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

                                  5783

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 3, 2015
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor

AN ACT to amend the workers' compensation law, in relation to payment of
  bills for pharmaceutical services

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

  Section  1. Section 13-g of the workers' compensation law, as added by
chapter 258 of the laws of 1935, subdivision 1 as amended by chapter 674
of the laws of 1994, subdivisions 2 and 3 as added by section 4 of  part
GG  of  chapter  57  of  the  laws  of 2013, subdivision 4 as amended by
section 3 of part D of chapter 55 of the laws of 2015, subdivision 5  as
amended by chapter 578 of the laws of 1959, and subdivision 6 as amended
by chapter 639 of the laws of 1996, is amended to read as follows:
  S  13-g. Payment of bills for medical care. (1) Within forty-five days
after a bill has been rendered to the employer by the  hospital,  physi-
cian,  PHARMACIST,  or  self-employed physical or occupational therapist
who has rendered treatment OR DISPENSED MEDICATION pursuant to a  refer-
ral  OR PRESCRIPTION from the injured employee's authorized physician or
authorized podiatrist  for  treatment  to  the  injured  employee,  such
employer  must  pay  the bill or notify the hospital, physician, PHARMA-
CIST, or self-employed physical or  occupational  therapist  in  writing
that the bill is not being paid and explain the reasons for non-payment.
In  the  event  that  the  employer  fails to make payment or notify the
hospital, physician, PHARMACIST, or self-employed  physical  or  occupa-
tional  therapist  within such forty-five day period that payment is not
being made, the hospital, physician, PHARMACIST, self-employed  physical
therapist  or  self-employed occupational therapist may notify the chair
in writing that the bill has not been paid and request  that  the  board
make  an award for payment of such bill. The board or the chair may make
an award not in excess of the established fee  schedules  for  any  such
bill  or  part  thereof  which  remains unpaid after said forty-five day

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11425-01-5
              

S. 5783                             2

period or thirty days after all other questions duly and  timely  raised
in  accordance  with  the  provisions  of  this chapter, relating to the
employer's liability for the payment of such  amount,  shall  have  been
finally  determined  adversely  to  the employer, whichever is later, in
accordance with rules promulgated by the chair, and such  award  may  be
collected  in  like  manner as an award of compensation. The chair shall
assess the sum of fifty dollars against the employer for each such award
made by the board, which sum shall be paid into the state treasury.
  In the event that the employer has provided an explanation in  writing
why the bill has not been paid, in part or in full, within the aforesaid
time  period,  and the parties [can not] CANNOT agree as to the value of
medical aid rendered under this chapter, such value shall be decided  by
arbitration  if  requested  by  the  hospital, physician, PHARMACIST, or
self-employed physical or occupational therapist, in accordance with the
provisions of subdivision two or subdivision three of this  section,  as
appropriate, and rules and regulations promulgated by the chair.
  Where  a  physician, PHARMACIST, OR physical or occupational therapist
bill has been determined to be due and  owing  in  accordance  with  the
provisions  of this section the board shall include in the amount of the
award interest of not more than one and one-half per cent (1  1/2%)  per
month  payable to the physician, PHARMACIST, OR physical or occupational
therapist, in accordance with the rules and regulations  promulgated  by
the  board.  Interest shall be calculated from the forty-fifth day after
the bill was rendered or from the thirtieth day after  all  other  ques-
tions  duly  and timely raised in accordance with the provisions of this
chapter, relating to the employer's liability for the  payment  of  such
amount,  shall  have  been finally determined adversely to the employer,
whichever is later, in accordance with rules promulgated by the chair.
  (2) (a) If the parties fail to agree  to  the  value  of  medical  aid
rendered  under  this chapter and the amount of the disputed bill is one
thousand dollars or less, or if the amount of the disputed medical  bill
exceeds  one  thousand dollars and the health care provider expressly so
requests, such value shall be decided by a  single  arbitrator  process,
pursuant  to  rules  promulgated by the chair. The chair shall appoint a
physician who is a member in good standing of the medical society of the
state of New York to determine the value of such disputed medical  bill.
Where  the  physician  whose charges are being arbitrated is a member in
good standing of the New York osteopathic society,  the  value  of  such
disputed  bill  shall  be determined by a member in good standing of the
New York osteopathic society appointed by the chair. Where the physician
whose charges are being arbitrated is a member in good standing  of  the
New  York  homeopathic society, the value of such disputed bill shall be
determined by a member in good standing  of  the  New  York  homeopathic
society  appointed  by  the  chair.  Where the value of physical therapy
services or occupational therapy services is at issue, such value  shall
be  determined by a member in good standing of a recognized professional
association representing its respective profession in the state  of  New
York  appointed  by the chair. Decisions rendered under the single arbi-
trator process shall be conclusive upon the parties as to the  value  of
the services in dispute.
  (b)  If  the  parties  fail  to  agree  as to the value of medical aid
rendered under this chapter and the amount of the disputed bill  exceeds
one  thousand  dollars,  such  value  shall be decided by an arbitration
committee unless the health care provider expressly  requests  a  single
arbitrator process in accordance with paragraph (a) of this subdivision.
The  arbitration  committee shall consist of one physician designated by

