S T A T E O F N E W Y O R K
________________________________________________________________________
S. 4052 A. 5695
2013-2014 Regular Sessions
S E N A T E - A S S E M B L Y
March 6, 2013
___________
IN SENATE -- Introduced by Sen. GRIFFO -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Insurance
IN ASSEMBLY -- Introduced by M. of A. BRINDISI -- read once and referred
to the Committee on Insurance
AN ACT to amend the insurance law, in relation to community based air
ambulance subscription services; and providing for the repeal of such
provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature finds New York's non-
profit community based air ambulance service providers provide rapid
emergency response and medical transport services saving dozens of lives
annually, particularly in remote areas of the state. Not-for-profit
community based ambulance service providers rely on philanthropic chari-
table donations for the financial means to provide such vital services
to the people of the state. In doing so, not-for-profit air ambulance
providers relieve the taxpayers of the burden of this critical and cost-
ly yet vital community service.
Therefore, the legislature finds it is in the state's interest to
support an air ambulance subscription program that assists the philan-
thropic mission of not-for-profit community based air ambulance provid-
ers. Currently, New York state's communities already benefit from less
expensive non-profit air ambulance services because profit margins need
not be built into their overall operating costs. By supporting not-for-
profit community based providers, this legislation intends to ensure air
ambulance subscription member dues are reinvested into servicing the
community, not into dividends for profit-seeking shareholders.
S 2. Subsection (k) of section 1108 of the insurance law, as added by
chapter 246 of the laws of 2012, is renumbered subsection (l) and a new
subsection (m) is added to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09437-01-3
S. 4052 2 A. 5695
(M) A COMMUNITY BASED AIR AMBULANCE SERVICE THAT HOLDS A VALID AMBU-
LANCE SERVICE OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT OF HEALTH
PURSUANT TO SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW AND
THAT COMPLIES WITH SECTION ELEVEN HUNDRED TWENTY-SIX OF THIS ARTICLE.
S 3. Section 1124 of the insurance law, as added by chapter 246 of the
laws of 2012, is renumbered section 1125 and a new section 1126 is added
to read as follows:
S 1126. COMMUNITY BASED AIR AMBULANCE SERVICE SUBSCRIPTION CERTIF-
ICATE. (A) A COMMUNITY BASED AIR AMBULANCE SERVICE THAT HOLDS A VALID
AMBULANCE SERVICE OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT OF
HEALTH PURSUANT TO SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW
AND A VALID AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE ISSUED BY THE
SUPERINTENDENT PURSUANT TO SUBSECTION (B) OF THIS SECTION MAY ENTER INTO
A SUBSCRIPTION AGREEMENT WITH A PERSON OR OTHER ENTITY IN THIS STATE
UNDER WHICH THE COMMUNITY BASED AIR AMBULANCE SERVICE AGREES TO DISCOUNT
OR WAIVE ANY PART OF ITS FEES FOR SERVICE IN THE EVENT THAT THE COMMUNI-
TY BASED AIR AMBULANCE SERVICE TRANSPORTS A PERSON BY AIRCRAFT TO, FROM
OR BETWEEN GENERAL HOSPITALS OR OTHER HEALTH CARE FACILITIES.
(B) THE SUPERINTENDENT MAY ISSUE A COMMUNITY BASED AIR AMBULANCE
SERVICE SUBSCRIPTION CERTIFICATE TO ANY ENTITY THAT IS TRUSTWORTHY TO
ACT IN SUCH CAPACITY AND THAT HAS COMPLIED WITH THE PREREQUISITES HEREIN
PRESCRIBED. THE COMMUNITY BASED AIR AMBULANCE SERVICE MUST HOLD A VALID
AMBULANCE SERVICE OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT OF
HEALTH PURSUANT TO SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW
THAT AUTHORIZES THE AMBULANCE SERVICE TO PROVIDE SERVICES BY AIRCRAFT.
THE COMMUNITY BASED AIR AMBULANCE SERVICE MUST BE A REGISTERED NOT-FOR-
PROFIT CORPORATION PROVIDING SERVICES IN NEW YORK STATE. THE COMMUNITY
BASED AIR AMBULANCE SERVICE MUST ALSO OBTAIN, AND MAINTAIN THROUGHOUT
THE TERM OF ITS COMMUNITY BASED AIR AMBULANCE SERVICE SUBSCRIPTION
CERTIFICATE, A SURETY BOND ISSUED BY AN AUTHORIZED INSURER AND PAYABLE
TO COMMUNITY BASED AIR AMBULANCE SERVICE SUBSCRIBERS TO REFUND UNEARNED
SUBSCRIPTION FEES PAID TO THE COMMUNITY BASED AIR AMBULANCE SERVICE.
