S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5909
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 22, 2023
                                ___________
 
 Introduced  by  Sen.  RIVERA -- 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 tax law,  in  relation  to
   establishing a pilot medical debt relief program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "medical debt relief act".
   §  2.  Article  2  of the public health law is amended by adding a new
 title 2-G to read as follows:
                                  TITLE 2-G
                        MEDICAL DEBT RELIEF PROGRAM
 SECTION 245. DEFINITIONS.
         246. MEDICAL DEBT RELIEF PROGRAM.
   § 245. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "ELIGIBLE RESIDENT" MEANS AN INDIVIDUAL THAT  MEETS  THE  FOLLOWING
 CONDITIONS:
   (A) IS A RESIDENT OF THE STATE;
   (B)  HAS  A  HOUSEHOLD  INCOME AT OR BELOW FOUR HUNDRED PERCENT OF THE
 FEDERAL POVERTY GUIDELINES OR HAS MEDICAL DEBT EQUAL TO FIVE PERCENT  OR
 MORE OF THE INDIVIDUAL'S HOUSEHOLD INCOME; AND
   (C) HAS HAD MEDICAL DEBT RELIEVED UNDER THIS PROGRAM.
   2.  "MEDICAL  DEBT"  MEANS  ANY OBLIGATION OR ALLEGED OBLIGATION OF AN
 ELIGIBLE RESIDENT TO PAY MONEY ARISING OUT OF A TRANSACTION IN WHICH THE
 MONEY WHICH IS THE SUBJECT OF  THE  TRANSACTION  IS  PRIMARILY  FOR  THE
 RECEIPT OF HEALTH CARE SERVICES, WHETHER OR NOT SUCH OBLIGATION HAS BEEN
 REDUCED TO JUDGMENT.
   §  246.  MEDICAL DEBT RELIEF PROGRAM. 1. THE COMMISSIONER SHALL ESTAB-
 LISH A THREE-YEAR PILOT PROGRAM TO PROVIDE MEDICAL DEBT RELIEF TO ELIGI-
 BLE RESIDENTS IN THE STATE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04741-04-3
              

