Assembly Bill A9225

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9225
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             November 3, 2025
                                ___________
 
 Introduced by M. of A. JACOBSON -- read once and referred to the Commit-
   tee on Judiciary
 
 AN  ACT  to  amend  the  general  obligations law, in relation to health
   insurance and provider divestment
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The  general  obligations  law is amended by adding a new
 section 5-339 to read as follows:
   § 5-339. PROHIBITION ON  OVERLAPPING  OWNERSHIP  OF  HEALTH  INSURANCE
 COMPANIES AND HEALTH CARE PROVIDERS.  1. AS USED IN THIS SECTION:
   (A)  "HEALTH  INSURANCE COMPANY" MEANS AN INSURANCE COMPANY SUBJECT TO
 ARTICLE FORTY-TWO OR A CORPORATION SUBJECT TO ARTICLE FORTY-THREE OF THE
 INSURANCE LAW, OR A HEALTH MAINTENANCE ORGANIZATION  CERTIFIED  PURSUANT
 TO  ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW THAT CONTRACTS OR OFFERS
 TO CONTRACT TO PROVIDE, DELIVER, ARRANGE, PAY OR REIMBURSE  ANY  OF  THE
 COSTS OF HEALTH CARE SERVICES.
   (B)  "HEALTH  CARE  PROVIDER"  MEANS  AN  ENTITY LICENSED OR CERTIFIED
 PURSUANT TO ARTICLE TWENTY-EIGHT, THIRTY-SIX  OR  FORTY  OF  THE  PUBLIC
 HEALTH  LAW, A FACILITY LICENSED PURSUANT TO ARTICLE NINETEEN OR THIRTY-
 ONE OF THE MENTAL HYGIENE LAW, A  FISCAL  INTERMEDIARY  OPERATING  UNDER
 SECTION  THREE  HUNDRED  SIXTY-FIVE OF THE SOCIAL SERVICES LAW, A HEALTH
 CARE PROFESSIONAL LICENSED, REGISTERED OR CERTIFIED  PURSUANT  TO  TITLE
 EIGHT  OF  THE  EDUCATION LAW, A DISPENSER OR PROVIDER OF PHARMACEUTICAL
 PRODUCTS, SERVICES OR DURABLE MEDICAL  EQUIPMENT,  OR  A  REPRESENTATIVE
 DESIGNED BY SUCH ENTITY OR PERSON.
   (C)  "INDIRECT  CONTROL"  MEANS  ANY AGREEMENT, ARRANGEMENT, CONTRACT,
 OWNERSHIP STAKE, OR OTHER RELATIONSHIP THAT GIVES AN OWNER  OR  OPERATOR
 OF  A  HEALTH  INSURANCE  COMPANY THE ABILITY TO INFLUENCE OR DIRECT THE
 OPERATIONS OF ANY HEALTH CARE PROVIDER IN THE STATE OR MEANS ANY  AGREE-
 MENT, ARRANGEMENT, CONTRACT, OWNERSHIP STAKE, OR OTHER RELATIONSHIP THAT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13902-02-5
 A. 9225                             2
              

 
 GIVES  AN  OWNER  OR  OPERATOR  OF A HEALTH CARE PROVIDER THE ABILITY TO
 INFLUENCE OR DIRECT THE OPERATIONS OF ANY HEALTH INSURANCE COMPANY.
   2.  (A)  IT SHALL BE UNLAWFUL FOR ANY PERSON TO DIRECTLY OR INDIRECTLY
 OWN, OPERATE, OR CONTROL THE WHOLE OR ANY PART  OF  A  HEALTH  INSURANCE
 COMPANY AND A HEALTH CARE PROVIDER OR ANY COMBINATION THEREOF.
   (B) IT SHALL BE UNLAWFUL FOR ANY PERSON TO DIRECTLY OR INDIRECTLY OWN,
 OPERATE,  OR CONTROL THE WHOLE OR ANY PART OF A HEALTH CARE PROVIDER AND
 A HEALTH INSURANCE COMPANY OR ANY COMBINATION THEREOF.
   3. NOT LATER THAN  THREE  YEARS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  ANY  PERSON  IN  VIOLATION  OF SUBDIVISION ONE OF THIS SECTION
 SHALL DIVEST FROM SUCH HEALTH INSURANCE COMPANY AND HEALTH CARE  PROVID-
 ER.
   4. THE ATTORNEY GENERAL MAY BRING A CIVIL ACTION AGAINST ANY PERSON OR
 ENTITY THAT VIOLATES THIS SECTION AND MAY RECOVER THE FOLLOWING:
   (A) A CIVIL PENALTY OF TEN THOUSAND DOLLARS PER DAY FOR A VIOLATION OF
 THIS SECTION; AND
   (B) COSTS AND REASONABLE ATTORNEYS' FEES.
   § 2. This act shall take effect immediately.