Relates to the use of virtual credit cards by insurers and certain health care plans

Health care providers control payment fees

Starting on the 180th day after the law takes effect, New York adds protections against provider payment fees. These cover health professionals and groups licensed under Title Eight of the education law with participating provider contracts. Insurers, Article 43 health care corporations, and health plans must disclose possible payment-processing fees and offer a fee-free option. A provider or its designee must choose the fee-bearing method, including credit cards, virtual credit cards, or electronic transfers. That choice stays in place until the provider gives written notice of a change. Payers must require their claims-processing vendors to comply. Insurers also need provider consent to charge fees solely for transmitting electronic payments with remittance advice. Corporations and health plans need the provider’s election under the fee-free-option rules to charge those transmission fees. The transmission-fee protection covers existing contracts and contracts entered into, amended, or renewed on or after the effective date. Policies and contracts issued, renewed, modified, altered, or amended from that date cannot waive the notice requirements.