Bill Text: NY A05296 | 2009-2010 | General Assembly | Introduced


Bill Title: An act to amend the insurance law and the public health law, in relation to prohibiting certain adverse reimbursement change to a contract with a physician; and in relation to grievance procedures and providing access to specialty care

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - referred to insurance [A05296 Detail]

Download: New_York-2009-A05296-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5296
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                   February 11, 2009
                                      ___________
       Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
         tee on Insurance
       AN ACT to amend the insurance law and the public health law, in relation
         to prohibiting certain adverse reimbursement change to a contract with
         a physician; and in relation to  grievance  procedures  and  providing
         access to specialty care
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subsections (g) and (h) of section 3217-b of the  insurance
    2  law,  subsection  (g)  as relettered by chapter 586 of the laws of 1998,
    3  are relettered subsections (h) and (i) and a new subsection (g) is added
    4  to read as follows:
    5    (G)(1) NO INSURER SHALL IMPLEMENT AN ADVERSE REIMBURSEMENT CHANGE TO A
    6  CONTRACT WITH A PHYSICIAN THAT IS OTHERWISE PERMITTED BY  THE  CONTRACT,
    7  UNLESS, PRIOR TO THE EFFECTIVE DATE OF THE CHANGE, THE INSURER GIVES THE
    8  PHYSICIAN  WITH  WHOM  THE  INSURER  HAS  DIRECTLY CONTRACTED AND WHO IS
    9  IMPACTED BY THE ADVERSE REIMBURSEMENT CHANGE, AT LEAST NINETY DAYS WRIT-
   10  TEN NOTICE OF THE CHANGE. IF THE CONTRACTING PHYSICIAN  OBJECTS  TO  THE
   11  CHANGE  THAT  IS THE SUBJECT OF THE NOTICE BY THE INSURER, THE PHYSICIAN
   12  MAY, WITHIN THIRTY DAYS OF THE DATE OF THE NOTICE, GIVE  WRITTEN  NOTICE
   13  TO  THE INSURER TO TERMINATE HIS OR HER CONTRACT WITH THE INSURER EFFEC-
   14  TIVE UPON THE IMPLEMENTATION DATE OF THE ADVERSE  REIMBURSEMENT  CHANGE.
   15  FOR  THE  PURPOSES  OF  THIS SUBSECTION, THE TERM "ADVERSE REIMBURSEMENT
   16  CHANGE" SHALL MEAN A PROPOSED CHANGE THAT COULD REASONABLY  BE  EXPECTED
   17  TO  HAVE  THE  EFFECT  OF  MATERIALLY REDUCING THE LEVEL OF PAYMENT TO A
   18  PHYSICIAN. THE NOTICE PROVISIONS REQUIRED BY THIS SUBSECTION  SHALL  NOT
   19  APPLY WHERE: (A) SUCH CHANGE IS OTHERWISE REQUIRED BY LAW, REGULATION OR
   20  APPLICABLE  REGULATORY  AUTHORITY, OR IS REQUIRED AS A RESULT OF CHANGES
   21  IN FEE SCHEDULES, REIMBURSEMENT METHODOLOGY OR PAYMENT  POLICIES  ESTAB-
   22  LISHED  BY A GOVERNMENT AGENCY; OR (B) SUCH CHANGE IS EXPRESSLY PROVIDED
   23  FOR UNDER THE TERMS OF THE CONTRACT BY THE INCLUSION OF OR REFERENCE  TO
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08737-01-9
       A. 5296                             2
    1  A  SPECIFIC  FEE  OR  FEE SCHEDULE, REIMBURSEMENT METHODOLOGY OR PAYMENT
    2  POLICY INDEXING MECHANISM.
    3    (2)  NOTHING IN THIS SUBSECTION SHALL CREATE A PRIVATE RIGHT OF ACTION
    4  ON BEHALF OF A PHYSICIAN AGAINST  AN  INSURER  FOR  VIOLATIONS  OF  THIS
    5  SUBSECTION.
    6    S  2.  The  insurance law is amended by adding a new section 3217-d to
    7  read as follows:
