NY State Senate Bill 2021-S2541

Archive: Last Bill Status - In Senate Committee Health Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to health
Jan 21, 2021	referred to health

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2021-S2541 (ACTIVE) - Details

See Assembly Version of this Bill:: A1753
Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Add §2828, Pub Health L; add Art 10-B §§286 - 287, D & C L; amd §5004, CPLR; add §§3244 & 4331, Ins L
Versions Introduced in 2019-2020 Legislative Session:: S8365, A10506

2021-S2541 (ACTIVE) - Summary

Provides extensions for certain medical debt and insurance premiums related to the COVID-19 pandemic.

2021-S2541 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2541

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the public health law, the debtor and creditor law, the
civil practice law and rules and the insurance law, in relation to
COVID-19 pandemic medical debt requirements

 
PURPOSE:

To protect patients from financial hardship due to medical debt during
the COVID-19 state of emergency.

 
SUMMARY OF PROVISIONS:

Section 1 would add Section 2828 to the public health law to suspend
collection actions by hospitals or healthcare professionals and stop
interest from accruing on debt for which collection actions are halted.
It creates notice requirements for hospitals and healthcare profes-
sionals for when normal debt obligations become active again.  It also
prohibits hospitals and healthcare professionals from collecting actions

against uninsured patients being evaluated or treated for COVID-19 with-
out a sworn affidavit that the provider has submitted a claim to the
federal Health Resources & Services Administration for that care and
been denied. Violations would result in a private right of action. New
York's nonprofit hospitals have continued to sue patients through the
COVID-19 pandemic. A recent search on the E-Courts public database found
that the nonprofit hospitals had brought 152 lawsuits against patients
in the month of March 2020, well after the pandemic had spread. Under
the current New York State of Emergency, patients are unable to go to
court to defend themselves. In addition, patients and consumer advocates
report that hospital collection offices are closed and unresponsive to
phone calls trying to resolve medical bills before they go to court.

Section 2 adds a new Article 12 to the debtor and creditor law to
suspend collection actions regarding medical debt by all medical debt
buyers or collectors and enact the same rules for medical debt buyers
created for hospitals and healthcare professionals.

Section 3 would amend Section 5004 of the civil practice law and rules
to limit interest accruals on medical debt actions taken by hospitals to
the United States Treasury bill rate. It would ensure no interest
accrues on medical debt judgement during the New York State Disaster
Emergency Order related to the COVID-19 pandemic. Under current law, New
York's nonprofit hospitals are able to charge 9 percent interest on
court judgments pursued against their patients.

Sections 4 and 5 add new Sections 3244 and 4331 to the Insurance Law in
order to extend grace periods for premium payments to 60 days after the
State Emergency related to COVID-19 ends or the contracted grace period,
whichever is later for those who can demonstrate financial 1 hardship
due to COVID-19. It would also bar insurers from charging late fees or
reporting policyholders or contract holders to credit agencies or debt
collection agencies and require insurers to provide information about
alternative coverage options and consumer assistance programs. Insurers
would be required to accept an attestation from policyholders or
contract holders of their financial hardship.

Section 6 sets forth an effective date.

 
JUSTIFICATION:

This legislation provides relief to New Yorkers who are uninsured, at
risk of becoming uninsured because of an inability to pay health insur-
ance premiums, or are at risk of having collection actions taken against
them due to medical debt. It encodes several of the State's emergency
Administrative actions into legislation that can provide more comprehen-
sive protection for a longer, defined time period and give providers and
patients more ability to anticipate their obligations over the course of
the emergency.

New Yorkers are facing severe financial hardship because of the pandem-
ic, which is impacting their ability to maintain health coverage or pay
for health care. By the end of March, 34 percent of households in New
York City had reported job loss as a result of the COVID-19 emergency.
(See "Job loss in NYC disproportionately impacts Hispanics and lower
income city residents", CUNY New York City COVID-19 Survey Week 2,
https://sph.cuny.eduiresearch/covid-19- tracking-survey/week-2/.) Job
loss is not affecting all New Yorkers equally - 41 percent of households
whose members identified as Hispanic reported job loss.

This bill would enact several measures to protect patients from
collection actions taken by providers or medical debt buyers for the
duration of the emergency. Patients' ability to plan ahead for care,
respond to medical bill issues such as mistakes, or respond to
collection actions is highly compromised by the pandemic. Over 40,000
patients have been sued by hospitals in the past five years for medical
debt. Hospitals continued to file lawsuits against patients during the
emergency - a brief review of 11 hospitals uncovered 122 lawsuits filed
against patients between the state of emergency declaration on March 7
and March 22 when the courts stopped accepting non-emergency filings.
For now, the courts have not announced a date at which new filings might
be allowed but have begun creating processes to file documents virtually
and allowing virtual appearances. Patients need protections from medical
debt collection actions for the duration of the Emergency, even if the
courts eventually develop processes to handle such cases virtually.

The bill would bar new medical debt lawsuits from being filed until the
Emergency ends as well as other collection actions, such as placing
undocumented individuals. The bill will also prevent unaffordable
medical bills by requiring hospitals file claims with the Health
Resources & Service Administration's relief funds before billing unin-
sured patients. This ensures that patients benefit from the relief funds
meant to help hospitals manage COVID-19 costs.

The bill would also reduce the statutory rate of interest that can be
pursued by a nonprofit hospital when it sues its patients for medical
debt. A recent study by the Community Service Society identified over
30,000 lawsuits brought by nonprofit hospitals against New York
patients. (Community Service Society, "Discharged into Debt: New York's
Nonprofit Hospitals are Suing Patients," March 2020.) Most of these
cases were pursued by just a few hospital systems-the majority of which
received more funds from the State's Indigent Care Pool fund than they
offered in Hospital Financial Assistance to patients. The current United
States Treasury rate of interest is well below 1 percent for the past
year, and below 4 percent for most of the past twenty years. In medical
debt cases, the 9 percent statutory interest rate can add up quickly.
For example, in one case a patient's bill was $17,358 for care received
in 2015. New York Presbyterian secured a default judgment on February 2,
2018 in the amount of $22,232, which included $4,703 in interest at the
9 percent interest rate.

This provision would address this issue by ensuring that hospitals only
secure a reasonable rate of interest and stop the accrual of interest on
judgements during the pandemic.

For health insurers, the COVID-19 emergency has meant a financial wind-
fall as all elective and most non-urgent care has stopped.  Insurers
should preserve coverage for those who are having trouble paying premi-
ums. New York State has taken Administrative action to temporarily stop
members from being disenrolled due to failure to pay premiums. This
legislation would extend those protections for people experiencing
financial hardship as a result of the Emergency until it ends and
require insurers to notify members of alternative coverage options and
consumer assistance programs.

