What's happening
This bill lets doctors who evaluate hearing loss sell hearing aids for profit.
Why it matters
Statewide change. Removes the ban on for-profit hearing aid dispensing by physicians who have evaluated hearing loss.
Service obligations remain. Physicians must still repair or service hearing aids they dispense.
Other requirements remain. Physicians dispensing hearing aids must continue complying with the three other sections of general business law referenced in the bill.
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Who cares
Ear, nose and throat doctors
They could sell hearing aids for profit after evaluating patients for hearing loss.
Patients with hearing loss
They could buy hearing aids from the same physicians who evaluated their hearing loss.
Hearing aid sellers
They could face competition from physicians newly permitted to dispense hearing aids for profit.
Headline styles
Let Doctors Profit From Hearing Aids
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to consumer protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2565
2019-2020 Regular Sessions
IN SENATE
January 28, 2019
Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to special provisions of the not-for-profit sales
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 802 of the general business law, as added by chapter 599 of the laws of 1998, subdivision 1 as designated and subdivision 2 as added by chapter 301 of the laws of 2000, is amended to read as follows:
§ 802. Special provisions[; not-for-profit sales]. 1. [No otolaryngologist or other licensed physician who has conducted a medical evaluation of hearing loss shall engage in the business of dispensing hearing aids for a profit.] No otolaryngologist or other licensed physician who has dispensed a hearing aid shall refuse or fail to perform repairs or service on any hearing aid that they have dispensed.
2. Every licensed physician who engages in the dispensing of hearing aids in compliance with the provisions of this section shall be required to comply with sections seven hundred ninety-one, seven hundred ninetyeight and eight hundred three of this article, in addition to compliance with this section.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05423-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 imme- diately.
Justification
Currently, physicians are prohibited by section eight hundred two of the general business law to sell hearing aids for a profit. This prohibi- tion, 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 otolar- yngology. 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 otclaryngoloaists 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 inter- est of patients as it would improve access to hearing aids and the dual- ity of care delivered by enabling all appropriately trained and quali- fied 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
2015-16: S.2024- Referred to Consumer Protection 2017-18: S.3488 - 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.