S. 5783                             3

the president of the medical society of the county in which the  medical
services  were  rendered,  one  physician who is a member of the medical
society of the state of New York, appointed by the employer or  carrier,
and  one physician, also a member of the medical society of the state of
New York, appointed by the chair of the workers' compensation board.  If
the  physician  whose  charges  are being arbitrated is a member in good
standing of the New York osteopathic society or the New York homeopathic
society, the members of such arbitration committee shall  be  physicians
of  such  organization,  one  to  be  appointed by the president of that
organization, one by the employer or carrier and the third by the  chair
of  the workers' compensation board. Where the value of physical therapy
services is at issue and the amount of the  disputed  bill  exceeds  one
thousand dollars, the arbitration committee shall consist of a member in
good  standing  of  a  recognized  professional association representing
physical therapists in the state of New York appointed by the  president
of  such organization, a physician designated by the employer or carrier
and a physician designated by the chair  of  the  workers'  compensation
board provided however, that the chair finds that there are a sufficient
number of physical therapy arbitrations in a geographical area comprised
of  one  or  more  counties  to warrant a committee so comprised. In all
other cases where the value of physical therapy services is at issue and
the amount of the disputed bill exceeds one thousand dollars, the  arbi-
tration  committee shall be similarly selected and identical in composi-
tion, provided that the physical therapist member  shall  serve  without
remuneration,  and  provided further that in the event a physical thera-
pist is not available, the committee shall be comprised of three  physi-
cians  designated  in  the  same  manner  as in cases where the value of
medical aid is at issue.
  (c) Where the value of occupational therapy services is at  issue  the
arbitration  committee  shall  consist of a member in good standing of a
recognized professional association representing occupational therapists
in the state of New York appointed by the president  of  such  organiza-
tion;  a physician designated by the employer or carrier and a physician
designated by the chair of the  workers'  compensation  board  provided,
however,  that  the  chair  finds  that there are a sufficient number of
occupational therapy arbitrations in a geographical  area  comprised  of
one  or more counties to warrant a committee so comprised.  In all other
cases where the value of occupational therapy services is at  issue  and
the  amount of the disputed bill exceeds one thousand dollars, the arbi-
tration committee shall be similarly selected and identical in  composi-
tion,  provided that the occupational therapist member shall serve with-
out remuneration, and provided further that in the event an occupational
therapist is not available, the committee shall be  comprised  of  three
physicians  designated in the same manner as in cases where the value of
medical aid is at issue. The majority decision of any  such  arbitration
committee  shall  be  conclusive upon the parties as to the value of the
services in dispute.
  (3) (a) If an employer shall have notified the hospital in writing, as
provided in subdivision one of this section, why the bill has  not  been
paid,  in  part  or  in full, and the amount of the disputed bill is one
thousand dollars or less, or where the amount of  the  disputed  medical
bill  exceeds  one  thousand  dollars  and  the  hospital  expressly  so
requests, such value shall be decided by a  single  arbitrator  process,
pursuant  to  rules  promulgated by the chair. The chair shall appoint a
physician in good standing licensed to practice in  New  York  state  to
determine  the value of such disputed bill. Decisions rendered under the