 
LEGISLATIVE HISTORY:

2019-2020: S8465A/A10506 Gottfried

 
FISCAL:

None to State

 
EFFECTIVE DATE:
Immediately

2021-S2541 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2541
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 21, 2021
                                ___________
 
 Introduced  by Sens. RIVERA, BAILEY, GOUNARDES, HARCKHAM, HOYLMAN, JACK-
   SON, KENNEDY, KRUEGER, PERSAUD,  RAMOS,  SALAZAR  --  read  twice  and
   ordered  printed, and when printed to be committed to the Committee on
   Health
 
 AN ACT to amend the public health law, the debtor and creditor law,  the
   civil  practice  law  and  rules and the insurance law, in relation to
   COVID-19 pandemic medical debt requirements
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  public health law is amended by adding a new section
 2828 to read as follows:
   § 2828. COVID-19 PANDEMIC MEDICAL DEBT REQUIREMENTS.  1.  DEFINITIONS.
 THE  FOLLOWING WORDS OR PHRASES, AS USED IN THIS SECTION, SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "COLLECTION ACTION" MEANS ANY OF THE FOLLOWING:
   (I) SELLING AN INDIVIDUAL'S DEBT TO ANOTHER PARTY, EXCEPT IF, PRIOR TO
 THE SALE, THE MEDICAL CREDITOR HAS ENTERED INTO A LEGALLY BINDING  WRIT-
 TEN AGREEMENT WITH THE MEDICAL DEBT BUYER OF THE DEBT PURSUANT TO WHICH:
   (1) THE MEDICAL DEBT BUYER OR COLLECTOR IS PROHIBITED FROM ENGAGING IN
 ANY  COLLECTION  ACTIONS,  AS  DEFINED HEREIN, TO OBTAIN PAYMENT FOR THE
 CARE;
   (2) THE MEDICAL DEBT BUYER IS PROHIBITED FROM CHARGING INTEREST ON THE
 DEBT IN EXCESS OF THAT DESCRIBED IN SUBDIVISION THREE OF THIS SECTION;
   (3) THE DEBT IS RETURNABLE TO OR RECALLABLE BY  THE  MEDICAL  CREDITOR
 UPON  A DETERMINATION BY THE MEDICAL CREDITOR OR MEDICAL DEBT BUYER THAT
 THE INDIVIDUAL IS ELIGIBLE FOR FINANCIAL ASSISTANCE; AND
   (4) IF THE INDIVIDUAL IS  DETERMINED  TO  BE  ELIGIBLE  FOR  FINANCIAL
 ASSISTANCE  AND  THE  DEBT IS NOT RETURNED TO OR RECALLED BY THE MEDICAL
 CREDITOR, THE MEDICAL DEBT BUYER IS REQUIRED  TO  ADHERE  TO  PROCEDURES
 WHICH  SHALL BE SPECIFIED IN THE AGREEMENT THAT ENSURE THAT THE INDIVID-
 UAL DOES NOT PAY, AND HAS NO OBLIGATION TO PAY, THE MEDICAL  DEBT  BUYER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00589-01-1

 S. 2541                             2
 
 AND  THE  MEDICAL  CREDITOR  TOGETHER  MORE THAN HE OR SHE IS PERSONALLY
 RESPONSIBLE FOR PAYING IN COMPLIANCE WITH THIS SECTION.
   (II)  REPORTING  ADVERSE  INFORMATION  ABOUT  A  PATIENT TO A CONSUMER
 REPORTING AGENCY; OR
   (III) ACTIONS THAT REQUIRE A LEGAL OR JUDICIAL PROCESS, INCLUDING  BUT
 NOT LIMITED TO:
   (1) PLACING OR EXECUTING A LIEN ON THE INDIVIDUAL'S PROPERTY;
   (2)  ATTACHING  OR  SEIZING  AN INDIVIDUAL'S BANK ACCOUNT OR ANY OTHER
 PERSONAL PROPERTY;
   (3) COMMENCING OR PROSECUTING A CIVIL ACTION AGAINST AN INDIVIDUAL;
   (4) GARNISHING AN INDIVIDUAL'S WAGES; OR
   (5) ANY OTHER INVOLUNTARY COLLECTION ACTIVITY.
   (B) "CONSUMER REPORTING AGENCY" HAS THE SAME MEANING AS SUCH  TERM  IS
 DEFINED IN SECTION THREE HUNDRED EIGHTY-A OF THE GENERAL BUSINESS LAW.
   (C)  "DECLARED  STATE  DISASTER  EMERGENCY" MEANS THE DECLARATION OF A
 STATE OF EMERGENCY PURSUANT TO ARTICLE TWO-B OF THE EXECUTIVE LAW.
   (D) "HEALTHCARE PROFESSIONAL" MEANS A  PERSON  LICENSED  OR  CERTIFIED
 PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW.
   (E)   "HEALTHCARE   SERVICES"   MEANS   SERVICES  FOR  THE  DIAGNOSIS,
 PREVENTION, TREATMENT, CURE OR RELIEF OF A PHYSICAL, DENTAL,  BEHAVIORAL
 SUBSTANCE  USE  DISORDER  OR MENTAL HEALTH CONDITION, ILLNESS, INJURY OR
 DISEASE. THESE SERVICES INCLUDE, BUT ARE NOT LIMITED TO, ANY PROCEDURES,
 PRODUCTS, DEVICES OR MEDICATIONS.
   (F) "HOSPITAL" MEANS ALL PROVIDERS LICENSED UNDER THIS ARTICLE.
   (G) "MEDICAL DEBT" MEANS A DEBT ARISING FROM THE RECEIPT OF HEALTHCARE
 SERVICES.
   (H) "MEDICAL DEBT BUYER" MEANS A PERSON OR ENTITY THAT IS  ENGAGED  IN
 THE BUSINESS OF PURCHASING MEDICAL DEBTS FOR COLLECTION PURPOSES, WHETH-
 ER  IT COLLECTS THE DEBT ITSELF OR HIRES A THIRD PARTY FOR COLLECTION OR
 AN ATTORNEY FOR LITIGATION IN ORDER TO COLLECT SUCH DEBT.
   (I) "MEDICAL DEBT COLLECTOR" MEANS ANY PERSON OR ENTITY THAT REGULARLY
 COLLECTS OR ATTEMPTS TO COLLECT, DIRECTLY OR INDIRECTLY,  MEDICAL  DEBTS
 ORIGINALLY  OWED  OR  DUE  OR  ASSERTED  TO BE OWED OR DUE TO ANOTHER. A
 MEDICAL DEBT BUYER IS CONSIDERED TO BE A MEDICAL DEBT COLLECTOR FOR  ALL
 PURPOSES.
   (J)  "PATIENT"  MEANS THE PERSON WHO RECEIVED HEALTHCARE SERVICES, AND
 FOR THE PURPOSES OF THIS SECTION SHALL INCLUDE: A PARENT IF THE  PATIENT
 IS  A MINOR; A LEGAL GUARDIAN IF THE PATIENT IS AN ADULT UNDER GUARDIAN-
 SHIP; AN AUTHORIZED REPRESENTATIVE; OR A GUARANTOR.
   (K) "PERIOD OF SUSPENSION" MEANS A PERIOD CONSISTING OF THE FIRST  DAY
 OF  A DECLARED STATE DISASTER EMERGENCY RELATED TO THE COVID-19 PANDEMIC
 AND UNTIL NO LESS THAN SIXTY DAYS AFTER A DECLARED STATE DISASTER  EMER-
 GENCY  RELATED  TO THE COVID-19 PANDEMIC IS NO LONGER IN EFFECT ANYWHERE
 IN THE STATE.
   2. INVOLUNTARY COLLECTION ACTIVITY. NO HOSPITAL OR HEALTHCARE  PROFES-
 SIONAL  SHALL  ENGAGE  IN  ANY  COLLECTION  ACTIONS DURING THE PERIOD OF
 SUSPENSION.
   3. NO ACCRUAL OF INTEREST. INTEREST SHALL NOT ACCRUE  ON  ANY  MEDICAL
 DEBT  DESCRIBED UNDER SUBDIVISION TWO FOR WHICH COLLECTION WAS SUSPENDED
 FOR THE PERIOD OF SUSPENSION.
   4. NOTICE. TO INFORM PATIENTS OF THE ACTIONS TAKEN IN ACCORDANCE  WITH
 THIS  SECTION  AND  ENSURE  AN  EFFECTIVE  TRANSITION, ALL HOSPITALS AND
 HEALTHCARE PROFESSIONALS SHALL:
   (A) NOT LATER THAN FIFTEEN DAYS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
 SECTION, NOTIFY PATIENTS:

 S. 2541                             3
 
   (I) OF THE ACTIONS TAKEN IN ACCORDANCE WITH SUBDIVISIONS TWO AND THREE
 OF  THIS  SECTION  FOR WHOM COLLECTIONS HAVE BEEN SUSPENDED AND INTEREST
 WAIVED;
   (II)  OF THE OPTION TO CONTINUE MAKING PAYMENTS TOWARD ANY AMOUNT DUE;
 AND
   (III) THAT THE PROGRAM  DESCRIBED  IN  THIS  SECTION  IS  A  TEMPORARY
 PROGRAM.
   (B)  WITHIN FIFTEEN DAYS AFTER THE EXPIRATION OF THE PERIOD OF SUSPEN-
 SION, CARRY OUT A PROGRAM TO PROVIDE NO  FEWER  THAN  THREE  NOTICES  BY
 POSTAL  MAIL, TELEPHONE OR ELECTRONIC COMMUNICATION TO PATIENTS INDICAT-
 ING:
   (I) WHEN THE PATIENT'S NORMAL PAYMENT OBLIGATIONS WILL RESUME;
   (II) WITH RESPECT TO NOTICES SUBMITTED BY HOSPITALS, THAT THE  PATIENT
 MAY  BE  ELIGIBLE  TO ENROLL IN THE HOSPITAL'S FINANCIAL ASSISTANCE PLAN
 PURSUANT TO SECTION TWENTY-EIGHT HUNDRED SEVEN-K OF THIS ARTICLE; AND
   (III) WITH RESPECT TO NOTICES SUBMITTED BY  HEALTHCARE  PROFESSIONALS,
 THAT  THE  PATIENT  MAY  BE ELIGIBLE TO ENROLL IN A FINANCIAL ASSISTANCE
 PLAN, IF THE HEALTHCARE PROFESSIONAL HAS A FINANCIAL  ASSISTANCE  POLICY
 FOR HIS OR HER PATIENTS.
   5.  PROOF  OF  SUBMISSION  OF  CLAIM. WITH RESPECT TO PATIENTS WHO ARE
 UNINSURED ON THE DATE THAT THE TREATING HOSPITAL OR  HEALTHCARE  PROFES-
 SIONAL  RENDERS  TESTING  OR  TREATMENT  SERVICES  RELATED  TO COVID-19,
 INCLUDING, BUT NOT LIMITED TO, DIAGNOSTIC EVALUATIONS, TESTING OR  OTHER
 METHODS  TO  RULE  OUT  DISEASES  WITH  SIMILAR SYMPTOMS TO COVID-19, NO
 HOSPITAL OR HEALTHCARE PROFESSIONAL MAY ENGAGE IN ANY COLLECTION ACTIONS
 TO COLLECT PAYMENT FOR SUCH SERVICES, UNLESS THE  TREATING  HOSPITAL  OR
 HEALTHCARE  PROFESSIONAL  PRODUCES  A SWORN AFFIDAVIT THAT HE, SHE OR IT
 SUBMITTED A CLAIM FOR PAYMENT FOR SUCH SERVICES TO THE  FEDERAL  DEPART-
 MENT  OF HEALTH AND HUMAN SERVICES, HEALTH RESOURCES AND SERVICES ADMIN-
 ISTRATION (HRSA), IN ACCORDANCE WITH FEDERAL LAW, AND THAT  HRSA  DENIED
 THE CLAIM.
   6.  PRIVATE  RIGHT OF ACTION. EVERY VIOLATION OF THIS SECTION SHALL BE
 DEEMED A DECEPTIVE ACT AND PRACTICE SUBJECT TO ENFORCEMENT UNDER ARTICLE
 TWENTY-TWO-A OF THE GENERAL BUSINESS LAW. NOTHING IN THIS SECTION  SHALL
 BE  CONSTRUED  TO RESTRICT ANY RIGHT WHICH ANY PERSON MAY HAVE UNDER ANY
 OTHER STATUTE OR THE COMMON LAW.
   § 2. The debtor and creditor law is amended by adding  a  new  article
 10-B to read as follows:
                               ARTICLE 10-B
        TEMPORARY RELIEF FROM COLLECTION OF MEDICAL DEBT DURING THE
                             COVID-19 PANDEMIC
 SECTION 286. DEFINITIONS.
         287. REQUIREMENTS.
   § 286. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "COLLECTION ACTION" MEANS ANY OF THE FOLLOWING:
   (A) SELLING AN INDIVIDUAL'S DEBT TO ANOTHER PARTY, EXCEPT IF, PRIOR TO
 THE  SALE, THE MEDICAL CREDITOR HAS ENTERED INTO A LEGALLY BINDING WRIT-
 TEN AGREEMENT WITH THE MEDICAL DEBT BUYER OF THE DEBT PURSUANT TO WHICH:
   (I) THE MEDICAL DEBT BUYER OR COLLECTOR IS PROHIBITED FROM ENGAGING IN
 ANY COLLECTION ACTIONS, AS DEFINED HEREIN, TO  OBTAIN  PAYMENT  FOR  THE
 CARE;
   (II)  THE  MEDICAL  DEBT BUYER IS PROHIBITED FROM CHARGING INTEREST ON
 THE DEBT IN EXCESS OF THAT DESCRIBED IN THIS SECTION;