 S. 5909                             2
 
   2.  WITHIN  AMOUNTS  APPROPRIATED  THEREFOR,  THE  COMMISSIONER  SHALL
 CONTRACT  WITH  A  NOT-FOR-PROFIT  ORGANIZATION  TO  IDENTIFY AND CANCEL
 MEDICAL DEBT OWED BY ELIGIBLE RESIDENTS TO HOSPITALS LOCATED WITHIN  THE
 STATE.    SUCH  NOT-FOR-PROFIT  ORGANIZATION SHALL ENTER INTO AGREEMENTS
 WITH  HOSPITALS  IN  THE  STATE TO IDENTIFY ELIGIBLE RESIDENTS UTILIZING
 PATIENT DATA PROVIDED BY SUCH PARTICIPATING HOSPITALS  INCLUDING,  DEMO-
 GRAPHIC  INFORMATION,  INSURANCE  STATUS  AND  PAYER,  DATES OF SERVICE,
 BALANCES STILL OWED, AND OTHER  INFORMATION  NECESSARY  TO  IDENTIFY  AN
 ELIGIBLE  RESIDENT.  THE  NOT-FOR-PROFIT  ORGANIZATION SHALL RETIRE SUCH
 ELIGIBLE RESIDENTS' MEDICAL DEBT BY ACQUIRING SUCH DEBT THROUGH PURCHASE
 OR RECEIPT AS A DONATION FROM A PARTICIPATING HOSPITAL AND THEN  CANCEL-
 LING SUCH DEBT. ANY SUCH PURCHASE OF MEDICAL DEBT SHALL BE FOR AN AMOUNT
 AT  OR  BELOW THE FAIR MARKET VALUE OF SUCH DEBT. ALL DATA SHARING SHALL
 COMPLY WITH THE PROVISIONS OF THE FEDERAL HEALTH  INSURANCE  PORTABILITY
 AND ACCOUNTABILITY ACT AND ANY OTHER APPLICABLE STATE OR FEDERAL LAW.
   3. PREFERENCE SHALL BE GIVEN TO ELIGIBLE RESIDENTS WHOSE DEBT IS EIGH-
 TEEN MONTHS OR OLDER.
   4. HOSPITALS THAT HAVE ENTERED INTO AGREEMENTS WITH THE NOT-FOR-PROFIT
 ORGANIZATION  FOR  PURPOSES OF THIS SECTION SHALL NOTIFY ITS PATIENTS OR
 THEIR REPRESENTATIVES OF THE PROVISIONS OF THIS SECTION RELATED  TO  THE
 SHARING  OF  PATIENT  DATA.  THE  COMMISSIONER SHALL PROMULGATE GUIDANCE
 NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SUBDIVISION.
   5.  PRIOR TO ACQUIRING EACH ELIGIBLE RESIDENT'S DEBT FOR CANCELLATION,
 THE NOT-FOR-PROFIT ORGANIZATION SHALL NOTIFY EACH ELIGIBLE  RESIDENT  OF
 THE  ORGANIZATION'S INTENT TO ACQUIRE THE RESIDENT'S DEBT.  THE NOT-FOR-
 PROFIT ORGANIZATION SHALL ALSO NOTIFY EACH ELIGIBLE RESIDENT WHO HAS HAD
 A DEBT CANCELLED PURSUANT TO THE PROVISIONS OF THIS SECTION  THAT  THEIR
 SPECIFIC  MEDICAL DEBT HAS BEEN CANCELLED AND PROVIDE DOCUMENTATION, AND
 THAT THE DEBT CANCELATION DOES NOT LEAD TO INCOME  TAX  LIABILITIES  FOR
 PROGRAM  RECIPIENTS.  PROGRAM  RECIPIENT  LETTERS SHALL BE SIGNED BY THE
 COMMISSIONER OR THEIR DESIGNEE AND THE NOT-FOR-PROFIT ORGANIZATION.
   6. THE NOT-FOR-PROFIT ORGANIZATION SHALL CONDUCT AN  OUTREACH  PROGRAM
 TO  HAVE  DISCUSSIONS  WITH  HOSPITALS ABOUT THE BENEFITS OF THE MEDICAL
 DEBT RELIEF PROGRAM TO PATIENTS, COMMUNITIES AND TO THE HOSPITALS  THEM-
 SELVES.
   7.  THE  NOT-FOR-PROFIT  ORGANIZATION  SHALL, IN CONSULTATION WITH THE
 DEPARTMENT REPORT ANNUALLY ON THE PROGRESS AND SUCCESS  OF  THE  MEDICAL
 DEBT RELIEF PROGRAM ESTABLISHED PURSUANT TO THIS SECTION TO THE GOVERNOR
 AND  THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,
 THE DEPARTMENT, AND THE CHAIR OF THE SENATE COMMITTEE ON HEALTH AND  THE
 CHAIR  OF  THE  ASSEMBLY  COMMITTEE  ON  HEALTH.  SUCH  REPORT  SHALL BE
 PUBLISHED AND PUBLICLY  AVAILABLE  ON  THE  DEPARTMENT'S  WEBSITE.  SUCH
 REPORT SHALL INCLUDE BUT NOT BE LIMITED TO:
   (A)  THE  AMOUNT  OF  MEDICAL  DEBT PURCHASED AND DISCHARGED UNDER THE
 PROGRAM;
   (B) THE NUMBER OF ELIGIBLE RESIDENTS WHO  RECEIVED  RELIEF  UNDER  THE
 PROGRAM;
   (C)  TO  THE  EXTENT  PRACTICABLE  THE CHARACTERISTICS OF THE ELIGIBLE
 RESIDENTS;
   (D) THE NUMBER OF INDIVIDUAL DEBTS PURCHASED;
   (E) TOTAL NUMBER OF ELIGIBLE RESIDENTS BY ZIP CODE; AND
   (F) ANY OTHER DATA OR INFORMATION REQUESTED BY THE DEPARTMENT AND THAT
 CAN BE INCLUDED PURSUANT TO APPLICABLE LAWS AND REGULATIONS  AND  WITHIN
 BUDGETED RESOURCES.
   8.  THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS NECES-
 SARY FOR THE IMPLEMENTATION OF THIS SECTION.
 S. 5909                             3
 