    8    S 3217-D. GRIEVANCE PROCEDURE AND ACCESS TO SPECIALTY CARE.    (A)  AN
    9  INSURER  THAT  ISSUES  A COMPREHENSIVE POLICY THAT UTILIZES A NETWORK OF
   10  PROVIDERS AND IS NOT A MANAGED CARE HEALTH INSURANCE CONTRACT AS DEFINED
   11  IN SUBSECTION (C) OF SECTION FOUR THOUSAND EIGHT  HUNDRED  ONE  OF  THIS
   12  CHAPTER  SHALL  ESTABLISH  AND MAINTAIN A GRIEVANCE PROCEDURE CONSISTENT
   13  WITH THE REQUIREMENTS OF SECTION FOUR THOUSAND EIGHT HUNDRED TWO OF THIS
   14  CHAPTER.
   15    (B) AN INSURER THAT ISSUES A  COMPREHENSIVE  POLICY  THAT  UTILIZES  A
   16  NETWORK OF PROVIDERS AND IS NOT A MANAGED CARE HEALTH INSURANCE CONTRACT
   17  AS  DEFINED IN SUBSECTION (C) OF SECTION FOUR THOUSAND EIGHT HUNDRED ONE
   18  OF THIS CHAPTER AND REQUIRES THAT SPECIALTY CARE BE PROVIDED PURSUANT TO
   19  A REFERRAL FROM A PRIMARY CARE PROVIDER SHALL  PROVIDE  ACCESS  TO  SUCH
   20  SPECIALTY  CARE CONSISTENT WITH THE REQUIREMENTS OF SUBSECTIONS (B), (C)
   21  AND (D) OF SECTION FOUR THOUSAND EIGHT HUNDRED  FOUR  OF  THIS  CHAPTER;
   22  PROVIDED HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO REQUIRE THAT
   23  AN  INSURER, OR A PRIMARY CARE PROVIDER ON BEHALF OF THE INSURER, MAKE A
   24  REFERRAL TO A PROVIDER THAT IS NOT IN THE INSURER'S NETWORK.
   25    (C) AN INSURER THAT ISSUES A  COMPREHENSIVE  POLICY  THAT  UTILIZES  A
   26  NETWORK OF PROVIDERS AND IS NOT A MANAGED CARE HEALTH INSURANCE CONTRACT
   27  AS  DEFINED IN SUBSECTION (C) OF SECTION FOUR THOUSAND EIGHT HUNDRED ONE
   28  OF THIS CHAPTER SHALL PROVIDE ACCESS  TO  TRANSITIONAL  CARE  CONSISTENT
   29  WITH  THE  REQUIREMENTS OF SUBSECTIONS (E) AND (F) OF SECTION FOUR THOU-
   30  SAND EIGHT HUNDRED FOUR OF THIS CHAPTER.
   31    S 3. Paragraph (B) of paragraph 2 of subsection (e) of section 3231 of
   32  the insurance law, as added by chapter 501  of  the  laws  of  1992,  is
   33  amended to read as follows:
   34    (B) Each calendar year, an insurer shall return, in the form of aggre-
   35  gate  benefits  for  each  policy  form  filed pursuant to the alternate
   36  procedure set forth in this paragraph at least seventy-five  percent  of
   37  the  aggregate premiums collected for the policy form during that calen-
   38  dar year. Insurers shall annually report, no later  than  May  first  of
   39  each year, the loss ratio calculated pursuant to this paragraph for each
   40  such  policy form for the previous calendar year. In each case where the
   41  loss ratio for a policy form  fails  to  comply  with  the  seventy-five
   42  percent  loss  ratio  requirement, the insurer shall issue a dividend or
   43  credit against future premiums for all policy holders with  that  policy
   44  form  in an amount sufficient to assure that the aggregate benefits paid
   45  in the previous calendar year plus the amount of the dividends and cred-
   46  its shall equal seventy-five percent of the aggregate premiums collected
   47  for the policy form in the previous calendar year. The dividend or cred-
   48  it shall be issued to each policy which was in  effect  as  of  December
   49  thirty-first  of  the  applicable  year [and remains in effect as of the
   50  date the dividend or credit is issued]. AN INSURER SHALL MAKE A  REASON-
   51  ABLE  EFFORT TO IDENTIFY THE CURRENT ADDRESS OF THOSE POLICY HOLDERS WHO
   52  ARE NO LONGER POLICY HOLDERS WHEN THE DIVIDEND OR CREDIT IS ISSUED.  All
   53  dividends  and credits must be distributed by September thirtieth of the
   54  year following the calendar year in which the  loss  ratio  requirements
   55  were  not satisfied.  The annual report required by this paragraph shall
   56  include an insurer's calculation of the dividends and credits,  as  well
       A. 5296                             3
    1  as  an  explanation of the insurer's plan to issue dividends or credits.
    2  The instructions and format for calculating and  reporting  loss  ratios
    3  and  issuing  dividends or credits shall be specified by the superinten-
    4  dent  by  regulation.  Such regulations shall include provisions for the
    5  distribution of a dividend or credit in the  event  of  cancellation  or
    6  termination by a policy holder.
    7    S  4.  The  insurance law is amended by adding a new section 4306-c to
    8  read as follows:
    9    S 4306-C. GRIEVANCE PROCEDURE AND ACCESS TO SPECIALTY  CARE.    (A)  A
   10  CORPORATION,  INCLUDING  A  MUNICIPAL  COOPERATIVE  HEALTH BENEFITS PLAN
   11  CERTIFIED PURSUANT TO ARTICLE FORTY-SEVEN OF THIS CHAPTER, THAT ISSUES A
   12  COMPREHENSIVE CONTRACT THAT UTILIZES A NETWORK OF PROVIDERS AND IS NOT A
   13  MANAGED CARE HEALTH INSURANCE CONTRACT AS DEFINED IN SUBSECTION  (C)  OF
   14  SECTION  FOUR THOUSAND EIGHT HUNDRED ONE OF THIS CHAPTER SHALL ESTABLISH
   15  AND MAINTAIN A GRIEVANCE PROCEDURE CONSISTENT WITH THE  REQUIREMENTS  OF
   16  SECTION FOUR THOUSAND EIGHT HUNDRED TWO OF THIS CHAPTER.
   17    (B)  A  CORPORATION, INCLUDING A MUNICIPAL COOPERATIVE HEALTH BENEFITS
   18  PLAN CERTIFIED PURSUANT TO ARTICLE FORTY-SEVEN  OF  THIS  CHAPTER,  THAT
   19  ISSUES A COMPREHENSIVE CONTRACT THAT UTILIZES A NETWORK OF PROVIDERS AND
   20  IS NOT A MANAGED CARE HEALTH INSURANCE CONTRACT AS DEFINED IN SUBSECTION
   21  (C)  OF  SECTION  FOUR  THOUSAND  EIGHT  HUNDRED ONE OF THIS CHAPTER AND
   22  REQUIRES THAT SPECIALTY CARE BE PROVIDED PURSUANT TO A REFERRAL  FROM  A
   23  PRIMARY  CARE  PROVIDER  SHALL  PROVIDE  ACCESS  TO  SUCH SPECIALTY CARE
   24  CONSISTENT WITH THE REQUIREMENTS OF SUBSECTIONS  (B),  (C)  AND  (D)  OF
   25  SECTION  FOUR  THOUSAND  EIGHT  HUNDRED  FOUR  OF THIS CHAPTER; PROVIDED
   26  HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO REQUIRE THAT A CORPO-
   27  RATION, OR A PRIMARY CARE PROVIDER ON BEHALF OF THE CORPORATION, MAKE  A
   28  REFERRAL TO A PROVIDER THAT IS NOT IN THE CORPORATION'S NETWORK.
   29    (C)  A  CORPORATION, INCLUDING A MUNICIPAL COOPERATIVE HEALTH BENEFITS
   30  PLAN CERTIFIED PURSUANT TO ARTICLE FORTY-SEVEN  OF  THIS  CHAPTER,  THAT
   31  ISSUES A COMPREHENSIVE CONTRACT THAT UTILIZES A NETWORK OF PROVIDERS AND
   32  IS NOT A MANAGED CARE HEALTH INSURANCE CONTRACT AS DEFINED IN SUBSECTION
   33  (C)  OF  SECTION  FOUR  THOUSAND EIGHT HUNDRED ONE OF THIS CHAPTER SHALL
   34  PROVIDE ACCESS TO TRANSITIONAL CARE CONSISTENT WITH THE REQUIREMENTS  OF
   35  SUBSECTIONS  (E)  AND (F) OF SECTION FOUR THOUSAND EIGHT HUNDRED FOUR OF
   36  THIS CHAPTER.
   37    S 5. Paragraph 2 of subsection (h) of section 4308  of  the  insurance
   38  law,  as added by chapter 504 of the laws of 1995, is amended to read as
   39  follows:
   40    (2) In each case where the loss ratio for a  contract  form  fails  to
   41  comply  with  the eighty-five percent minimum loss ratio requirement for
   42  individual direct payment contracts, or the seventy-five percent minimum
   43  loss ratio requirement  for  small  group  and  small  group  remittance
   44  contracts,  as set forth in paragraph one of this subsection, the corpo-
   45  ration shall issue a dividend or credit against future premiums for  all
   46  contract  holders  with  that  contract  form in an amount sufficient to
   47  assure that the aggregate benefits incurred  in  the  previous  calendar
   48  year  plus  the  amount of the dividends and credits shall equal no less
   49  than eighty-five percent for individual  direct  payment  contracts,  or
   50  seventy-five   percent  for  small  group  and  small  group  remittance
   51  contracts, of the aggregate premiums earned for the contract form in the
   52  previous calendar year. The dividend or credit shall be issued  to  each
   53  contract  that was in effect as of December thirty-first of the applica-
   54  ble year [and remains in effect as of the date the dividend or credit is
   55  issued].  A CORPORATION SHALL MAKE A REASONABLE EFFORT TO  IDENTIFY  THE
   56  CURRENT  ADDRESS  OF  THOSE  CONTRACT  HOLDERS OR SUBSCRIBERS WHO ARE NO
       A. 5296                             4
    1  LONGER CONTRACT HOLDERS OR SUBSCRIBERS WHEN THE DIVIDEND  OR  CREDIT  IS
    2  ISSUED. All dividends and credits must be distributed by September thir-
    3  tieth  of  the  year following the calendar year in which the loss ratio
    4  requirements were not satisfied. The annual report required by paragraph
    5  one  of this subsection shall include a corporation's calculation of the
    6  dividends and credits, as well as an explanation  of  the  corporation's
    7  plan  to  issue  dividends  or  credits. The instructions and format for
    8  calculating and reporting loss ratios and issuing dividends  or  credits
    9  shall be specified by the superintendent by regulation. Such regulations
   10  shall include provisions for the distribution of a dividend or credit in
   11  the  event  of  cancellation  or  termination  by  a  contract holder or
   12  subscriber.
   13    S 6. Subsections (g) and (h) of section 4325  of  the  insurance  law,
   14  subsection  (g)  as  relettered  by chapter 586 of the laws of 1998, are
   15  relettered subsections (h) and (i) and a new subsection (g) is added  to
   16  read as follows:
   17    (G)(1) NO INSURER SHALL IMPLEMENT AN ADVERSE REIMBURSEMENT CHANGE TO A
   18  CONTRACT  WITH  A PHYSICIAN THAT IS OTHERWISE PERMITTED BY THE CONTRACT,
   19  UNLESS, PRIOR TO THE EFFECTIVE DATE OF THE CHANGE, THE INSURER GIVES THE
   20  PHYSICIAN WITH WHOM THE INSURER  HAS  DIRECTLY  CONTRACTED  AND  WHO  IS
   21  IMPACTED BY THE ADVERSE REIMBURSEMENT CHANGE, AT LEAST NINETY DAYS WRIT-
   22  TEN  NOTICE  OF  THE CHANGE. IF THE CONTRACTING PHYSICIAN OBJECTS TO THE
   23  CHANGE THAT IS THE SUBJECT OF THE NOTICE BY THE INSURER,  THE  PHYSICIAN
   24  MAY,  WITHIN  THIRTY DAYS OF THE DATE OF THE NOTICE, GIVE WRITTEN NOTICE
   25  TO THE INSURER TO TERMINATE HIS OR HER CONTRACT WITH THE INSURER  EFFEC-
   26  TIVE  UPON  THE IMPLEMENTATION DATE OF THE ADVERSE REIMBURSEMENT CHANGE.
   27  FOR THE PURPOSES OF THIS SUBSECTION,  THE  TERM  "ADVERSE  REIMBURSEMENT
   28  CHANGE"  SHALL  MEAN A PROPOSED CHANGE THAT COULD REASONABLY BE EXPECTED
   29  TO HAVE THE EFFECT OF MATERIALLY REDUCING THE  LEVEL  OF  PAYMENT  TO  A
   30  PHYSICIAN.  THE  NOTICE PROVISIONS REQUIRED BY THIS SUBSECTION SHALL NOT
   31  APPLY WHERE: (A) SUCH CHANGE IS OTHERWISE REQUIRED BY LAW, REGULATION OR
   32  APPLICABLE REGULATORY AUTHORITY, OR IS REQUIRED AS A RESULT  OF  CHANGES
   33  IN  FEE  SCHEDULES, REIMBURSEMENT METHODOLOGY OR PAYMENT POLICIES ESTAB-
   34  LISHED BY A GOVERNMENT AGENCY; OR (B) SUCH CHANGE IS EXPRESSLY  PROVIDED
   35  FOR  UNDER THE TERMS OF THE CONTRACT BY THE INCLUSION OF OR REFERENCE TO
   36  A SPECIFIC FEE OR FEE SCHEDULE,  REIMBURSEMENT  METHODOLOGY  OR  PAYMENT
   37  POLICY INDEXING MECHANISM.
   38    (2)  NOTHING IN THIS SUBSECTION SHALL CREATE A PRIVATE RIGHT OF ACTION
   39  ON BEHALF OF A PHYSICIAN AGAINST  AN  INSURER  FOR  VIOLATIONS  OF  THIS
   40  SUBSECTION.
   41    S  7.  Subsection (a) of section 4803 of the insurance law, as amended
   42  by chapter 551 of the laws of 2006, is amended to read as follows:
   43    (a) (1) An insurer which offers a managed  care  product  shall,  upon
   44  request,  make available and disclose to health care professionals writ-
   45  ten application procedures and minimum qualification requirements  which
   46  a  health  care  professional must meet in order to be considered by the
   47  insurer for participation in the  in-network  benefits  portion  of  the
   48  insurer's  network  for  the  managed  care  product.  The insurer shall
   49  consult with appropriately qualified health care professionals in devel-
   50  oping its qualification requirements for participation in the in-network
   51  benefits portion of the insurer's network for the managed care  product.
   52  An  insurer  shall  complete  review  of  the health care professional's
   53  application to participate in the in-network portion  of  the  insurer's
   54  network  and,  within  ninety  days  of  receiving a health care profes-
   55  sional's completed application to participate in the insurer's  network,
   56  will  notify the health care professional as to [(i)]: (A) whether he or
       A. 5296                             5
    1  she is credentialed; or [(ii)] (B) whether additional time is  necessary
    2  to  make  a  determination  in  spite  of  THE insurer's best efforts or
    3  because of a failure of a third party to  provide  necessary  documenta-
    4  tion,  or  non-routine  or unusual circumstances require additional time
    5  for review.   In such  instances  where  additional  time  is  necessary
    6  because  of  a  lack  of  necessary documentation, an insurer shall make
    7  every effort to obtain such information as soon as possible.
