Shown verbatim: the complete text as captured from the official source posted by the New York State Senate, fetched 2026-08-11. Nothing is edited or removed. Where this bill amends existing law, language marked for deletion in the official source appears here in brackets. The official bill page.
S T A T E O F N E W Y O R K
________________________________________________________________________
3986--A
2025-2026 Regular Sessions
I N A S S E M B L Y
January 30, 2025
___________
Introduced by M. of A. BORES, EPSTEIN -- read once and referred to the
Committee on Insurance -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the insurance law and the public health law, in relation
to the use of virtual credit cards by insurers and certain health care
plans
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 3217-b of the insurance law is amended by adding a
new subsection (p) to read as follows:
(P)(1) AN INSURER MAY PAY A CLAIM FOR REIMBURSEMENT MADE BY A PROVIDER
USING A CREDIT CARD, VIRTUAL CREDIT CARD, OR ELECTRONIC FUNDS TRANSFER
PAYMENT METHOD THAT IMPOSES ON THE PROVIDER A SPECIFICALLY IDENTIFIED
FEE OR SIMILAR DEDICATED CHARGE TO PROCESS THE PAYMENT IF IN ADVANCE OF
USING SUCH REIMBURSEMENT METHOD:
(A) THE INSURER NOTIFIES THE PROVIDER OF THE POTENTIAL FEES OR OTHER
CHARGES ASSOCIATED WITH THE USE OF THE CREDIT CARD, VIRTUAL CREDIT CARD,
OR ELECTRONIC FUNDS TRANSFER PAYMENT;
(B) THE INSURER OFFERS THE PROVIDER AN ALTERNATIVE PAYMENT METHOD THAT
DOES NOT IMPOSE FEES OR SIMILAR CHARGES ON THE PROVIDER; AND
(C) THE PROVIDER OR A DESIGNEE OF THE PROVIDER ELECTS TO ACCEPT
PAYMENT OF THE CLAIM USING THE CREDIT CARD, VIRTUAL CREDIT CARD, OR
ELECTRONIC FUNDS TRANSFER PAYMENT METHOD.
(2) A DECISION PURSUANT TO PARAGRAPH ONE OF THIS SUBSECTION SHALL
REMAIN IN EFFECT UNTIL THE PROVIDER NOTIFIES THE INSURER, IN WRITING, OF
A CHANGE IN THE DESIGNATED PAYMENT TYPE.
(3) IF AN INSURER CONTRACTS WITH A VENDOR TO PROCESS PAYMENTS OF
PROVIDERS' CLAIMS, THE INSURER SHALL REQUIRE THE VENDOR TO COMPLY WITH
THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBSECTION.
(4) NO POLICY OR CONTRACT ISSUED, RENEWED, MODIFIED, ALTERED OR
AMENDED AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL CONTAIN
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03607-04-5
A. 3986--A 2
PROVISIONS ALLOWING FOR WAIVER OF THE NOTICE REQUIREMENTS CONTAINED IN
THIS SUBSECTION.
(5) FOR ANY CONTRACT THAT IS IN EFFECT ON OR BEFORE THE EFFECTIVE DATE
OF THIS SUBSECTION OR THAT IS ENTERED INTO, AMENDED OR RENEWED ON OR
AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, AN INSURER THAT INITIATES A
PAYMENT TO A PROVIDER USING, OR CHANGES THE PAYMENT METHOD TO, A HEALTH
CARE ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRANSACTION SHALL
NOT CHARGE A FEE SOLELY TO TRANSMIT THE PAYMENT TO THE PROVIDER UNLESS
THE PROVIDER CONSENTS TO THE FEE.
(6) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
(A) "PROVIDER" SHALL MEAN A HEALTH CARE PROFESSIONAL OR A GROUP OF
HEALTH CARE PROFESSIONALS LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCA-
TION LAW THAT HAS A PARTICIPATING PROVIDER CONTRACT WITH AN INSURER TO
PROVIDE HEALTH CARE SERVICES TO AN INSURED.
(B) "VIRTUAL CREDIT CARD" SHALL MEAN A SINGLE-USE SERIES OF NUMBERS
LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY AN INSURER TO A PROVIDER
FOR THE PURPOSE OF PAYING A CLAIM FOR HEALTH CARE SERVICES PERFORMED BY
THE PROVIDER.
