Bill Text: NY A08441 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to regulation of the billing by general hospitals and the distribution of funds from the general hospital indigent care pool; requires use of a uniform application form and policy.

Spectrum: Partisan Bill (Democrat 23-1)

Status: (Introduced - Dead) 2022-01-25 - reported referred to ways and means [A08441 Detail]

Download: New_York-2021-A08441-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8441

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                    November 17, 2021
                                       ___________

        Introduced  by  M.  of  A.  GOTTFRIED  --  read once and referred to the
          Committee on Health

        AN ACT to amend the public health law, in relation to the general hospi-
          tal indigent care pool; and to repeal certain provisions of  such  law
          relating thereto

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 9 of section 2807-k of the public  health  law,
     2  as amended by section 17 of part B of chapter 60 of the laws of 2014, is
     3  amended to read as follows:
     4    9.  In order for a general hospital to participate in the distribution
     5  of funds from the pool, the general  hospital  must  [implement  minimum
     6  collection policies and procedures approved] use only the uniform finan-
     7  cial assistance policy and form provided by the commissioner.
     8    §  2.   Subdivision 9-a of section 2807-k of the public health law, as
     9  added by section 39-a of part A of chapter 57 of the laws of 2006, para-
    10  graph (k) as added by section 43 of part B of chapter 58 of the laws  of
    11  2008, is amended to read as follows:
    12    9-a.  (a)  (i)  As a condition for participation in pool distributions
    13  authorized pursuant to this section  and  section  twenty-eight  hundred
    14  seven-w  of  this  article  for  periods on and after January first, two
    15  thousand nine, general hospitals shall, effective  for  periods  on  and
    16  after  January  first,  two  thousand  seven,  establish financial [aid]
    17  assistance policies and procedures, in accordance with the provisions of
    18  this subdivision, for reducing hospital charges otherwise applicable  to
    19  low-income  individuals without third-party health [insurance] coverage,
    20  or who have [exhausted their] third-party  health  [insurance  benefits]
    21  coverage  that does not cover or limits coverage of the service, and who
    22  can demonstrate an inability to pay  full  charges,  and  also,  at  the
    23  hospital's  discretion,  for  reducing  or discounting the collection of
    24  co-pays and deductible payments from those individuals  who  can  demon-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13108-04-1
        A. 8441                             2

     1  strate an inability to pay such amounts. Immigration status shall not be
     2  an  eligibility  criterion  for  the  purpose  of  determining financial
     3  assistance under this section.
     4    (ii)  A  general hospital may use the New York state of health market-
     5  place eligibility determination page to establish the  patient's  house-
     6  hold  income  and  residency  in lieu of the financial application form,
     7  provided it has secured the consent of the patient. A  general  hospital
     8  shall  not  require a patient to apply for coverage through the New York
     9  state of health marketplace  in  order  to  receive  care  or  financial
    10  assistance.
    11    (iii)  Upon submission of a completed application form, the patient is
    12  not liable for any bills until the general hospital has rendered a deci-
    13  sion on the application in accordance with this subdivision.
    14    (b) [Such]  The  reductions  from  charges  for  [uninsured]  patients
    15  described  in  paragraph  (a) of this subdivision with incomes below [at
    16  least three] six hundred percent of  the  federal  poverty  level  shall
    17  result in a charge to such individuals that does not exceed [the greater
    18  of]  the  amount that would have been paid for the same services [by the
    19  "highest volume payor" for such general hospital as defined in  subpara-
    20  graph  (v) of this paragraph, or for services provided pursuant to title
    21  XVIII of the federal social security act (medicare),  or  for  services]
    22  provided  pursuant  to  title [XIX] XVIII of the federal social security
    23  act [(medicaid)] (medicare), and provided further  that  such  [amounts]
    24  amount shall be adjusted according to income level as follows:
    25    (i)  For  patients with incomes at or below [at least one] two hundred
    26  percent of the federal poverty level, the hospital shall collect no more
    27  than a nominal payment amount, consistent with guidelines established by
    28  the commissioner[;].
    29    (ii) For patients with  incomes  [between  at  least  one]  above  two
    30  hundred  [one]  percent  and [one] up to four hundred [fifty] percent of
    31  the federal poverty level, the hospital shall collect no more  than  the
    32  amount identified after application of a proportional sliding fee sched-
    33  ule under which patients with lower incomes shall pay the lowest amount.
    34  [Such]  The  schedule  shall  provide  that  the amount the hospital may
    35  collect for [such patients]  the  patient  increases  from  the  nominal
    36  amount  described  in subparagraph (i) of this paragraph in equal incre-
    37  ments as the income of the patient increases, up to a maximum of  twenty
    38  percent of the [greater of the] amount that would have been paid for the
    39  same  services [by the "highest volume payor" for such general hospital,
    40  as defined in subparagraph  (v)  of  this  paragraph,  or  for  services
    41  provided  pursuant  to  title  XVIII  of the federal social security act
    42  (medicare) or for services] provided pursuant to title  [XIX]  XVIII  of
    43  the federal social security act [(medicaid);] (medicare).
    44    (iii)  [For  patients with incomes between at least one hundred fifty-
    45  one percent and two hundred fifty percent of the federal poverty  level,
    46  the  hospital  shall  collect  no  more than the amount identified after
    47  application of a proportional sliding fee schedule under which  patients
    48  with  lower  income  shall  pay  the lowest amounts. Such schedule shall
    49  provide that the amount the  hospital  may  collect  for  such  patients
    50  increases  from the twenty percent figure described in subparagraph (ii)
    51  of this paragraph in equal increments  as  the  income  of  the  patient
    52  increases,  up to a maximum of the greater of the amount that would have
    53  been paid for the same services by the "highest volume payor"  for  such
    54  general  hospital,  as defined in subparagraph (v) of this paragraph, or
    55  for services provided pursuant to title  XVIII  of  the  federal  social
        A. 8441                             3

