NY State Senate Bill 2023-S9621

Current Bill Status - In Senate Committee Insurance 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
May 16, 2024	referred to insurance

2023-S9621 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§3217-b & 4325, add §4242, Ins L; amd §4406-c, Pub Health L

2023-S9621 (ACTIVE) - Summary

Authorizes an insurer to pay a claim for reimbursement made by a provider using a credit card, virtual credit card or electronic funds transfer payment method that imposes on the provider a free or similar charge to process the payment; defines "virtual credit card" as a single-use series of numbers linked to a fixed dollar amount and provided by an insurer to a provider for the purpose of paying a claim for health care services performed by the provider; makes related provisions.

2023-S9621 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9621

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the insurance law and the public health law, in relation
to the use of virtual credit cards by insurers and certain health care
plans

 
SUMMARY OF PROVISIONS;

Section 1. Amends Section 3217-b of the insurance law to require that an
insurer seeking to pay a provider using a credit card, virtual credit
card, or EFT that imposes a fee or similar charge on the provider to
process the payment must first (1) notify the provider of the potential
fees or charges, (2) offer the provider an alternative payment method
that does not impose fees or charges, and (3) allow the provider or a
designee to elect to accept such payment type. Further, this section
establishes that an election to accept or not accept a specific type of
payment shall remain in effect until it is changed, requires contracted
vendors to adhere to these provisions, prohibits a waiver of this
section in new contracts, and requires an insurance carrier to seek
permission to charge a fee solely to transmit a payment to a provider.

The section also defines provider and virtual credit card for purposes
of this section of law.

Section 2. Creates a new Section 4242 of the Insurance Law to include
the same provisions as section 1.

Section 3. Amends section 4325 of the Insurance Law to include the same
provisions as section 1.

Section 4. Amends section 4406-C of the Public Health Law to include the
same provisions as section 1.

Section 5. Establishes an effective date.

 
JUSTIFICATION:

As alternative payment methods increase, provider choice in payment
method decreases. Payment types such as virtual credit cards may apply
higher processing fees than those agreed upon for regular credit cards
under insurer-provider contracts. As a result, providers are left to
deal with bank charges and other fees levied to counter the evolving
software and security needs for new payment types. Unless insurers are
required to seek permission, they often begin paying providers using
costly alternative payment types without providing any notice.

To increase transparency and provider choice, this legislation would
require insurers give appropriate notice and allow providers to elect to
utilize an alternative payment method for claims.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to policies and
contracts issued, renewed, modified, altered or amended on and after
such date

2023-S9621 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9621
 
                             I N  S E N A T E
 
                               May 16, 2024
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law and the public health law, in relation
   to the use of virtual credit cards by insurers and certain health care
   plans
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Section 3217-b of the insurance law is amended by adding a
 new subsection (p) to read as follows:
   (P)(1) AN INSURER MAY PAY A CLAIM FOR REIMBURSEMENT MADE BY A PROVIDER
 USING A CREDIT CARD, VIRTUAL CREDIT CARD, OR ELECTRONIC  FUNDS  TRANSFER
 PAYMENT  METHOD  THAT IMPOSES ON THE PROVIDER A FEE OR SIMILAR CHARGE TO
 PROCESS THE PAYMENT IF IN ADVANCE OF USING SUCH REIMBURSEMENT METHOD:
   (A) THE INSURER NOTIFIES THE PROVIDER OF THE POTENTIAL FEES  OR  OTHER
 CHARGES ASSOCIATED WITH THE USE OF THE CREDIT CARD, VIRTUAL CREDIT CARD,
 OR ELECTRONIC FUNDS TRANSFER PAYMENT;
   (B) THE INSURER OFFERS THE PROVIDER AN ALTERNATIVE PAYMENT METHOD THAT
 DOES NOT IMPOSE FEES OR SIMILAR CHARGES ON THE PROVIDER; AND
   (C)  THE  PROVIDER  OR  A  DESIGNEE  OF  THE PROVIDER ELECTS TO ACCEPT
 PAYMENT OF THE CLAIM USING THE CREDIT  CARD,  VIRTUAL  CREDIT  CARD,  OR
 ELECTRONIC FUNDS TRANSFER PAYMENT METHOD.
   (2)  A  DECISION  PURSUANT  TO  PARAGRAPH ONE OF THIS SUBSECTION SHALL
 REMAIN IN EFFECT UNTIL THE PROVIDER CHANGES THE DESIGNATED PAYMENT TYPE.
   (3) IF AN INSURER CONTRACTS WITH  A  VENDOR  TO  PROCESS  PAYMENTS  OF
 PROVIDERS'  CLAIMS,  THE INSURER SHALL REQUIRE THE VENDOR TO COMPLY WITH
 THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBSECTION.
   (4) NO POLICY  OR  CONTRACT  ISSUED,  RENEWED,  MODIFIED,  ALTERED  OR
 AMENDED   AFTER  THE  EFFECTIVE  DATE  OF  THIS  SECTION  SHALL  CONTAIN
 PROVISIONS ALLOWING FOR WAIVER OF THE NOTICE REQUIREMENTS  CONTAINED  IN
 THIS SUBSECTION.
   (5) FOR ANY CONTRACT THAT IS IN EFFECT ON OR BEFORE THE EFFECTIVE DATE
 OF  THIS  SUBSECTION  OR  THAT IS ENTERED INTO, AMENDED OR RENEWED ON OR
 AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, A CARRIER THAT INITIATES  A
 PAYMENT  TO A PROVIDER USING, OR CHANGES THE PAYMENT METHOD TO, A HEALTH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15654-01-4
 S. 9621                             2
 
