What's happening
This bill prohibits health plans from contacting patients to recover overpaid insurance claim amounts from healthcare providers.
Why it matters
Protects patients from being billed directly. for errors between healthcare providers and insurers, reducing unexpected financial burdens and confusion for patients who may have already paid their share.
Shifts the responsibility for resolving overpayment disputes. entirely onto insurance companies and healthcare providers, potentially increasing administrative work for those entities but sparing consumers from involvement in these disputes.
Could improve trust in the healthcare system. by ensuring patients are not caught between insurers and providers over billing mistakes, which may encourage people to seek care without fear of retroactive financial surprises.
May lead to changes in how providers and insurers manage payment processes,. possibly encouraging more accurate claims processing upfront since insurers can no longer use patients as intermediaries to recover overpaid funds.
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Who cares
Headline styles
Ban Insurer Patient Collections
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
1421
2025-2026 Regular Sessions
IN ASSEMBLY
January 9, 2025
Introduced by M. of A. ROSENTHAL -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to overpayment of insurance claims
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph 1 of subsection (b) of section 3224-b of the insurance law, as amended by chapter 237 of the laws of 2009, is amended to read as follows:
(1) Other than recovery for duplicate payments, a health plan shall provide thirty days written notice to health care providers before engaging in additional overpayment recovery efforts seeking recovery of the overpayment of claims to such health care providers. Such notice shall state the patient name, service date, payment amount, proposed adjustment, and a reasonably specific explanation of the proposed adjustment. A health plan shall not engage in any overpayment recovery efforts that include contacting the patient to seek reimbursement for such overpayment of claims.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to policies and contracts issued, renewed, modified, altered or amended on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03931-01-5
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.