NOT
TAKE INTO  CONSIDERATION  ANY  DISCOUNT  OR  FEE  WAIVER  GIVEN  TO  THE
SUBSCRIBER  BY  THE  AIR  AMBULANCE SERVICE WHEN DETERMINING THE BENEFIT
PAYABLE UNDER THE HEALTH INSURANCE  POLICY  OR  CONTRACT  FOR  COMMUNITY
BASED AIR AMBULANCE SERVICES.
  (L) THE SUPERINTENDENT SHALL NOTIFY THE COMMISSIONER OF HEALTH WHENEV-
ER  THE  SUPERINTENDENT  ISSUES,  RENEWS,  REFUSES  TO RENEW, REVOKES OR

S. 4052                             4                            A. 5695

SUSPENDS A COMMUNITY BASED AIR AMBULANCE  SERVICE  SUBSCRIPTION  CERTIF-
ICATE.
  (M)  THE  SUPERINTENDENT  MAY PROMULGATE REGULATIONS IMPLEMENTING THIS
SECTION.
  S 4. This act shall take effect on the ninetieth day  after  it  shall
have become a law and shall expire and be deemed repealed July 1, 2018.

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