STATE OF NEW YORK ________________________________________________________________________ 3986 2025-2026 Regular Sessions IN ASSEMBLY January 30, 2025 ___________ Introduced by M. of A. BORES -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law and the public health law, in relation to the use of virtual credit cards by insurers and certain health care plans The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 3217-b of the insurance law is amended by adding a 2 new subsection (p) to read as follows: 3 (p)(1) An insurer may pay a claim for reimbursement made by a provider 4 using a credit card, virtual credit card, or electronic funds transfer 5 payment method that imposes on the provider a fee or similar charge to 6 process the payment if in advance of using such reimbursement method: 7 (A) The insurer notifies the provider of the potential fees or other 8 charges associated with the use of the credit card, virtual credit card, 9 or electronic funds transfer payment; 10 (B) The insurer offers the provider an alternative payment method that 11 does not impose fees or similar charges on the provider; and 12 (C) The provider or a designee of the provider elects to accept 13 payment of the claim using the credit card, virtual credit card, or 14 electronic funds transfer payment method. 15 (2) A decision pursuant to paragraph one of this subsection shall 16 remain in effect until the provider changes the designated payment type. 17 (3) If an insurer contracts with a vendor to process payments of 18 providers' claims, the insurer shall require the vendor to comply with 19 the provisions of paragraph one of this subsection. 20 (4) No policy or contract issued, renewed, modified, altered or 21 amended after the effective date of this section shall contain 22 provisions allowing for waiver of the notice requirements contained in 23 this subsection. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03607-01-5
A. 3986 2 1 (5) For any contract that is in effect on or before the effective date 2 of this subsection or that is entered into, amended or renewed on or 3 after the effective date of this subsection, a carrier that initiates a 4 payment to a provider using, or changes the payment method to, a health 5 care electronic funds transfers and remittance advice transaction shall 6 not charge a fee solely to transmit the payment to the provider unless 7 the provider consents to the fee. 8 (6) For purposes of this subsection, the following terms shall have 9 the following meanings: 10 (A) "Provider" shall mean an individual or group of individuals 11 licensed pursuant to title eight of the education law. 12 (B) "Virtual credit card" shall mean a single-use series of numbers 13 linked to a fixed dollar amount and provided by an insurer to a provider 14 for the purpose of paying a claim for health care services performed by 15 the provider. 16 § 2. The insurance law is amended by adding a new section 4242 to read 17 as follows: 18 § 4242. Use of virtual credit cards. (a) An insurer may pay a claim 19 for reimbursement made by a provider using a credit card, virtual credit 20 card, or electronic funds transfer payment method that imposes on the 21 provider a fee or similar charge to process the payment if in advance of 22 using such reimbursement method: 23 (1) The insurer notifies the provider of the potential fees or other 24 charges associated with the use of the credit card, virtual credit card, 25 or electronic funds transfer payment; 26 (2) The insurer offers the provider an alternative payment method that 27 does not impose fees or similar charges on the provider; and 28 (3) The provider or a designee of the provider elects to accept 29 payment of the claim using the credit card, virtual credit card, or 30 electronic funds transfer payment method. 31 (b) A decision pursuant to subsection (a) of this section shall remain 32 in effect until the provider changes the designated payment type. 33 (c) If an insurer contracts with a vendor to process payments of 34 providers' claims, the insurer shall require the vendor to comply with 35 the provisions of subsection (a) of this section. 36 (d) No policy or contract issued, renewed, modified, altered or 37 amended after the effective date of this section shall contain 38 provisions allowing for waiver of the notice requirements contained in 39 this section. 40 (e) For any contract that is in effect on or before the effective date 41 of this section or that is entered into, amended or renewed on or after 42 the effective date of this section, a carrier that initiates a payment 43 to a provider using, or changes the payment method to, a health care 44 electronic funds transfers and remittance advice transaction shall not 45 charge a fee solely to transmit the payment to the provider unless the 46 provider consents to the fee. 47 (f) For purposes of this section, the following terms shall have the 48 following meanings: 49 (1) "Provider" shall mean an individual or group of individuals 50 licensed pursuant to title eight of the education law. 51 (2) "Virtual credit card" shall mean a single-use series of numbers 52 linked to a fixed dollar amount and provided by an insurer to a provider 53 for the purpose of paying a claim for health care services performed by 54 the provider. 55 § 3. Section 4325 of the insurance law is amended by adding a new 56 subsection (p) to read as follows:
A. 3986 3 1 (p) (1) A corporation organized under this article may pay a claim for 2 reimbursement made by a provider using a credit card, virtual credit 3 card, or electronic funds transfer payment method that imposes on the 4 provider a fee or similar charge to process the payment if in advance of 5 using such reimbursement method: 6 (A) The insurer notifies the provider of the potential fees or other 7 charges associated with the use of the credit card, virtual credit card, 8 or electronic funds transfer payment; 9 (B) The insurer offers the provider an alternative payment method that 10 does not impose fees or similar charges on the provider; and 11 (C) The provider or a designee of the provider elects to accept 12 payment of the claim using the credit card, virtual credit card, or 13 electronic funds transfer payment method. 14 (2) A decision pursuant to paragraph one of this subsection shall 15 remain in effect until the provider changes the designated payment type. 16 (3) If an insurer contracts with a vendor to process payments of 17 providers' claims, the insurer shall require the vendor to comply with 18 the provisions of paragraph one of this subsection. 19 (4) No policy or contract issued, renewed, modified, altered or 20 amended after the effective date of this section shall contain 21 provisions allowing for waiver of the notice requirements contained in 22 this subsection. 23 (5) For any contract that is in effect on or before the effective date 24 of this subsection or that is entered into, amended or renewed on or 25 after the effective date of this subsection, a carrier that initiates a 26 payment to a provider using, or changes the payment method to, a health 27 care electronic funds transfers and remittance advice transaction shall 28 not charge a fee solely to transmit the payment to the provider unless 29 the provider consents to the fee. 30 (6) For purposes of this subsection, the following terms shall have 31 the following meanings: 32 (A) "Provider" shall mean an individual or group of individuals 33 licensed pursuant to title eight of the education law. 34 (B) "Virtual credit card" shall mean a single-use series of numbers 35 linked to a fixed dollar amount and provided by a corporation organized 36 under this article to a provider for the purpose of paying a claim for 37 health care services performed by the provider. 38 § 4. Section 4406-c of the public health law is amended by adding a 39 new subdivision 14 to read as follows: 40 14. (a) A health plan may pay a claim for reimbursement made by a 41 provider using a credit card, virtual credit card, or electronic funds 42 transfer payment method that imposes on the provider a fee or similar 43 charge to process the payment if in advance of using such reimbursement 44 method: 45 (i) The insurer notifies the provider of the potential fees or other 46 charges associated with the use of the credit card, virtual credit card, 47 or electronic funds transfer payment; 48 (ii) The insurer offers the provider an alternative payment method 49 that does not impose fees or similar charges on the provider; and 50 (iii) The provider or a designee of the provider elects to accept 51 payment of the claim using the credit card, virtual credit card, or 52 electronic funds transfer payment method. 53 (b) A decision pursuant to paragraph (a) of this subdivision shall 54 remain in effect until the provider changes the designated payment type.
A. 3986 4 1 (c) If an insurer contracts with a vendor to process payments of 2 providers' claims, the insurer shall require the vendor to comply with 3 the provisions of paragraph (a) of this subdivision. 4 (d) No policy or contract issued, renewed, modified, altered or 5 amended after the effective date of this section shall contain 6 provisions allowing for waiver of the notice requirements contained in 7 this subdivision. 8 (e) For any contract that is in effect on or before the effective date 9 of this subdivision or that is entered into, amended or renewed on or 10 after the effective date of this subdivision, a carrier that initiates a 11 payment to a provider using, or changes the payment method to, a health 12 care electronic funds transfers and remittance advice transaction shall 13 not charge a fee solely to transmit the payment to the provider unless 14 the provider consents to the fee. 15 (f) For purposes of this section, the following definitions shall 16 apply: 17 (i) "Provider" shall mean an individual or group of individuals 18 licensed pursuant to title eight of the education law. 19 (ii) "Virtual credit card" shall mean a single-use series of numbers 20 linked to a fixed dollar amount and provided by an insurer to a provider 21 for the purpose of paying a claim for health care services performed by 22 the provider. 23 § 5. This act shall take effect immediately and shall apply to poli- 24 cies and contracts issued, renewed, modified, altered or amended on and 25 after such date.