    8    (2) IF THE COMPLETE APPLICATION OF A  NEWLY-LICENSED  PHYSICIAN  OR  A
    9  PHYSICIAN  THAT  HAS RECENTLY RELOCATED TO THIS STATE FROM ANOTHER STATE
   10  AND HAS NOT PREVIOUSLY PRACTICED IN THIS STATE, WHO JOINS A GROUP  PRAC-
   11  TICE  OF  PHYSICIANS EACH OF WHOM PARTICIPATES IN THE IN-NETWORK PORTION
   12  OF AN INSURER'S NETWORK, IS NOT APPROVED OR DECLINED WITHIN NINETY  DAYS
   13  PURSUANT  TO  PARAGRAPH  ONE OF THIS SUBSECTION, SUCH PHYSICIAN SHALL BE
   14  DEEMED "PROVISIONALLY CREDENTIALED" AND MAY PARTICIPATE IN  THE  IN-NET-
   15  WORK  PORTION  OF  AN  INSURER'S  NETWORK;  PROVIDED, HOWEVER, THAT SUCH
   16  PHYSICIAN MAY NOT BE DESIGNATED AS AN INSURED'S PRIMARY  CARE  PHYSICIAN
   17  UNTIL  SUCH  TIME  AS  THE  PHYSICIAN  HAS  BEEN FULLY CREDENTIALED. THE
   18  NETWORK PARTICIPATION FOR THE PROVISIONALLY CREDENTIALED PHYSICIAN SHALL
   19  BEGIN ON THE DAY FOLLOWING THE NINETIETH DAY OF RECEIPT OF THE COMPLETED
   20  APPLICATION AND SHALL LAST UNTIL THE FINAL  CREDENTIALING  DETERMINATION
   21  IS  MADE  BY  THE INSURER. A PHYSICIAN SHALL ONLY BE ELIGIBLE FOR PROVI-
   22  SIONAL CREDENTIALING IF THE GROUP PRACTICE OF  PHYSICIANS  AGREES  THAT,
   23  SHOULD  THE APPLICATION ULTIMATELY BE DENIED, THE PHYSICIAN OR THE GROUP
   24  PRACTICE: (A) SHALL REFUND ANY PAYMENTS MADE BY THE INSURER FOR  IN-NET-
   25  WORK  SERVICES PROVIDED BY THE PROVISIONALLY CREDENTIALED PHYSICIAN THAT
   26  EXCEED ANY OUT-OF-NETWORK BENEFITS PAYABLE UNDER THE INSURED'S  CONTRACT
   27  WITH  THE  INSURER;  AND  (B)  SHALL  NOT  PURSUE REIMBURSEMENT FROM THE
   28  INSURED, EXCEPT TO COLLECT THE COPAYMENT OR COINSURANCE  THAT  OTHERWISE
   29  WOULD  HAVE BEEN PAYABLE HAD THE INSURED RECEIVED SERVICES FROM A PHYSI-
   30  CIAN PARTICIPATING IN THE IN-NETWORK PORTION OF  AN  INSURER'S  NETWORK.
   31  INTEREST  AND  PENALTIES  PURSUANT TO SECTION THREE THOUSAND TWO HUNDRED
   32  TWENTY-FOUR-A OF THIS CHAPTER SHALL NOT BE ASSESSED BASED ON THE  DENIAL
   33  OF  A  CLAIM  SUBMITTED  DURING THE PERIOD WHEN THE PHYSICIAN WAS PROVI-
   34  SIONALLY CREDENTIALED; PROVIDED,  HOWEVER,  THAT  NOTHING  HEREIN  SHALL
   35  PREVENT  AN  INSURER  FROM PAYING A CLAIM FROM A PHYSICIAN WHO IS PROVI-
   36  SIONALLY CREDENTIALED UPON SUBMISSION OF SUCH CLAIM.  AN  INSURER  SHALL
   37  NOT DENY, AFTER APPEAL, A CLAIM FOR SERVICES PROVIDED BY A PROVISIONALLY
   38  CREDENTIALED PHYSICIAN SOLELY ON THE GROUND THAT THE CLAIM WAS NOT TIME-
   39  LY FILED.
   40    S  8.  Section 4906 of the insurance law, as amended by chapter 586 of
   41  the laws of 1998, is amended to read as follows:
   42    S 4906. Waiver. (A) Any agreement  which  purports  to  waive,  limit,
   43  disclaim,  or  in any way diminish the rights set forth in this article,
   44  except as provided pursuant to section four thousand nine hundred ten of
   45  this article shall be void as contrary to public policy.
   46    (B) NOTWITHSTANDING SUBSECTION (A) OF THIS SECTION,  IN  LIEU  OF  THE
   47  EXTERNAL APPEAL PROCESS AS SET FORTH IN THIS ARTICLE, A HEALTH CARE PLAN
   48  AND  A  FACILITY LICENSED PURSUANT TO ARTICLE TWENTY-EIGHT OF THE PUBLIC
   49  HEALTH LAW MAY MUTUALLY AGREE TO AN ALTERNATIVE DISPUTE RESOLUTION MECH-
   50  ANISM TO RESOLVE DISPUTES OTHERWISE SUBJECT TO THIS ARTICLE.
   51    S 9. The opening paragraph of subsection (b) of section  4910  of  the
   52  insurance  law,  as added by chapter 586 of the laws of 1998, is amended
   53  to read as follows:
   54    An insured, the insured's designee and, in connection with  CONCURRENT
   55  AND  retrospective  adverse  determinations,  an  insured's  health care
   56  provider, shall have the right to request an external appeal when:
       A. 5296                             6
    1    S 10. Paragraphs 2 and 3 of subsection (b)  of  section  4914  of  the
    2  insurance  law, as added by chapter 586 of the laws of 1998, are amended
    3  to read as follows:
    4    (2)  The  external appeal agent shall make a determination with regard
    5  to the appeal within thirty days  of  the  receipt  of  the  [insured's]
    6  request  therefor,  submitted  in  accordance  with the superintendent's
    7  instructions. The external appeal agent shall have  the  opportunity  to
    8  request  additional  information  from the insured, the insured's health
    9  care provider and the insured's health care plan within such  thirty-day
   10  period,  in  which case the agent shall have up to five additional busi-
   11  ness days if necessary to make such determination. The  external  appeal
   12  agent  shall  notify the insured, WHERE APPROPRIATE THE INSURED'S HEALTH
   13  CARE PROVIDER, and the health care  plan,  in  writing,  of  the  appeal
   14  determination within two business days of the rendering of such determi-
   15  nation.
   16    (3)  Notwithstanding  the provisions of paragraphs one and two of this
   17  subsection, if the insured's attending physician states that a delay  in
   18  providing  the  health  care  service  would pose an imminent or serious
   19  threat to the health of  the  insured,  the  external  appeal  shall  be
   20  completed  within  three  days  of the request therefor and the external
   21  appeal agent shall make every reasonable attempt to  immediately  notify
   22  the  insured, WHERE APPROPRIATE, THE INSURED'S HEALTH CARE PROVIDER, and
   23  the health plan of its determination by telephone or facsimile, followed
   24  immediately by written notification of such determination.
