Prohibits a physician from charging a fee for any service rendered during a period of seventy-two hours from the time a service which was advertised as free of charge has been rendered; provides that a physician may charge a fee for services specifically excluded in the advertisement which offered such free services.

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S2244-2011 Actions

• Jan 18, 2011: REFERRED TO CONSUMER PROTECTION

S2244-2011 Memo

BILL NUMBER:S2244

TITLE OF BILL:
An act
to amend the general business law, in relation to charges for
certain services rendered by a physician

SUMMARY OF PROVISIONS:
Section 1 of the General Business Law is amended by adding a new
section 338 which prohibits a physician from charging for any service
whatsoever rendered during a period of seventy-two hours from the
time such free service was rendered, except for those services
specifically excluded in the advertisement offering the free services.

JUSTIFICATION:
It is a commendable practice for physicians to offer free examinations
to those individuals who may not otherwise receive a service.
However, there have been instances in which many people, especially
seniors, have been enticed into physician's offices through the
advertisement of a free service. Unfortunately, some unscrupulous
providers are taking advantage of the rapport and possible diagnosis
that was established during the free exam by charging for related
services. This is similar to the advertising gimmick of a "bait and
switch" in which an individual is lured in with the promise of one
product (a free exam) and then switched to another product (the
follow-up service).

This legislation would require that a physician may not charge for any
service related to that for which the free service was rendered
during a period of seventy-two hours. Furthermore, if the free
service does not apply to all services to be rendered, the
advertisement must specify any associated or reasonably anticipated
services which are not included.
For example, free eye screening for services does not include charges
for refraction, eyeglasses and contact lens fitting.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect immediately.

S2244-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2244

                         2011-2012 Regular Sessions

                              I N  SENATE

                              January 18, 2011
                                 ___________

  Introduced  by  Sen.  KRUGER -- 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  charges  for
    certain services rendered by a physician

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. The general business law is amended by adding a new section
  338 to read as follows:

    S 338. PHYSICIAN SERVICES; CERTAIN CHARGES PROHIBITED. 1.  EXCEPT  FOR
  THOSE  SERVICES  SPECIFICALLY EXCLUDED IN AN ADVERTISEMENT OFFERING FREE
  SERVICES OR A MEDICAL EMERGENCY, A PHYSICIAN SHALL NOT  CHARGE  FOR  ANY
  SERVICE RENDERED DURING A PERIOD OF SEVENTY-TWO HOURS FROM THE TIME SUCH
  FREE  SERVICE  WAS  RENDERED. IF SUCH FREE SERVICE DOES NOT APPLY TO ALL
  SERVICES TO BE RENDERED THE ADVERTISEMENT SHALL SPECIFY  ANY  ASSOCIATED
  OR  REASONABLY  ANTICIPATED  SERVICES  WHICH ARE NOT INCLUDED.  IN CASES
  WHERE A MEDICAL EMERGENCY IS IDENTIFIED, THE PHYSICIAN SHALL INFORM  THE
  PATIENT  OF  SERVICES  WHICH MAY BE RENDERED AND ANY RELEVANT CHARGE FOR
  THOSE SERVICES.
    2.  IF A PHYSICIAN CHARGES A PATIENT FOR OTHER SERVICES, THE PHYSICIAN
  SHALL UPON REQUEST PRODUCE EVIDENCE SUCH OTHER SERVICES  WERE  PERFORMED
  AT LEAST SEVENTY-TWO HOURS AFTER THE FREE SERVICE WAS RENDERED OR WERE A
  MEDICAL EMERGENCY.
    3.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
  THE FOLLOWING MEANINGS:

    A. THE TERM "ADVERTISEMENT" SHALL MEAN  ANY  ATTEMPT  TO  DIRECTLY  OR
  INDIRECTLY  BY  PUBLICATION,  DISSEMINATION,  OR CIRCULATION IN PRINT OR
  ELECTRONIC MEDIA WHICH DIRECTLY OR INDIRECTLY  INDUCES  OR  ATTEMPTS  TO
  INDUCE  ANY  PERSON  OR ENTITY TO PURCHASE OR ENTER INTO AN AGREEMENT TO
  PURCHASE SERVICES, TREATMENT, OR GOODS RELATED THERETO FROM A  PHYSICIAN
  LICENSED TO PRACTICE IN THIS STATE.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD07390-01-1

 S. 2244                             2

    B. THE TERM "PRINT MEDIA" SHALL INCLUDE NEWSPAPERS, MAGAZINES, PERIOD-
  ICALS,  PROFESSIONAL  JOURNALS,  TELEPHONE DIRECTORIES, CIRCULARS, HAND-
  BILLS, FLYERS, BILLBOARDS, SIGNS, MATCHCOVERS AND OTHER  SIMILAR  ITEMS,
  DOCUMENTS  OR  COMPARABLE  PUBLICATIONS, THE CONTENT OF WHICH IS DISSEM-
  INATED BY MEANS OF THE PRINTED WORD.
    C.  THE TERM "ELECTRONIC MEDIA" SHALL INCLUDE RADIO AND TELEVISION, OR
  COMMUNICATIONS MADE BY SOUND EQUIPMENT FROM A MOTOR VEHICLE.
    S 2. This act shall take effect immediately.