     1  security  act  (medicare) or for services provided pursuant to title XIX
     2  of the federal social security act (medicaid); and
     3    (iv)]  For  patients with incomes [between at least two hundred fifty-
     4  one percent and three hundred] above four hundred percent and up to  six
     5  hundred percent of the federal poverty level, the hospital shall collect
     6  no  more  than the [greater of the] amount that would have been paid for
     7  the same services [by the "highest volume payor" for such general hospi-
     8  tal as defined in subparagraph (v) of this paragraph,  or  for  services
     9  provided  pursuant  to  title  XVIII  of the federal social security act
    10  (medicare), or for services] provided pursuant to title [XIX]  XVIII  of
    11  the federal social security act [(medicaid)] (medicare).
    12    [(v)  For the purposes of this paragraph, "highest volume payor" shall
    13  mean the insurer, corporation or  organization  licensed,  organized  or
    14  certified  pursuant  to  article thirty-two, forty-two or forty-three of
    15  the insurance law or article forty-four of this chapter, or other third-
    16  party payor, which has  a  contract  or  agreement  to  pay  claims  for
    17  services  provided  by  the  general  hospital  and incurred the highest
    18  volume of claims in the previous calendar year.
    19    (vi) A hospital may implement policies and procedures to  permit,  but
    20  not  require, consideration on a case-by-case basis of exceptions to the
    21  requirements described in subparagraphs (i) and (ii) of  this  paragraph
    22  based upon the existence of significant assets owned by the patient that
    23  should  be  taken  into  account  in determining the appropriate payment
    24  amount for that patient's care, provided, however,  that  such  proposed
    25  policies  and  procedures  shall  be  subject  to  the  prior review and
    26  approval of the commissioner and, if approved, shall be included in  the
    27  hospital's  financial  assistance  policy  established  pursuant to this
    28  section, and provided further that, if such  approval  is  granted,  the
    29  maximum amount that may be collected shall not exceed the greater of the
    30  amount  that  would have been paid for the same services by the "highest
    31  volume payor" for such general hospital as defined in  subparagraph  (v)
    32  of  this  paragraph, or for services provided pursuant to title XVIII of
    33  the federal social security act (medicare),  or  for  services  provided
    34  pursuant  to title XIX of the federal social security act (medicaid). In
    35  the event that a general hospital reviews a patient's assets  in  deter-
    36  mining  payment  adjustments  such  policies  and  procedures  shall not
    37  consider as assets a patient's primary residence, assets held in a  tax-
    38  deferred  or  comparable  retirement  savings  account,  college savings
    39  accounts, or cars used  regularly  by  a  patient  or  immediate  family
    40  members.
    41    (vii)]  (c) Nothing in this [paragraph] subdivision shall be construed
    42  to limit a hospital's  ability  to  establish  patient  eligibility  for
    43  payment  discounts  at  income levels higher than those specified herein
    44  and/or to provide greater payment discounts for eligible  patients  than
    45  those required by this [paragraph] subdivision.
    46    [(c)] (d) Such policies and procedures shall be clear, understandable,
    47  in  writing  and  publicly  available  in  summary form and each general
    48  hospital participating in the pool shall ensure that  every  patient  is
    49  made aware of the existence of [such] the policies and procedures and is
    50  provided,  in  a timely manner, with a summary and a copy of [such poli-
    51  cies and procedures] the policy  and  form  upon  request.  Any  summary
    52  provided  to  patients shall, at a minimum, include specific information
    53  as to income levels used to  determine  eligibility  for  assistance,  a
    54  description of the primary service area of the hospital and the means of
    55  applying  for  assistance.  [For general hospitals with twenty-four hour
    56  emergency departments, such policies and procedures] A general  hospital
        A. 8441                             4

     1  shall  [require the notification of patients] notify patients by provid-
     2  ing written materials to patients or  their  authorized  representatives
     3  during  the  intake  and  registration  process, through the conspicuous
     4  posting of language-appropriate information in the general hospital, and
     5  by  including information on bills and statements sent to patients, that
     6  financial [aid] assistance may be available to  qualified  patients  and
     7  how  to  obtain  further  information.  [For specialty hospitals without
     8  twenty-four hour emergency departments,  such  notification  shall  take
     9  place  through  written materials provided to patients during the intake
    10  and registration process prior to  the  provision  of  any  health  care
    11  services  or procedures, and through information on bills and statements
    12  sent to patients, that financial  aid  may  be  available  to  qualified
    13  patients  and  how  to obtain further information. Application materials
    14  shall include a notice to patients that upon submission of  a  completed
    15  application, including any information or documentation needed to deter-
    16  mine  the  patient's  eligibility  pursuant  to the hospital's financial
    17  assistance policy, the patient may disregard any bills until the  hospi-
    18  tal  has  rendered a decision on the application in accordance with this
    19  paragraph] General hospitals shall post the financial assistance  appli-
    20  cation  policy,  procedures  and  form,  and a summary of the policy and
    21  procedures, in a conspicuous  location  and  downloadable  form  on  the
    22  general hospital's website.
    23    [(d)  Such]  (e)  The hospital's application materials shall include a
    24  notice to patients that upon submission of a completed application form,
    25  the patient shall not be liable for any bills until the general hospital
    26  has rendered a decision on  the  application  in  accordance  with  this
    27  subdivision.   The application materials shall include specific informa-
    28  tion as the income levels used to determine  eligibility  for  financial
    29  assistance,  a  description  of the primary service area of the hospital
    30  and the means to apply for assistance. Nothing in this subdivision shall
    31  be construed as precluding the use of presumptive  eligibility  determi-
    32  nations  by hospitals on behalf of patients. The policies and procedures
    33  shall include clear, objective  criteria  for  determining  a  patient's
    34  ability  to  pay  and for providing such adjustments to payment require-
    35  ments as are necessary. In addition to  adjustment  mechanisms  such  as
    36  sliding  fee  schedules  and discounts to fixed standards, such policies
    37  and procedures shall also provide for the use of installment  plans  for
    38  the  payment  of  outstanding  balances  by  patients  pursuant  to  the
    39  provisions of the hospital's financial assistance  policy.  The  monthly
    40  payment  under  such  a  plan shall not exceed [ten] five percent of the
    41  gross monthly income of the patient[, provided, however, that if patient
    42  assets are considered under such a policy, then patient assets which are
    43  not excluded assets pursuant to subparagraph (vi) of  paragraph  (b)  of
    44  this  subdivision  may be considered in addition to the limit on monthly
    45  payments]. Installment plan payments may not be required to begin before
    46  one hundred eighty days after the date  of  the  service  or  discharge,
    47  whichever  is later. The policy shall allow the patient and the hospital
    48  to mutually agree to modify the terms of an installment plan.  The  rate
    49  of  interest charged to the patient on the unpaid balance, if any, shall
    50  not exceed [the rate for a ninety-day  security  issued  by  the  United
    51  States  Department of Treasury, plus .5 percent] two percentum per annum
    52  and no plan shall include an accelerator or similar clause under which a
    53  higher rate of interest is triggered upon a missed payment.   [If  such]
    54  The policies and procedures shall not include a requirement of a deposit
    55  prior to [non-emergent,] medically-necessary care[, such deposit must be
    56  included  as  part  of  any financial aid consideration].   The hospital
        A. 8441                             5