 S. 2541                             4
 
   (III) THE DEBT IS RETURNABLE TO OR RECALLABLE BY THE MEDICAL  CREDITOR
 UPON  A DETERMINATION BY THE MEDICAL CREDITOR OR MEDICAL DEBT BUYER THAT
 THE INDIVIDUAL IS ELIGIBLE FOR FINANCIAL ASSISTANCE; AND
   (IV)  IF  THE  INDIVIDUAL  IS  DETERMINED TO BE ELIGIBLE FOR FINANCIAL
 ASSISTANCE AND THE DEBT IS NOT RETURNED TO OR RECALLED  BY  THE  MEDICAL
 CREDITOR,  THE  MEDICAL  DEBT  BUYER IS REQUIRED TO ADHERE TO PROCEDURES
 WHICH SHALL BE SPECIFIED IN THE AGREEMENT THAT ENSURE THAT THE  INDIVID-
 UAL  DOES  NOT PAY, AND HAS NO OBLIGATION TO PAY, THE MEDICAL DEBT BUYER
 AND THE MEDICAL CREDITOR TOGETHER MORE THAN  HE  OR  SHE  IS  PERSONALLY
 RESPONSIBLE FOR PAYING IN COMPLIANCE WITH THIS SECTION.
   (B)  REPORTING  ADVERSE  INFORMATION  ABOUT  A  PATIENT  TO A CONSUMER
 REPORTING AGENCY; OR
   (C) ACTIONS THAT REQUIRE A LEGAL OR JUDICIAL  PROCESS,  INCLUDING  BUT
 NOT LIMITED TO:
   (I) PLACING OR EXECUTING A LIEN ON THE INDIVIDUAL'S PROPERTY;
   (II)  ATTACHING  OR  SEIZING AN INDIVIDUAL'S BANK ACCOUNT OR ANY OTHER
 PERSONAL PROPERTY;
   (III) COMMENCING OR PROSECUTING A CIVIL ACTION AGAINST AN INDIVIDUAL;
   (IV) GARNISHING AN INDIVIDUAL'S WAGES; OR
   (V) ANY OTHER INVOLUNTARY COLLECTION ACTIVITY.
   2. "CONSUMER REPORTING AGENCY" HAS THE SAME MEANING AS  SUCH  TERM  IS
 DEFINED IN SECTION THREE HUNDRED EIGHTY-A OF THE GENERAL BUSINESS LAW.
   3.  "DECLARED  STATE  DISASTER  EMERGENCY"  MEANS THE DECLARATION OF A
 STATE OF EMERGENCY PURSUANT TO ARTICLE TWO-B OF THE EXECUTIVE LAW.
   4. "HEALTHCARE PROFESSIONAL" MEANS  A  PERSON  LICENSED  OR  CERTIFIED
 PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW.
   5. "HEALTHCARE SERVICES" MEANS SERVICES FOR THE DIAGNOSIS, PREVENTION,
 TREATMENT,  CURE  OR  RELIEF OF A PHYSICAL, DENTAL, BEHAVIORAL SUBSTANCE
 USE DISORDER OR MENTAL HEALTH CONDITION,  ILLNESS,  INJURY  OR  DISEASE.
 THESE  SERVICES  INCLUDE,  BUT  ARE  NOT  LIMITED  TO,  ANY  PROCEDURES,
 PRODUCTS, DEVICES OR MEDICATIONS.
   6. "HOSPITAL" MEANS ALL HOSPITALS LICENSED UNDER ARTICLE  TWENTY-EIGHT
 OF THE PUBLIC HEALTH LAW.
   7.  "MEDICAL DEBT" MEANS A DEBT ARISING FROM THE RECEIPT OF HEALTHCARE
 SERVICES.
   8. "MEDICAL DEBT BUYER" MEANS A PERSON OR ENTITY THAT  IS  ENGAGED  IN
 THE BUSINESS OF PURCHASING MEDICAL DEBTS FOR COLLECTION PURPOSES, WHETH-
 ER  IT COLLECTS THE DEBT ITSELF OR HIRES A THIRD PARTY FOR COLLECTION OR
 AN ATTORNEY FOR LITIGATION IN ORDER TO COLLECT SUCH DEBT.
   9. "MEDICAL DEBT COLLECTOR" MEANS ANY PERSON OR ENTITY THAT  REGULARLY
 COLLECTS  OR  ATTEMPTS TO COLLECT, DIRECTLY OR INDIRECTLY, MEDICAL DEBTS
 ORIGINALLY OWED OR DUE OR ASSERTED TO BE  OWED  OR  DUE  TO  ANOTHER.  A
 MEDICAL  DEBT BUYER IS CONSIDERED TO BE A MEDICAL DEBT COLLECTOR FOR ALL
 PURPOSES.
   10. "PATIENT" MEANS THE PERSON WHO RECEIVED HEALTHCARE  SERVICES,  AND
 FOR  THE PURPOSES OF THIS ARTICLE SHALL INCLUDE: A PARENT IF THE PATIENT
 IS A MINOR; A LEGAL GUARDIAN IF THE PATIENT IS AN ADULT UNDER  GUARDIAN-
 SHIP; AN AUTHORIZED REPRESENTATIVE; OR A GUARANTOR.
   11.  "PERIOD OF SUSPENSION" MEANS A PERIOD CONSISTING OF THE FIRST DAY
 OF A DECLARED STATE DISASTER EMERGENCY RELATED TO THE COVID-19  PANDEMIC
 AND  UNTIL NO LESS THAN SIXTY DAYS AFTER A DECLARED STATE DISASTER EMER-
 GENCY RELATED TO THE COVID-19 PANDEMIC IS NO LONGER IN  EFFECT  ANYWHERE
 IN THE STATE.
   §  287.  REQUIREMENTS.  1. TEMPORARY RELIEF FROM COLLECTION OF MEDICAL
 DEBT. ALL MEDICAL DEBT BUYERS AND COLLECTORS SHALL SUSPEND ALL  PAYMENTS
 DUE FOR MEDICAL DEBT THROUGH THE PERIOD OF SUSPENSION.