   25    S 11. Subsection (d) of section 4914 of the insurance law, as added by
   26  chapter 586 of the laws of 1998, is amended to read as follows:
   27    (d) [Payment] (1) EXCEPT AS PROVIDED IN PARAGRAPHS TWO  AND  THREE  OF
   28  THIS  SUBSECTION,  PAYMENT for an external appeal shall be the responsi-
   29  bility of the health care plan. The health care plan shall make  payment
   30  to  the  external appeal agent within forty-five days, from the date the
   31  appeal determination is received by the health care plan, and the health
   32  care plan shall be obligated to pay such amount together  with  interest
   33  thereon calculated at a rate which is the greater of the rate set by the
   34  commissioner  of  taxation  and  finance for corporate taxes pursuant to
   35  paragraph one of subsection (e) of section one  thousand  ninety-six  of
   36  the  tax  law  or twelve percent per annum, to be computed from the date
   37  the bill was required to be paid, in the event that payment is not  made
   38  within such forty-five days.
   39    (2)  IF  AN INSURED'S HEALTH CARE PROVIDER REQUESTS AN EXTERNAL APPEAL
   40  OF A CONCURRENT ADVERSE DETERMINATION  AND  THE  EXTERNAL  APPEAL  AGENT
   41  UPHOLDS  THE  HEALTH CARE PLAN'S DETERMINATION IN WHOLE, PAYMENT FOR THE
   42  EXTERNAL APPEAL SHALL BE MADE BY THE HEALTH CARE PROVIDER IN THE  MANNER
   43  AND  SUBJECT  TO  THE TIMEFRAMES AND REQUIREMENTS SET FORTH IN PARAGRAPH
   44  ONE OF THIS SUBSECTION.
   45    (3) IF AN INSURED'S HEALTH CARE PROVIDER REQUESTS AN  EXTERNAL  APPEAL
   46  OF  A  CONCURRENT  ADVERSE  DETERMINATION  AND THE EXTERNAL APPEAL AGENT
   47  UPHOLDS THE HEALTH CARE PLAN'S DETERMINATION IN PART,  PAYMENT  FOR  THE
   48  EXTERNAL  APPEAL  SHALL BE EVENLY SPLIT BETWEEN THE HEALTH CARE PLAN AND
   49  THE INSURED'S HEALTH CARE PROVIDER WHO REQUESTED THE EXTERNAL APPEAL AND
   50  SHALL BE MADE BY THE HEALTH CARE PLAN  AND  THE  INSURED'S  HEALTH  CARE
   51  PROVIDER  IN  THE  MANNER AND SUBJECT TO THE TIMEFRAMES AND REQUIREMENTS
   52  SET FORTH IN PARAGRAPH ONE OF THIS SUBSECTION  FOR  ONE  YEAR  FROM  THE
   53  EFFECTIVE  DATE  OF THIS SUBSECTION.   AFTER ONE YEAR FROM THE EFFECTIVE
   54  DATE OF THIS  SUBSECTION,  THE  SUPERINTENDENT  SHALL  EVALUATE  WHETHER
   55  HEALTH  CARE  PLANS OR HEALTH CARE PROVIDERS ARE EXPERIENCING A SUBSTAN-
   56  TIAL HARDSHIP AS A RESULT OF PAYMENT FOR THE EXTERNAL  APPEAL  WHEN  THE
       A. 5296                             7
    1  EXTERNAL  APPEAL  AGENT  UPHOLDS THE HEALTH CARE PLAN'S DETERMINATION IN
    2  PART. THE SUPERINTENDENT,  IN  CONSULTATION  WITH  THE  COMMISSIONER  OF
    3  HEALTH,  MAY PROMULGATE A REGULATION TO SPECIFY PAYMENT RESPONSIBILITIES
    4  OF  PROVIDERS  AND  HEALTH  CARE  PLANS  WHEN  THE EXTERNAL APPEAL AGENT
    5  UPHOLDS THE HEALTH CARE PLAN'S DETERMINATION IN PART WHICH SHALL  SUPER-
    6  SEDE THE REQUIREMENTS OF THIS PARAGRAPH.
    7    (4)  IF  AN INSURED'S HEALTH CARE PROVIDER WAS ACTING AS THE INSURED'S
    8  DESIGNEE, PAYMENT FOR THE EXTERNAL APPEAL SHALL BE MADE  BY  THE  HEALTH
    9  CARE  PLAN.   THE EXTERNAL APPEAL AND ANY DESIGNATION SHALL BE SUBMITTED
   10  ON A STANDARD FORM DEVELOPED BY THE SUPERINTENDENT IN CONSULTATION  WITH
   11  THE  COMMISSIONER  OF HEALTH PURSUANT TO SUBSECTION (E) OF THIS SECTION.
   12  THE SUPERINTENDENT SHALL HAVE THE AUTHORITY UPON RECEIPT OF AN  EXTERNAL
   13  APPEAL TO CONFIRM THE DESIGNATION OR REQUEST OTHER INFORMATION AS NECES-
   14  SARY. THE SUPERINTENDENT SHALL MAKE AT LEAST TWO WRITTEN REQUESTS TO THE
   15  INSURED  TO CONFIRM THE DESIGNATION. THE INSURED SHALL HAVE TWO WEEKS TO
   16  RESPOND TO EACH SUCH REQUEST. IF THE INSURED FAILS  TO  RESPOND  TO  THE
   17  SUPERINTENDENT  WITHIN THE SPECIFIED TIMEFRAME, THE SUPERINTENDENT SHALL
   18  PEND THE EXTERNAL APPEAL AND MAKE TWO WRITTEN  REQUESTS  TO  THE  HEALTH
   19  CARE  PROVIDER  TO FILE AN EXTERNAL APPEAL ON HIS OR HER OWN BEHALF. THE
   20  HEALTH CARE PROVIDER SHALL HAVE  TWO  WEEKS  TO  RESPOND  TO  EACH  SUCH
   21  REQUEST. IF THE HEALTH CARE PROVIDER DOES NOT RESPOND TO THE SUPERINTEN-
   22  DENT'S REQUESTS WITHIN THE SPECIFIED TIMEFRAME, THE SUPERINTENDENT SHALL
   23  REJECT THE APPEAL.
   24    S  12.  The  insurance  law is amended by adding a new section 4917 to
   25  read as follows:
