Senate Bill S6445

2013-2014 Legislative Session

Relates to insurer recovery from health care providers

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2013-S6445 (ACTIVE) - Details

See Assembly Version of this Bill:
A5145
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §3224-b, Ins L
Versions Introduced in Other Legislative Sessions:
2009-2010: A10850
2011-2012: A1538
2015-2016: S720, A3354
2017-2018: S1101, A3115
2019-2020: S873, A2899
2021-2022: A870

2013-S6445 (ACTIVE) - Summary

Relates to insurer recovery from health care providers; provides that except where there is a reasonable belief of fraud or intentional misconduct, a health plan shall not determine an overpayment amount through the use of extrapolation except with the consent of the health care provider.

2013-S6445 (ACTIVE) - Sponsor Memo

2013-S6445 (ACTIVE) - Bill Text download pdf 

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

                                  6445

                            I N  S E N A T E

                            January 24, 2014
                               ___________

Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to insurer recovery  from
  health care providers

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

  Section 1. Paragraph 3 of subsection (b)  of  section  3224-b  of  the
insurance law, as amended by chapter 237 of the laws of 2009, is amended
and two new paragraphs 6 and 7 are added to read as follows:
  (3) A health plan shall not initiate overpayment recovery efforts more
than [twenty-four] TWELVE months after the original payment was received
by  a  health  care provider. However, no such time limit shall apply to
overpayment recovery efforts that are: (i) based on a reasonable  belief
of  fraud  or  other  intentional misconduct[, or abusive billing], (ii)
required by, or initiated at the request of,  a  self-insured  plan,  or
(iii) required or authorized by a state or federal government program or
coverage that is provided by this state or a municipality thereof to its
respective employees, retirees or members. Notwithstanding the aforemen-
tioned  time  limitations,  in  the  event  that  a health care provider
asserts that a health plan has underpaid a claim or claims,  the  health
plan may defend or set off such assertion of underpayment based on over-
payments  going  back  in time as far as the claimed underpayment.  [For
purposes of this paragraph, "abusive billing"  shall  be  defined  as  a
billing  practice which results in the submission of claims that are not
consistent with sound fiscal, business, or medical practices and at such
frequency and for such a period of  time  as  to  reflect  a  consistent
course of conduct.]
  (6)  A  HEALTH  PLAN SHALL NOT DETERMINE AN OVERPAYMENT AMOUNT THROUGH
THE USE OF EXTRAPOLATION EXCEPT WITH THE  CONSENT  OF  THE  HEALTH  CARE
PROVIDER,  EXCEPT  WHERE THERE IS A REASONABLE BELIEF OF FRAUD OR INTEN-
TIONAL MISCONDUCT.
  (7) A HEALTH CARE PLAN MAY NOT THREATEN  TO  SANCTION  A  HEALTH  CARE
PROVIDER  INCLUDING A REPORT TO A RELEVANT DISCIPLINARY BODY AS A RESULT
OF A HEALTH CARE PROVIDER  CHALLENGING  AN  ALLEGED  OVERPAYMENT  EXCEPT

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

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