 S. 2541                             5
 
   2.  NO  ACCRUAL  OF INTEREST. INTEREST SHALL NOT ACCRUE ON ANY MEDICAL
 DEBT DESCRIBED UNDER SUBDIVISION ONE OF THIS SECTION FOR  WHICH  PAYMENT
 WAS SUSPENDED FOR THE PERIOD OF SUSPENSION.
   3. INVOLUNTARY COLLECTION ACTIVITY. NO MEDICAL DEBT BUYER OR COLLECTOR
 SHALL ENGAGE IN ANY COLLECTION ACTIONS DURING THE PERIOD OF SUSPENSION.
   4.  NOTICE. TO INFORM PATIENTS OF THE ACTIONS TAKEN IN ACCORDANCE WITH
 THIS SECTION AND ENSURE AN EFFECTIVE TRANSITION, ALL MEDICAL DEBT BUYERS
 AND COLLECTORS SHALL:
   (A) NOT LATER THAN FIFTEEN DAYS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
 SECTION, NOTIFY PATIENTS:
   (I)  OF  THE ACTIONS TAKEN IN ACCORDANCE WITH SUBDIVISIONS ONE AND TWO
 OF THIS SECTION FOR WHOM  PAYMENTS  HAVE  BEEN  SUSPENDED  AND  INTEREST
 WAIVED;
   (II) OF THE ACTIONS TAKEN IN ACCORDANCE WITH SUBDIVISION THREE OF THIS
 SECTION FOR WHOM COLLECTIONS HAVE BEEN SUSPENDED;
   (III) OF THE OPTION TO CONTINUE MAKING PAYMENTS TOWARD ANY AMOUNT DUE;
 AND
   (IV)  THAT  THE  PROGRAM  DESCRIBED  UNDER THIS SECTION IS A TEMPORARY
 PROGRAM.
   (B) WITHIN FIFTEEN DAYS AFTER THE EXPIRATION OF THE PERIOD OF  SUSPEN-
 SION,  CARRY  OUT  A  PROGRAM  TO PROVIDE NO FEWER THAN THREE NOTICES BY
 POSTAL MAIL, TELEPHONE OR ELECTRONIC COMMUNICATION TO PATIENTS  INDICAT-
 ING:
   (I) WHEN THE PATIENT'S NORMAL PAYMENT OBLIGATIONS WILL RESUME; AND
   (II) THAT THE PATIENT MAY BE ELIGIBLE TO ENROLL IN A FINANCIAL ASSIST-
 ANCE  PLAN PURSUANT TO ANY APPLICABLE AND AVAILABLE FINANCIAL ASSISTANCE
 POLICY OF EITHER THE MEDICAL DEBT BUYER OR COLLECTOR.
   5. PROOF OF SUBMISSION OF CLAIM. WITH  RESPECT  TO  PATIENTS  WHO  ARE
 UNINSURED  ON  THE DATE THAT THE TREATING HOSPITAL OR HEALTHCARE PROFES-
 SIONAL RENDERS  TESTING  OR  TREATMENT  SERVICES  RELATED  TO  COVID-19,
 INCLUDING,  BUT NOT LIMITED TO, DIAGNOSTIC EVALUATIONS, TESTING OR OTHER
 METHODS TO RULE OUT DISEASES  WITH  SIMILAR  SYMPTOMS  TO  COVID-19,  NO
 MEDICAL  DEBT BUYER OR COLLECTOR MAY ENGAGE IN ANY COLLECTION ACTIONS TO
 COLLECT PAYMENT FOR SUCH  SERVICES,  UNLESS  THE  TREATING  HOSPITAL  OR
 HEALTHCARE  PROFESSIONAL  PRODUCES  A SWORN AFFIDAVIT THAT HE, SHE OR IT
 SUBMITTED A CLAIM FOR PAYMENT FOR SUCH SERVICES TO THE  FEDERAL  DEPART-
 MENT  OF HEALTH AND HUMAN SERVICES, HEALTH RESOURCES AND SERVICES ADMIN-
 ISTRATION (HRSA), IN ACCORDANCE WITH FEDERAL LAW, AND THAT  HRSA  DENIED
 THE CLAIM.
   6.  PRIVATE  RIGHT OF ACTION. EVERY VIOLATION OF THIS SECTION SHALL BE
 DEEMED A DECEPTIVE ACT AND PRACTICE SUBJECT TO ENFORCEMENT UNDER ARTICLE
 TWENTY-TWO-A OF THE GENERAL BUSINESS LAW. NOTHING IN THIS SECTION  SHALL
 BE  CONSTRUED  TO RESTRICT ANY RIGHT WHICH ANY PERSON MAY HAVE UNDER ANY
 OTHER STATUTE OR THE COMMON LAW.
   § 3. Section 5004 of the civil practice law and rules, as  amended  by
 chapter 258 of the laws of 1981, is amended to read as follows:
   §  5004.  Rate  of interest. Interest shall be at the rate of nine per
 centum per annum, except where otherwise provided by  statute,  PROVIDED
 THAT  THE  ANNUAL  RATE  OF INTEREST TO BE PAID ON A JUDGMENT OR ACCRUED
 CLAIM IN AN ACTION ARISING FROM A MEDICAL DEBT, AS  DEFINED  BY  SECTION
 TWO  THOUSAND EIGHT HUNDRED TWENTY-EIGHT OF THE PUBLIC HEALTH LAW, WHERE
 THE PURCHASER, BORROWER OR DEBTOR IS THE DEFENDANT SHALL  BE  CALCULATED
 AT  THE  ONE-YEAR UNITED STATES TREASURY BILL RATE; AND PROVIDED FURTHER
 THAT NO INTEREST SHALL ACCRUE ON A  JUDGMENT  OR  ACCRUED  CLAIM  IN  AN
 ACTION  ARISING  FROM  A MEDICAL DEBT WHILE THE STATE DISASTER EMERGENCY
 ORDER RELATED TO THE COVID-19 PANDEMIC IS IN EFFECT. FOR THE PURPOSES OF