 CARE ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRANSACTION  SHALL
 NOT  CHARGE  A FEE SOLELY TO TRANSMIT THE PAYMENT TO THE PROVIDER UNLESS
 THE PROVIDER CONSENTS TO THE FEE.
   (6)  FOR  PURPOSES  OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "PROVIDER" SHALL  MEAN  AN  INDIVIDUAL  OR  GROUP  OF  INDIVIDUALS
 LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW.
   (B)  "VIRTUAL  CREDIT  CARD" SHALL MEAN A SINGLE-USE SERIES OF NUMBERS
 LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY AN INSURER TO A PROVIDER
 FOR THE PURPOSE OF PAYING A CLAIM FOR HEALTH CARE SERVICES PERFORMED  BY
 THE PROVIDER.
   § 2. The insurance law is amended by adding a new section 4242 to read
 as follows:
   §  4242.  USE  OF VIRTUAL CREDIT CARDS. (A) AN INSURER MAY PAY A CLAIM
 FOR REIMBURSEMENT MADE BY A PROVIDER USING A CREDIT CARD, VIRTUAL CREDIT
 CARD, OR ELECTRONIC FUNDS TRANSFER PAYMENT METHOD THAT  IMPOSES  ON  THE
 PROVIDER A FEE OR SIMILAR CHARGE TO PROCESS THE PAYMENT IF IN ADVANCE OF
 USING SUCH REIMBURSEMENT METHOD:
   (1)  THE  INSURER NOTIFIES THE PROVIDER OF THE POTENTIAL FEES OR OTHER
 CHARGES ASSOCIATED WITH THE USE OF THE CREDIT CARD, VIRTUAL CREDIT CARD,
 OR ELECTRONIC FUNDS TRANSFER PAYMENT;
   (2) THE INSURER OFFERS THE PROVIDER AN ALTERNATIVE PAYMENT METHOD THAT
 DOES NOT IMPOSE FEES OR SIMILAR CHARGES ON THE PROVIDER; AND
   (3) THE PROVIDER OR A  DESIGNEE  OF  THE  PROVIDER  ELECTS  TO  ACCEPT
 PAYMENT  OF  THE  CLAIM  USING  THE CREDIT CARD, VIRTUAL CREDIT CARD, OR
 ELECTRONIC FUNDS TRANSFER PAYMENT METHOD.
   (B) A DECISION PURSUANT TO SUBSECTION (A) OF THIS SECTION SHALL REMAIN
 IN EFFECT UNTIL THE PROVIDER CHANGES THE DESIGNATED PAYMENT TYPE.
   (C) IF AN INSURER CONTRACTS WITH  A  VENDOR  TO  PROCESS  PAYMENTS  OF
 PROVIDERS'  CLAIMS,  THE INSURER SHALL REQUIRE THE VENDOR TO COMPLY WITH
 THE PROVISIONS OF SUBSECTION (A) OF THIS SECTION.
   (D) NO POLICY  OR  CONTRACT  ISSUED,  RENEWED,  MODIFIED,  ALTERED  OR
 AMENDED   AFTER  THE  EFFECTIVE  DATE  OF  THIS  SECTION  SHALL  CONTAIN
 PROVISIONS ALLOWING FOR WAIVER OF THE NOTICE REQUIREMENTS  CONTAINED  IN
 THIS SECTION.
   (E) FOR ANY CONTRACT THAT IS IN EFFECT ON OR BEFORE THE EFFECTIVE DATE
 OF  THIS SECTION OR THAT IS ENTERED INTO, AMENDED OR RENEWED ON OR AFTER
 THE EFFECTIVE DATE OF THIS SECTION, A CARRIER THAT INITIATES  A  PAYMENT
 TO  A  PROVIDER  USING,  OR CHANGES THE PAYMENT METHOD TO, A HEALTH CARE
 ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRANSACTION  SHALL  NOT
 CHARGE  A  FEE SOLELY TO TRANSMIT THE PAYMENT TO THE PROVIDER UNLESS THE
 PROVIDER CONSENTS TO THE FEE.
   (F) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (1)  "PROVIDER"  SHALL  MEAN  AN  INDIVIDUAL  OR  GROUP OF INDIVIDUALS
 LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW.
   (2) "VIRTUAL CREDIT CARD" SHALL MEAN A SINGLE-USE  SERIES  OF  NUMBERS
 LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY AN INSURER TO A PROVIDER
 FOR  THE PURPOSE OF PAYING A CLAIM FOR HEALTH CARE SERVICES PERFORMED BY
 THE PROVIDER.
   § 3. Section 4325 of the insurance law is  amended  by  adding  a  new
 subsection (p) to read as follows:
   (P) (1) A CORPORATION ORGANIZED UNDER THIS ARTICLE MAY PAY A CLAIM FOR
 REIMBURSEMENT  MADE  BY  A  PROVIDER USING A CREDIT CARD, VIRTUAL CREDIT
 CARD, OR ELECTRONIC FUNDS TRANSFER PAYMENT METHOD THAT  IMPOSES  ON  THE
 S. 9621                             3
 