   § 3. Subsection (i) of section  601  of  the  tax  law  is  relettered
 subsection (j) and a new subsection (i) is added to read as follows:
   (I) MEDICAL DEBT RELIEF. NOTWITHSTANDING THE PROVISIONS OF SUBSECTIONS
 (A),  (B),  (C)  AND (D) OF THIS SECTION AND ANY OTHER PROVISION OF THIS
 ARTICLE, FOR TAXABLE YEARS BEGINNING AFTER THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION,  THE  INCOME  OF  AN  INDIVIDUAL  RECEIVED  PURSUANT  TO THE
 PROVISIONS OF SECTION TWO HUNDRED FORTY-SIX OF THE PUBLIC HEALTH LAW  IN
 THE FORM OF DEBT CANCELATION SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE
 REGARDLESS OF WHETHER SUCH INCOME IS SUBJECT TO FEDERAL INCOME TAXATION.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5909--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 22, 2023
                                ___________
 
 Introduced  by Sens. RIVERA, BROUK, MAY -- read twice and ordered print-
   ed, and when printed to be committed to the  Committee  on  Health  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- reported favorably from said  commit-
   tee and committed to the Committee on Finance -- committee discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 AN ACT to amend the public health law and the tax law,  in  relation  to
   establishing a pilot hospital medical debt relief program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "hospital medical debt relief act".
   §  2.  Article  2  of the public health law is amended by adding a new
 title 2-G to read as follows:
                                 TITLE 2-G
                   HOSPITAL MEDICAL DEBT RELIEF PROGRAM
 SECTION 245. DEFINITIONS.
         246. HOSPITAL MEDICAL DEBT RELIEF PROGRAM.
   § 245. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "ELIGIBLE RESIDENT" MEANS AN INDIVIDUAL THAT  MEETS  THE  FOLLOWING
 CONDITIONS:
   (A) IS A RESIDENT OF THE STATE;
   (B)  HAS  A  HOUSEHOLD  INCOME AT OR BELOW FOUR HUNDRED PERCENT OF THE
 FEDERAL POVERTY GUIDELINES OR HAS HOSPITAL-BASED MEDICAL DEBT  EQUAL  TO
 FIVE PERCENT OR MORE OF THE INDIVIDUAL'S HOUSEHOLD INCOME; AND
   (C) HAS HAD HOSPITAL MEDICAL DEBT RELIEVED UNDER THIS PROGRAM.
   2.  "GENERAL  HOSPITAL MEDICAL DEBT" MEANS AN OBLIGATION OR AN ALLEGED
 OBLIGATION OF AN ELIGIBLE RESIDENT TO PAY ANY AMOUNT WHATSOEVER  RELATED
 TO THE RECEIPT OF HEALTH CARE SERVICES, PRODUCTS, OR DEVICES PROVIDED TO