§ 2. Section 4325 of the insurance law is amended by adding a new
subsection (p) to read as follows:
(P) (1) A CORPORATION ORGANIZED UNDER THIS ARTICLE MAY PAY A CLAIM FOR
REIMBURSEMENT MADE BY A PROVIDER USING A CREDIT CARD, VIRTUAL CREDIT
CARD, OR ELECTRONIC FUNDS TRANSFER PAYMENT METHOD THAT IMPOSES ON THE
PROVIDER A SPECIFICALLY IDENTIFIED FEE OR SIMILAR CHARGE DEDICATED TO
PROCESS THE PAYMENT IF IN ADVANCE OF USING SUCH REIMBURSEMENT METHOD:
(A) THE CORPORATION NOTIFIES THE PROVIDER OF THE POTENTIAL FEES OR
OTHER CHARGES ASSOCIATED WITH THE USE OF THE CREDIT CARD, VIRTUAL CREDIT
CARD, OR ELECTRONIC FUNDS TRANSFER PAYMENT;
(B) THE CORPORATION OFFERS THE PROVIDER AN ALTERNATIVE PAYMENT METHOD
THAT DOES NOT IMPOSE FEES OR SIMILAR CHARGES ON THE PROVIDER; AND
(C) THE PROVIDER OR A DESIGNEE OF THE PROVIDER ELECTS TO ACCEPT
PAYMENT OF THE CLAIM USING THE CREDIT CARD, VIRTUAL CREDIT CARD, OR
ELECTRONIC FUNDS TRANSFER PAYMENT METHOD.
(2) A DECISION PURSUANT TO PARAGRAPH ONE OF THIS SUBSECTION SHALL
REMAIN IN EFFECT UNTIL THE PROVIDER NOTIFIES THE CORPORATION, IN WRIT-
ING, OF A CHANGE TO THE DESIGNATED PAYMENT TYPE.
(3) IF A CORPORATION CONTRACTS WITH A VENDOR TO PROCESS PAYMENTS OF
PROVIDERS' CLAIMS, THE INSURER SHALL REQUIRE THE VENDOR TO COMPLY WITH
THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBSECTION.
(4) NO POLICY OR CONTRACT ISSUED, RENEWED, MODIFIED, ALTERED OR
AMENDED AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL CONTAIN
PROVISIONS ALLOWING FOR WAIVER OF THE NOTICE REQUIREMENTS CONTAINED IN
THIS SUBSECTION.
(5) FOR ANY CONTRACT THAT IS IN EFFECT ON OR BEFORE THE EFFECTIVE DATE
OF THIS SUBSECTION OR THAT IS ENTERED INTO, AMENDED OR RENEWED ON OR
AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, A CORPORATION THAT INITI-
ATES A PAYMENT TO A PROVIDER USING, OR CHANGES THE PAYMENT METHOD TO, A
HEALTH CARE ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRANSACTION
SHALL NOT CHARGE A FEE SOLELY TO TRANSMIT THE PAYMENT TO THE PROVIDER
UNLESS THE PROVIDER ELECTS TO ACCEPT PAYMENT IN ACCORDANCE WITH SUBPARA-
GRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
(6) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
(A) "PROVIDER" SHALL MEAN A HEALTH CARE PROFESSIONAL OR A GROUP OF
HEALTH CARE PROFESSIONALS LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCA-
A. 3986--A 3
TION LAW THAT HAS A PARTICIPATING PROVIDER CONTRACT WITH A CORPORATION
TO PROVIDE HEALTH CARE SERVICES TO AN INSURED.
(B) "VIRTUAL CREDIT CARD" SHALL MEAN A SINGLE-USE SERIES OF NUMBERS
LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY A CORPORATION ORGANIZED
UNDER THIS ARTICLE TO A PROVIDER FOR THE PURPOSE OF PAYING A CLAIM FOR
HEALTH CARE SERVICES PERFORMED BY THE PROVIDER.