 S. 2541                             6

 THIS SECTION, THE "ONE-YEAR UNITED STATES TREASURY BILL RATE" MEANS  THE
 WEEKLY  AVERAGE  ONE-YEAR CONSTANT MATURITY TREASURY YIELD, AS PUBLISHED
 BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, FOR THE  CALEN-
 DAR  WEEK  PRECEDING  THE  DATE  OF  THE  ENTRY OF THE JUDGMENT AWARDING
 DAMAGES.
   § 4. The insurance law is amended by adding a new section 3244 to read
 as follows:
   § 3244. EXTENSION OF PREMIUM  PAYMENT  PERIODS;  COVID-19.  (A)  DEFI-
 NITIONS.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (1) "CREDIT REPORTING AGENCY" MEANS A REPORTING AGENCY THAT  REGULARLY
 ENGAGES IN THE PRACTICE OF ASSEMBLING OR EVALUATING AND MAINTAINING, FOR
 THE  PURPOSE  OF FURNISHING CREDIT REPORTS TO THIRD PARTIES BEARING ON A
 PERSON'S CREDIT WORTHINESS, CREDIT STANDING,  OR  CREDIT  CAPACITY,  AND
 CREDIT  ACCOUNT  INFORMATION  FROM  PERSONS WHO FURNISH THAT INFORMATION
 REGULARLY AND IN THE ORDINARY COURSE OF BUSINESS.
   (2) "LATE FEE" MEANS  A  FEE  ASSOCIATED  WITH  AN  INSURANCE  PREMIUM
 PAYMENT  THAT  IS  MADE  AT  A TIME LATER THAN THE PREMIUM DUE DATE, BUT
 PRIOR TO BOTH INSURANCE POLICY OR CONTRACT TERMINATION AND THE  TIME  IN
 WHICH  AN  INSURER,  HMO,  OR  STUDENT  HEALTH  PLAN  MAY REJECT PREMIUM
 PAYMENT.
   (3) "MEDICAL DEBT BUYER" MEANS A PERSON OR ENTITY THAT IS  ENGAGED  IN
 THE BUSINESS OF PURCHASING MEDICAL DEBTS FOR COLLECTION PURPOSES, WHETH-
 ER  IT COLLECTS THE DEBT ITSELF OR HIRES A THIRD-PARTY FOR COLLECTION OR
 AN ATTORNEY FOR LITIGATION IN ORDER TO COLLECT SUCH DEBT.
   (4) "MEDICAL DEBT COLLECTOR" MEANS ANY PERSON OR ENTITY THAT REGULARLY
 COLLECTS OR ATTEMPTS TO COLLECT, DIRECTLY OR INDIRECTLY,  MEDICAL  DEBTS
 ORIGINALLY  OWED  OR  DUE  OR  ASSERTED  TO BE OWED OR DUE TO ANOTHER. A
 MEDICAL DEBT BUYER IS CONSIDERED TO BE A MEDICAL DEBT COLLECTOR FOR  ALL
 PURPOSES.
   (5)  "STUDENT HEALTH PLAN" HAS THE MEANING SET FORTH IN PARAGRAPH FIVE
 OF SUBSECTION (A) OF SECTION ONE THOUSAND  ONE  HUNDRED  TWENTY-FOUR  OF
 THIS CHAPTER.
   (6)  "CHILD HEALTH PLUS" MEANS COVERAGE ISSUED PURSUANT TO SECTION TWO
 THOUSAND FIVE HUNDRED ELEVEN OF THE PUBLIC HEALTH LAW.
   (7) "HMO" SHALL MEAN A HEALTH MAINTENANCE  ORGANIZATION  OPERATING  IN
 ACCORDANCE  WITH  THE  PROVISIONS  OF  ARTICLE  FORTY-FOUR OF THE PUBLIC
 HEALTH LAW OR ARTICLE FORTY-THREE OF THIS CHAPTER.
   (B) EXTENSION OF PREMIUM PAYMENT PERIODS. EVERY ISSUER OF  INDIVIDUAL,
 SMALL  GROUP AND STUDENT BLANKET COMPREHENSIVE HEALTH INSURANCE POLICIES
 SUBJECT TO THIS ARTICLE, AS WELL AS ANY ISSUER OF A  CHILD  HEALTH  PLUS
 POLICY  WHERE THE POLICYHOLDER OR CONTRACT HOLDER PAYS THE ENTIRE PREMI-
 UM, SHALL, SUBJECT TO CONSIDERATION BY THE SUPERINTENDENT OF THE LIQUID-
 ITY AND SOLVENCY OF THE APPLICABLE INSURER, HMO, OR STUDENT HEALTH PLAN,
 EXTEND THE PERIOD FOR THE PAYMENT OF PREMIUMS FOR  ANY  POLICYHOLDER  OR
 CONTRACT  HOLDER  WHO  CAN DEMONSTRATE FINANCIAL HARDSHIP AS A RESULT OF
 THE COVID-19 PANDEMIC TO THE LATER OF THE EXPIRATION OF  THE  APPLICABLE
 CONTRACTUAL  GRACE PERIOD AND THE DATE SIXTY DAYS AFTER A STATE DISASTER
 EMERGENCY IS NO LONGER IN EFFECT WITH RESPECT TO THE  COVID-19  PANDEMIC
 ANYWHERE  IN  THE  STATE.  SUCH AN INSURER, HMO, AND STUDENT HEALTH PLAN
 SHALL BE RESPONSIBLE FOR THE PAYMENT OF CLAIMS DURING  SUCH  PERIOD  AND
 MAY  NOT RETROACTIVELY TERMINATE THE INSURANCE POLICY FOR NON-PAYMENT OF
 THE PREMIUM DURING SUCH PERIOD.
   (C) REQUIREMENTS. WITH  REGARD  TO  AN  INDIVIDUAL,  SMALL  GROUP,  OR
 STUDENT  BLANKET COMPREHENSIVE HEALTH INSURANCE POLICYHOLDER OR CONTRACT
 HOLDER WHO DOES NOT MAKE A TIMELY PREMIUM PAYMENT  AND  CAN  DEMONSTRATE

 S. 2541                             7
 
 FINANCIAL  HARDSHIP AS A RESULT OF THE COVID-19 PANDEMIC, THE APPLICABLE
 INSURER, HMO, OR STUDENT HEALTH PLAN: (1) SHALL NOT IMPOSE ANY LATE FEES
 RELATING TO SUCH PREMIUM PAYMENT; (2) SHALL NOT REPORT THE  POLICYHOLDER
 OR CONTRACT HOLDER TO A CREDIT REPORTING AGENCY OR REFER THE POLICYHOLD-
 ER  OR CONTRACT HOLDER TO A MEDICAL DEBT BUYER OR COLLECTOR WITH RESPECT
 TO SUCH PREMIUM PAYMENT; (3) SHALL PROVIDE INFORMATION  TO  THE  POLICY-
 HOLDER  OR  CONTRACT  HOLDER REGARDING ALTERNATE POLICIES AVAILABLE FROM
 THE INSURER, HMO, OR STUDENT HEALTH PLAN AND PROVIDE CONTACT INFORMATION
 FOR THE NY STATE OF HEALTH ESTABLISHED PURSUANT TO TITLE SEVEN OF  ARTI-
 CLE  TWO  OF  THE  PUBLIC  HEALTH LAW; AND (4) SHALL PROVIDE INFORMATION
 REGARDING HEALTH INSURANCE AND MEDICAL DEBT CONSUMER  ASSISTANCE  AVAIL-
 ABLE FROM THE STATE DESIGNATED CONSUMER ASSISTANCE PROGRAM.
   (D)  OTHER PROVISIONS. (1) SUBJECT TO CONSIDERATION BY THE SUPERINTEN-
 DENT OF THE LIQUIDITY AND SOLVENCY OF THE APPLICABLE  INSURER,  HMO,  OR
 STUDENT  HEALTH  PLAN,  THE  INSURER,  HMO,  OR STUDENT HEALTH PLAN ALSO
 SHALL, WITHIN TEN BUSINESS DAYS FOLLOWING THE  EFFECTIVE  DATE  OF  THIS
 SECTION:
   (A) MAIL OR DELIVER, WHICH MAY INCLUDE ELECTRONIC MAIL, WRITTEN NOTICE
 TO  EVERY  INDIVIDUAL,  SMALL  GROUP,  OR  STUDENT BLANKET COMPREHENSIVE
 HEALTH INSURANCE POLICYHOLDER AND CONTRACT HOLDER OF THE  PROVISIONS  OF
 THIS SECTION AND A TOLL-FREE NUMBER THAT THE INDIVIDUAL, SMALL GROUP, OR
 STUDENT  BLANKET COMPREHENSIVE HEALTH INSURANCE POLICYHOLDER OR CONTRACT
 HOLDER MAY CALL TO DISCUSS BILLING AND MAKE ALTERNATIVE PAYMENT ARRANGE-
 MENTS; AND
   (B) NOTIFY INSURANCE PRODUCERS AND ANY THIRD-PARTY ADMINISTRATORS WITH
 WHOM OR WHICH THE INSURER  DOES  BUSINESS  OF  THE  PROVISIONS  OF  THIS
 SECTION.
   (2)  A  LICENSED INSURANCE PRODUCER WHO PROCURED THE INDIVIDUAL, SMALL
 GROUP, OR STUDENT BLANKET COMPREHENSIVE HEALTH INSURANCE POLICY FOR  THE
 POLICYHOLDER OR CONTRACT HOLDER SHALL MAIL OR DELIVER, WHICH MAY INCLUDE
 ELECTRONIC  MAIL,  NOTICE  TO THE POLICYHOLDER OR CONTRACT HOLDER OF THE
 PROVISIONS OF THIS SECTION WITHIN TEN BUSINESS DAYS FOLLOWING THE EFFEC-
 TIVE DATE OF THIS SECTION.
   (3) SOLELY FOR THE PURPOSES OF  THIS  SECTION,  AN  INSURER,  HMO,  OR
 STUDENT  HEALTH PLAN SHALL ACCEPT A WRITTEN ATTESTATION FROM AN INDIVID-
 UAL, SMALL GROUP,  OR  STUDENT  BLANKET  COMPREHENSIVE  POLICYHOLDER  OR
 CONTRACT  HOLDER  AS  PROOF  OF  FINANCIAL  HARDSHIP  AS A RESULT OF THE
 COVID-19 PANDEMIC.
   (4) NOTHING IN THIS SECTION SHALL PROHIBIT AN INDIVIDUAL, SMALL GROUP,
 OR  STUDENT  BLANKET  COMPREHENSIVE  HEALTH  INSURANCE  POLICYHOLDER  OR
 CONTRACT HOLDER FROM VOLUNTARILY CANCELLING A HEALTH INSURANCE POLICY.
   (5)  THE  PERIOD  TO  PAY INSURANCE PREMIUMS SET FORTH IN THIS SECTION
 SHALL NOT CONSTITUTE A WAIVER OR FORGIVENESS OF THE PREMIUM.
   (6) THE PERIOD SET FORTH IN SUBSECTION (B)  OF  THIS  SECTION  APPLIES
 ONLY  TO  TERMINATIONS  ATTRIBUTED  TO A FAILURE BY AN INDIVIDUAL, SMALL
 GROUP, OR STUDENT BLANKET COMPREHENSIVE HEALTH INSURANCE POLICYHOLDER OR
 CONTRACT HOLDER TO PAY PREMIUMS DURING SUCH PERIOD. IF AN INSURER,  HMO,
 OR  STUDENT HEALTH PLAN TERMINATES A POLICY FOR ANY OTHER REASON PERMIT-
 TED BY LAW, THE INSURER, HMO, OR STUDENT HEALTH PLAN SHALL  COMPLY  WITH
 STATUTORY NOTICE REQUIREMENTS.
   § 5. The insurance law is amended by adding a new section 4331 to read
 as follows:
   §  4331.  EXTENSION  OF  PREMIUM  PAYMENT PERIODS; COVID-19. (A) DEFI-
 NITIONS.  AS USED IN THIS SECTION, THE FOLLOWING TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:

 S. 2541                             8
 
   (1)  "CREDIT REPORTING AGENCY" MEANS A REPORTING AGENCY THAT REGULARLY
 ENGAGES IN THE PRACTICE OF ASSEMBLING OR EVALUATING AND MAINTAINING, FOR
 THE PURPOSE OF FURNISHING CREDIT REPORTS TO THIRD PARTIES BEARING  ON  A
 PERSON'S  CREDIT  WORTHINESS,  CREDIT  STANDING, OR CREDIT CAPACITY, AND
 CREDIT  ACCOUNT  INFORMATION  FROM  PERSONS WHO FURNISH THAT INFORMATION
 REGULARLY AND IN THE ORDINARY COURSE OF BUSINESS.
   (2) "LATE FEE" MEANS  A  FEE  ASSOCIATED  WITH  AN  INSURANCE  PREMIUM
 PAYMENT  THAT  IS  MADE  AT  A TIME LATER THAN THE PREMIUM DUE DATE, BUT
 PRIOR TO BOTH INSURANCE POLICY OR CONTRACT TERMINATION AND THE  TIME  IN
 WHICH  AN  INSURER,  HMO,  OR  STUDENT  HEALTH  PLAN  MAY REJECT PREMIUM
 PAYMENT.
   (3) "MEDICAL DEBT BUYER" MEANS A PERSON OR ENTITY THAT IS  ENGAGED  IN
 THE BUSINESS OF PURCHASING MEDICAL DEBTS FOR COLLECTION PURPOSES, WHETH-
 ER  IT COLLECTS THE DEBT ITSELF OR HIRES A THIRD-PARTY FOR COLLECTION OR
 AN ATTORNEY FOR LITIGATION IN ORDER TO COLLECT SUCH DEBT.
   (4) "MEDICAL DEBT COLLECTOR" MEANS ANY PERSON OR ENTITY THAT REGULARLY
 COLLECTS OR ATTEMPTS TO COLLECT, DIRECTLY OR INDIRECTLY,  MEDICAL  DEBTS
 ORIGINALLY  OWED  OR  DUE  OR  ASSERTED  TO BE OWED OR DUE TO ANOTHER. A
 MEDICAL DEBT BUYER IS CONSIDERED TO BE A MEDICAL DEBT COLLECTOR FOR  ALL
 PURPOSES.
   (5)  "STUDENT HEALTH PLAN" HAS THE MEANING SET FORTH IN PARAGRAPH FIVE
 OF SUBSECTION (A) OF SECTION ONE THOUSAND  ONE  HUNDRED  TWENTY-FOUR  OF
 THIS CHAPTER.
   (6)  "CHILD HEALTH PLUS" MEANS COVERAGE ISSUED PURSUANT TO SECTION TWO
 THOUSAND FIVE HUNDRED ELEVEN OF THE PUBLIC HEALTH LAW.
   (7) "HMO" SHALL MEAN A HEALTH MAINTENANCE  ORGANIZATION  OPERATING  IN
 ACCORDANCE  WITH  THE  PROVISIONS  OF  ARTICLE  FORTY-FOUR OF THE PUBLIC
 HEALTH LAW OR THIS ARTICLE.
   (B) EXTENSION OF PREMIUM PAYMENT PERIODS. EVERY MEDICAL EXPENSE INDEM-
 NITY CORPORATION, HMO, HOSPITAL SERVICE CORPORATION  OR  HEALTH  SERVICE
 CORPORATION SUBJECT TO THIS ARTICLE WHICH ISSUES DIRECT PAY, SMALL GROUP
 OR  STUDENT  BLANKET  COMPREHENSIVE  CONTRACTS, AS WELL AS ANY ISSUER OF
 CHILD HEALTH PLUS COVERAGE WHERE THE SUBSCRIBER PAYS THE ENTIRE PREMIUM,
 SUBJECT TO CONSIDERATION BY THE  SUPERINTENDENT  OF  THE  LIQUIDITY  AND
 SOLVENCY  OF  THE APPLICABLE MEDICAL EXPENSE INDEMNITY CORPORATION, HMO,
 HOSPITAL SERVICE CORPORATION OR HEALTH SERVICE CORPORATION, SHALL EXTEND
 THE PERIOD FOR THE PAYMENT OF PREMIUMS FOR ANY POLICYHOLDER OR  CONTRACT
 HOLDER  WHO CAN DEMONSTRATE FINANCIAL HARDSHIP AS A RESULT OF THE COVID-
 19 PANDEMIC TO THE LATER OF THE EXPIRATION OF THE APPLICABLE CONTRACTUAL
 GRACE PERIOD AND THE DATE SIXTY DAYS AFTER A STATE DISASTER EMERGENCY IS
 NO LONGER IN EFFECT WITH RESPECT TO THE COVID-19  PANDEMIC  ANYWHERE  IN
 THE  STATE.  SUCH A MEDICAL EXPENSE INDEMNITY CORPORATION, HMO, HOSPITAL
 SERVICE CORPORATION OR HEALTH SERVICE CORPORATION SHALL  BE  RESPONSIBLE
 FOR  THE  PAYMENT OF CLAIMS DURING SUCH PERIOD AND MAY NOT RETROACTIVELY
 TERMINATE THE CONTRACT FOR NON-PAYMENT OF THE PREMIUM DURING SUCH  PERI-
 OD.
   (C) REQUIREMENTS. WITH REGARD TO A DIRECT PAY, SMALL GROUP, OR STUDENT
 BLANKET COMPREHENSIVE HEALTH INSURANCE CONTRACT HOLDER WHO DOES NOT MAKE
 A  TIMELY  PREMIUM  PAYMENT  AND CAN DEMONSTRATE FINANCIAL HARDSHIP AS A
 RESULT OF THE COVID-19 PANDEMIC, THE APPLICABLE MEDICAL  EXPENSE  INDEM-
 NITY  CORPORATION,  HMO,  HOSPITAL SERVICE CORPORATION OR HEALTH SERVICE
 CORPORATION: (1) SHALL NOT IMPOSE ANY LATE FEES RELATING TO SUCH PREMIUM
 PAYMENT; (2) SHALL NOT REPORT THE CONTRACT HOLDER TO A CREDIT  REPORTING
 AGENCY OR REFER THE CONTRACT HOLDER TO A MEDICAL DEBT BUYER OR COLLECTOR
 WITH  RESPECT  TO SUCH PREMIUM PAYMENT; (3) SHALL PROVIDE INFORMATION TO
 THE CONTRACT HOLDER REGARDING  ALTERNATE  POLICIES  AVAILABLE  FROM  THE