   26    S 4917. HOLD HARMLESS.  A HEALTH CARE PROVIDER REQUESTING AN  EXTERNAL
   27  APPEAL  OF A CONCURRENT ADVERSE DETERMINATION, INCLUDING WHEN THE HEALTH
   28  CARE PROVIDER REQUESTS AN EXTERNAL APPEAL  AS  THE  INSURED'S  DESIGNEE,
   29  SHALL  NOT  PURSUE  REIMBURSEMENT  FROM  THE INSURED EXCEPT TO COLLECT A
   30  COPAYMENT,  COINSURANCE  OR  DEDUCTIBLE  FOR  SERVICES  DETERMINED   NOT
   31  MEDICALLY NECESSARY BY THE EXTERNAL APPEAL AGENT.
   32    S  13.  Subdivision  5-c of section 4406-c of the public health law is
   33  relettered subdivision 5-d and a new subdivision 5-c is added to read as
   34  follows:
   35    5-C. (A) NO HEALTH CARE PLAN SHALL IMPLEMENT AN ADVERSE  REIMBURSEMENT
   36  CHANGE TO A CONTRACT WITH A PHYSICIAN THAT IS OTHERWISE PERMITTED BY THE
   37  CONTRACT,  UNLESS, PRIOR TO THE EFFECTIVE DATE OF THE CHANGE, THE HEALTH
   38  CARE PLAN GIVES THE PHYSICIAN WITH WHOM THE HEALTH CARE PLAN HAS DIRECT-
   39  LY CONTRACTED AND WHO IS IMPACTED BY THE ADVERSE  REIMBURSEMENT  CHANGE,
   40  AT  LEAST  NINETY  DAYS WRITTEN NOTICE OF THE CHANGE. IF THE CONTRACTING
   41  PHYSICIAN OBJECTS TO THE CHANGE THAT IS THE SUBJECT OF THE NOTICE BY THE
   42  HEALTH CARE PLAN, THE PHYSICIAN MAY, WITHIN THIRTY DAYS OF THE  DATE  OF
   43  THE NOTICE, GIVE WRITTEN NOTICE TO THE HEALTH CARE PLAN TO TERMINATE HIS
   44  OR HER CONTRACT WITH THE HEALTH CARE PLAN EFFECTIVE UPON THE IMPLEMENTA-
   45  TION  DATE OF THE ADVERSE REIMBURSEMENT CHANGE. FOR THE PURPOSES OF THIS
   46  SUBDIVISION, THE  TERM  "ADVERSE  REIMBURSEMENT  CHANGE"  SHALL  MEAN  A
   47  PROPOSED  CHANGE THAT COULD REASONABLY BE EXPECTED TO HAVE THE EFFECT OF
   48  MATERIALLY REDUCING THE LEVEL OF PAYMENT  TO  A  PHYSICIAN.  THE  NOTICE
   49  PROVISIONS  REQUIRED BY THIS SUBDIVISION SHALL NOT APPLY WHERE: (I) SUCH
   50  CHANGE IS OTHERWISE REQUIRED BY LAW, REGULATION OR APPLICABLE REGULATORY
   51  AUTHORITY, OR IS REQUIRED AS A  RESULT  OF  CHANGES  IN  FEE  SCHEDULES,
   52  REIMBURSEMENT  METHODOLOGY  OR PAYMENT POLICIES ESTABLISHED BY A GOVERN-
   53  MENT AGENCY; OR (II) SUCH CHANGE IS EXPRESSLY  PROVIDED  FOR  UNDER  THE
   54  TERMS OF THE CONTRACT BY THE INCLUSION OF OR REFERENCE TO A SPECIFIC FEE
   55  OR  FEE  SCHEDULE,  REIMBURSEMENT METHODOLOGY OR PAYMENT POLICY INDEXING
   56  MECHANISM.
       A. 5296                             8
    1    (B) NOTHING IN THIS SUBDIVISION SHALL CREATE A PRIVATE RIGHT OF ACTION
    2  ON BEHALF OF A PHYSICIAN AGAINST  AN  INSURER  FOR  VIOLATIONS  OF  THIS
    3  SUBDIVISION.
    4    S  14.  Subdivision  1  of section 4406-d of the public health law, as
    5  amended by chapter 551 of the laws  of  2006,  is  amended  to  read  as
    6  follows:
    7    1.  (A)  A  health  care  plan shall, upon request, make available and
    8  disclose to health care professionals written application procedures and
    9  minimum qualification requirements which a health care professional must
   10  meet in order to be considered by the health care plan. The  plan  shall
   11  consult with appropriately qualified health care professionals in devel-
   12  oping  its qualification requirements. A health care plan shall complete
   13  review of the health care professional's application to  participate  in
   14  the  in-network  portion  of  the  health care plan's network and shall,
   15  within ninety days of receiving a health care  professional's  completed
   16  application to participate in the health care plan's network, notify the
   17  health  care  professional as to [(a)]: (I) whether he or she is creden-
   18  tialed; or [(b)] (II) whether additional time is  necessary  to  make  a
   19  determination in spite of the health care plan's best efforts or because
   20  of  a  failure  of  a third party to provide necessary documentation, or
   21  non-routine or unusual circumstances require additional time for review.
   22  In such instances where additional time is necessary because of  a  lack
   23  of  necessary  documentation,  a  health plan shall make every effort to
   24  obtain such information as soon as possible.
