NY State Senate Bill 2025-S8039

Senate Bill S8039

2025-2026 Legislative Session

Prohibits hospitals, health systems, and health care providers from charging facility fees that are not covered by the patient's health insurance carrier

download bill text pdf

Current Bill Status - In Senate Committee Health 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 15, 2025	referred to health

2025-S8039 (ACTIVE) - Details

See Assembly Version of this Bill:: A5342
Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Amd §2830, Pub Health L

2025-S8039 (ACTIVE) - Summary

Prohibits hospitals, health systems, and health care providers from charging facility fees that are not covered by the patient's health insurance carrier.

2025-S8039 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8039

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the public health law, in relation to prohibiting hospi-
tals, health systems, and health care providers from charging facility
fees that are not covered by insurance

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit the billing or seeking of payment of facility fees unless it
is covered by insurance.

 
SUMMARY OF PROVISIONS:

  Section  one  provides the short title for this act to be known as the
"Lower Hospital Bills Act."

  Section two amends section 2830, denoted as "Regulation of the billing
of facility fees," of the Public Health to  prohibit  hospitals,  health
systems, or healthcare providers, from billing or seeking payment from a

patient  for  a facility fee that is not covered by the patient's health
insurance.

 
JUSTIFICATION:

This bill seeks to prohibit the practice  of  hospitals  and  healthcare
systems  from  charging patients "facility fees" that are not covered by
the patient's insurance. Facility fees are  particularly  burdensome  to
patients,  as  they can significantly increase the overall cost of care,
often without providing clear or justifiable benefits  to  the  patient.
This  practice disproportionately impacts those without insurance, those
with high-deductible plans, and those already facing financial hardship,
adding unnecessary financial strain to accessing needed care. By  limit-
ing  unjust facility fees, this bill aims to reduce the financial burden
on patients and ensure that the cost of medical services is more  trans-
parent and fair.

Facility  fees,  which are frequently added without proper disclosure or
explanation, have been criticized for their ambiguity  and  contribution
to  rising healthcare costs, which remain a concern for both individuals
and the healthcare system as a whole. This  bill  encourages  healthcare
providers to focus on transparent pricing that aligns more directly with
the  medical services provided to the patient by prohibiting the follow-
ing: billing or seeking of payment of facility fees  unless  covered  by
insurance or a clear disclosure of the amount of the fee, purpose of the
fee,  and  the  patient's  insurance  coverage for the fee or applicable
financial assistance for uninsured patients. This  shift  would  promote
more  ethical  billing practices and help restore trust between patients
and health care providers, ensuring that patients are not blindsided  by
additional, unexplained charges.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S8039 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8039
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 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, in relation to prohibiting hospi-
   tals, health systems, and health care providers from charging facility
   fees that are not covered by insurance

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall  be known and may be cited as the "lower
 hospital bills act".
   § 2. Section 2830 of the public health law, as added by chapter 764 of
 the laws of 2022, is amended to read as follows:
   § 2830. Regulation of  the  billing  of  facility  fees.  1.  For  the
 purposes  of this section, "fee" means any amount charged or billed by a
 provider for professional health care services provided in  a  hospital-
 based facility.
   2.  No hospital or health system or health care provider shall bill or
 seek payment from a patient for a facility fee that is  not  covered  by
 the  patient's health insurance carrier [unless the patient was notified
 prior to the date of service that a facility fee would be applicable. If
 a health care provider enters into a business relationship with a hospi-
 tal or health system that will result in the provider's  patients  being
 subject  to  facility  fees,  the  health  care provider must notify its
 patients of the change and that facility fees will now be applicable  to
 services  received  from  the  health care provider. The notice shall be
 provided in writing at least seven days  in  advance  of  each  date  of
 service and shall explain the amount of the fee, the purpose of the fee,
 whether the patient's insurance plan will pay the fee, and for uninsured
 patients,  how  to  apply  for  financial assistance. If advance written
 notice is infeasible because the visit was secured less than seven  days
 in  advance,  then  a  written  notice shall be provided on the date the
 service is rendered. The notice shall be provided in plain  language  in

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07961-03-5

 S. 8039                             2

 conspicuous  twelve-point  bold  face type and shall be available in the
 top six languages spoken in the hospital's service  area.  In  no  event
 shall a facility fee be charged for services related to the provision of
 preventive  care  service  as  defined  by  the United States Preventive
 Services Task Force].
   § 3. This act shall take effect immediately.

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