     1  shall refund any payments made by the patient before  the  determination
     2  of  eligibility  for  financial  assistance  that  exceeds the patient's
     3  liability after discounts are  applied.  Such  policies  and  procedures
     4  shall be applied consistently to all eligible patients.
     5    [(e) Such policies and procedures shall permit patients to] (f) In any
     6  legal  action  by  or on behalf of a hospital to collect a medical debt,
     7  the complaint shall be accompanied by an  affidavit  by  the  hospital's
     8  chief  financial  officer  stating  that  on  information and belief the
     9  patient does not meet the income or  residency  criteria  for  financial
    10  assistance. Patients may apply for financial assistance [within at least
    11  ninety  days  of the date of discharge or date of service and provide at
    12  least twenty days for patients to submit a completed application] at any
    13  time during the collection process, including after the commencement  of
    14  a  medical  debt  court action or upon the plaintiff obtaining a default
    15  judgment. A hospital may use credit scoring software for the purposes of
    16  establishing income eligibility and approving financial assistance,  but
    17  only  if the hospital makes clear to the patient that providing a social
    18  security number is not mandatory and the  scoring  does  not  negatively
    19  impact  the  patient's  credit score.   However, credit scoring software
    20  shall not be solely relied upon by the hospital in denying  a  patient's
    21  application  for  financial assistance.   [Such] The policies and proce-
    22  dures [may require that] shall allow patients seeking  [payment  adjust-
    23  ments]  financial  assistance  to  provide  [appropriate]  the following
    24  financial information and documentation in  support  of  their  applica-
    25  tion[,  provided,  however,  that  such application process shall not be
    26  unduly burdensome or complex]: pay checks  or  pay  stubs;  unemployment
    27  documentation;  social security income; rent receipts; a letter from the
    28  patient's employer attesting to the patient's gross income; or, if  none
    29  of  the  aforementioned  information  and documentation are available, a
    30  written self-attestation of the patient's income may  be  used.  General
    31  hospitals  shall,  upon  request,  assist  patients in understanding the
    32  hospital's application and form, policies and procedures and in applying
    33  for payment adjustments. Application forms shall be printed  and  posted
    34  to  its  website  in  the  "primary languages" of patients served by the
    35  general  hospital.  For  the  purposes  of  this   paragraph,   "primary
    36  languages"  shall include any language that is either (i) used to commu-
    37  nicate, during at least five percent of patient visits  in  a  year,  by
    38  patients  who  cannot  speak,  read,  write  or  understand  the English
    39  language at the level of proficiency necessary  for  effective  communi-
    40  cation  with health care providers, or (ii) spoken by non-English speak-
    41  ing individuals comprising more than one percent of the primary hospital
    42  service area population, as  calculated  using  demographic  information
    43  available  from  the United States Bureau of the Census, supplemented by
    44  data from school systems. Decisions regarding such applications shall be
    45  made within thirty days of receipt of a  completed  application.  [Such]
    46  The  policies  and  procedures shall require that the hospital issue any
    47  [denial/approval] denial or approval of [such] the application in  writ-
    48  ing  with  information on how to appeal the denial and shall require the
    49  hospital to establish an appeals process under which  it  will  evaluate
    50  the  denial  of  an  application.  [Nothing in this subdivision shall be
    51  interpreted as prohibiting a hospital from making  the  availability  of
    52  financial  assistance  contingent  upon  the  patient first applying for
    53  coverage under title XIX of the social security act (medicaid) or anoth-
    54  er insurance program if, in the judgment of the  hospital,  the  patient
    55  may  be eligible for medicaid or another insurance program, and upon the
    56  patient's cooperation in following the hospital's  financial  assistance
        A. 8441                             6