   25    (B) IF THE COMPLETE APPLICATION OF A  NEWLY-LICENSED  PHYSICIAN  OR  A
   26  PHYSICIAN  THAT  HAS RECENTLY RELOCATED TO THIS STATE FROM ANOTHER STATE
   27  AND HAS NOT PREVIOUSLY PRACTICED IN THIS STATE, WHO JOINS A GROUP  PRAC-
   28  TICE  OF  PHYSICIANS EACH OF WHOM PARTICIPATES IN THE IN-NETWORK PORTION
   29  OF A HEALTH CARE PLAN'S NETWORK, IS  NOT  APPROVED  OR  DECLINED  WITHIN
   30  NINETY DAYS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, THE PHYSICIAN
   31  SHALL  BE DEEMED "PROVISIONALLY CREDENTIALED" AND MAY PARTICIPATE IN THE
   32  IN-NETWORK PORTION OF THE HEALTH CARE PLAN'S NETWORK; PROVIDED, HOWEVER,
   33  THAT SUCH PHYSICIAN MAY NOT BE DESIGNATED AS AN ENROLLEE'S PRIMARY  CARE
   34  PHYSICIAN  UNTIL SUCH TIME AS THE PHYSICIAN HAS BEEN FULLY CREDENTIALED.
   35  THE NETWORK PARTICIPATION FOR THE PROVISIONALLY  CREDENTIALED  PHYSICIAN
   36  SHALL  BEGIN  ON  THE  DAY FOLLOWING THE NINETIETH DAY OF RECEIPT OF THE
   37  COMPLETED APPLICATION AND  SHALL  LAST  UNTIL  THE  FINAL  CREDENTIALING
   38  DETERMINATION IS MADE BY THE HEALTH CARE PLAN. A PHYSICIAN SHALL ONLY BE
   39  ELIGIBLE  FOR  PROVISIONAL CREDENTIALING IF THE GROUP PRACTICE OF PHYSI-
   40  CIANS AGREES THAT, SHOULD THE  APPLICATION  ULTIMATELY  BE  DENIED,  THE
   41  PHYSICIAN  OR  THE GROUP PRACTICE: (I) SHALL REFUND ANY PAYMENTS MADE BY
   42  THE HEALTH CARE PLAN FOR IN-NETWORK  SERVICES  PROVIDED  BY  THE  PROVI-
   43  SIONALLY  CREDENTIALED PHYSICIAN THAT EXCEED ANY OUT-OF-NETWORK BENEFITS
   44  PAYABLE UNDER THE ENROLLEE'S CONTRACT WITH THE  HEALTH  CARE  PLAN;  AND
   45  (II) SHALL NOT PURSUE REIMBURSEMENT FROM THE ENROLLEE, EXCEPT TO COLLECT
   46  THE  COPAYMENT  THAT  OTHERWISE WOULD HAVE BEEN PAYABLE HAD THE ENROLLEE
   47  RECEIVED SERVICES FROM  A  PHYSICIAN  PARTICIPATING  IN  THE  IN-NETWORK
   48  PORTION OF A HEALTH CARE PLAN'S NETWORK. INTEREST AND PENALTIES PURSUANT
   49  TO SECTION THREE THOUSAND TWO HUNDRED TWENTY-FOUR-A OF THE INSURANCE LAW
   50  SHALL  NOT  BE  ASSESSED BASED ON THE DENIAL OF A CLAIM SUBMITTED DURING
   51  THE PERIOD WHEN THE PHYSICIAN WAS PROVISIONALLY CREDENTIALED;  PROVIDED,
   52  HOWEVER,  THAT  NOTHING  HEREIN  SHALL  PREVENT  A HEALTH CARE PLAN FROM
   53  PAYING A CLAIM FROM A PHYSICIAN WHO IS PROVISIONALLY  CREDENTIALED  UPON
   54  SUBMISSION  OF  SUCH  CLAIM.  A  HEALTH  CARE PLAN SHALL NOT DENY, AFTER
   55  APPEAL, A CLAIM FOR SERVICES PROVIDED BY  A  PROVISIONALLY  CREDENTIALED
   56  PHYSICIAN SOLELY ON THE GROUND THAT THE CLAIM WAS NOT TIMELY FILED.
       A. 5296                             9
    1    S 15. Section 4906 of the public health law, as amended by chapter 586
    2  of the laws of 1998, is amended to read as follows:
    3    S  4906.  Waiver.  1.  Any  agreement  which purports to waive, limit,
    4  disclaim, or in any way diminish the rights set forth in  this  article,
    5  except as provided pursuant to section four thousand nine hundred ten of
    6  this article shall be void as contrary to public policy.
    7    2.  NOTWITHSTANDING  SUBDIVISION  ONE  OF THIS SECTION, IN LIEU OF THE
    8  EXTERNAL APPEAL PROCESS AS SET FORTH IN THIS ARTICLE, A HEALTH CARE PLAN
    9  AND A FACILITY LICENSED PURSUANT TO ARTICLE TWENTY-EIGHT OF THIS CHAPTER
   10  MAY MUTUALLY AGREE TO AN ALTERNATIVE  DISPUTE  RESOLUTION  MECHANISM  TO
   11  RESOLVE DISPUTES OTHERWISE SUBJECT TO THIS ARTICLE.
   12    S  16.  The  opening paragraph of subdivision 2 of section 4910 of the
   13  public health law, as added by chapter 586  of  the  laws  of  1998,  is
   14  amended to read as follows:
   15    An  enrollee,  the enrollee's designee and, in connection with CONCUR-
   16  RENT AND retrospective adverse determinations, an enrollee's health care
   17  provider, shall have the right to request an external appeal when:
   18    S 17. Paragraphs (b) and (c) of subdivision 2 of section 4914  of  the
   19  public  health  law,  as  added  by chapter 586 of the laws of 1998, are
   20  amended to read as follows:
   21    (b) The external appeal agent shall make a determination with  respect
   22  to  the  appeal  within  thirty  days of the receipt of the [enrollee's]
   23  request  therefor,  submitted  in  accordance  with  the  commissioner's
   24  instructions.    The external appeal agent shall have the opportunity to
   25  request additional information from the enrollee, the enrollee's  health
   26  care provider and the enrollee's health care plan within such thirty-day
   27  period,  in  which case the agent shall have up to five additional busi-
   28  ness days if necessary to make such determination. The  external  appeal
   29  agent  shall  notify  the  enrollee,  WHERE  APPROPRIATE, THE ENROLLEE'S
   30  HEALTH CARE PROVIDER, and the health  care  plan,  in  writing,  of  the
   31  appeal  determination  within two business days of the rendering of such
   32  determination.
   33    (c) Notwithstanding the provisions of paragraphs (a) and (b)  of  this
   34  subdivision,  if  the enrollee's attending physician states that a delay
   35  in providing the health care service would pose an imminent  or  serious
   36  threat  to  the  health  of  the  enrollee, the external appeal shall be
   37  completed within three days of the request  therefor  and  the  external
   38  appeal  agent  shall make every reasonable attempt to immediately notify
   39  the enrollee, WHERE APPROPRIATE, THE ENROLLEE'S  HEALTH  CARE  PROVIDER,
   40  and  the  health  plan  of  its determination by telephone or facsimile,
   41  followed immediately by written notification of such determination.
   42    S 18. Subdivision 4 of section 4914 of the public health law, as added
   43  by chapter 586 of the laws of 1998, is amended to read as follows:
   44    4. [Payment] (A) EXCEPT AS PROVIDED IN PARAGRAPHS (B) AND (C) OF  THIS
   45  SUBDIVISION,  PAYMENT for an external appeal shall be the responsibility
   46  of the health care plan. The health care plan shall make payment to  the
   47  external  appeal  agent  within forty-five days from the date the appeal
   48  determination is received by the health care plan, and the  health  care
   49  plan shall be obligated to pay such amount together with interest there-
   50  on  calculated  at  a  rate  which is the greater of the rate set by the
   51  commissioner of taxation and finance for  corporate  taxes  pursuant  to
   52  paragraph  one  of  subsection (e) of section one thousand ninety-six of
   53  the tax law or twelve percent per annum, to be computed  from  the  date
   54  the  bill was required to be paid, in the event that payment is not made
   55  within such forty-five days.
       A. 5296                            10
    1    (B) IF AN ENROLLEE'S HEALTH CARE PROVIDER REQUESTS AN EXTERNAL  APPEAL
    2  OF  A  CONCURRENT  ADVERSE  DETERMINATION  AND THE EXTERNAL APPEAL AGENT
    3  UPHOLDS THE HEALTH CARE PLAN'S DETERMINATION IN WHOLE, PAYMENT  FOR  THE
    4  EXTERNAL  APPEAL SHALL BE MADE BY THE HEALTH CARE PROVIDER IN THE MANNER
    5  AND  SUBJECT  TO  THE TIMEFRAMES AND REQUIREMENTS SET FORTH IN PARAGRAPH
    6  (A) OF THIS SUBDIVISION.
