What's happening
This bill exempts certain non-profit private air ambulance membership services from being regulated as insurance if specific conditions are met.
Why it matters
Clarifies the legal status of non-profit air ambulance memberships. , distinguishing them from insurance, which can reduce regulatory burdens and costs for these organizations and potentially allow more flexible service offerings.
Sets strict eligibility standards. including a valid health department certificate, non-profit status, minimum operation history, and clear disclosure to consumers—helping ensure only established, transparent, and reliable organizations benefit from the exemption.
Requires members be clearly informed. that these memberships are not insurance or supplemental coverage, which helps prevent consumer confusion and potential disputes about what services are actually provided.
Mandates oversight by the Department of Financial Services. , as providers must prove compliance with these requirements, offering a measure of consumer protection even as full insurance regulation is removed.
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Who cares
Headline styles
Exempt Air Ambulances from Insurance
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2959
2017-2018 Regular Sessions
IN SENATE
January 18, 2017
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 private air ambulance service
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1108 of the insurance law is amended by adding a new subsection (o) to read as follows:
(o) A private air ambulance service that solicits membership subscriptions, accepts membership applications, charges membership fees, and provides air ambulance services to subscription members and designated members of their household is not an insurer if the private air ambulance service:
(1) has a valid operating certificate issued by the department of health;
(2) has non-profit status;
(3) has been in operation in New York for at least two years;
(4) provides in the membership materials a statement providing clear disclosure to applicants and members that this is not insurance and membership cannot be considered secondary insurance coverage or a supplement to any insurance coverage;
(5) product is only offered by providers of the service; and
(6) has submitted evidence of its compliance with this section to the superintendent pursuant to rules and regulations promulgated by the department.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07485-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to private air ambulance service
Purpose or general idea of bill
To clarify that a subscription plan offered by a non-profit air ambulance service is exempt from insurance licensing and other requirements.
Summary of provisions
Section 1108 of the insurance law is amended by adding a new subsection (o) stating that a private air ambulance services that solicits membership subscriptions does not fall under the purview of insurance provided it meets certain criteria.
Justification
Subscription plans have a long history of serving as a means for charitable donations to emergency medical transporters. Many volunteer ambulance companies and air medical transports have used subscription plans as a way to encourage their communities' participation and to supplement their financial needs. In recent years, there were some concerns that these subscription plans may have fallen within the definition of insurance and therefore needed to be licensed by the New York State Insurance Department. This bill will clarify that a subscription plan offered by a non-profit air ambulance service is not insurance and therefore allowable.
Air medical services generally handle on-scene emergency calls which include car accidents, skiing injuries, and industrial accidents. The rapid transport and quality of care received in the air has saved thousands of lives and improved recovery outcomes for thousands more. Emergency and inter-facility air transportation is expensive and the cost is not wholly covered by insurance. Non-profit providers struggle to keep their organizations viable and staffed with high quality and well trained individuals yet their services are essential, particularly in rural parts of New York. Rather than face losing these vital non-profits, this legislation would allow these organizations to use a subscription plan as one of their many fundraising tools.
Prior legislative history
2013/2014- S.1152 Referred to the Senate Committee on Insurance 2011/2012- S.3518 Referred to Senate Committee on Insurance 2009/2010-S.8076 Referred to Senate Committee
Fiscal implications
None.
Effective date
This act shall take effect on the thirtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.