New York State Assembly

 
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A09510 Summary:

A09510 Actions:

A09510 Committee Votes:

Committee:INSURANCE   Chair:Weprin      
DATE:01/20/2026AYE/NAY:23/0  Action: Favorable refer to committee Rules        
Weprin
Aye
Blankenbush
Aye
Bichotte Hermel
Aye
Hawley
Aye
Lavine
Aye
Palmesano
Aye
Steck
Aye
Gandolfo
Aye
Dilan
Aye
Jensen
Aye
Hunter
Aye
Blumencranz
Excused
Jacobson
Aye
Bendett
Aye
Meeks
Aye
Forrest
Aye
Anderson
Aye
Cruz
Aye
Bores
Aye
Lunsford
Aye
Berger
Excused
Eichenstein
Aye
Kay
Aye
Yeger
Aye
Wieder
Aye

Committee:RULES   Chair:Pretlow      
DATE:01/21/2026AYE/NAY:27/0  Action: Favorable         
Heastie
Excused
Barclay
Aye
Pretlow
Aye
Hawley
Aye
Cook
Excused
Blankenbush
Aye
Glick
Excused
Ra
Aye
Dinowitz
Aye
Brabenec
Aye
Colton
Aye
Palmesano
Aye
Magnarelli
Aye
Reilly
Aye
Paulin
Excused
Smith
Aye
Peoples-Stokes
Aye
Jensen
Aye
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Braunstein
Aye
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye
Hevesi
Aye
Hunter
Aye
Taylor
Aye
Cruz
Aye
Vanel
Aye

A09510 Floor Votes:

A09510 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A9510
 
SPONSOR: Bores

 
TITLE OF BILL:
 
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; and to amend a chapter of the laws of 2025 amending the insurance
law and the public health law relating to the use of virtual credit
cards by insurers and certain health care plans, as proposed in legisla-
tive bills numbers S. 2105-A and A. 3986-A, in relation to the effec-
tiveness thereof
 
 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to make amendments to Chapter 647 of the
Laws of 2025.
 
 
SUMMARY OF PROVISIONS:
 
Section 1: Amends subsection (p) of section 3217-b of the insurance law,
as added by Chapter 647 of the Laws of 2025, to require that payment
type elections must be made by the provider within 30 days of receipt of
the notice from the insurer. If the provider fails to make an election
in this timeframe, the insurer must pay the provider using the alterna-
tive payment method provided in the notice or, if necessary information
to do so is unavailable, another fee-free method.
 
Section 2: Amends subsection (p) of section 4325 of the insurance law,
as added by Chapter 647 of the Laws of 2025, to include the same
provisions as section 1.
 
Section 3: Amends subdivision 14 of section 4406-c of the public health
law, as added by Chapter 647 of the Laws of 2025, to include the same
provisions as section 1.

Section 4: Amends the prior effective date to clarify that it only
applies to contracts and not policies.
 
Section 5: Sets forth the effective date.
 
 
JUSTIFICATION:
 
As alternative payment methods increase, provider choice in payment
method decreases. Payment types such as virtual credit cards may apply
higher processing fees than those agreed upon for regular credit cards
under insurer-provider contracts. As a result, providers are left to
deal with bank charges and other fees levied to counter the evolving
software and security needs for new payment types. Unless insurers are
required to seek permission, they often begin paying providers using
costly alternative payment types without providing any notice.
 
To increase transparency and provider choice, Chapter 647 of the Laws of
2025 required insurers to give appropriate notice and allow providers to
elect to utilize an alternative payment method for claims. This chapter
amendment requires that payment type elections must be made by the
provider within 30 days of receipt of the notice from the insurer. If
the provider fails to make an election in this timeframe, the insurer
must pay the provider using the alternative payment method provided in
the notice or, if necessary information to do so is unavailable, another
fee-free method.
 
 
PRIOR LEGISLATIVE HISTORY:
 
New bill.
 
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
 
None.
 
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, sections one,
two, and three of this act shall take effect on the same date and in the
same manner as a chapter of the laws of 2025 amending the insurance law
and the public health law relating to the use of virtual credit cards by
insurers and certain health care plans, as proposed in legislative bills
numbers S. 2105-A and A. 3986-A, takes effect.

