NY State Senate Bill 2025-S2105A

Current Bill Status Via A3986 - Passed Senate

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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 11, 2025	returned to assembly passed senate 3rd reading cal.1801 substituted for s2105a
Jun 11, 2025	substituted by a3986a ordered to third reading cal.1801 committee discharged and committed to rules
May 19, 2025	print number 2105a
May 19, 2025	amend and recommit to insurance
Jan 15, 2025	referred to insurance

Votes

- Jun 11, 2025 - Floor Vote
  A3986
  
  59
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  4
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 11, 2025
      
      aye (59)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Baskin
      
      Borrello
      
      Brisport
      
      Bynoe
      
      Canzoneri-Fitzpatrick
      
      Chan
      
      Cleare
      
      Comrie
      
      Cooney
      
      Fahy
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Lanza
      
      Liu
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (4)
      
      Brouk
      
      Murray
      
      Myrie
      
      Sutton
  Jun 11, 2025 - Rules Committee Vote
  S2105A
  
  17
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 11, 2025
      
      aye (17)
      
      Addabbo Jr.
      
      Bailey
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Griffo
      
      Harckham
      
      Hoylman-Sigal
      
      Krueger
      
      Liu
      
      Mayer
      
      Ortt
      
      Parker
      
      Sepúlveda
      
      Stec
      
      Stewart-Cousins
      
      aye wr (3)
      
      Helming
      
      Lanza
      
      O'Mara
      
      excused (1)
      
      Myrie

Bill Amendments

Original

A (Active)

2025-S2105 - Details

See Assembly Version of this Bill:: A3986
Law Section:: Insurance Law
Laws Affected:: Amd §§3217-b & 4325, Ins L; amd §4406-c, Pub Health L
Versions Introduced in 2023-2024 Legislative Session:: S9621

2025-S2105 - 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.

2025-S2105 - Sponsor Memo

                                 
BILL NUMBER: S2105

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:

S9621 of 2023-24: Referred to Insurance Committee

 
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

2025-S2105 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2105
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03607-01-5
 S. 2105                             2

 
   (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 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:
 S. 2105                             3
 
   (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
 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.
 S. 2105                             4
 
   (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
 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.

co-Sponsors

2025-S2105A (ACTIVE) - Details

See Assembly Version of this Bill:: A3986
Law Section:: Insurance Law
Laws Affected:: Amd §§3217-b & 4325, Ins L; amd §4406-c, Pub Health L
Versions Introduced in 2023-2024 Legislative Session:: S9621

2025-S2105A (ACTIVE) - Summary

2025-S2105A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2105A

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

 
PURPOSE:

The purpose of this bill is to allow the use of alternative payment
methods for claims.

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. Create 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 to give appropriate notice and allow providers to elect
to utilize an alternative payment method for claims.

 
LEGISLATIVE HISTORY:

S9621 of 2023-24: Referred to Insurance Committee

None.

This act shall take effect immediately.

2025-S2105A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2105--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Insurance  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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  SPECIFICALLY  IDENTIFIED
 FEE  OR SIMILAR DEDICATED 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 NOTIFIES THE INSURER, IN WRITING, OF
 A CHANGE IN 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03607-05-5
 S. 2105--A                          2

 
   (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, AN INSURER 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 A HEALTH CARE PROFESSIONAL  OR  A  GROUP  OF
 HEALTH CARE PROFESSIONALS LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCA-
 TION  LAW  THAT HAS A PARTICIPATING PROVIDER CONTRACT WITH AN INSURER TO
 PROVIDE HEALTH CARE SERVICES TO AN INSURED.
   (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. 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
 PROVIDER  A  SPECIFICALLY  IDENTIFIED FEE OR SIMILAR CHARGE DEDICATED TO
 PROCESS THE PAYMENT IF IN ADVANCE OF USING SUCH REIMBURSEMENT METHOD:
   (A) THE CORPORATION 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 CORPORATION 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 NOTIFIES THE CORPORATION, IN WRIT-
 ING, OF A CHANGE TO THE DESIGNATED PAYMENT TYPE.
   (3) IF A CORPORATION 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 CORPORATION  THAT  INITI-
 ATES  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 ELECTS TO ACCEPT PAYMENT IN ACCORDANCE WITH SUBPARA-
 GRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
   (6)  FOR  PURPOSES  OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
 S. 2105--A                          3
 