     1  application  requirements, including the provision of information needed
     2  to make a determination on the patient's application in accordance  with
     3  the  hospital's  financial  assistance policy] The hospital shall inform
     4  patients  on  how  to  file  a  complaint against the hospital or a debt
     5  collector that is contracted on behalf of  the  hospital  regarding  the
     6  patient's bill.
     7    [(f) Such] (g) The policies and procedures shall provide that patients
     8  with  incomes  below  [three] six hundred percent of the federal poverty
     9  level are deemed [presumptively] eligible for  payment  adjustments  and
    10  shall  conform  to  the  requirements set forth in paragraph (b) of this
    11  subdivision, provided, however, that nothing in this  subdivision  shall
    12  be  interpreted  as  precluding  hospitals  from  extending such payment
    13  adjustments to other patients, either generally  or  on  a  case-by-case
    14  basis.  [Such] The policies and procedures shall provide financial [aid]
    15  assistance for emergency hospital services, including  emergency  trans-
    16  fers  pursuant  to  the  federal  emergency medical treatment and active
    17  labor act (42 USC 1395dd), to patients who reside in New York state  and
    18  for medically necessary hospital services for patients who reside in the
    19  hospital's  primary  service  area  as  determined according to criteria
    20  established by the commissioner. In developing [such] the criteria,  the
    21  commissioner  shall  consult with representatives of the hospital indus-
    22  try, health care consumer advocates and local public  health  officials.
    23  [Such]  The  criteria shall be made available to the public no less than
    24  thirty days prior to the date of implementation and shall, at a minimum:
    25    (i) prohibit a  hospital  from  developing  or  altering  its  primary
    26  service  area in a manner designed to avoid medically underserved commu-
    27  nities or communities with high percentages of uninsured residents;
    28    (ii) ensure that every geographic area of the state is included in  at
    29  least  one  general  hospital's  primary  service  area so that eligible
    30  patients may access care and financial assistance; and
    31    (iii) require the hospital to notify the commissioner upon making  any
    32  change  to its primary service area, and to include a description of its
    33  primary service area in  the  hospital's  annual  implementation  report
    34  filed  pursuant  to  subdivision  three  of section twenty-eight hundred
    35  three-l of this article.
    36    [(g)] (h) Nothing in this subdivision shall be interpreted as preclud-
    37  ing hospitals from extending payment adjustments for medically necessary
    38  non-emergency hospital services to patients outside  of  the  hospital's
    39  primary  service area. For patients determined to be eligible for finan-
    40  cial [aid] assistance under the terms of a  hospital's  financial  [aid]
    41  assistance policy, [such] the policies and procedures shall prohibit any
    42  limitations  on  financial  [aid]  assistance  for services based on the
    43  medical condition of the applicant, other than  typical  limitations  or
    44  exclusions  based  on  medical  necessity or the clinical or therapeutic
    45  benefit of a procedure or treatment.
    46    [(h) Such policies and procedures shall not permit the forced]  (i)  A
    47  hospital  or  its  agent  shall not issue, authorize or permit an income
    48  execution of a patient's wages, secure a lien or force a sale  or  fore-
    49  closure  of  a  patient's  primary  residence  in  order  to  collect an
    50  outstanding medical bill and shall [require the hospital to refrain from
    51  sending] not send an account to collection if the patient has  submitted
    52  a  completed  application  for  financial  [aid,  including any required
    53  supporting documentation] assistance, while the hospital determines  the
    54  patient's  eligibility  for [such aid] financial assistance.  [Such] The
    55  policies and procedures shall provide for  written  notification,  which
    56  shall include notification on a patient bill, to a patient not less than
        A. 8441                             7

     1  thirty  days  prior  to  the  referral of debts for collection and shall
     2  require that the collection agency obtain the hospital's written consent
     3  prior to commencing a legal action. [Such] The policies  and  procedures
     4  shall  require  all general hospital staff who interact with patients or
     5  have responsibility for billing and collections to be trained in  [such]
     6  the  policies  and procedures, and require the implementation of a mech-
     7  anism for the general hospital to measure its compliance with [such] the
     8  policies and procedures.   [Such]  The  policies  and  procedures  shall
     9  require that any collection agency, lawyer or firm under contract with a
    10  general  hospital  for  the  collection  of  debts follow the hospital's
    11  financial assistance policy, including providing information to patients
    12  on how to apply for financial assistance where appropriate.  [Such]  The
    13  policies and procedures shall prohibit collections from a patient who is
    14  determined  to be eligible for medical assistance [pursuant to title XIX
    15  of the federal social security act] under title eleven of  article  five
    16  of  the  social  services law at the time services were rendered and for
    17  which services medicaid payment is available.
    18    [(i)] (j) Reports required to be submitted to the department  by  each
    19  general  hospital  as  a  condition for participation in the pools[, and
    20  which  contain,  in  accordance  with  applicable  regulations,]   shall
    21  contain:  (i)  a  certification  from  an  independent  certified public
    22  accountant or independent licensed public accountant or  an  attestation
    23  from  a  senior official of the hospital that the hospital is in compli-
    24  ance with conditions of participation in the pools[, shall also contain,
    25  for reporting periods on and after January first, two thousand seven:];
    26    [(i)] (ii) a report on hospital costs incurred and uncollected amounts
    27  in providing services to [eligible] patients [without  insurance]  found
    28  eligible for financial assistance, including the amount of care provided
    29  for a nominal payment amount, during the period covered by the report;
    30    [(ii)]  (iii)  hospital  costs  incurred  and  uncollected amounts for
    31  deductibles and coinsurance for  eligible  patients  with  insurance  or
    32  other third-party payor coverage;
    33    [(iii)]  (iv)  the  number  of patients, organized according to United
    34  States postal service zip code, race, ethnicity and gender, who  applied
    35  for  financial  assistance  [pursuant to] under the hospital's financial
    36  assistance policy, and the number, organized according to United  States
    37  postal  service zip code, race, ethnicity and gender, whose applications
    38  were approved and whose applications were denied;
    39    [(iv)] (v) the reimbursement received for indigent care from the  pool
    40  established [pursuant to] under this section;
    41    [(v)]  (vi)  the  amount  of funds that have been expended on [charity
    42  care] financial assistance  from  charitable  bequests  made  or  trusts
    43  established  for  the  purpose  of  providing  financial  assistance  to
    44  patients who are eligible in accordance with the  terms  of  [such]  the
    45  bequests or trusts;
    46    [(vi)]  (vii)  for  hospitals  located in social services districts in
    47  which the district allows hospitals to assist patients with such  appli-
    48  cations,  the  number of applications for eligibility for medicaid under
    49  title [XIX of the social security act (medicaid)] eleven of article five
    50  of the social services  law  that  the  hospital  assisted  patients  in
    51  completing and the number denied and approved;
    52    [(vii)] (viii) the hospital's financial losses resulting from services
    53  provided under medicaid; and
    54    [(viii)]  (ix)  the  number  of  referrals  to  collection  agents  or
    55  contracted external collection vendors, court cases and liens placed  on
        A. 8441                             8