§ 3. Section 4406-c of the public health law is amended by adding a
new subdivision 14 to read as follows:
14. (A) A HEALTH CARE PLAN MAY PAY A CLAIM FOR REIMBURSEMENT MADE BY A
PROVIDER USING A CREDIT CARD, VIRTUAL CREDIT CARD, OR ELECTRONIC FUNDS
TRANSFER PAYMENT METHOD THAT IMPOSES ON THE PROVIDER A SPECIFICALLY
IDENTIFIED FEE OR SIMILAR DEDICATED CHARGE TO PROCESS THE PAYMENT IF IN
ADVANCE OF USING SUCH REIMBURSEMENT METHOD:
(I) THE HEALTH CARE PLAN NOTIFIES THE PROVIDER OF THE POTENTIAL FEES
OR OTHER CHARGES ASSOCIATED WITH THE USE OF THE CREDIT CARD, VIRTUAL
CREDIT CARD, OR ELECTRONIC FUNDS TRANSFER PAYMENT;
(II) THE HEALTH CARE PLAN OFFERS THE PROVIDER AN ALTERNATIVE PAYMENT
METHOD THAT DOES NOT IMPOSE FEES OR SIMILAR CHARGES ON THE PROVIDER; AND
(III) THE PROVIDER OR A DESIGNEE OF THE PROVIDER ELECTS TO ACCEPT
PAYMENT OF THE CLAIM USING THE CREDIT CARD, VIRTUAL CREDIT CARD, OR
ELECTRONIC FUNDS TRANSFER PAYMENT METHOD.
(B) A DECISION PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL
REMAIN IN EFFECT UNTIL THE PROVIDER NOTIFIES THE HEALTH CARE PLAN, IN
WRITING, OF A CHANGE TO THE DESIGNATED PAYMENT TYPE.
(C) IF A HEALTH CARE PLAN CONTRACTS WITH A VENDOR TO PROCESS PAYMENTS
OF PROVIDERS' CLAIMS, THE HEALTH CARE PLAN SHALL REQUIRE THE VENDOR TO
COMPLY WITH THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION.
(D) NO POLICY OR CONTRACT ISSUED, RENEWED, MODIFIED, ALTERED OR
AMENDED AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL CONTAIN
PROVISIONS ALLOWING FOR WAIVER OF THE NOTICE REQUIREMENTS CONTAINED IN
THIS SUBDIVISION.
(E) FOR ANY CONTRACT THAT IS IN EFFECT ON OR BEFORE THE EFFECTIVE DATE
OF THIS SUBDIVISION OR THAT IS ENTERED INTO, AMENDED OR RENEWED ON OR
AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, A HEALTH CARE PLAN THAT
INITIATES A PAYMENT TO A PROVIDER USING, OR CHANGES THE PAYMENT METHOD
TO, A HEALTH CARE ELECTRONIC FUNDS TRANSFERS AND REMITTANCE ADVICE TRAN-
SACTION SHALL NOT CHARGE A FEE SOLELY TO TRANSMIT THE PAYMENT TO THE
PROVIDER UNLESS THE PROVIDER ELECTS TO ACCEPT PAYMENT IN ACCORDANCE WITH
SUBPARAGRAPH (II) OF PARAGRAPH (A) OF THIS SUBDIVISION.
(F) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
(I) "PROVIDER" SHALL MEAN A HEALTH CARE PROFESSIONAL OR A GROUP OF
HEALTH CARE PROFESSIONALS LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCA-
TION LAW THAT HAS A PARTICIPATING PROVIDER CONTRACT WITH A HEALTH CARE
PLAN TO PROVIDE HEALTH CARE SERVICES TO AN ENROLLEE.
(II) "VIRTUAL CREDIT CARD" SHALL MEAN A SINGLE-USE SERIES OF NUMBERS
LINKED TO A FIXED DOLLAR AMOUNT AND PROVIDED BY A HEALTH CARE PLAN TO A
PROVIDER FOR THE PURPOSE OF PAYING A CLAIM FOR HEALTH CARE SERVICES
PERFORMED BY THE PROVIDER.
§ 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall apply to policies and contracts
issued, renewed, modified, altered or amended on and after such date.Every fact on this page links to its source, starting with the official bill record.