A09510 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9510
 
                   IN ASSEMBLY
 
                                     January 8, 2026
                                       ___________
 
        Introduced  by M. of A. BORES -- read once and referred to the Committee
          on Insurance
 
        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; and to amend a chapter of the laws of 2025 amending the  insur-
          ance  law  and  the  public  health law relating to the use of virtual
          credit cards by insurers and certain health care plans, as proposed in
          legislative bills numbers S. 2105-A and A. 3986-A, in relation to  the
          effectiveness thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subsection (p) of section 3217-b of the insurance  law,  as
     2  added  by  a  chapter of the laws of 2025 amending the insurance law and
     3  the public health law relating to the use of  virtual  credit  cards  by
     4  insurers and certain health care plans, as proposed in legislative bills
     5  numbers S. 2105-A and A. 3986-A, is amended to read as follows:
     6    (p)(1) An insurer may pay a claim for reimbursement made by a provider
     7  using  a  credit card, virtual credit card, or electronic funds transfer
     8  payment method that imposes on the provider  a  specifically  identified
     9  fee  or similar dedicated charge to process the payment if in advance of
    10  using such reimbursement method:
    11    (A) The insurer notifies the provider of the potential fees  or  other
    12  charges associated with the use of the credit card, virtual credit card,
    13  or electronic funds transfer payment;
    14    (B) The insurer offers the provider an alternative payment method that
    15  does not impose fees or similar charges on the provider; and
    16    (C)  The  provider  or  a  designee  of  the provider elects to accept
    17  payment of the claim using the credit  card,  virtual  credit  card,  or
    18  electronic  funds  transfer  payment  method. Such payment type election
    19  shall be made by the provider within  thirty  days  of  receipt  of  the
    20  notice  from the insurer. If the provider fails to make any payment type
    21  election within thirty days, the insurer shall pay  the  provider  using
    22  the  alternative payment method offered in the notice unless the insurer
    23  is unable to pay the provider using that alternative method due  to  the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03607-06-6
        A. 9510                             2
 
     1  insurer  lacking  information necessary to make the alternative payment.
     2  In that instance, the insurer may use another fee-free method of payment
     3  in order to meet the timeframes established in  section  three  thousand
     4  two hundred twenty-four-a of this article.
     5    (2)  A  decision  pursuant  to  paragraph one of this subsection shall
     6  remain in effect until the provider notifies the insurer, in writing, of
     7  a change in the designated payment type.
     8    (3) If an insurer contracts with  a  vendor  to  process  payments  of
     9  providers'  claims,  the insurer shall require the vendor to comply with
    10  the provisions of paragraph one of this subsection. This paragraph shall
    11  not apply to a vendor used by the provider in order to receive  payments
    12  from an insurer.
    13    (4)  No  [policy  or] contract between an insurer and provider issued,
    14  renewed, modified, altered or amended after the effective date  of  this
    15  [section] subsection shall contain provisions allowing for waiver of the
    16  notice requirements contained in this subsection.
    17    (5) For any contract that is in effect on or before the effective date
    18  of  this  subsection  or  that is entered into, amended or renewed on or
    19  after the effective date of this subsection, an insurer that initiates a
    20  payment to a provider using, or changes the payment method to, a  health
    21  care  electronic funds transfers and remittance advice transaction shall
    22  not charge a fee solely to transmit the payment to the  provider  unless
    23  the  provider  [consents to the fee] elects to accept payment in accord-
    24  ance with subparagraph (C) of paragraph one of this subsection.
    25    (6) For purposes of this subsection, the following  terms  shall  have
    26  the following meanings:
    27    (A)  "Provider"  shall  mean  a health care professional or a group of
    28  health care professionals licensed pursuant to title eight of the educa-
    29  tion law that has a participating provider contract with an  insurer  to
    30  provide health care services to an insured.
    31    (B)  "Virtual  credit  card" shall mean a single-use series of numbers
    32  linked to a fixed dollar amount and provided by an insurer to a provider
    33  for the purpose of paying a claim for health care services performed  by
    34  the provider.
    35    §  2. Subsection (p) of section 4325 of the insurance law, as added by
    36  a chapter of the laws of 2025 amending the insurance law and the  public
    37  health  law  relating to the use of virtual credit cards by insurers and
    38  certain health care plans, as proposed in legislative bills  numbers  S.
    39  2105-A and A. 3986-A, is amended to read as follows:
    40    (p) (1) A corporation organized under this article may pay a claim for
    41  reimbursement  made  by  a  provider using a credit card, virtual credit
    42  card, or electronic funds transfer payment method that  imposes  on  the
    43  provider  a  specifically  identified fee or similar charge dedicated to
    44  process the payment if in advance of using such reimbursement method:
    45    (A) The corporation notifies the provider of  the  potential  fees  or
    46  other charges associated with the use of the credit card, virtual credit
    47  card, or electronic funds transfer payment;
    48    (B)  The corporation offers the provider an alternative payment method
    49  that does not impose fees or similar charges on the provider; and
    50    (C) The provider or a  designee  of  the  provider  elects  to  accept
    51  payment  of  the  claim  using  the credit card, virtual credit card, or
    52  electronic funds transfer payment method.  Such  payment  type  election
    53  shall  be  made  by  the  provider  within thirty days of receipt of the
    54  notice from the insurer. If the provider fails to make any payment  type
    55  election  within  thirty  days, the insurer shall pay the provider using
    56  the alternative payment method offered in the notice unless the  insurer
        A. 9510                             3
 