     1  [the  primary] any residences of patients through the collection process
     2  used by a hospital.
     3    [(j)]  (k)  Within ninety days of the effective date of the chapter of
     4  the laws of two thousand twenty-two which amended this subdivision  each
     5  hospital  shall submit to the commissioner a written report on its poli-
     6  cies and procedures for financial assistance to patients which are  used
     7  by  the  hospital  [on  the] as of such effective date [of this subdivi-
     8  sion]. Such report shall include copies of its policies and  procedures,
     9  including  material  which is distributed to patients, and a description
    10  of  the  hospital's  financial  aid  policies   and   procedures.   Such
    11  description  shall include the income levels of patients on which eligi-
    12  bility is based, the financial aid eligible  patients  receive  and  the
    13  means of calculating such aid, and the service area, if any, used by the
    14  hospital to determine eligibility.
    15    [(k)]  (l)  The  commissioner  shall  include the data collected under
    16  paragraph (j) of this subdivision in regular audits of the annual gener-
    17  al hospital institutional cost report.
    18    (m) In the event [it is determined by the commissioner that] the state
    19  [will be] is  unable  to  secure  all  necessary  federal  approvals  to
    20  include, as part of the state's approved state plan under title nineteen
    21  of  the  federal  social  security  act, a requirement[, as set forth in
    22  paragraph one of this subdivision,] that compliance with  this  subdivi-
    23  sion  is  a  condition of participation in pool distributions authorized
    24  pursuant to this section and section  twenty-eight  hundred  seven-w  of
    25  this  article, then such condition of participation shall be deemed null
    26  and void [and, notwithstanding]. Notwithstanding section twelve of  this
    27  chapter,  failure to comply with [the provisions of] this subdivision by
    28  a general hospital [on and after the date of such  determination]  shall
    29  make  [such]  the  hospital liable for a civil penalty not to exceed ten
    30  thousand dollars for each [such] violation. The imposition of [such] the
    31  civil penalties shall be subject to [the provisions of] section twelve-a
    32  of this chapter.
    33    (n) A hospital or its  collection  agents  shall  not  report  adverse
    34  information about a patient to a consumer or financial reporting entity,
    35  or  commence  civil  action  against  a patient or delegate a collection
    36  activity to a debt collector for nonpayment for one hundred eighty  days
    37  after  the  first  post-service bill is issued; and a hospital shall not
    38  report adverse information to a consumer reporting agency, or commence a
    39  civil action against a patient or delegate a collection  activity  to  a
    40  debt collector, if: the hospital was notified that an appeal or a review
    41  of a health insurance decision is pending within the immediately preced-
    42  ing  sixty  days; or the patient has a pending application for or quali-
    43  fied for financial assistance.  A hospital shall report the  fulfillment
    44  of  a  patient's  payment  obligation within thirty days after the obli-
    45  gation is fulfilled to a consumer or financial reporting entity to which
    46  the hospital had reported adverse information about the patient.
    47    § 3. Subdivision 9-a of section 2807-k of the  public  health  law  as
    48  amended by section two of this act, is amended to read as follows:
    49    9-a.  (a)  (i)  As a condition for participation in pool distributions
    50  authorized pursuant to this section  and  section  twenty-eight  hundred
    51  seven-w  of  this  article  for  periods on and after January first, two
    52  thousand nine, general hospitals shall, effective  for  periods  on  and
    53  after  January first, two thousand [seven, establish] twenty-four, adopt
    54  and implement the uniform financial assistance [policies and procedures,
    55  in accordance with the provisions of this subdivision,] form and policy,
    56  to be developed and issued by the commissioner. General hospitals  shall
        A. 8441                             9

     1  implement  the uniform policy and form for reducing hospital charges and
     2  charges for affiliated  providers  otherwise  applicable  to  low-income
     3  individuals without third-party health coverage, or who have third-party
     4  health  coverage  that does not cover or limits coverage of the service,
     5  and who can demonstrate an inability to pay full charges, and  also,  at
     6  the hospital's discretion, for reducing or discounting the collection of
     7  co-pays  and  deductible  payments from those individuals who can demon-
     8  strate an inability to pay such amounts. Immigration status shall not be
     9  an eligibility  criterion  for  the  purpose  of  determining  financial
    10  assistance  under  this  section.  As  used in this section, "affiliated
    11  provider" means a provider that is: (A) employed by  the  hospital;  (B)
    12  under  a  professional  services  agreement  with the hospital; or (C) a
    13  clinical faculty member of a medical school or other school that  trains
    14  individuals  to be providers and that is affiliated with the hospital or
    15  health system.
    16    (ii) A general hospital may use the New York state of  health  market-
    17  place  eligibility  determination page to establish the patient's house-
    18  hold income and residency in lieu of  the  financial  application  form,
    19  provided  it  has secured the consent of the patient. A general hospital
    20  shall not require a patient to apply for coverage through the  New  York
    21  state  of  health  marketplace  in  order  to  receive care or financial
    22  assistance.
    23    (iii) Upon submission of a completed application form, the patient  is
    24  not liable for any bills until the general hospital has rendered a deci-
    25  sion on the application in accordance with this subdivision.
    26    (b)  The  reductions  from charges for patients described in paragraph
    27  (a) of this subdivision with incomes below six hundred  percent  of  the
    28  federal  poverty level shall result in a charge to such individuals that
    29  does not exceed the amount that  would  have  been  paid  for  the  same
    30  services provided pursuant to title XVIII of the federal social security
    31  act  (medicare), and provided further that such amount shall be adjusted
    32  according to income level as follows:
    33    (i) For patients with incomes at or below two hundred percent  of  the
    34  federal poverty level, the hospital shall collect no more than a nominal
    35  payment  amount,  consistent  with guidelines established by the commis-
    36  sioner.
    37    (ii) For patients with incomes above two hundred  percent  and  up  to
    38  four  hundred  percent  of the federal poverty level, the hospital shall
    39  collect no more than  the  amount  identified  after  application  of  a
    40  proportional  sliding  fee  schedule  under  which  patients  with lower
    41  incomes shall pay the lowest amount. The schedule shall provide that the
    42  amount the hospital may collect for the patient increases from the nomi-
    43  nal amount described in subparagraph (i)  of  this  paragraph  in  equal
    44  increments  as  the  income of the patient increases, up to a maximum of
    45  twenty percent of the amount that would have  been  paid  for  the  same
    46  services provided pursuant to title XVIII of the federal social security
    47  act (medicare).
    48    (iii)  For  patients with incomes above four hundred percent and up to
    49  six hundred percent of the federal poverty  level,  the  hospital  shall
    50  collect  no  more than the amount that would have been paid for the same
    51  services provided pursuant to title XVIII of the federal social security
    52  act (medicare).
    53    (c) Nothing in this subdivision shall be construed to limit  a  hospi-
    54  tal's  ability to establish patient eligibility for payment discounts at
    55  income levels higher than  those  specified  herein  and/or  to  provide
        A. 8441                            10

