Requires insurance companies to issue joint checks for payment to an insured and a health care provider in certain circumstances.
Summary
This bill would require insurance companies subject to Article 32 of the Insurance Law to issue a joint check payable to both an insured and a health care provider when paying for certain out-of-network health care services. The check would need to name the insured and the provider or group practice, with the insured’s name followed by the word “and,” so that payment is made jointly rather than solely to one party.
The measure is aimed at out-of-network reimbursement arrangements and appears designed to ensure that providers are included directly in the payment process for services rendered outside an insurer’s network. It would take effect immediately upon enactment and would amend the Public Health Law by adding a new section 4406-j.
Impact
The bill would add a new requirement to the Public Health Law for insurers covered by Article 32 of the Insurance Law, changing how payment is issued for out-of-network services. In practice, it would affect health insurers, insured patients, and out-of-network physicians, clinics, and group practices by mandating joint-payee checks instead of checks issued only to the insured or another single recipient.
Sentiment
There is no recorded committee transcript or vote history available, so the bill’s reception cannot be measured from formal debate or roll-call data. Based on the text alone, the bill appears to be a consumer/provider payment administration measure rather than a broad policy overhaul, and it is framed in straightforward, mandatory terms without visible partisan language.
Contention
The main potential point of contention is the payment structure itself: requiring joint checks may be viewed by supporters as a way to protect providers and reduce disputes over out-of-network payments, while opponents could see it as adding administrative burden or complicating reimbursement for patients. Another possible issue is whether the requirement could affect patient control over insurance proceeds or create friction in billing and assignment-of-benefits practices, though no specific objections are documented in the available materials.
Enacts the "health insurance preauthorization disclosure act"; requires health insurance companies to provide participating health care providers with a list of health care treatments and services that require preauthorization from the health insurance company.