What's happening
This bill removes penalties for hospitals that underpay monthly assessments by more than thirty percent.
Why it matters
Removes financial penalties for hospitals that significantly underpay required monthly assessments. , reducing the immediate financial risk for hospitals that are unable to make full payments on time.
May ease short-term cash flow pressures for hospitals. , especially those facing financial difficulties, by eliminating the threat of accumulating penalties for underpayment.
Could impact state revenue predictability and enforcement. , as the removal of penalties might decrease the incentive for timely and accurate payment of assessments, potentially affecting funding for health programs reliant on these payments.
Shifts the regulatory focus to interest charges rather than penalties. , meaning hospitals would still owe interest on underpayments but not additional penalty fees, potentially making repayment less burdensome over time.
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Who cares
Hospitals making estimated assessment payments
The bill would eliminate penalties of five percent to 25 percent for monthly payments below 70 percent of the amount due, while retaining interest on payments below 90 percent.
State Department of Health
The bill would remove the commissioner's authority to collect those underpayment penalties while preserving interest collection.
Hospital finance teams
The bill would preserve the rules allowing overpayments to be credited toward other amounts due or, if none are due, applied to future payments or refunded at the hospital's election.
Headline styles
Ease Hospital Penalties
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Held for consideration in health
- Referred to health
- Referred to health
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2812
2017-2018 Regular Sessions
IN ASSEMBLY
January 23, 2017
Introduced by M. of A. KOLB -- read once and referred to the Committee on Health
AN ACT to amend the public health law, in relation to penalties for failure to pay certain hospital assessments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 8 of section 2807-d of the public health law, as added by chapter 938 of the laws of 1990, paragraph (a) as amended by section 24 of subpart D of part V-1 of chapter 57 of the laws of 2009 and paragraph (b) as amended by chapter 41 of the laws of 1992, is amended to read as follows:
8. (a) If an estimated payment made for a month to which an assessment applies is less than ninety percent of the actual amount due for such month, interest shall be due and payable to the commissioner on the difference between the amount paid and the amount due from the day of the month the estimated payment was due until the date of payment. The rate of interest shall be twelve percent per annum or at the rate of interest set by the commissioner of taxation and finance with respect to underpayments of tax pursuant to subsection (e) of section one thousand ninety-six of the tax law minus four percentage points. Interest under this paragraph shall not be paid if the amount thereof is less than one dollar. Interest, if not paid by the due date of the following month's estimated payment, may be collected by the commissioner pursuant to paragraph (c) of subdivision six of this section in the same manner as an assessment pursuant to subdivision two of this section.
(b) [If an estimated payment made for a month to which an assessment applies is less than seventy percent of the actual amount due for such month, a penalty shall be due and payable to the commissioner of five percent of the difference between the amount paid and the amount due for such month when the failure to pay is for a duration of not more than one month after the due date of the payment with an additional
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03192-01-7
A. 2812 2
five percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five percent in the aggregate. A penalty may be collected by the commissioner pursuant to paragraph (c) of subdivision six of this section in the same manner as an assessment pursuant to subdivision two of this section.
(c)] Overpayment by a hospital of an estimated payment shall be applied to any other payment due from the hospital pursuant to this section, or, if no payment is due, at the election of the hospital shall be applied to future estimated payments or refunded to the hospital. Interest shall be paid on overpayments from the date of overpayment to the date of crediting or refund at the rate determined in accordance with paragraph (a) of this subdivision if the overpayment was made at the direction of the commissioner. Interest under this paragraph shall not be paid if the amount thereof is less than one dollar.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.