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04741-07-3
              

 S. 5909--B                          2
 
 A  PERSON  BY  A GENERAL HOSPITAL LICENSED UNDER ARTICLE TWENTY-EIGHT OF
 THE PUBLIC HEALTH LAW OR A HEALTH  CARE  PROFESSIONAL  AUTHORIZED  UNDER
 TITLE EIGHT OF THE EDUCATION LAW WHO PRACTICES WITHIN A HOSPITAL, WHETH-
 ER OR NOT SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT.
   §  246.  HOSPITAL  MEDICAL  DEBT  RELIEF PROGRAM. 1. THE COMMISSIONER,
 SUBJECT TO GENERAL FUND APPROPRIATIONS FOR THIS PURPOSE, SHALL ESTABLISH
 A THREE-YEAR PILOT PROGRAM TO PROVIDE HOSPITAL MEDICAL  DEBT  RELIEF  TO
 ELIGIBLE RESIDENTS IN THE STATE.
   2. PURSUANT TO SECTIONS ONE HUNDRED TWELVE AND ONE HUNDRED SIXTY-THREE
 OF  THE  STATE  FINANCE LAW, THE COMMISSIONER SHALL CONTRACT WITH A NOT-
 FOR-PROFIT ORGANIZATION TO IDENTIFY AND CANCEL THE HOSPITAL MEDICAL DEBT
 OWED BY ELIGIBLE RESIDENTS TO HOSPITALS AND THEIR  CONTRACTED  PROVIDERS
 LOCATED  WITHIN   THE STATE, TO THE EXTENT POSSIBLE. SUCH NOT-FOR-PROFIT
 ORGANIZATION SHALL ENTER INTO AGREEMENTS WITH GENERAL HOSPITALS  IN  THE
 STATE TO IDENTIFY ELIGIBLE RESIDENTS UTILIZING PATIENT DATA PROVIDED  BY
 SUCH  PARTICIPATING HOSPITALS  INCLUDING, DEMOGRAPHIC INFORMATION, RESI-
 DENTS' ZIP CODES, INSURANCE   STATUS    AND  PAYER,  DATES  OF  SERVICE,
 BALANCES  STILL OWED, AND OTHER  INFORMATION  NECESSARY  TO  IDENTIFY AN
 ELIGIBLE RESIDENT. THE NOT-FOR-PROFIT  ORGANIZATION  SHALL  RETIRE  SUCH
 ELIGIBLE RESIDENTS' HOSPITAL MEDICAL DEBT BY ACQUIRING SUCH DEBT THROUGH
 PURCHASE  OR RECEIPT AS A DONATION FROM A PARTICIPATING GENERAL HOSPITAL
 AND THEN CANCELLING SUCH DEBT. ANY SUCH  PURCHASE  OF  HOSPITAL  MEDICAL
 DEBT  SHALL  BE  FOR AN AMOUNT AT OR BELOW THE FAIR MARKET VALUE OF SUCH
 DEBT. ALL DATA SHARING SHALL COMPLY WITH THE PROVISIONS OF  THE  FEDERAL
 HEALTH    INSURANCE  PORTABILITY  AND  ACCOUNTABILITY  ACT AND ANY OTHER
 APPLICABLE STATE OR FEDERAL LAW.
   3. TO THE EXTENT POSSIBLE, FOR GENERAL  HOSPITALS  THAT  HAVE  ENTERED
 INTO  AN  AGREEMENT  UNDER  THE PROGRAM, PRIORITY SHALL BE GIVEN: (A) TO
 ELIGIBLE RESIDENTS WHOSE DEBT IS EIGHTEEN MONTHS OR  OLDER;  AND/OR  (B)
 WHO RESIDES IN THE LOWEST-INCOME ZIP CODES.
   4.  THE  NOT-FOR-PROFIT  ORGANIZATION  SHALL ALSO NOTIFY EACH ELIGIBLE
 RESIDENT WHO HAS HAD A DEBT CANCELLED PURSUANT TO THE PROVISIONS OF THIS
 SECTION  THAT THEIR SPECIFIC HOSPITAL MEDICAL DEBT  HAS  BEEN  CANCELLED
 AND  THAT THE DEBT CANCELATION DOES NOT LEAD TO INCOME  TAX  LIABILITIES
 FOR PROGRAM RECIPIENTS. SUCH NOTICE SHALL INCLUDE A COPY OF  THE  HOSPI-
 TAL'S  FINANCIAL  ASSISTANCE  APPLICATION AND POLICY PURSUANT TO SECTION
 TWENTY-EIGHT HUNDRED OF THIS CHAPTER.
   5. ONCE A HOSPITAL MEDICAL DEBT HAS BEEN CANCELLED, THE  PARTICIPATING
 GENERAL  HOSPITAL OR THEIR THIRD PARTY AGENT, THAT REPORTED THE HOSPITAL
 MEDICAL DEBT TO THE CREDIT REPORTING AGENCIES, SHALL INFORM  THE  CREDIT
 REPORTING AGENCIES OF SUCH CANCELLATION TO ENSURE THAT THE DEBT HAS BEEN
 REMOVED FROM AN ELIGIBLE RECIPIENT'S CREDIT REPORT.
   6.  THE  NOT-FOR-PROFIT ORGANIZATION SHALL CONDUCT AN OUTREACH PROGRAM
 TO HAVE DISCUSSIONS WITH GENERAL HOSPITALS ABOUT  THE  BENEFITS  OF  THE
 HOSPITAL MEDICAL DEBT RELIEF PROGRAM TO PATIENTS, COMMUNITIES AND TO THE
 HOSPITALS  THEMSELVES.    SUCH  OUTREACH  SHALL  FIRST BE INITIATED WITH
 ENHANCED SAFETY NET HOSPITALS AS DEFINED IN SECTION TWENTY-EIGHT HUNDRED
 SEVEN-C OF THIS CHAPTER.
   7. THE NOT-FOR-PROFIT ORGANIZATION SHALL,  IN  CONSULTATION  WITH  THE
 DEPARTMENT  REPORT  ANNUALLY ON THE PROGRESS AND SUCCESS OF THE HOSPITAL
 MEDICAL DEBT RELIEF PROGRAM ESTABLISHED PURSUANT TO THIS SECTION TO  THE
 GOVERNOR  AND  THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
 ASSEMBLY, THE DEPARTMENT, AND THE  CHAIR  OF  THE  SENATE  COMMITTEE  ON
 HEALTH  AND  THE  CHAIR OF THE ASSEMBLY COMMITTEE ON HEALTH. SUCH REPORT
 SHALL BE PUBLISHED AND PUBLICLY AVAILABLE ON THE  DEPARTMENT'S  WEBSITE.
 SUCH REPORT SHALL INCLUDE BUT NOT BE LIMITED TO:
 S. 5909--B                          3
 
