S T A T E O F N E W Y O R K
________________________________________________________________________
3282
2023-2024 Regular Sessions
I N S E N A T E
January 30, 2023
___________
Introduced by Sens. RIVERA, CLEARE -- read twice and ordered printed,
and when printed to be committed to the Committee on Health
AN ACT to amend the public health law and the insurance law, in relation
to health care professional applications and terminations
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivisions 2, 3, 4, 5, 6, 7, 8 and 9 of section 4406-d of
the public health law, as added by chapter 705 of the laws of 1996, are
amended to read as follows:
2. (a) A health care plan shall not terminate OR NOT RENEW a contract
with a health care professional unless the health care plan provides to
the health care professional a written explanation of the reasons for
the proposed contract termination and an opportunity for a review or
hearing as hereinafter provided. This section shall not apply in cases
involving imminent harm to patient care, a determination of fraud, or a
final disciplinary action by a state licensing board or other govern-
mental agency that impairs the health care professional's ability to
practice.
(b) The notice of the proposed contract termination OR NON-RENEWAL
provided by the health care plan to the health care professional shall
include:
(i) the reasons for the proposed action;
(ii) notice that the health care professional has the right to request
a hearing or review, at the professional's discretion, before a panel
[appointed by the health care plan] COMPRISED OF NO FEWER THAN THREE
HEALTH CARE PROFESSIONALS LICENSED TO PRACTICE IN THE STATE OF NEW YORK;
(iii) a time limit of not less than thirty days within which a health
care professional may request a hearing; and
(iv) a time limit for a hearing date which must be held within thirty
days after the date of receipt of a request for a hearing.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02414-01-3
S. 3282 2
(c) The hearing panel shall be comprised of three [persons appointed
by the health care plan] HEALTH CARE PROFESSIONALS LICENSED TO PRACTICE
BY THE STATE OF NEW YORK IN THE SAME PROFESSION AS THE SUBJECT OF THE
REVIEW, ONE OF WHOM IS APPOINTED BY THE HEALTH CARE PLAN, ONE OF WHOM IS
APPOINTED BY THE HEALTH CARE PROFESSIONAL WHO IS THE SUBJECT OF THE
HEARING. THE REMAINING MEMBER OF THE PANEL SHALL BE CHOSEN BY THE OTHER
TWO PANEL MEMBERS. At least one person on such panel shall be a clinical
peer in the same discipline and the same or similar specialty as the
health care professional under review. The hearing panel may consist of
more than three persons, provided however that the number of clinical
peers on such panel shall constitute one-third or more of the total
membership of the panel AND PROVIDED FURTHER THAT THE RATIO OF THE
NUMBER OF HEALTH CARE PROFESSIONALS APPOINTED BY THE HEALTH CARE PLAN TO
THE NUMBER OF HEALTH CARE PROFESSIONALS APPOINTED BY THE SUBJECT OF THE
HEARING TO THE NUMBER OF HEALTH CARE PROFESSIONALS CHOSEN BY THE OTHER
PANEL MEMBERS REMAINS ONE TO ONE TO ONE.
(d) The hearing panel shall render a decision on the proposed action
in a timely manner. Such decision shall include reinstatement of the
health care professional by the health care plan, provisional rein-
statement subject to conditions set forth by the health care plan or
termination of the health care professional. Such decision shall be
provided in writing to the health care professional.
(e) A decision by the hearing panel to terminate OR NOT RENEW a health
care professional shall be effective not less than thirty days after the
receipt by the health care professional of the hearing panel's decision;
provided, however, that the provisions of paragraph (e) of subdivision
six of section [four thousand four] FORTY-FOUR hundred three of this
article shall apply to such termination OR NON-RENEWAL.
(f) In no event shall termination be effective earlier than sixty days
from the receipt of the notice of termination.
3. [Either party to a contract may exercise a right of non-renewal at
the expiration of the contract period set forth therein or, for a
contract without a specific expiration date, on each January first
occurring after the contract has been in effect for at least one year,
upon sixty days notice to the other party; provided, however, that any
non-renewal shall not constitute a termination for purposes of this
section.
