Senate Bill S9690

                                 
BILL NUMBER: S9690

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the general business law, in relation to the dispensing
of hearing aids

 
PURPOSE:

This legislation would amend the general business law to allow otolaryn-
gologists or other licensed physicians to dispense hearing aids at fair
market value.

 
SUMMARY OF PROVISIONS:

Section one of the bill would amend the general business law to allow
otolaryngologists and other licensed physicians to dispense hearing aids
and other services at fair market value following a medical exam.

Section two would set the effective date.

              

 
JUSTIFICATION:

Current law provides that otolaryngologists and other physicians may not
dispense hearing aids "for a profit." However, other license d health
care professionals and businesses who are also authorized under General
Business Law to directly dispense hearing aids are not subject to this
restriction. Moreover, Congress passed the Over-the-Counter Hearing Aid
Act of 2017 to reduce barriers to access for hearing aids for individ-
uals with mild to moderate hearing loss.  This law, and implementing
regulations from the Food and Drug Administration (FDA), allows the
purchase and sale of hearing aids without involvement of a licensed
health professional and, further, preempts states from having laws or
regulations which restrict the dispensing, marketing or pricing of over-
the-counter hearing aids.

The prohibition on physicians dispensing hearing aids "for a profit"
that was included in the 1998 law establishing the framework for the
dispensing of hearing aids in New York State created an unlevel playing
field that has only become more so as the technological and national
regulatory landscape has evolved. Moreover, there are already federal
and New York State laws which require physicians to charge patients a
"fair market value" price for any goods or services rendered and State
Education Law section 6530(17) currently defines as physician profes-
sional misconduct any attempt to exploit a patient for financial gain.

Physician practices treat the majority of patients with complex hearing
loss. The "for a profit" restriction on what these practices may charge
for patient evaluation, dispensing and servicing of hearing aids puts
physicians in conflict with federal and State laws that require physi-
cians to charge "fair market value" which includes the direct and indi-
rect costs associated with these services and equipment. As a result,
many practices are no longer dispensing hearing aids which is impacting
access to these services.

Accordingly, this amendment would align General Business Law with the
broader standards governing physician conduct thereby addressing a long-

standing inequity, ensuring continued access to care for complex hearing
loss disorders, and preserving protections for patients as consumers.

 
LEGISLATIVE HISTORY:

This is new legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.