(C) THE APPLICATION FOR A COMMUNITY BASED AIR AMBULANCE SERVICE
SUBSCRIPTION CERTIFICATE SHALL BE IN SUCH FORM OR FORMS, AND SHALL
CONTAIN SUCH INFORMATION AS THE SUPERINTENDENT SHALL PRESCRIBE. THE
COMMUNITY BASED AIR AMBULANCE SERVICE SHALL WITH THE SUBMISSION OF THE
APPLICATION ALSO SUBMIT PROOF THAT IT HAS OBTAINED THE SURETY BOND
REQUIRED IN SUBSECTION (B) OF THIS SECTION AND A COPY OF ITS AMBULANCE
SERVICE OPERATING CERTIFICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSU-
ANT TO SECTION THREE THOUSAND FIVE OF THE PUBLIC HEALTH LAW.
(D) AN AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE SHALL BE VALID
FOR A TERM OF TWO YEARS TO RUN CONCURRENTLY WITH, AND TERMINATE ON THE
SAME DATE AS, THE TERM OF THE AIR AMBULANCE SERVICE'S OPERATING CERTIF-
ICATE ISSUED BY THE DEPARTMENT OF HEALTH PURSUANT TO SECTION THREE THOU-
SAND FIVE OF THE PUBLIC HEALTH LAW. AT THE TIME OF APPLICATION FOR EVERY
SUCH CERTIFICATE, AND FOR EVERY RENEWAL THEREOF, AN APPLICANT SHALL PAY
TO THE SUPERINTENDENT THE SUM OF ONE THOUSAND DOLLARS.
(E) IF AN APPLICANT FILES AN APPLICATION FOR A RENEWAL CERTIFICATE
WITH THE SUPERINTENDENT BEFORE THE EXPIRATION OF SUCH CERTIFICATE, THEN
THE CERTIFICATE SOUGHT TO BE RENEWED SHALL CONTINUE IN FULL FORCE AND
EFFECT EITHER UNTIL THE ISSUANCE BY THE SUPERINTENDENT OF THE RENEWAL
CERTIFICATE APPLIED FOR OR UNTIL FIVE DAYS AFTER THE SUPERINTENDENT
SHALL HAVE REFUSED TO ISSUE SUCH RENEWAL CERTIFICATE AS PROVIDED IN THIS
SECTION.
(F) THE SUPERINTENDENT MAY REFUSE TO RENEW, REVOKE, OR SUSPEND A
COMMUNITY BASED AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE FOR A
S. 4052 3 A. 5695
PERIOD THE SUPERINTENDENT DETERMINES, IF AFTER NOTICE AND HEARING, THE
SUPERINTENDENT DETERMINES THAT AN APPLICANT OR CERTIFICATE HOLDER HAS:
(1) NOT OBTAINED OR MAINTAINED THE SURETY BOND REQUIRED BY SUBSECTION
(B) OF THIS SECTION; OR
(2) DEMONSTRATED UNTRUSTWORTHINESS, INCLUDING HAVING VIOLATED THIS
SECTION.
(G) THE COMMISSIONER OF HEALTH SHALL IMMEDIATELY NOTIFY THE SUPER-
INTENDENT WHEN SUCH COMMISSIONER HAS REVOKED, SUSPENDED, LIMITED, OR
ANNULLED AN AIR AMBULANCE SERVICE OPERATING CERTIFICATE. A COMMUNITY
BASED AIR AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE ISSUED PURSUANT TO
THIS SECTION SHALL TERMINATE BY OPERATION OF LAW UPON THE EFFECTIVE DATE
OF THE REVOCATION, SUSPENSION, OR ANNULMENT OF THE COMMUNITY BASED AIR
AMBULANCE SERVICE'S OPERATING CERTIFICATE BY THE COMMISSIONER OF HEALTH.
