ARTICLE
20 April 2015

Healthcare Providers Now Subject to NY "Surprise Bill Law"

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Day Pitney LLP

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The "Emergency Medical Services and Surprise Bills" law ("Surprise Bill Law") that went into effect in New York on March 31, 2015 imposed a complex set of required disclosures on healthcare providers.
United States Food, Drugs, Healthcare, Life Sciences

The "Emergency Medical Services and Surprise Bills" law ("Surprise Bill Law") that went into effect in New York on March 31, 2015 imposed a complex set of required disclosures on healthcare providers.  The primary goal of the law, passed as part of the state's 2014-2015 budget, was simple enough: to protect consumers from "surprise" medical bills after receiving care from out-of-network providers.  In attempting to achieve that goal, however, the law amended numerous sections of the state's insurance law and added still others, sometimes with ambiguous language that left some providers confused as to their disclosure obligations.

One relatively straightforward portion of the Surprise Bill Law deals with services rendered in hospital emergency rooms.  Patients who have insurance are responsible only for the copayments and deductibles that would apply to in-network services, even when those services are provided by out-of-network physicians.
 
More complex are the law's requirements that a healthcare provider disclose certain information to patients, including the provider's hospital affiliations, which health plans the provider participates in, the provider's expected charges to the patient, and the identities of any other professionals who may be involved in the patient's care and who will bill for their services (such as anesthesiologists) so that the patient may then determine those providers' affiliations.  Hospitals must also post information including a list of charges and the health plans in which the hospital and its personnel participate, and health plans must also disclose information to their insureds regarding "surprise bills" and the new dispute resolution procedures mandated by the law.

For non-emergency services, a failure to provide such disclosures and obtain patient consent will result in the provider's bill being deemed a "surprise bill," upon which the patient will be responsible only for the health plan's in-network cost-sharing amounts.

The New York State Department of Financial Services has a page on its website explaining the Surprise Bill Law for consumers and healthcare providers, and the state Department of Health prepared a helpful summary of the new disclosure requirements for hospitals.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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