Bill Text: NY S09702 | 2023-2024 | General Assembly | Introduced

New York Senate Bill 9702

Introduced

Bill Title: Prohibits the retrospective denial of payment for substance use disorder treatment services if an insured was covered for such services at the time treatment was initiated; requires insurers to notify a treatment provider when an insured has lost coverage based on termination of the insured's employment.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-22 - REFERRED TO INSURANCE [S09702 Detail]

Download: New_York-2023-S09702-Introduced.html




                STATE OF NEW YORK
        ________________________________________________________________________

                                          9702

                    IN SENATE

                                      May 22, 2024
                                       ___________

        Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance

        AN ACT to amend the insurance law, in relation to prohibiting the retro-
          spective denial  of  payment  for  substance  use  disorder  treatment
          services

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

     1    Section 1. The insurance law is amended by adding a new  section  3246
     2  to read as follows:
     3    §  3246.  Retrospective  denial  of  payment of substance use disorder
     4  treatment services. Notwithstanding any  other  provision  of  law,  any
     5  retrospective  denial  of  payment  of  substance use disorder treatment
     6  services provided that are based on the insured individual's eligibility
     7  shall be prohibited after the provider has  verified  with  the  insurer
     8  that the insured has coverage for such treatment at the time such treat-
     9  ment  was  initiated. The insurer shall immediately notify the treatment
    10  provider when an insured has lost coverage based on termination  of  the
    11  insured's  employment  and  provided,  further,  that denial of coverage
    12  shall be based on termination of employment and shall not  be  based  on
    13  suspension  of  employment. Failure of the insurer to immediately notify
    14  the treatment provider of such termination of employment shall  preclude
    15  any  retrospective  review  based  on  the insured's eligibility.   This
    16  section shall be applicable to  the  New  York  state  health  insurance
    17  program.
    18    § 2. This act shall take effect immediately.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14954-01-4