     1  greater  payment  discounts for eligible patients than those required by
     2  this subdivision.
     3    (d)  [Such  policies and procedures shall be clear, understandable, in
     4  writing and publicly available in summary form and  each]  Each  general
     5  hospital  participating  in  the pool shall ensure that every patient is
     6  made aware of the existence of [the policies and procedures] the uniform
     7  financial assistance form and  policy  and  is  provided,  in  a  timely
     8  manner, with [a summary and] a copy of the policy and form upon request.
     9  [Any  summary provided to patients shall, at a minimum, include specific
    10  information as to  income  levels  used  to  determine  eligibility  for
    11  assistance,  a  description  of the primary service area of the hospital
    12  and the means of applying for  assistance.]  A  general  hospital  shall
    13  notify  patients  by  providing  written  materials to patients or their
    14  authorized representatives during the intake and  registration  process,
    15  through  the  conspicuous posting of language-appropriate information in
    16  the general hospital, and by including information on bills  and  state-
    17  ments  sent  to  patients, that financial assistance may be available to
    18  qualified patients and how to obtain further information. General hospi-
    19  tals shall post the uniform financial  assistance  application  policy[,
    20  procedures] and form, and a summary of the policy [and procedures], in a
    21  conspicuous  location  and  downloadable  form on the general hospital's
    22  website. The commissioner shall post the  uniform  financial  assistance
    23  form  and  policy  in  downloadable  form  on  the department's hospital
    24  profile page or any successor website.
    25    (e) The [hospital's] commissioner shall provide application  materials
    26  to  general hospitals, including the uniform financial assistance appli-
    27  cation form and policy. These  application  materials  shall  include  a
    28  notice to patients that upon submission of a completed application form,
    29  the patient shall not be liable for any bills until the general hospital
    30  has  rendered  a  decision  on  the  application in accordance with this
    31  subdivision.  The application materials shall include specific  informa-
    32  tion  as  the  income levels used to determine eligibility for financial
    33  assistance, a description of the primary service area  of  the  hospital
    34  and the means to apply for assistance. Nothing in this subdivision shall
    35  be  construed  as precluding the use of presumptive eligibility determi-
    36  nations by hospitals on behalf of patients.  The  [policies  and  proce-
    37  dures]  uniform  application form and policy shall include clear, objec-
    38  tive criteria for  determining  a  patient's  ability  to  pay  and  for
    39  providing  such adjustments to payment requirements as are necessary. In
    40  addition to adjustment mechanisms such  as  sliding  fee  schedules  and
    41  discounts to fixed standards, [such policies and procedures] the uniform
    42  policy  shall  also  provide  for  the  use of installment plans for the
    43  payment of outstanding balances by patients [pursuant to the  provisions
    44  of  the  hospital's  financial  assistance  policy]. The monthly payment
    45  under such a plan shall not exceed five percent  of  the  gross  monthly
    46  income  of the patient. Installment plan payments may not be required to
    47  begin before one hundred eighty days after the date of  the  service  or
    48  discharge,  whichever  is  later. The policy shall allow the patient and
    49  the hospital to mutually agree to modify the  terms  of  an  installment
    50  plan.    The  rate  of  interest  charged  to  the patient on the unpaid
    51  balance, if any, shall not exceed two percentum per annum  and  no  plan
    52  shall include an accelerator or similar clause under which a higher rate
    53  of interest is triggered upon a missed payment. The [policies and proce-
    54  dures] uniform policy shall not include a requirement of a deposit prior
    55  to medically-necessary care. The hospital shall refund any payments made
    56  by  the  patient  before  the determination of eligibility for financial
        A. 8441                            11

