Bill > S08817

This bill amends existing laws concerning how insurers and certain health care plans, referred to as "corporations organized under this article" or "health care plans," can pay healthcare providers for services rendered. Specifically, it clarifies that these entities can use payment methods like credit cards, virtual credit cards (which are single-use numbers for a specific dollar amount used to pay a claim), or electronic funds transfers, even if these methods involve fees for the provider. However, before doing so, the insurer or plan must notify the provider of any potential fees and offer an alternative payment method that does not incur fees. If the provider doesn't choose a payment method within thirty days of receiving the notice, the insurer or plan must use the fee-free alternative unless they lack the necessary information, in which case they can use another fee-free method to meet payment deadlines. The bill also clarifies that if an insurer or plan uses a vendor to process payments, the vendor must comply with these rules, but this doesn't apply to vendors used by providers to receive payments. Furthermore, it prohibits contracts from waiving these notice requirements and specifies that for existing or renewed contracts, fees cannot be charged for electronic payments unless the provider explicitly elects to accept them under the new terms. The bill also adjusts the effective date of a related 2025 law to ensure these provisions apply to contracts issued, renewed, modified, altered, or amended on or after that date.

https://www.nysenate.gov/legislation/bills/2025/S8817