 PROVIDER A FEE OR SIMILAR CHARGE TO PROCESS THE PAYMENT IF IN ADVANCE OF
 USING SUCH REIMBURSEMENT METHOD:
   (A)  THE  INSURER NOTIFIES THE PROVIDER OF THE POTENTIAL FEES OR OTHER
 CHARGES ASSOCIATED WITH THE USE OF THE CREDIT CARD, VIRTUAL CREDIT CARD,
 OR ELECTRONIC FUNDS TRANSFER PAYMENT;
   (B) THE INSURER OFFERS THE PROVIDER AN ALTERNATIVE PAYMENT METHOD THAT
 DOES NOT IMPOSE FEES OR SIMILAR CHARGES ON THE PROVIDER; AND
   (C) THE PROVIDER OR A  DESIGNEE  OF  THE  PROVIDER  ELECTS  TO  ACCEPT
 PAYMENT  OF  THE  CLAIM  USING  THE CREDIT CARD, VIRTUAL CREDIT CARD, OR
 ELECTRONIC FUNDS TRANSFER PAYMENT METHOD.
   (2) A DECISION PURSUANT TO PARAGRAPH  ONE  OF  THIS  SUBSECTION  SHALL
 REMAIN IN EFFECT UNTIL THE PROVIDER CHANGES THE DESIGNATED PAYMENT TYPE.
   (3)  IF  AN  INSURER  CONTRACTS  WITH  A VENDOR TO PROCESS PAYMENTS OF
 PROVIDERS' CLAIMS, THE INSURER SHALL REQUIRE THE VENDOR TO  COMPLY  WITH
 THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBSECTION.
   (4)  NO  POLICY  OR  CONTRACT  ISSUED,  RENEWED,  MODIFIED, ALTERED OR
 AMENDED  AFTER  THE  EFFECTIVE  DATE  OF  THIS  SECTION  SHALL   CONTAIN
 PROVISIONS  ALLOWING  FOR WAIVER OF THE NOTICE REQUIREMENTS CONTAINED IN
 THIS SUBSECTION.
   (5) FOR ANY CONTRACT THAT IS IN EFFECT ON OR BEFORE THE EFFECTIVE DATE
 OF THIS SUBSECTION OR THAT IS ENTERED INTO, AMENDED  OR  RENEWED  ON  OR
 AFTER  THE EFFECTIVE DATE OF THIS SUBSECTION, A CARRIER THAT INITIATES A
 PAYMENT TO A PROVIDER USING, OR CHANGES THE PAYMENT METHOD TO, A  HEALTH
 CARE  ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRANSACTION SHALL
 NOT CHARGE A FEE SOLELY TO TRANSMIT THE PAYMENT TO THE  PROVIDER  UNLESS
 THE PROVIDER CONSENTS TO THE FEE.
   (6)  FOR  PURPOSES  OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "PROVIDER" SHALL  MEAN  AN  INDIVIDUAL  OR  GROUP  OF  INDIVIDUALS
 LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW.
   (B)  "VIRTUAL  CREDIT  CARD" SHALL MEAN A SINGLE-USE SERIES OF NUMBERS
 LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY A CORPORATION  ORGANIZED
 UNDER  THIS  ARTICLE TO A PROVIDER FOR THE PURPOSE OF PAYING A CLAIM FOR
 HEALTH CARE SERVICES PERFORMED BY THE PROVIDER.
   § 4. Section 4406-c of the public health law is amended  by  adding  a
 new subdivision 14 to read as follows:
   14.  (A)  A  HEALTH  PLAN  MAY PAY A CLAIM FOR REIMBURSEMENT MADE BY A
 PROVIDER USING A CREDIT CARD, VIRTUAL CREDIT CARD, OR  ELECTRONIC  FUNDS
 TRANSFER  PAYMENT  METHOD  THAT IMPOSES ON THE PROVIDER A FEE OR SIMILAR
 CHARGE TO PROCESS THE PAYMENT IF IN ADVANCE OF USING SUCH  REIMBURSEMENT
 METHOD:
   (I)  THE  INSURER NOTIFIES THE PROVIDER OF THE POTENTIAL FEES OR OTHER
 CHARGES ASSOCIATED WITH THE USE OF THE CREDIT CARD, VIRTUAL CREDIT CARD,
 OR ELECTRONIC FUNDS TRANSFER PAYMENT;
   (II) THE INSURER OFFERS THE PROVIDER  AN  ALTERNATIVE  PAYMENT  METHOD
 THAT DOES NOT IMPOSE FEES OR SIMILAR CHARGES ON THE PROVIDER; AND
   (III)  THE  PROVIDER  OR  A  DESIGNEE OF THE PROVIDER ELECTS TO ACCEPT
 PAYMENT OF THE CLAIM USING THE CREDIT  CARD,  VIRTUAL  CREDIT  CARD,  OR
 ELECTRONIC FUNDS TRANSFER PAYMENT METHOD.
   (B)  A  DECISION  PURSUANT  TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL
 REMAIN IN EFFECT UNTIL THE PROVIDER CHANGES THE DESIGNATED PAYMENT TYPE.
   (C) IF AN INSURER CONTRACTS WITH  A  VENDOR  TO  PROCESS  PAYMENTS  OF
 PROVIDERS'  CLAIMS,  THE INSURER SHALL REQUIRE THE VENDOR TO COMPLY WITH
 THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION.
   (D) NO POLICY  OR  CONTRACT  ISSUED,  RENEWED,  MODIFIED,  ALTERED  OR
 AMENDED   AFTER  THE  EFFECTIVE  DATE  OF  THIS  SECTION  SHALL  CONTAIN
 S. 9621                             4
 
