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History
- Committee discharged and committed to rules
- Notice of committee consideration - requested
- Referred to consumer protection
- Referred to consumer protection
Full text
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Sponsor's memo
BILL NUMBER:S3788
Title of bill
An act to amend the general business law, in relation to special provisions of the not-for-profit sales
Purpose or general idea of bill
This bill would repeal a portion of section eight hundred two of the general business law to permit the for-profit sale of hearing aids by physicians.
Summary of specific provisions
This bill would amend the general business law by a portion of section eight hundred two of the general business law to permit the for-profit sale of hearing aids by physicians.
Section 1 of the bill repeals a portion of section eight hundred two of the general business law to permit the for-profit sale of hearing aids by physicians.
Section 2 of the bill provides that the bill shall take effect immediately.
Justification
Currently, physicians are prohibited by section eight hundred two of the general business law to sell hearing aids for a profit. This prohibition, however, dates back to the mid-seventies, a time in which even hearing aid dealers were prohibited by law from selling hearing aids without a referral from a physician. Since that time, the law has changed as has the practice of medicine and otolaryngology. New York State is the only state that prohibits the sale of hearing aids by physicians for-profit, which effectively eliminates the sale of any hearing aids by physicians. By enabling consumers to purchase hearing aids from physicians, access to such devices and care coordination would be enhanced.
Moreover, it is an unfair restraint of trade to prohibit a profession to operate at a profit. The practice of fitting and dispensing of hearing aids has long been a recognized part of the scope of practice of otolaryngology. The American Academy of Otolaryngology position statement reads: "The American Academy of Otolaryngology-Head and Neck Surgery, Inc. states: dispensing of hearing aids, hearing assisted devices and other hearing rehabilitation devices is within the scope of practice for otolaryngologists- head and neck surgeons. "Physician practices are small business, and cannot effectively run their businesses by offering services without earning a profit.
Lifting the prohibition on earning a profit would be in the best interest of patients as it would improve access to hearing aids and the quality of care delivered by enabling all appropriately trained and qualified healthcare providers to offer hearing aid services to patients.
Patients are also likely to enjoy more competitive pricing among all hearing aid dispensers through the application of market forces for an item which is often not covered by insurance.
Prior legislative history
2009-10: S.5257 - Referred to Consumer Protection
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.