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. LBD15654-01-4S. 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 theS. 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 containS. 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.