Bill Text: NY S09020 | 2023-2024 | General Assembly | Introduced

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Bill Title: Authorizes the imposition of penalties on subcontractors for failure to adhere to the standards for prompt, fair and equitable settlement of claims for health care and payments for health care services.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-10 - REFERRED TO INSURANCE [S09020 Detail]

Download: New_York-2023-S09020-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9020

                    IN SENATE

                                     April 10, 2024
                                       ___________

        Introduced  by  Sen. BRESLIN -- 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 penalties  imposed  on
          subcontractors for failure to adhere to the standards for prompt, fair
          and  equitable  settlement  of claims for health care and payments for
          health care services

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

     1    Section  1.  Paragraph  1  of  subsection (c) of section 3224-a of the
     2  insurance law, as amended by chapter 237 of the laws of 2009, is amended
     3  to read as follows:
     4    (1) Except as provided in paragraph two of this subsection, each claim
     5  or bill for health care services processed in violation of this  section
     6  shall  constitute  a  separate  violation.  In addition to the penalties
     7  provided in this chapter, any insurer  or  organization  or  corporation
     8  that fails to adhere to the standards contained in this section shall be
     9  obligated  to  pay  to the health care provider or person submitting the
    10  claim, in full settlement of the claim or bill for health care services,
    11  the amount of the claim or health care  payment  plus  interest  on  the
    12  amount  of  such claim or health care payment of the greater of the rate
    13  equal to the rate set by the commissioner of taxation  and  finance  for
    14  corporate  taxes  pursuant to paragraph one of subsection (e) of section
    15  one thousand ninety-six of the tax law or twelve percent per  annum,  to
    16  be  computed from the date the claim or health care payment was required
    17  to be made.  The superintendent shall be authorized to impose  penalties
    18  on  subcontractors of an insurer or organization or corporation in addi-
    19  tion to penalties imposed on the insurer or organization where it can be
    20  reasonably demonstrated that the subcontractor  was  responsible  for  a
    21  failure  to adhere to the standards contained in this section.  Further-
    22  more, the superintendent shall be authorized  to  double  the  penalties
    23  authorized  under this chapter where it is demonstrated that the insurer
    24  or organization or corporation engaged in a pattern of failing to adhere
    25  to the standards contained in this section. When the amount of  interest

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15191-01-4
        S. 9020                             2

     1  due  on  such a claim is less then two dollars, and insurer or organiza-
     2  tion or corporation shall not be required to pay interest on such claim.
     3    §  2.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law, and apply to all health care claims  submitted  after
     5  such  date. Effective immediately, the addition, amendment and/or repeal
     6  of any rule or regulation necessary for the implementation of  this  act
     7  on  its  effective  date  are  authorized to be made and completed on or
     8  before such effective date.