S. 5783                             4

administrative resolution procedure shall be conclusive upon the parties
as to the value of the services in dispute.
  (b)  If  an  employer  shall have notified the hospital in writing, as
provided in subdivision one of this section, why the bill has  not  been
paid,  in  part  or in full, and the amount of the disputed bill exceeds
one thousand dollars, the value of such bill shall be determined  by  an
arbitration  committee  appointed  by  the chair for that purpose, which
committee shall consider all of the charges of the hospital, unless  the
hospital  expressly  requests  a  single  arbitrator process pursuant to
paragraph (a) of this subdivision. The committee shall consist of  three
physicians.  One  member  of the committee may be nominated by the chair
upon recommendation of the president of the hospital association of  New
York  state and one member may be nominated by the employer or insurance
carrier. The majority decision of any such committee shall be conclusive
upon the parties as to the value of the services rendered. The chair may
make reasonable rules and regulations consistent with the provisions  of
this section.
  (4)  IF  AN EMPLOYER SHALL HAVE NOTIFIED THE PHARMACIST IN WRITING, AS
PROVIDED IN SUBDIVISION ONE OF THIS SECTION, WHY THE BILL HAS  NOT  BEEN
PAID,  IN PART OR IN FULL, AND THE PHARMACIST EXPRESSLY SO REQUESTS, THE
VALUE AND LIABILITY SHALL BE DECIDED BY  A  SINGLE  ARBITRATOR  PROCESS,
PURSUANT  TO  RULES  PROMULGATED BY THE CHAIR. THE CHAIR SHALL APPOINT A
PHARMACIST IN GOOD STANDING LICENSED TO PRACTICE IN NEW  YORK  STATE  TO
DETERMINE  THE  VALUE  AND  LIABILITY  OF  SUCH DISPUTED BILL. DECISIONS
RENDERED UNDER THE ADMINISTRATIVE RESOLUTION PROCEDURE SHALL BE  CONCLU-
SIVE  UPON THE PARTIES AS TO THE VALUE AND LIABILITY OF THE PRESCRIPTION
IN DISPUTE.
  [(4)] (5) A provider initiating an  arbitration,  including  a  single
arbitrator  process,  pursuant  to  this  section shall not pay a fee to
cover the costs related to the conduct of such arbitration. Each  member
of  an  arbitration  committee  for medical bills, and each member of an
arbitration committee for hospital bills shall be  entitled  to  receive
and  shall  be  paid  a  fee for each day's attendance at an arbitration
session in any one count in an amount fixed by the chair of the workers'
compensation board.
  [(5)] (6) In claims where the employer has failed  to  secure  compen-
sation  to  his  employees as required by section fifty of this chapter,
the board may make an award  for  the  value  of  medical  and  podiatry
services or treatment rendered to such employees, in accordance with the
schedules  of  fees  and  charges  prepared  and  established  under the
provisions of section thirteen, subdivision a, and  section  thirteen-k,
subdivision two, of this chapter, and for the reasonable value of hospi-
tal  care in accordance with the charges currently in force in hospitals
in the same community for cases coming within  the  provisions  of  this
chapter.  Such  award  shall  be  made  to the physician, podiatrist, or
hospital entitled thereto. A default in the payment of such award may be
enforced in the manner provided  for  the  enforcement  of  compensation
awards as set forth in section twenty-six of this [chapter] ARTICLE.
  In all cases coming under this subdivision the payment of the claim of
the  physician, podiatrist, or hospital for medical, podiatry, or surgi-
cal services or treatment shall be subordinate to that of  the  claimant
or his beneficiaries.
  [(6)]  (7)  Notwithstanding  any  inconsistent provision of law, arbi-
tration regarding payments  for  inpatient  hospital  services  for  any
patient  discharged  on or after January first, nineteen hundred ninety-
one and prior to  December  thirty-first,  nineteen  hundred  ninety-six

S. 5783                             5

shall  be resolved in accordance with paragraph (d) of subdivision three
of section twenty-eight hundred seven-c of the public health law.
  S  2.  The  chair  of the workers' compensation board shall promulgate
such regulations as he  or  she  deems  appropriate  to  carry  out  the
purposes  of this act. Such regulations may include, but are not limited
to, what defenses, if any, may be available to employers or carriers  in
arbitration to determine the value or liability of a pharmaceutical bill
pursuant to the provisions of this act.
  S 3. This act shall take effect on the one hundred twentieth day after
it  shall  have  become a law; provided that, effective immediately, the
addition, amendment, and/or repeal of any rules and  regulations  neces-
sary  to  implement the provisions of this act on its effective date are
authorized and directed to be completed  on  or  before  such  effective
date.