4.] A health care plan shall develop and implement policies and proce-
dures to ensure that health care professionals are regularly informed of
information maintained by the health care plan to evaluate the perform-
ance or practice of the health care professional. The health care plan
shall consult with health care professionals in developing methodologies
to collect and analyze health care professional profiling data. Health
care plans shall provide any such information and profiling data and
analysis to health care professionals. Such information, data or analy-
sis shall be provided on a periodic basis appropriate to the nature and
amount of data and the volume and scope of services provided. Any
profiling data used to evaluate the performance or practice of a health
care professional shall be measured against stated criteria and an
appropriate group of health care professionals using similar treatment
modalities serving a comparable patient population. Upon presentation of
such information or data, each health care professional shall be given
the opportunity to discuss the unique nature of the health care profes-
sional's patient population which may have a bearing on the health care
professional's profile and to work cooperatively with the health care
plan to improve performance.
S. 3282 3
[5.] 4. No health care plan shall terminate a contract or employment,
or refuse to renew a contract, solely because a health care provider
has:
(a) advocated on behalf of an enrollee;
(b) filed a complaint against the health care plan;
(c) appealed a decision of the health care plan;
(d) provided information or filed a report pursuant to section forty-
four hundred six-c of this article; or
(e) requested a hearing or review pursuant to this section.
[6.] 5. Except as provided herein, no contract or agreement between a
health care plan and a health care professional shall contain any
provision which shall supersede or impair a health care professional's
right to notice of reasons for termination OR NON-RENEWAL and the oppor-
tunity for a hearing or review concerning such termination OR NON-RENE-
WAL.
[7.] 6. Any contract provision in violation of this section shall be
deemed to be void and unenforceable.
[8.] 7. For purposes of this section, "health care plan" shall mean a
health maintenance organization licensed pursuant to article forty-three
of the insurance law or certified pursuant to this article or an inde-
pendent practice association certified or recognized pursuant to this
article.
[9.] 8. For purposes of this section, "health care professional" shall
mean a health care professional licensed, registered or certified pursu-
ant to title eight of the education law.
§ 2. Subsections (b), (c), (d), (e), (f), (g) and (h) of section 4803
of the insurance law, as added by chapter 705 of the laws of 1996, are
amended to read as follows:
(b) (1) An insurer shall not terminate OR NOT RENEW a contract with a
health care professional for participation in the in-network benefits
portion of the insurer's network for a managed care product unless the
insurer provides to the health care professional a written explanation
of the reasons for the proposed contract termination and an opportunity
for a review or hearing as hereinafter provided. This section shall not
apply in cases involving imminent harm to patient care, a determination
of fraud, or a final disciplinary action by a state licensing board or
other governmental agency that impairs the health care professional's
ability to practice.
(2) The notice of the proposed contract termination OR NON-RENEWAL
provided by the insurer to the health care professional shall include:
(i) the reasons for the proposed action;
(ii) notice that the health care professional has the right to request
a hearing or review, at the professional's discretion, before a panel
[appointed by the insurer] COMPRISED OF NO FEWER THAN THREE HEALTH CARE
PROFESSIONALS LICENSED TO PRACTICE BY THE STATE OF NEW YORK;
(iii) a time limit of not less than thirty days within which a health
care professional may request a hearing or review; and
(iv) a time limit for a hearing date which must be held within not
less than thirty days after the date of receipt of a request for a hear-
ing.
(3) The hearing panel shall be comprised of three [persons appointed
by the insurer] HEALTH CARE PROFESSIONALS LICENSED TO PRACTICE BY THE
STATE OF NEW YORK IN THE SAME PROFESSION AS THE SUBJECT OF THE REVIEW,
ONE OF WHOM IS APPOINTED BY THE INSURER, ONE OF WHOM IS APPOINTED BY THE
HEALTH CARE PROFESSIONAL WHO IS THE SUBJECT OF THE HEARING. THE REMAIN-
ING MEMBER OF THE PANEL SHALL BE CHOSEN BY THE OTHER TWO PANEL MEMBERS.