   (A) THE AMOUNT OF HOSPITAL MEDICAL DEBT PURCHASED AND DISCHARGED UNDER
 THE PROGRAM;
   (B)  THE  NUMBER  OF  ELIGIBLE RESIDENTS WHO RECEIVED RELIEF UNDER THE
 PROGRAM;
   (C) TO THE EXTENT PRACTICABLE  THE  CHARACTERISTICS  OF  THE  ELIGIBLE
 RESIDENTS;
   (D) THE NUMBER OF INDIVIDUAL DEBTS PURCHASED;
   (E) TOTAL NUMBER OF ELIGIBLE RESIDENTS BY ZIP CODE;
   (F) THE NUMBER OF INDIVIDUAL DEBTS PURCHASED BY ZIP CODE;
   (G) THE NUMBER OF INDIVIDUAL DEBTS CANCELED BY COUNTY SEPARATED BY THE
 FEDERAL  POVERTY  LINE  AS  DEFINED  AND  ANNUALLY REVISED BY THE UNITED
 STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR A  HOUSEHOLD  OF  THE
 SAME SIZE, AS FOLLOWS: (I) TWO HUNDRED PERCENT AND BELOW, (II) ABOVE TWO
 HUNDRED  PERCENT  UP TO THREE HUNDRED PERCENT, (III) ABOVE THREE HUNDRED
 PERCENT UP TO FOUR HUNDRED PERCENT, (IV) ABOVE FOUR HUNDRED PERCENT; AND
   (H) ANY OTHER DATA OR INFORMATION REQUESTED BY THE DEPARTMENT AND THAT
 CAN BE INCLUDED PURSUANT TO APPLICABLE LAWS AND REGULATIONS  AND  WITHIN
 BUDGETED RESOURCES.
   8.  THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS NECES-
 SARY FOR THE IMPLEMENTATION OF THIS SECTION.
   § 3. Subsection (i) of section  601  of  the  tax  law  is  relettered
 subsection (j) and a new subsection (i) is added to read as follows:
   (I)  HOSPITAL  MEDICAL  DEBT RELIEF. NOTWITHSTANDING THE PROVISIONS OF
 SUBSECTIONS (A), (B),  (C)  AND  (D)  OF  THIS  SECTION  AND  ANY  OTHER
 PROVISION  OF THIS ARTICLE, FOR TAXABLE YEARS BEGINNING AFTER THE EFFEC-
 TIVE DATE OF THIS SUBSECTION,  THE  INCOME  OF  AN  INDIVIDUAL  RECEIVED
 PURSUANT  TO  THE  PROVISIONS  OF  SECTION  TWO HUNDRED FORTY-SIX OF THE
 PUBLIC HEALTH LAW IN THE FORM OF DEBT CANCELATION SHALL BE  EXEMPT  FROM
 TAX  UNDER  THIS ARTICLE REGARDLESS OF WHETHER SUCH INCOME IS SUBJECT TO
 FEDERAL INCOME TAXATION.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.  Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be  made  and
 completed on or before such effective date.