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

                                 5783--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 3, 2015
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor  --  recommitted  to
  the  Committee  on  Labor  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN ACT to amend the workers' compensation law, in relation to payment of
  bills for pharmaceutical services

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

  Section 1. Section 13-g of the workers' compensation law, as added  by
chapter 258 of the laws of 1935, subdivision 1 as amended by chapter 674
of  the  laws  of  1994, subdivisions 2 and 3 as amended by section 4 of
part GG of chapter 57 of the laws of 2013, subdivision 4 as  amended  by
section  3 of part D of chapter 55 of the laws of 2015, subdivision 5 as
amended by chapter 578 of the laws of 1959, and subdivision 6 as amended
by chapter 639 of the laws of 1996, is amended to read as follows:
  S 13-g. Payment of bills for medical care. (1) Within forty-five  days
after  a  bill has been rendered to the employer by the hospital, physi-
cian, PHARMACIST, or self-employed physical  or  occupational  therapist
who  has rendered treatment OR DISPENSED MEDICATION pursuant to a refer-
ral OR PRESCRIPTION from the injured employee's authorized physician  or
authorized  podiatrist  for  treatment  to  the  injured  employee, such
employer must pay the bill or notify the  hospital,  physician,  PHARMA-
CIST,  or  self-employed  physical  or occupational therapist in writing
that the bill is not being paid and explain the reasons for non-payment.
In the event that the employer fails  to  make  payment  or  notify  the
hospital,  physician,  PHARMACIST,  or self-employed physical or occupa-
tional therapist within such forty-five day period that payment  is  not
being  made, the hospital, physician, PHARMACIST, self-employed physical
therapist or self-employed occupational therapist may notify  the  chair
in  writing  that  the bill has not been paid and request that the board

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11425-02-6
              

S. 5783--A                          2

make an award for payment of such bill. The board or the chair may  make
an  award  not  in  excess of the established fee schedules for any such
bill or part thereof which remains  unpaid  after  said  forty-five  day
period  or  thirty days after all other questions duly and timely raised
in accordance with the provisions  of  this  chapter,  relating  to  the
employer's  liability  for  the  payment of such amount, shall have been
finally determined adversely to the employer,  whichever  is  later,  in
accordance  with  rules  promulgated by the chair, and such award may be
collected in like manner as an award of compensation.  The  chair  shall
assess the sum of fifty dollars against the employer for each such award
made by the board, which sum shall be paid into the state treasury.
  In  the event that the employer has provided an explanation in writing
why the bill has not been paid, in part or in full, within the aforesaid
time period, and the parties [can not] CANNOT agree as to the  value  of
medical  aid rendered under this chapter, such value shall be decided by
arbitration if requested by  the  hospital,  physician,  PHARMACIST,  or
self-employed physical or occupational therapist, in accordance with the
provisions  of  subdivision two or subdivision three of this section, as
appropriate, and rules and regulations promulgated by the chair.
  Where a physician, PHARMACIST, OR physical or  occupational  therapist
bill  has  been  determined  to  be due and owing in accordance with the
provisions of this section the board shall include in the amount of  the
award  interest  of not more than one and one-half per cent (1 1/2%) per
month payable to the physician, PHARMACIST, OR physical or  occupational
therapist,  in  accordance with the rules and regulations promulgated by
the board. Interest shall be calculated from the forty-fifth  day  after
the  bill  was  rendered or from the thirtieth day after all other ques-
tions duly and timely raised in accordance with the provisions  of  this
chapter,  relating  to  the employer's liability for the payment of such
amount, shall have been finally determined adversely  to  the  employer,
whichever is later, in accordance with rules promulgated by the chair.
  (2)  (a)  If  the  parties  fail  to agree to the value of medical aid
rendered under this chapter and the amount of the disputed bill  is  one
thousand  dollars or less, or if the amount of the disputed medical bill
exceeds one thousand dollars and the health care provider  expressly  so
requests,  such  value  shall be decided by a single arbitrator process,
pursuant to rules promulgated by the chair. The chair  shall  appoint  a
physician who is a member in good standing of the medical society of the
state  of New York to determine the value of such disputed medical bill.
Where the physician whose charges are being arbitrated is  a  member  in
good  standing  of  the  New York osteopathic society, the value of such
disputed bill shall be determined by a member in good  standing  of  the
New York osteopathic society appointed by the chair. Where the physician
whose  charges  are being arbitrated is a member in good standing of the
New York homeopathic society, the value of such disputed bill  shall  be
determined  by  a  member  in  good standing of the New York homeopathic
society appointed by the chair. Where  the  value  of  physical  therapy
services  or occupational therapy services is at issue, such value shall
be determined by a member in good standing of a recognized  professional
association  representing  its respective profession in the state of New
York appointed by the chair. Decisions rendered under the  single  arbi-
trator  process  shall be conclusive upon the parties as to the value of
the services in dispute.
  (b) If the parties fail to agree  as  to  the  value  of  medical  aid
rendered  under this chapter and the amount of the disputed bill exceeds
one thousand dollars, such value shall  be  decided  by  an  arbitration

