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S4509Senate2011-2012 SessionSame asA659

Regulates the scope, manner and performance of review of claims by utilization review agents

Sponsor Kemp HannonSD-6+5 co-sponsorsAffects Health
Status
In Senate Committee
Health
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Health

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Sponsors

Primary sponsor
Kemp Hannon

Senator · Senate District 6

Chair, Health

History

  1. Referred to health
  2. Referred to health

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A659Assembly

Regulates the scope, manner and performance of review of claims by utilization review agents

In Senate Committee · Health · Sponsor Richard Gottfried

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S4509

Title of bill

An act to amend the public health law and the insurance law, in relation to approvals by a utilization review agent

Purpose

To improve managed care market conduct and to prohibit inappropriate health insurance practices

Summary of provisions

Sections 1 and 2 enhance the utilization review law;

Sections 3 and 4 ensure payment for authorized medical care;

Sections 5-10 protect providers' rights under the external appeals law;

Sections 11 is the effective date.

Justification

New York State law establishes timeframes in which utilization review agents must make adverse determinations. However, the law needs to be enhanced to protect consumers and providers. The way the current statute is written, the failure of a health plan to provide timely decisions about medical necessity is not penalized. In fact, that failure accrues to the benefit of the plan as a denial. The failure to make a utilization review decision within the stated time should be deemed an approved claim and not an adverse determination.

The current External Appeal Program within the NYS Insurance Department (SID) is dysfunctional resulting in an ineffectual and underused consumer protection statute. Currently, providers (who are in the strongest position to advocate on behalf of the patient for necessary medical care) are frequently unable to appeal adverse determinations regarding medical necessity. This is mainly because SID has not recognized the two possible methods for a provider appeal. Specifically, SID has refused to honor designations by patients, and SID deems retrospective adverse determinations by plans to be concurrent, which therefore disqualifies the provider's external appeal review. The administrative shortcomings of the External Appeal Law must be corrected so that its use can be maximized. Providers must have a clear right to appeal adverse determinations particularly since providers are currently prohibited from balance billing patients for covered services that are denied by the plan.

Administrative Burden for Emergency Department (ED) visits commercial health plans should be required to consider certain common sense factors in applying the prudent layperson standard when determining whether the medical care provided was for emergency medical services. A utilization review agent should be required to consider the time of day and the day of the week the patient presented to the emergency

department, in addition to the presenting symptoms, when reviewing coverage of emergency services to treat an emergency medical condition.

Legislative history

2007-08: A.8321-B - Passed Assembly 2009-10: A.792-A - Passed Assembly.

Fiscal implications

None.

Effective date

January 1, next succeeding the date on which it shall have become law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.