S. 3282 4
At least one person on such panel shall be a clinical peer in the same
discipline and the same or similar specialty as the health care profes-
sional under review. The hearing panel may consist of more than three
persons, provided however that the number of clinical peers on such
panel shall constitute one-third or more of the total membership of the
panel AND PROVIDED FURTHER THAT THE RATIO OF THE NUMBER OF HEALTH CARE
PROFESSIONALS APPOINTED BY THE HEALTH CARE PLAN TO THE NUMBER OF HEALTH
CARE PROFESSIONALS APPOINTED BY THE SUBJECT OF THE HEARING TO THE NUMBER
OF HEALTH CARE PROFESSIONALS CHOSEN BY THE TWO OTHER PANEL MEMBERS
REMAINS ONE TO ONE TO ONE.
(4) The hearing panel shall render a decision on the proposed action
in a timely manner. Such decision shall include reinstatement of the
health care professional by the insurer, provisional reinstatement
subject to conditions set forth by the insurer or termination of the
health care professional. Such decision shall be provided in writing to
the health care professional.
(5) A decision by the hearing panel to terminate OR NOT RENEW a health
care professional shall be effective not less than thirty days after the
receipt by the health care professional of the hearing panel's decision;
provided, however, that the provisions of subsection (e) of section four
thousand eight hundred four OF THIS ARTICLE shall apply to such termi-
nation.
(6) In no event shall termination OR NON-RENEWAL be effective earlier
than sixty days from the receipt of the notice of termination OR NON-RE-
NEWAL.
(c) [Either party to a contract for participation in the in-network
benefits portion of an insurer's network for a managed care product may
exercise a right of non-renewal at the expiration of the contract period
set forth therein or, for a contract without a specific expiration date,
on each January first occurring after the contract has been in effect
for at least one year, upon sixty days notice to the other party;
provided, however, that any non-renewal shall not constitute a termi-
nation for purposes of this section.
(d)] An insurer shall develop and implement policies and procedures to
ensure that health care providers participating in [the] the in-network
benefits portion of an insurer's network for a managed care product are
regularly informed of information maintained by the insurer to evaluate
the performance or practice of the health care professional. The insurer
shall consult with health care professionals in developing methodologies
to collect and analyze provider profiling data. Insurers shall provide
any such information and profiling data and analysis to these health
care professionals. Such information, data or analysis shall be provided
on a periodic basis appropriate to the nature and amount of data and the
volume and scope of services provided. Any profiling data used to evalu-
ate the performance or practice of such a health care professional shall
be measured against stated criteria and an appropriate group of health
care professionals using similar treatment modalities serving a compara-
ble patient population. Upon presentation of such information or data,
each such health care professional shall be given the opportunity to
discuss the unique nature of the health care professional's patient
population which may have a bearing on the professional's profile and to
work cooperatively with the insurer to improve performance.
[(e)] (D) No insurer shall terminate or refuse to renew a contract for
participation in the in-network benefits portion of an insurer's network
for a managed care product solely because the health care professional
has (1) advocated on behalf of an insured; (2) has filed a complaint
S. 3282 5
against the insurer; (3) has appealed a decision of the insurer; (4)
provided information or filed a report pursuant to section forty-four
hundred six-c of the public health law; or (5) requested a hearing or
review pursuant to this section.
[(f)] (E) Except as provided herein, no contract or agreement between
an insurer and a health care professional for participation in the
in-network benefits portion of an insurer's network for a managed care
product shall contain any provision which shall supersede or impair a
health care professional's right to notice of reasons for termination OR
NON-RENEWAL and the opportunity for a hearing concerning such termi-
nation OR NON-RENEWAL.
[(g)] (F) Any contract provision in violation of this section shall be
deemed to be void and unenforceable.
[(h)] (G) For purposes of this section, "health care professional"
shall mean a health care professional licensed, registered or certified
pursuant to title eight of the education law.
§ 3. This act shall take effect immediately.