S. 5783--A                          3

committee  unless  the  health care provider expressly requests a single
arbitrator process in accordance with paragraph (a) of this subdivision.
The arbitration committee shall consist of one physician  designated  by
the  president of the medical society of the county in which the medical
services were rendered, one physician who is a  member  of  the  medical
society  of the state of New York, appointed by the employer or carrier,
and one physician, also a member of the medical society of the state  of
New  York, appointed by the chair of the workers' compensation board. If
the physician whose charges are being arbitrated is  a  member  in  good
standing of the New York osteopathic society or the New York homeopathic
society,  the  members of such arbitration committee shall be physicians
of such organization, one to be  appointed  by  the  president  of  that
organization,  one by the employer or carrier and the third by the chair
of the workers' compensation board. Where the value of physical  therapy
services  is  at  issue  and the amount of the disputed bill exceeds one
thousand dollars, the arbitration committee shall consist of a member in
good standing of  a  recognized  professional  association  representing
physical  therapists in the state of New York appointed by the president
of such organization, a physician designated by the employer or  carrier
and  a  physician  designated  by the chair of the workers' compensation
board provided however, that the chair finds that there are a sufficient
number of physical therapy arbitrations in a geographical area comprised
of one or more counties to warrant a  committee  so  comprised.  In  all
other cases where the value of physical therapy services is at issue and
the  amount of the disputed bill exceeds one thousand dollars, the arbi-
tration committee shall be similarly selected and identical in  composi-
tion,  provided  that  the physical therapist member shall serve without
remuneration, and provided further that in the event a  physical  thera-
pist  is not available, the committee shall be comprised of three physi-
cians designated in the same manner as  in  cases  where  the  value  of
medical aid is at issue.
  (c)  Where  the value of occupational therapy services is at issue the
arbitration committee shall consist of a member in good  standing  of  a
recognized professional association representing occupational therapists
in  the  state  of New York appointed by the president of such organiza-
tion; a physician designated by the employer or carrier and a  physician
designated  by  the  chair  of the workers' compensation board provided,
however, that the chair finds that there  are  a  sufficient  number  of
occupational  therapy  arbitrations  in a geographical area comprised of
one or more counties to warrant a committee so comprised.  In all  other
cases  where  the value of occupational therapy services is at issue and
the amount of the disputed bill exceeds one thousand dollars, the  arbi-
tration  committee shall be similarly selected and identical in composi-
tion, provided that the occupational therapist member shall serve  with-
out remuneration, and provided further that in the event an occupational
therapist  is  not  available, the committee shall be comprised of three
physicians designated in the same manner as in cases where the value  of
medical  aid  is at issue. The majority decision of any such arbitration
committee shall be conclusive upon the parties as to the  value  of  the
services in dispute.
  (3) (a) If an employer shall have notified the hospital in writing, as
provided  in  subdivision one of this section, why the bill has not been
paid, in part or in full, and the amount of the  disputed  bill  is  one
thousand  dollars  or  less, or where the amount of the disputed medical
bill  exceeds  one  thousand  dollars  and  the  hospital  expressly  so
requests,  such  value  shall be decided by a single arbitrator process,

