Relates to the use of virtual credit cards by insurers and certain health care plans and the effectiveness of provisions of law relating thereto

Fee-free claim payments for health providers

New York insurers and health plans must disclose payment-processing fees in advance and offer providers a fee-free option. These rules cover credit cards, virtual credit cards, and electronic funds transfers. They protect licensed health professionals and groups with participating provider contracts. Providers or their designees have 30 days after notice to choose a payment method. Without a choice, the payer must use the offered fee-free option. If missing information prevents that payment, the payer can use another fee-free method to meet legal payment deadlines. A choice stays in effect until the provider changes it in writing. Payers cannot charge solely to send an electronic funds transfer with payment details unless the provider elects that method. Payer-hired payment vendors must follow these rules; vendors providers use to receive payments are exempt. New or changed contracts after the effective date cannot waive the notice rules. The act takes effect immediately, but the payment rules start with the referenced 2025 amendments and their 180-day effective-date schedule. The rules apply to policies and contracts issued, renewed, or modified on or after that date.