Bill Text: NY S09621 | 2023-2024 | General Assembly | Introduced

---

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-16 - REFERRED TO INSURANCE [S09621 Detail]

Download: New_York-2023-S09621-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          9621

                    IN SENATE

                                      May 16, 2024
                                       ___________

        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:

     1    Section  1. Section 3217-b of the insurance law is amended by adding a
     2  new subsection (p) to read as follows:
     3    (p)(1) An insurer may pay a claim for reimbursement made by a provider
     4  using a credit card, virtual credit card, or electronic  funds  transfer
     5  payment  method  that imposes on the provider a fee or similar charge to
     6  process the payment if in advance of using such reimbursement method:
     7    (A) The insurer notifies the provider of the potential fees  or  other
     8  charges associated with the use of the credit card, virtual credit card,
     9  or electronic funds transfer payment;
    10    (B) The insurer offers the provider an alternative payment method that
    11  does not impose fees or similar charges on the provider; and
    12    (C)  The  provider  or  a  designee  of  the provider elects to accept
    13  payment of the claim using the credit  card,  virtual  credit  card,  or
    14  electronic funds transfer payment method.
    15    (2)  A  decision  pursuant  to  paragraph one of this subsection shall
    16  remain in effect until the provider changes the designated payment type.
    17    (3) If an insurer contracts with  a  vendor  to  process  payments  of
    18  providers'  claims,  the insurer shall require the vendor to comply with
    19  the provisions of paragraph one of this subsection.
    20    (4) No policy  or  contract  issued,  renewed,  modified,  altered  or
    21  amended   after  the  effective  date  of  this  section  shall  contain
    22  provisions allowing for waiver of the notice requirements  contained  in
    23  this subsection.
    24    (5) For any contract that is in effect on or before the effective date
    25  of  this  subsection  or  that is entered into, amended or renewed on or
    26  after the effective date of this subsection, a carrier that initiates  a
    27  payment  to a provider using, or changes the payment method to, a health

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15654-01-4
        S. 9621                             2

     1  care electronic funds transfers and remittance advice transaction  shall
     2  not  charge  a fee solely to transmit the payment to the provider unless
     3  the provider consents to the fee.
     4    (6)  For  purposes  of this subsection, the following terms shall have
     5  the following meanings:
     6    (A) "Provider" shall  mean  an  individual  or  group  of  individuals
     7  licensed pursuant to title eight of the education law.
     8    (B)  "Virtual  credit  card" shall mean a single-use series of numbers
     9  linked to a fixed dollar amount and provided by an insurer to a provider
    10  for the purpose of paying a claim for health care services performed  by
    11  the provider.
    12    § 2. The insurance law is amended by adding a new section 4242 to read
    13  as follows:
    14    §  4242.  Use  of virtual credit cards. (a) An insurer may pay a claim
    15  for reimbursement made by a provider using a credit card, virtual credit
    16  card, or electronic funds transfer payment method that  imposes  on  the
    17  provider a fee or similar charge to process the payment if in advance of
    18  using such reimbursement method:
    19    (1)  The  insurer notifies the provider of the potential fees or other
    20  charges associated with the use of the credit card, virtual credit card,
    21  or electronic funds transfer payment;
    22    (2) The insurer offers the provider an alternative payment method that
    23  does not impose fees or similar charges on the provider; and
    24    (3) The provider or a  designee  of  the  provider  elects  to  accept
    25  payment  of  the  claim  using  the credit card, virtual credit card, or
    26  electronic funds transfer payment method.
    27    (b) A decision pursuant to subsection (a) of this section shall remain
    28  in effect until the provider changes the designated payment type.
    29    (c) If an insurer contracts with  a  vendor  to  process  payments  of
    30  providers'  claims,  the insurer shall require the vendor to comply with
    31  the provisions of subsection (a) of this section.
    32    (d) No policy  or  contract  issued,  renewed,  modified,  altered  or
    33  amended   after  the  effective  date  of  this  section  shall  contain
    34  provisions allowing for waiver of the notice requirements  contained  in
    35  this section.
    36    (e) For any contract that is in effect on or before the effective date
    37  of  this section or that is entered into, amended or renewed on or after
    38  the effective date of this section, a carrier that initiates  a  payment
    39  to  a  provider  using,  or changes the payment method to, a health care
    40  electronic funds transfers and remittance advice transaction  shall  not
    41  charge  a  fee solely to transmit the payment to the provider unless the
    42  provider consents to the fee.
    43    (f) For purposes of this section, the following terms shall  have  the
    44  following meanings:
    45    (1)  "Provider"  shall  mean  an  individual  or  group of individuals
    46  licensed pursuant to title eight of the education law.
    47    (2) "Virtual credit card" shall mean a single-use  series  of  numbers
    48  linked to a fixed dollar amount and provided by an insurer to a provider
    49  for  the purpose of paying a claim for health care services performed by
    50  the provider.
    51    § 3. Section 4325 of the insurance law is  amended  by  adding  a  new
    52  subsection (p) to read as follows:
    53    (p) (1) A corporation organized under this article may pay a claim for
    54  reimbursement  made  by  a  provider using a credit card, virtual credit
    55  card, or electronic funds transfer payment method that  imposes  on  the
        S. 9621                             3

