Bill > A03986

This bill authorizes insurers, health care corporations, and health care plans to pay provider claims using credit cards, virtual credit cards (a single-use payment method linked to a specific dollar amount), or electronic funds transfers, even if these methods include processing fees, but only under specific conditions. The bill requires that before using such payment methods, the insurer must: (1) notify the provider about potential fees associated with the payment method, (2) offer an alternative payment method without fees, and (3) obtain the provider's consent to use the fee-generating payment method. Additionally, the bill stipulates that any vendor processing these payments must comply with these requirements, and insurers cannot include contract provisions that waive these notice requirements. The legislation applies to health care professionals licensed under New York's education law who have participating provider contracts, and it will take effect 180 days after becoming law, applying to policies and contracts issued or renewed after that date. The primary goal appears to be protecting healthcare providers from unexpected or mandatory payment processing fees while providing transparency and choice in payment methods.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A3986