Surprise Medical Billing Legislation Signed

This week, the Governor signed legislation (S.3171/A.264) which adds hospital charges for emergency services by out-of-network hospitals to the “surprise bill” law and the independent dispute resolution (IDR) process. The “surprise bill” law, enacted in 2014, established IDR as a means by which an insurer and out-of-network physician could settle disputes regarding charges for emergency care by allowing an insurer to submit what they consider to be an excessive out-of-network emergency charge to an independent arbiter for resolution. Insurers are required to ensure that enrollees do not incur greater out of pocket costs for out-of-network emergency services, which in turn, allowed for abuse by providers through overcharging of insurers. This legislation expands the landmark “surprise bill” law by applying the same IDR process to hospitals. In extending the IDR process, the state is addressing a significant cost driver for health insurance by restricting the ability of hospitals to charge unreasonably high fees.

Bill Sponsor Senator Kreuger said:

“When New Yorkers go to the hospital in an emergency, they can’t be expected to make sure every procedure is delivered by an in-network provider. This new law will protect New York families from outrageous surprise medical bills and help keep overall medical costs down. I thank Assembly Member Cahill for carrying this bill in the Assembly, and Governor Cuomo for signing it today.”