   (A) "PROVIDER" SHALL MEAN A HEALTH CARE PROFESSIONAL  OR  A  GROUP  OF
 HEALTH CARE PROFESSIONALS LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCA-
 TION  LAW  THAT HAS A PARTICIPATING PROVIDER CONTRACT WITH A CORPORATION
 TO PROVIDE HEALTH CARE SERVICES TO AN INSURED.
   (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.
   § 3. Section 4406-c of the public health law is amended  by  adding  a
 new subdivision 14 to read as follows:
   14. (A) A HEALTH CARE 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  SPECIFICALLY
 IDENTIFIED  FEE OR SIMILAR DEDICATED CHARGE TO PROCESS THE PAYMENT IF IN
 ADVANCE OF USING SUCH REIMBURSEMENT METHOD:
   (I) THE HEALTH CARE PLAN 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 HEALTH CARE PLAN 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 NOTIFIES THE HEALTH  CARE  PLAN,  IN
 WRITING, OF A CHANGE TO THE DESIGNATED PAYMENT TYPE.
   (C)  IF A HEALTH CARE PLAN CONTRACTS WITH A VENDOR TO PROCESS PAYMENTS
 OF PROVIDERS' CLAIMS, THE HEALTH CARE PLAN 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
 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 HEALTH CARE PLAN THAT
 INITIATES A PAYMENT TO A PROVIDER USING, OR CHANGES THE  PAYMENT  METHOD
 TO, A HEALTH CARE ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRAN-
 SACTION  SHALL  NOT  CHARGE  A FEE SOLELY TO TRANSMIT THE PAYMENT TO THE
 PROVIDER UNLESS THE PROVIDER ELECTS TO ACCEPT PAYMENT IN ACCORDANCE WITH
 SUBPARAGRAPH (II) OF PARAGRAPH (A) OF THIS SUBDIVISION.
   (F) FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING  DEFINITIONS  SHALL
 APPLY:
   (I)  "PROVIDER"  SHALL  MEAN  A HEALTH CARE PROFESSIONAL OR A GROUP OF
 HEALTH CARE PROFESSIONALS LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCA-
 TION LAW THAT HAS A PARTICIPATING PROVIDER CONTRACT WITH A  HEALTH  CARE
 PLAN TO PROVIDE HEALTH CARE SERVICES TO AN ENROLLEE.
   (II)  "VIRTUAL  CREDIT CARD" SHALL MEAN A SINGLE-USE SERIES OF NUMBERS
 LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY A HEALTH CARE PLAN TO  A
 PROVIDER  FOR  THE  PURPOSE  OF  PAYING A CLAIM FOR HEALTH CARE SERVICES
 PERFORMED BY THE PROVIDER.
   § 4. This act shall take effect on the one hundred eightieth day after
 it shall have become a law and shall apply  to  policies  and  contracts
 issued, renewed, modified, altered or amended on and after such date.

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Senate Bill S2105A

Sponsored By

Current Bill Status Via A3986 - Passed Senate

Jun 11, 2025 - Floor Vote

Floor Vote: Jun 11, 2025

Jun 11, 2025 - Rules Committee Vote

Rules Committee Vote: Jun 11, 2025

Bill Amendments

2025-S2105 - Details

2025-S2105 - Summary

2025-S2105 - Sponsor Memo

2025-S2105 - Bill Text download pdf

co-Sponsors

2025-S2105A (ACTIVE) - Details

2025-S2105A (ACTIVE) - Summary

2025-S2105A (ACTIVE) - Sponsor Memo

2025-S2105A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2105A

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Sponsored By

Jeremy Cooney

Current Bill Status Via A3986 - Passed Senate

Bill Amendments

2025-S2105 - Details

2025-S2105 - Summary

2025-S2105 - Sponsor Memo

2025-S2105 - Bill Text download pdf

co-Sponsors

Leroy Comrie

2025-S2105A (ACTIVE) - Details

2025-S2105A (ACTIVE) - Summary

2025-S2105A (ACTIVE) - Sponsor Memo

2025-S2105A (ACTIVE) - Bill Text download pdf

Comments