Bill > S05323

This bill amends the New York insurance law to strengthen penalties for insurers and their subcontractors who fail to promptly and fairly settle health care claims. Specifically, the bill authorizes the superintendent of insurance to impose penalties directly on subcontractors if they can be reasonably demonstrated to be responsible for a failure to adhere to claim settlement standards. Additionally, the bill allows the superintendent to double the penalties for insurers or organizations that show a pattern of not meeting these standards. Under the existing law, insurers are already required to pay the full claim amount plus interest if they violate claim processing standards, and this bill adds an extra layer of accountability by targeting subcontractors and introducing more severe penalty provisions. The bill will take effect 90 days after becoming law and will apply to all health care claims submitted after that date, giving insurers and subcontractors time to adjust to the new requirements.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5323