(H) A COMMUNITY BASED AIR AMBULANCE SERVICE SHALL FILE ITS
SUBSCRIPTION AGREEMENT FORMS WITH THE SUPERINTENDENT IN CONNECTION WITH
ITS APPLICATION OR ANY RENEWAL APPLICATION FOR A COMMUNITY BASED AIR
AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE. A COMMUNITY BASED AIR AMBU-
LANCE SERVICE THAT AMENDS ITS SUBSCRIPTION AGREEMENT FORMS SHALL FILE
THE REVISED FORMS WITH THE SUPERINTENDENT PRIOR TO USING THE FORMS IN
THIS STATE, PROVIDED THAT WHERE THE AMENDMENTS TO THE FORMS ARE ONLY
TECHNICAL OR NON-SUBSTANTIATIVE, THE AIR AMBULANCE SERVICE MAY FILE THE
REVISED FORMS AT OR BEFORE THE TIME IT RENEWS ITS COMMUNITY BASED AIR
AMBULANCE SERVICE SUBSCRIPTION CERTIFICATE.
(I) THE SUBSCRIPTION AGREEMENT FORMS SHALL:
(1) EXPRESSLY STATE THAT THE SUBSCRIPTION IS NOT A GUARANTEE FOR THE
PROVISION OF MEDICAL TREATMENT OR TRANSPORT;
(2) LIST THE CONDITIONS UNDER WHICH THE AIR AMBULANCE SERVICE MAY NOT
PROVIDE MEDICAL TREATMENT OR TRANSPORT; AND
(3) STATE THAT A SUBSCRIBER MAY FILE A COMPLAINT WITH THE DEPARTMENT,
AND INCLUDE THE DEPARTMENT'S WEBSITE AND MAILING ADDRESS.
(J) A COMMUNITY BASED AIR AMBULANCE SUBSCRIPTION AGREEMENT MAY:
(1) CONDITION A DISCOUNT OR WAIVER OF ANY PART OF THE FEES UPON THE
AIR AMBULANCE SERVICE RECEIVING AN ASSIGNMENT OF INSURANCE PAYMENTS, OR
OTHER RIGHT TO REIMBURSEMENT OR RECOVERY, FOR THE AIR AMBULANCE
SERVICES;
(2) PROVIDE FOR A DISCOUNT OR WAIVER OF ANY PART OF THE FEES FOR AIR
AMBULANCE SERVICE PROVIDED BY AN ENTITY AFFILIATED WITH THE COMMUNITY
BASED AIR AMBULANCE SERVICE THAT IS DULY AUTHORIZED TO PROVIDE THE AMBU-
LANCE SERVICES IN THE JURISDICTION IN WHICH THE SERVICES ARE RENDERED;
AND
(3) COVER TWO OR MORE PERSONS, SUCH AS FAMILY MEMBERS, EMPLOYEES,
OCCUPANTS OF A SPECIFIED PREMISES, OR ANOTHER GROUP OF PERSONS WITH A
COMMON RELATIONSHIP WITH ONE ANOTHER.
FOR PURPOSES OF THIS SECTION, AN ENTITY IS AFFILIATED WITH A COMMUNITY
BASED AIR AMBULANCE SERVICE WHERE THE ENTITY AND THE COMMUNITY BASED AIR
AMBULANCE SERVICE HAVE ENTERED INTO AN AGREEMENT TO PROVIDE RECIPROCAL
AIR AMBULANCE SERVICES TO EACH OTHER'S SUBSCRIBERS.
(K) A SUBSCRIBER'S INSURER, WITH RESPECT TO A HEALTH INSURANCE POLICY
OR CONTRACT DELIVERED OR ISSUED FOR DELIVERY IN THIS STATE, SHALL NOT
TAKE INTO CONSIDERATION ANY DISCOUNT OR FEE WAIVER GIVEN TO THE
SUBSCRIBER BY THE AIR AMBULANCE SERVICE WHEN DETERMINING THE BENEFIT
PAYABLE UNDER THE HEALTH INSURANCE POLICY OR CONTRACT FOR COMMUNITY
BASED AIR AMBULANCE SERVICES.
(L) THE SUPERINTENDENT SHALL NOTIFY THE COMMISSIONER OF HEALTH WHENEV-
ER THE SUPERINTENDENT ISSUES, RENEWS, REFUSES TO RENEW, REVOKES OR
S. 4052 4 A. 5695
SUSPENDS A COMMUNITY BASED AIR AMBULANCE SERVICE SUBSCRIPTION CERTIF-
ICATE.
(M) THE SUPERINTENDENT MAY PROMULGATE REGULATIONS IMPLEMENTING THIS
SECTION.
S 4. This act shall take effect on the ninetieth day after it shall
have become a law and shall expire and be deemed repealed July 1, 2018.