BILL NUMBER:  S6917

 TITLE OF BILL :
An act to amend the insurance law, in relation to ambulance
subscription or membership programs


 PURPOSE OR GENERAL IDEA OF BILL :
This bill legitimizes ambulance subscriptions or membership programs,
arrangements in which a person pays an ambulance service an annual fee
so that the participant in such a program will not incur any out of
pocket expenses if ambulance services are needed.

 SUMMARY OF SPECIFIC PROVISIONS :
Adds new section 1124 to the insurance law, which exempts voluntary
ambulance services from the licensing requirements set forth in
Article 11 of the insurance law if 1) such a service is available to
anyone and 2) the entity or representative of the ambulance
subscription notifies the participant that the service provider is not
contractually obligated to provide an ambulance every time a
participant makes such a request. Furthermore, the participant must
acknowledge this qualification in writing prior to paying for such
services.

 JUSTIFICATION :
This bill is necessary to legitimize the use of ambulance
              

subscriptions and membership programs that are not only helpful and
cost-saving for participants, but also constitute an important funding
source for volunteer ambulance services.

Ambulance services across New York State have utilized such programs
to finance their operations. A number of these programs were reviewed
by the Insurance Department in the 1980s and 1990s and were deemed to
be in compliance with the Insurance Laws. However, opinions issued by
the Insurance Department in 2001 and investigations commenced by the
Attorney General's Office in 2009 caused many ambulance companies,
fearing administrative action or legal prosecution, to terminate such
programs, despite the fact that no law exists that specifically
prohibits such services and no formal charges or complaints have ever
been filed. As a result, ambulance companies have suffered substantial
loss of income. Voluntary, non-profit ambulance services tend that to
serve rural and less populated areas have been particularly impacted
by cessation of ambulance subscription programs.

It is worth noting that several other states allow ambulance
subscription programs, many of which are operated by city and county
governments, and the united States Fire Administration, a unit of the
Federal Emergency Management Agency, recommends such programs as a
funding source for fire and EMS services.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.