 PROVISIONS ALLOWING FOR WAIVER OF THE NOTICE REQUIREMENTS  CONTAINED  IN
 THIS SUBDIVISION.
   (E) FOR ANY CONTRACT THAT IS IN EFFECT ON OR BEFORE THE EFFECTIVE DATE
 OF  THIS  SUBDIVISION  OR THAT IS ENTERED INTO, AMENDED OR RENEWED ON OR
 AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, A CARRIER THAT INITIATES A
 PAYMENT TO A PROVIDER USING, OR CHANGES THE PAYMENT METHOD TO, A  HEALTH
 CARE  ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRANSACTION SHALL
 NOT CHARGE A FEE SOLELY TO TRANSMIT THE PAYMENT TO THE  PROVIDER  UNLESS
 THE PROVIDER CONSENTS TO THE FEE.
   (F)  FOR  PURPOSES  OF  THIS  SECTION, THE FOLLOWING DEFINITIONS SHALL
 APPLY:
   (I) "PROVIDER" SHALL  MEAN  AN  INDIVIDUAL  OR  GROUP  OF  INDIVIDUALS
 LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW.
   (II)  "VIRTUAL  CREDIT CARD" SHALL MEAN A SINGLE-USE SERIES OF NUMBERS
 LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY AN INSURER TO A PROVIDER
 FOR THE PURPOSE OF PAYING A CLAIM FOR HEALTH CARE SERVICES PERFORMED  BY
 THE PROVIDER.
   §  5.  This act shall take effect immediately and shall apply to poli-
 cies and contracts issued, renewed, modified, altered or amended on  and
 after such date.

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Senate Bill S9621

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

2023-S9621 (ACTIVE) - Details

2023-S9621 (ACTIVE) - Summary

2023-S9621 (ACTIVE) - Sponsor Memo

2023-S9621 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9621

Share this bill

Sponsored By

Jeremy A. Cooney

Current Bill Status - In Senate Committee Insurance Committee

2023-S9621 (ACTIVE) - Details

2023-S9621 (ACTIVE) - Summary

2023-S9621 (ACTIVE) - Sponsor Memo

2023-S9621 (ACTIVE) - Bill Text download pdf

Comments