 S. 2541                             9
 
 MEDICAL  EXPENSE  INDEMNITY CORPORATION, HOSPITAL SERVICE CORPORATION OR
 HEALTH SERVICE CORPORATION; AND (4) SHALL PROVIDE INFORMATION  REGARDING
 HEALTH INSURANCE AND MEDICAL DEBT CONSUMER ASSISTANCE AVAILABLE FROM THE
 STATE DESIGNATED CONSUMER ASSISTANCE PROGRAM.
   (D)  OTHER PROVISIONS. (1) SUBJECT TO CONSIDERATION BY THE SUPERINTEN-
 DENT OF THE LIQUIDITY AND SOLVENCY OF  THE  APPLICABLE  MEDICAL  EXPENSE
 INDEMNITY  CORPORATION,  HMO,  HOSPITAL  SERVICE  CORPORATION  OR HEALTH
 SERVICE CORPORATION, MEDICAL  EXPENSE  INDEMNITY  CORPORATION,  HOSPITAL
 SERVICE CORPORATION OR HEALTH SERVICE CORPORATION ALSO SHALL, WITHIN TEN
 BUSINESS DAYS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION:
   (A) MAIL OR DELIVER, WHICH MAY INCLUDE ELECTRONIC MAIL, WRITTEN NOTICE
 TO  EVERY  DIRECT  PAY,  SMALL  GROUP,  OR STUDENT BLANKET COMPREHENSIVE
 HEALTH INSURANCE CONTRACT HOLDER OF THE PROVISIONS OF THIS SECTION AND A
 TOLL-FREE NUMBER THAT THE DIRECT PAY SMALL  GROUP,  OR  STUDENT  BLANKET
 COMPREHENSIVE  HEALTH  CONTRACT  HOLDER  MAY CALL TO DISCUSS BILLING AND
 MAKE ALTERNATIVE PAYMENT ARRANGEMENTS;
   (B) NOTIFY INSURANCE PRODUCERS AND ANY THIRD-PARTY ADMINISTRATORS WITH
 WHOM OR WHICH THE MEDICAL EXPENSE INDEMNITY CORPORATION,  HMO,  HOSPITAL
 SERVICE  CORPORATION  OR HEALTH SERVICE CORPORATION DOES BUSINESS OF THE
 PROVISIONS OF THIS SECTION.
   (2) A LICENSED INSURANCE PRODUCER WHO PROCURED THE DIRECT  PAY,  SMALL
 GROUP, OR STUDENT BLANKET COMPREHENSIVE CONTRACT FOR THE CONTRACT HOLDER
 SHALL  MAIL OR DELIVER, WHICH MAY INCLUDE ELECTRONIC MAIL, NOTICE TO THE
 CONTRACT HOLDER OF THE PROVISIONS OF THIS SECTION  WITHIN  TEN  BUSINESS
 DAYS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION.
   (3)  SOLELY FOR THE PURPOSES OF THIS SECTION, A MEDICAL EXPENSE INDEM-
 NITY CORPORATION, HMO, HOSPITAL SERVICE CORPORATION  OR  HEALTH  SERVICE
 CORPORATION  SHALL ACCEPT A WRITTEN ATTESTATION FROM A DIRECT PAY, SMALL
 GROUP, OR STUDENT BLANKET COMPREHENSIVE  CONTRACT  HOLDER  AS  PROOF  OF
 FINANCIAL HARDSHIP AS A RESULT OF THE COVID-19 PANDEMIC.
   (4)  NOTHING IN THIS SECTION SHALL PROHIBIT A DIRECT PAY, SMALL GROUP,
 OR  STUDENT  BLANKET  COMPREHENSIVE  CONTRACT  HOLDER  FROM  VOLUNTARILY
 CANCELLING A CONTRACT.
   (5)  THE  PERIOD  TO  PAY PREMIUMS SET FORTH IN THIS SECTION SHALL NOT
 CONSTITUTE A WAIVER OR FORGIVENESS OF THE PREMIUM.
   (6) THE PERIOD SET FORTH IN SUBSECTION (B)  OF  THIS  SECTION  APPLIES
 ONLY  TO  TERMINATIONS  ATTRIBUTED  TO  A FAILURE BY A DIRECT PAY, SMALL
 GROUP, OR STUDENT BLANKET COMPREHENSIVE CONTRACT HOLDER TO PAY  PREMIUMS
 DURING SUCH PERIOD. IF A MEDICAL EXPENSE INDEMNITY CORPORATION, HOSPITAL
 SERVICE  CORPORATION  OR  HEALTH SERVICE CORPORATION TERMINATES A POLICY
 FOR ANY OTHER REASON PERMITTED  BY  LAW,  THE  INSURER  MEDICAL  EXPENSE
 INDEMNITY  CORPORATION,  HOSPITAL  SERVICE CORPORATION OR HEALTH SERVICE
 CORPORATION SHALL COMPLY WITH STATUTORY NOTICE REQUIREMENTS.
   § 6. This act shall take effect immediately.

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Senate Bill S2541

Sponsored By

Archive: Last Bill Status - In Senate Committee Health Committee

co-Sponsors

2021-S2541 (ACTIVE) - Details

2021-S2541 (ACTIVE) - Summary

2021-S2541 (ACTIVE) - Sponsor Memo

2021-S2541 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2541

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Sponsored By

Archive: Last Bill Status - In Senate Committee Health Committee

co-Sponsors

2021-S2541 (ACTIVE) - Details

2021-S2541 (ACTIVE) - Summary

2021-S2541 (ACTIVE) - Sponsor Memo

2021-S2541 (ACTIVE) - Bill Text download pdf

Comments