     1  provider a fee or similar charge to process the payment if in advance of
     2  using such reimbursement method:
     3    (A)  The  insurer notifies the provider of the potential fees or other
     4  charges associated with the use of the credit card, virtual credit card,
     5  or electronic funds transfer payment;
     6    (B) The insurer offers the provider an alternative payment method that
     7  does not impose fees or similar charges on the provider; and
     8    (C) The provider or a  designee  of  the  provider  elects  to  accept
     9  payment  of  the  claim  using  the credit card, virtual credit card, or
    10  electronic funds transfer payment method.
    11    (2) A decision pursuant to paragraph  one  of  this  subsection  shall
    12  remain in effect until the provider changes the designated payment type.
    13    (3)  If  an  insurer  contracts  with  a vendor to process payments of
    14  providers' claims, the insurer shall require the vendor to  comply  with
    15  the provisions of paragraph one of this subsection.
    16    (4)  No  policy  or  contract  issued,  renewed,  modified, altered or
    17  amended  after  the  effective  date  of  this  section  shall   contain
    18  provisions  allowing  for waiver of the notice requirements contained in
    19  this subsection.
    20    (5) For any contract that is in effect on or before the effective date
    21  of this subsection or that is entered into, amended  or  renewed  on  or
    22  after  the effective date of this subsection, a carrier that initiates a
    23  payment to a provider using, or changes the payment method to, a  health
    24  care  electronic funds transfers and remittance advice transaction shall
    25  not charge a fee solely to transmit the payment to the  provider  unless
    26  the provider consents to the fee.
    27    (6)  For  purposes  of this subsection, the following terms shall have
    28  the following meanings:
    29    (A) "Provider" shall  mean  an  individual  or  group  of  individuals
    30  licensed pursuant to title eight of the education law.
    31    (B)  "Virtual  credit  card" shall mean a single-use series of numbers
    32  linked to a fixed dollar amount and provided by a corporation  organized
    33  under  this  article to a provider for the purpose of paying a claim for
    34  health care services performed by the provider.
    35    § 4. Section 4406-c of the public health law is amended  by  adding  a
    36  new subdivision 14 to read as follows:
    37    14.  (a)  A  health  plan  may pay a claim for reimbursement made by a
    38  provider using a credit card, virtual credit card, or  electronic  funds
    39  transfer  payment  method  that imposes on the provider a fee or similar
    40  charge to process the payment if in advance of using such  reimbursement
    41  method:
    42    (i)  The  insurer notifies the provider of the potential fees or other
    43  charges associated with the use of the credit card, virtual credit card,
    44  or electronic funds transfer payment;
    45    (ii) The insurer offers the provider  an  alternative  payment  method
    46  that does not impose fees or similar charges on the provider; and
    47    (iii)  The  provider  or  a  designee of the provider elects to accept
    48  payment of the claim using the credit  card,  virtual  credit  card,  or
    49  electronic funds transfer payment method.
    50    (b)  A  decision  pursuant  to paragraph (a) of this subdivision shall
    51  remain in effect until the provider changes the designated payment type.
    52    (c) If an insurer contracts with  a  vendor  to  process  payments  of
    53  providers'  claims,  the insurer shall require the vendor to comply with
    54  the provisions of paragraph (a) of this subdivision.
    55    (d) No policy  or  contract  issued,  renewed,  modified,  altered  or
    56  amended   after  the  effective  date  of  this  section  shall  contain
        S. 9621                             4

     1  provisions allowing for waiver of the notice requirements  contained  in
     2  this subdivision.
     3    (e) For any contract that is in effect on or before the effective date
     4  of  this  subdivision  or that is entered into, amended or renewed on or
     5  after the effective date of this subdivision, a carrier that initiates a
     6  payment to a provider using, or changes the payment method to, a  health
     7  care  electronic funds transfers and remittance advice transaction shall
     8  not charge a fee solely to transmit the payment to the  provider  unless
     9  the provider consents to the fee.
    10    (f)  For  purposes  of  this  section, the following definitions shall
    11  apply:
    12    (i) "Provider" shall  mean  an  individual  or  group  of  individuals
    13  licensed pursuant to title eight of the education law.
    14    (ii)  "Virtual  credit card" shall mean a single-use series of numbers
    15  linked to a fixed dollar amount and provided by an insurer to a provider
    16  for the purpose of paying a claim for health care services performed  by
    17  the provider.
    18    §  5.  This act shall take effect immediately and shall apply to poli-
    19  cies and contracts issued, renewed, modified, altered or amended on  and
    20  after such date.