BILL NUMBER:A9988
TITLE OF BILL: An act to amend the insurance law, in relation to
notification by hospitals
PURPOSE OR GENERAL IDEA OF THE BILL: To allow hospitals to notify
insurers, or similar organizations, when their insured is admitted to
the hospital. However, the insurer or organization shall not deny or
reduce reimbursement payments to the hospital, solely due to the failure
of the hospital to timely notify.
SUMMARY OF SPECIFIC PROVISIONS: This bill amends section 1 of section
3224a of Insurance Law. The new subsection 1 provides that insurers,
organizations or corporations which are licensed or certified according
to article 43 or 47 of insurance law or article 44 of the public health
law, may require notification by hospitals upon admission of its insured
to the hospital. However, the insurer, organization or corporation shall
not deny or reduce payment due to the hospital solely because of the
hospital's failure to notify the insurer in a timely manner
JUSTIFICATION: In an effort to provide the best health care available,
this bill seeks to open communication lines between insurers and provid-
ers. However, hospitals should not be penalized for failure to notify
insurers within a set timeframe. As hospitals continue to face serious
budget cuts, fight a nationwide flu pandemic, and care for a rising rate
of under and uninsured patients, we cannot ask them to adhere to strin-
S T A T E O F N E W Y O R K
________________________________________________________________________
9988
I N A S S E M B L Y
February 23, 2010
___________
Introduced by M. of A. MORELLE, GOTTFRIED -- read once and referred to
the Committee on Insurance
AN ACT to amend the insurance law, in relation to notification by hospi-
tals
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 3224-a of the insurance law is amended by adding a
new subsection (i) to read as follows:
(I) AN INSURER OR ORGANIZATION OR CORPORATION LICENSED OR CERTIFIED
PURSUANT TO ARTICLE FORTY-THREE OR ARTICLE FORTY-SEVEN OF THIS CHAPTER
OR ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW MAY, PURSUANT TO A
CONTRACT WITH A HOSPITAL, REQUIRE NOTIFICATION BY THE HOSPITAL OF ITS
INSURED'S ADMISSION TO THE HOSPITAL; PROVIDED, HOWEVER, THAT THE INSURER
OR ORGANIZATION OR CORPORATION SHALL NOT DENY OR REDUCE PAYMENT OTHER-
WISE DUE TO THE HOSPITAL FOR ANY SERVICES DETERMINED BY THE INSURER,
ORGANIZATION OR CORPORATION TO BE MEDICALLY NECESSARY SOLELY DUE TO THE
FAILURE OF THE HOSPITAL TO TIMELY NOTIFY.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15753-01-0
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