S. 5783--A                          4

pursuant to rules promulgated by the chair. The chair  shall  appoint  a
physician  in  good  standing  licensed to practice in New York state to
determine the value of such disputed bill. Decisions rendered under  the
administrative resolution procedure shall be conclusive upon the parties
as to the value of the services in dispute.
  (b)  If  an  employer  shall have notified the hospital in writing, as
provided in subdivision one of this section, why the bill has  not  been
paid,  in  part  or in full, and the amount of the disputed bill exceeds
one thousand dollars, the value of such bill shall be determined  by  an
arbitration  committee  appointed  by  the chair for that purpose, which
committee shall consider all of the charges of the hospital, unless  the
hospital  expressly  requests  a  single  arbitrator process pursuant to
paragraph (a) of this subdivision. The committee shall consist of  three
physicians.  One  member  of the committee may be nominated by the chair
upon recommendation of the president of the hospital association of  New
York  state and one member may be nominated by the employer or insurance
carrier. The majority decision of any such committee shall be conclusive
upon the parties as to the value of the services rendered. The chair may
make reasonable rules and regulations consistent with the provisions  of
this section.
  (4)  IF  AN EMPLOYER SHALL HAVE NOTIFIED THE PHARMACIST IN WRITING, AS
PROVIDED IN SUBDIVISION ONE OF THIS SECTION, WHY THE BILL HAS  NOT  BEEN
PAID,  IN PART OR IN FULL, AND THE PHARMACIST EXPRESSLY SO REQUESTS, THE
VALUE AND LIABILITY SHALL BE DECIDED BY  A  SINGLE  ARBITRATOR  PROCESS,
PURSUANT  TO  RULES  PROMULGATED BY THE CHAIR. THE CHAIR SHALL APPOINT A
PHARMACIST IN GOOD STANDING LICENSED TO PRACTICE IN NEW  YORK  STATE  TO
DETERMINE  THE  VALUE  AND  LIABILITY  OF  SUCH DISPUTED BILL. DECISIONS
RENDERED UNDER THE ADMINISTRATIVE RESOLUTION PROCEDURE SHALL BE  CONCLU-
SIVE  UPON THE PARTIES AS TO THE VALUE AND LIABILITY OF THE PRESCRIPTION
IN DISPUTE.
  [(4)] (5) A provider initiating an  arbitration,  including  a  single
arbitrator  process,  pursuant  to  this  section shall not pay a fee to
cover the costs related to the conduct of such arbitration. Each  member
of  an  arbitration  committee  for medical bills, and each member of an
arbitration committee for hospital bills shall be  entitled  to  receive
and  shall  be  paid  a  fee for each day's attendance at an arbitration
session in any one count in an amount fixed by the chair of the workers'
compensation board.
  [(5)] (6) In claims where the employer has failed  to  secure  compen-
sation  to  his  employees as required by section fifty of this chapter,
the board may make an award  for  the  value  of  medical  and  podiatry
services or treatment rendered to such employees, in accordance with the
schedules  of  fees  and  charges  prepared  and  established  under the
provisions of section thirteen, subdivision a, and  section  thirteen-k,
subdivision two, of this chapter, and for the reasonable value of hospi-
tal  care in accordance with the charges currently in force in hospitals
in the same community for cases coming within  the  provisions  of  this
chapter.  Such  award  shall  be  made  to the physician, podiatrist, or
hospital entitled thereto. A default in the payment of such award may be
enforced in the manner provided  for  the  enforcement  of  compensation
awards as set forth in section twenty-six of this [chapter] ARTICLE.
  In all cases coming under this subdivision the payment of the claim of
the  physician, podiatrist, or hospital for medical, podiatry, or surgi-
cal services or treatment shall be subordinate to that of  the  claimant
or his beneficiaries.

S. 5783--A                          5

  [(6)]  (7)  Notwithstanding  any  inconsistent provision of law, arbi-
tration regarding payments  for  inpatient  hospital  services  for  any
patient  discharged  on or after January first, nineteen hundred ninety-
one and prior to  December  thirty-first,  nineteen  hundred  ninety-six
shall  be resolved in accordance with paragraph (d) of subdivision three
of section twenty-eight hundred seven-c of the public health law.
  S 2. The chair of the workers'  compensation  board  shall  promulgate
such  regulations  as  he  or  she  deems  appropriate  to carry out the
purposes of this act. Such regulations may include, but are not  limited
to,  what defenses, if any, may be available to employers or carriers in
arbitration to determine the value or liability of a pharmaceutical bill
pursuant to the provisions of this act.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided that,  effective  immediately,  the
addition,  amendment,  and/or repeal of any rules and regulations neces-
sary to implement the provisions of this act on its effective  date  are
authorized  and  directed  to  be  completed on or before such effective
date.