    7    (C) IF AN ENROLLEE'S HEALTH CARE PROVIDER REQUESTS AN EXTERNAL  APPEAL
    8  OF  A  CONCURRENT  ADVERSE  DETERMINATION  AND THE EXTERNAL APPEAL AGENT
    9  UPHOLDS THE HEALTH CARE PLAN'S DETERMINATION IN PART,  PAYMENT  FOR  THE
   10  EXTERNAL  APPEAL  SHALL BE EVENLY SPLIT BETWEEN THE HEALTH CARE PLAN AND
   11  THE ENROLLEE'S HEALTH CARE PROVIDER WHO REQUESTED  THE  EXTERNAL  APPEAL
   12  AND SHALL BE MADE BY THE HEALTH CARE PLAN AND THE ENROLLEE'S HEALTH CARE
   13  PROVIDER  IN  THE  MANNER AND SUBJECT TO THE TIMEFRAMES AND REQUIREMENTS
   14  SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION. AFTER ONE YEAR FROM  THE
   15  EFFECTIVE  DATE  OF  THIS  SUBDIVISION,  THE SUPERINTENDENT OF INSURANCE
   16  SHALL EVALUATE WHETHER HEALTH CARE PLANS OR HEALTH  CARE  PROVIDERS  ARE
   17  EXPERIENCING  A  SUBSTANTIAL  HARDSHIP  AS  A  RESULT OF PAYMENT FOR THE
   18  EXTERNAL APPEAL WHEN THE EXTERNAL APPEAL AGENT UPHOLDS THE  HEALTH  CARE
   19  PLAN'S DETERMINATION IN PART. THE COMMISSIONER, IN CONSULTATION WITH THE
   20  SUPERINTENDENT  OF  INSURANCE,  MAY  PROMULGATE  A REGULATION TO SPECIFY
   21  PAYMENT RESPONSIBILITIES OF PROVIDERS AND HEALTH  CARE  PLANS  WHEN  THE
   22  EXTERNAL  APPEAL  AGENT  UPHOLDS THE HEALTH CARE PLAN'S DETERMINATION IN
   23  PART WHICH SHALL SUPERSEDE THE REQUIREMENTS OF THIS PARAGRAPH.
   24    (D) IF AN ENROLLEE'S HEALTH CARE PROVIDER WAS ACTING AS THE ENROLLEE'S
   25  DESIGNEE, PAYMENT FOR THE EXTERNAL APPEAL SHALL BE MADE  BY  THE  HEALTH
   26  CARE  PLAN.   THE EXTERNAL APPEAL AND ANY DESIGNATION SHALL BE SUBMITTED
   27  ON A STANDARD FORM DEVELOPED BY THE COMMISSIONER  IN  CONSULTATION  WITH
   28  THE  SUPERINTENDENT  OF  INSURANCE  PURSUANT TO SUBDIVISION FIVE OF THIS
   29  SECTION.  THE SUPERINTENDENT OF INSURANCE SHALL HAVE THE AUTHORITY  UPON
   30  RECEIPT  OF  AN  EXTERNAL  APPEAL  TO CONFIRM THE DESIGNATION OR REQUEST
   31  OTHER INFORMATION AS NECESSARY. THE SUPERINTENDENT  OF  INSURANCE  SHALL
   32  MAKE AT LEAST TWO WRITTEN REQUESTS TO THE ENROLLEE TO CONFIRM THE DESIG-
   33  NATION.  THE  ENROLLEE  SHALL  HAVE  TWO  WEEKS  TO RESPOND TO EACH SUCH
   34  REQUEST. IF THE ENROLLEE FAILS  TO  RESPOND  TO  THE  SUPERINTENDENT  OF
   35  INSURANCE  WITHIN THE SPECIFIED TIME FRAME, THE SUPERINTENDENT OF INSUR-
   36  ANCE SHALL PEND THE EXTERNAL APPEAL AND MAKE TWO WRITTEN REQUESTS TO THE
   37  HEALTH CARE PROVIDER TO FILE AN  EXTERNAL  APPEAL  ON  HIS  OR  HER  OWN
   38  BEHALF. THE HEALTH CARE PROVIDER SHALL HAVE TWO WEEKS TO RESPOND TO EACH
   39  SUCH REQUEST. IF THE HEALTH CARE PROVIDER DOES NOT RESPOND TO THE SUPER-
   40  INTENDENT  OF  INSURANCE  REQUESTS  WITHIN  THE SPECIFIED TIMEFRAME, THE
   41  SUPERINTENDENT OF INSURANCE SHALL REJECT THE APPEAL.
   42    S 19. The public health law is amended by adding a new section 4917 to
   43  read as follows:
   44    S 4917. HOLD HARMLESS. A HEALTH CARE PROVIDER REQUESTING  AN  EXTERNAL
   45  APPEAL  OF A CONCURRENT ADVERSE DETERMINATION, INCLUDING WHEN THE HEALTH
   46  CARE PROVIDER REQUESTS AN EXTERNAL APPEAL AS  THE  ENROLLEE'S  DESIGNEE,
   47  SHALL  NOT  PURSUE  REIMBURSEMENT  FROM THE ENROLLEE EXCEPT TO COLLECT A
   48  COPAYMENT  FOR  SERVICES  DETERMINED  NOT  MEDICALLY  NECESSARY  BY  THE
   49  EXTERNAL APPEAL AGENT.
   50    S  20.  This act shall take effect January 1, 2010; provided, however,
   51  that:
   52    1. sections seven and fourteen of this act shall take  effect  October
   53  1,  2009, and shall apply to applications submitted after that date, and
   54  shall not apply to applications submitted prior to  such  date  if  such
   55  application  is  resubmitted  in  substantially similar form on or after
   56  October 1, 2009;
       A. 5296                            11
    1    2. the amendments to subsection (a) of section 3217-d of the insurance
    2  law made by section two of this act and subsection (a) of section 4306-c
    3  of the insurance law made by section four of this act shall take  effect
    4  January  1, 2010 or the date uniform standards for a grievance procedure
    5  are  adopted  to  be  consistent with federal requirements, whichever is
    6  later;
    7    3. provided, further, that the amendments to subsection (i) of section
    8  3217-b of the insurance law made by section one of this  act  shall  not
    9  affect the repeal of such subsection and shall be deemed repealed there-
   10  with;
   11    4. provided, further, that the amendments to subsection (i) of section
   12  4325  of  the  insurance  law  made by section six of this act shall not
   13  affect the repeal of such subsection and shall be deemed repealed there-
   14  with; and
   15    5. provided, further, that the amendments made to subdivision  5-d  of
   16  section 4406-c of the public health law made by section thirteen of this
   17  act  shall not affect the repeal of such subdivision and shall be deemed
   18  repealed therewith.
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