Senate Bill S5257

                                 BILL NUMBER:  S5257

 TITLE OF BILL :  An act to amend the general business law, in
relation to special provisions of the not-for-profit sales

 PURPOSE OR GENERAL IDEA OF BILL :  This bill would repeal a portion
of section eight hundred two of the general business law to permit the
for-profit sale of hearing aids by physicians.

 SUMMARY OF SPECIFIC PROVISIONS :  This bill would amend the general
business law by a portion of section eight hundred two of the general
business law to permit the for-profit sale of hearing aids by
physicians.

Section 1 of the bill repeals a portion of section eight hundred two
of the general business law to permit the for-profit sale of hearing
aids by physicians.

Section 2 of the bill provides that the bill shall take effect
immediately.

 JUSTIFICATION :  Currently, physicians are prohibited by section
eight hundred two of the general business law to sell hearing aids for
a profit. This prohibition, however, dates back to the mid-seventies,
a time in which even hearing aid dealers were prohibited by law from
selling hearing aids without a referral from a physician. Since that
              

time, the law has changed as has the practice of medicine and
otolaryngology. New York State is the only state that prohibits the
sale of hearing aids by physicians for-profit, which effectively
eliminates the sale of any hearing aids by physicians. By enabling
consumers to purchase hearing aids from physicians, access to such
devices and care coordination would be enhanced.

Moreover, it is an unfair restraint of trade to prohibit a profession
to operate at a profit. The practice of fitting and dispensing of
hearing aids has long been a recognized part of the scope of practice
of otolaryngology. The American Academy of Otolaryngology position
statement reads: "The American Academy of Otolaryngology-Head and Neck
Surgery, Inc. states: dispensing of hearing aids, hearing assisted
devices and other hearing rehabilitation devices is within the scope
of practice for otolaryngologists- head and neck surgeons."Physician
practices are small business, and cannot effectively run their
businesses by offering services without earning a profit.

Lifting the prohibition on earning a profit would be in the best
interest of patients as it would improve access to hearing aids and
the quality of care delivered by enabling all appropriately trained
and qualified healthcare providers to offer hearing aid services to
patients. Patients are also likely to enjoy more competitive pricing
among all hearing aid dispensers through the application of market
forces for an item which is often not covered by insurance.

 PRIOR LEGISLATIVE HISTORY :  New bill.

 FISCAL IMPLICATIONS :  None.

 EFFECTIVE DATE :  This act shall take effect immediately.