     1  assistance that exceeds the  patient's  liability  after  discounts  are
     2  applied.   Such policies and procedures shall be applied consistently to
     3  all eligible patients.
     4    (f)  In  any  legal  action by or on behalf of a hospital to collect a
     5  medical debt, the complaint shall be accompanied by an affidavit by  the
     6  hospital's  chief  financial  officer  stating  that  on information and
     7  belief the patient does not meet the income or  residency  criteria  for
     8  financial assistance. Patients may apply for financial assistance at any
     9  time  during the collection process, including after the commencement of
    10  a medical debt court action or upon the plaintiff  obtaining  a  default
    11  judgment. A hospital may use credit scoring software for the purposes of
    12  establishing  income eligibility and approving financial assistance, but
    13  only if the hospital makes clear to the patient that providing a  social
    14  security  number  is  not  mandatory and the scoring does not negatively
    15  impact the patient's credit score.   However,  credit  scoring  software
    16  shall  not  be solely relied upon by the hospital in denying a patient's
    17  application for financial  assistance.  The  [policies  and  procedures]
    18  uniform  policy  and form shall allow patients seeking financial assist-
    19  ance to provide the following financial information and documentation in
    20  support of their application:   pay checks or  pay  stubs;  unemployment
    21  documentation;  social security income; rent receipts; a letter from the
    22  patient's employer attesting to the patient's gross income; or, if  none
    23  of  the  aforementioned  information  and documentation are available, a
    24  written self-attestation of the patient's income may  be  used.  General
    25  hospitals  shall,  upon  request,  assist  patients in understanding the
    26  [hospital's application  and  form,  policies  and  procedures]  uniform
    27  financial  assistance  application  form  and policy and in applying for
    28  payment adjustments. [Application forms shall be printed and posted] The
    29  commissioner shall translate the uniform financial  assistance  applica-
    30  tion form and policy into the "primary languages" of each general hospi-
    31  tal.  Each  general hospital shall print and post these materials to its
    32  website in the "primary languages" of patients  served  by  the  general
    33  hospital.  For the purposes of this paragraph, "primary languages" shall
    34  include any language that is either (i) used to communicate,  during  at
    35  least  five  percent of patient visits in a year, by patients who cannot
    36  speak, read, write or understand the English language at  the  level  of
    37  proficiency  necessary  for  effective  communication  with  health care
    38  providers, or (ii) spoken by non-English speaking individuals comprising
    39  more than one percent of the primary hospital service  area  population,
    40  as  calculated  using  demographic information available from the United
    41  States Bureau of the Census, supplemented by data from  school  systems.
    42  Decisions  regarding  such applications shall be made within thirty days
    43  of receipt of a completed application.  The  [policies  and  procedures]
    44  uniform  financial  assistance  policy  shall  require that the hospital
    45  issue any denial or approval of the application in writing with informa-
    46  tion on how to appeal the denial  and  shall  require  the  hospital  to
    47  establish  an appeals process under which it will evaluate the denial of
    48  an application. The hospital shall inform patients  on  how  to  file  a
    49  complaint against the hospital or a debt collector that is contracted on
    50  behalf of the hospital regarding the patient's bill.
    51    (g)  The [policies and procedures] uniform financial assistance policy
    52  shall provide that patients with incomes below six  hundred  percent  of
    53  the  federal  poverty  level are deemed eligible for payment adjustments
    54  and shall conform to the requirements set forth in paragraph (b) of this
    55  subdivision, provided, however, that nothing in this  subdivision  shall
    56  be  interpreted  as  precluding  hospitals  from  extending such payment
        A. 8441                            12

     1  adjustments to other patients, either generally  or  on  a  case-by-case
     2  basis. The [policies and procedures] uniform policy shall provide finan-
     3  cial  assistance  for  emergency  hospital services, including emergency
     4  transfers pursuant to the federal emergency medical treatment and active
     5  labor  act (42 USC 1395dd), to patients who reside in New York state and
     6  for medically necessary hospital services for patients who reside in the
     7  hospital's primary service area  as  determined  according  to  criteria
     8  established by the commissioner. In developing the criteria, the commis-
     9  sioner  shall  consult  with  representatives  of the hospital industry,
    10  health care consumer advocates and local public  health  officials.  The
    11  criteria  shall be made available to the public no less than thirty days
    12  prior to the date of implementation and shall, at a minimum:
    13    (i) prohibit a  hospital  from  developing  or  altering  its  primary
    14  service  area in a manner designed to avoid medically underserved commu-
    15  nities or communities with high percentages of uninsured residents;
    16    (ii) ensure that every geographic area of the state is included in  at
    17  least  one  general  hospital's  primary  service  area so that eligible
    18  patients may access care and financial assistance; and
    19    (iii) require the hospital to notify the commissioner upon making  any
    20  change  to its primary service area, and to include a description of its
    21  primary service area in  the  hospital's  annual  implementation  report
    22  filed  pursuant  to  subdivision  three  of section twenty-eight hundred
    23  three-l of this article.
    24    (h) Nothing in this subdivision shall  be  interpreted  as  precluding
    25  hospitals  from  extending  payment  adjustments for medically necessary
    26  non-emergency hospital services to patients outside  of  the  hospital's
    27  primary  service area. For patients determined to be eligible for finan-
    28  cial assistance under the terms of [a hospital's] the uniform  financial
    29  assistance  policy,  the  [policies and procedures] financial assistance
    30  policy shall  prohibit  any  limitations  on  financial  assistance  for
    31  services  based  on  the  medical condition of the applicant, other than
    32  typical limitations or exclusions based  on  medical  necessity  or  the
    33  clinical or therapeutic benefit of a procedure or treatment.
    34    (i)  A  hospital  or its agent shall not issue, authorize or permit an
    35  income execution of a patient's wages, secure a lien or force a sale  or
    36  foreclosure  of  a  patient's  primary  residence in order to collect an
    37  outstanding medical bill and shall not send an account to collection  if
    38  the  patient has submitted a completed application for financial assist-
    39  ance, while the hospital determines the patient's eligibility for finan-
    40  cial assistance.   The [policies and procedures]  uniform  policy  shall
    41  provide  for written notification, which shall include notification on a
    42  patient bill, to a patient not less than thirty days prior to the refer-
    43  ral of debts for collection and shall require that the collection agency
    44  obtain the hospital's  written  consent  prior  to  commencing  a  legal
    45  action.   The [policies and procedures] uniform policy shall require all
    46  general hospital staff who interact with patients or have responsibility
    47  for billing and collections to be trained in the  [policies  and  proce-
    48  dures]  policy,  and  require  the implementation of a mechanism for the
    49  general hospital to measure its compliance with the [policies and proce-
    50  dures] policy.  The  [policies  and  procedures]  uniform  policy  shall
    51  require that any collection agency, lawyer or firm under contract with a
    52  general  hospital  for  the  collection of debts follow the [hospital's]
    53  uniform financial assistance policy, including providing information  to
    54  patients  on  how  to  apply for financial assistance where appropriate.
    55  The [policies and procedures] uniform policy shall prohibit  collections
    56  from  a  patient who is determined to be eligible for medical assistance
        A. 8441                            13

     1  under title eleven of article five of the social  services  law  at  the
     2  time  services  were rendered and for which services medicaid payment is
     3  available.
     4    (j) Reports required to be submitted to the department by each general
     5  hospital as a condition for participation in the pools shall contain:
     6    (i) a certification from an independent certified public accountant or
     7  independent  licensed  public accountant or an attestation from a senior
     8  official of the hospital that the hospital is in compliance with  condi-
     9  tions of participation in the pools;
    10    (ii)  a  report  on hospital costs incurred and uncollected amounts in
    11  providing services to patients found eligible for financial  assistance,
    12  including  the  amount  of  care  provided for a nominal payment amount,
    13  during the period covered by the report;
    14    (iii) hospital costs incurred and uncollected amounts for  deductibles
    15  and coinsurance for eligible patients with insurance or other third-par-
    16  ty payor coverage;
    17    (iv)  the  number  of  patients,  organized according to United States
    18  postal service zip code, race, ethnicity and  gender,  who  applied  for
    19  financial assistance under the [hospital's] uniform financial assistance
    20  policy,  and  the  number,  organized  according to United States postal
    21  service zip code, race, ethnicity and gender,  whose  applications  were
    22  approved and whose applications were denied;
    23    (v)  the reimbursement received for indigent care from the pool estab-
    24  lished under this section;
    25    (vi) the amount of funds that have been expended on financial  assist-
    26  ance from charitable bequests made or trusts established for the purpose
    27  of  providing  financial  assistance  to  patients  who  are eligible in
    28  accordance with the terms of the bequests or trusts;
    29    (vii) for hospitals located in social services districts in which  the
    30  district allows hospitals to assist patients with such applications, the
    31  number  of  applications for eligibility for medicaid under title eleven
    32  of article five of the social services law that  the  hospital  assisted
    33  patients in completing and the number denied and approved;
    34    (viii)   the  hospital's  financial  losses  resulting  from  services
    35  provided under medicaid; and
    36    (ix) the number  of  referrals  to  collection  agents  or  contracted
    37  external  collection  vendors, court cases and liens placed on any resi-
    38  dences of patients through the collection process used by a hospital.
    39    (k) [Within ninety days of the effective date of the  chapter  of  the
    40  laws  of  two  thousand  twenty-two  which amended this subdivision each
    41  hospital shall submit to the commissioner a written report on its  poli-
    42  cies  and procedures for financial assistance to patients which are used
    43  by the hospital as of such effective date.  Such  report  shall  include
    44  copies  of  its  policies  and  procedures,  including material which is
    45  distributed to patients, and a description of the  hospital's  financial
    46  aid  policies  and procedures. Such description shall include the income
    47  levels of patients on which eligibility  is  based,  the  financial  aid
    48  eligible patients receive and the means of calculating such aid, and the
    49  service area, if any, used by the hospital to determine eligibility.
    50    (l)] The commissioner shall include the data collected under paragraph
    51  (j) of this subdivision in regular audits of the annual general hospital
    52  institutional cost report.
    53    [(m)]  (l)  In  the  event the state is unable to secure all necessary
    54  federal approvals to include, as part of the state's approved state plan
    55  under title nineteen of the federal social security act,  a  requirement
    56  that compliance with this subdivision is a condition of participation in
        A. 8441                            14

     1  pool distributions authorized pursuant to this section and section twen-
     2  ty-eight hundred seven-w of this article, then such condition of partic-
     3  ipation shall be deemed null and void. Notwithstanding section twelve of
     4  this  chapter,  failure  to  comply  with  this subdivision by a general
     5  hospital shall make the hospital liable  for  a  civil  penalty  not  to
     6  exceed  ten  thousand  dollars for each violation. The imposition of the
     7  civil penalties shall be subject to section twelve-a of this chapter.
     8    [(n)] (m) A hospital or its collection agents shall not report adverse
     9  information about a patient to a consumer or financial reporting entity,
    10  or commence civil action against a  patient  or  delegate  a  collection
    11  activity  to a debt collector for nonpayment for one hundred eighty days
    12  after the first post-service bill is issued; and a  hospital  shall  not
    13  report adverse information to a consumer reporting agency, or commence a
    14  civil  action  against  a patient or delegate a collection activity to a
    15  debt collector, if: the hospital was notified that an appeal or a review
    16  of a health insurance decision is pending within the immediately preced-
    17  ing sixty days; or the patient has a pending application for  or  quali-
    18  fied  for financial assistance.  A hospital shall report the fulfillment
    19  of a patient's payment obligation within thirty  days  after  the  obli-
    20  gation is fulfilled to a consumer or financial reporting entity to which
    21  the hospital had reported adverse information about the patient.
    22    §  4.  Subdivision  14  of  section 2807-k of the public health law is
    23  REPEALED and subdivisions 15, 16 and 17 are renumbered subdivisions  14,
    24  15 and 16.
    25    §  5.  This  act  shall  take  effect immediately; provided   that (a)
    26  section two of this act shall take effect on the one  hundred  twentieth
    27  day  after it shall have become a law; and (b) sections one and three of
    28  this act shall take effect October 1, 2023 and apply to funding distrib-
    29  utions made on or after January 1, 2024.    Effective  immediately,  the
    30  commissioner  of  health  may  make  regulations  and take other actions
    31  reasonably necessary to implement sections one, two and  three  of  this
    32  act on their respective effective dates.