     1  is  unable  to pay the provider using that alternative method due to the
     2  insurer lacking information necessary to make the  alternative  payment.
     3  In that instance, the insurer may use another fee-free method of payment
     4  in  order  to  meet the timeframes established in section three thousand
     5  two hundred twenty-four-a of this chapter.
     6    (2) A decision pursuant to paragraph  one  of  this  subsection  shall
     7  remain  in  effect until the provider notifies the corporation, in writ-
     8  ing, of a change to the designated payment type.
     9    (3) If a corporation contracts with a vendor to  process  payments  of
    10  providers'  claims,  the insurer shall require the vendor to comply with
    11  the provisions of paragraph one of this subsection. This paragraph shall
    12  not apply to a vendor used by the provider in order to receive  payments
    13  from an insurer.
    14    (4) No [policy or] contract between a corporation organized under this
    15  article and provider issued, renewed, modified, altered or amended after
    16  the effective date of this [section] subsection shall contain provisions
    17  allowing  for  waiver  of  the  notice  requirements  contained  in this
    18  subsection.
    19    (5) For any contract that is in effect on or before the effective date
    20  of this subsection or that is entered into, amended  or  renewed  on  or
    21  after  the  effective date of this subsection, a corporation that initi-
    22  ates a payment to a provider using, or changes the payment method to,  a
    23  health care electronic funds transfers and remittance advice transaction
    24  shall  not  charge  a fee solely to transmit the payment to the provider
    25  unless the provider elects to accept payment in accordance with subpara-
    26  graph [(B)] (C) of paragraph one of this subsection.
    27    (6) For purposes of this subsection, the following  terms  shall  have
    28  the following meanings:
    29    (A)  "Provider"  shall  mean  a health care professional or a group of
    30  health care professionals licensed pursuant to title eight of the educa-
    31  tion law that has a participating provider contract with  a  corporation
    32  to provide health care services to an insured.
    33    (B)  "Virtual  credit  card" shall mean a single-use series of numbers
    34  linked to a fixed dollar amount and provided by a corporation  organized
    35  under  this  article to a provider for the purpose of paying a claim for
    36  health care services performed by the provider.
    37    § 3. Subdivision 14 of section 4406-c of the  public  health  law,  as
    38  added  by  a  chapter of the laws of 2025 amending the insurance law and
    39  the public health law relating to the use of  virtual  credit  cards  by
    40  insurers and certain health care plans, as proposed in legislative bills
    41  numbers S. 2105-A and A. 3986-A, is amended to read as follows:
    42    14. (a) A health care plan may pay a claim for reimbursement made by a
    43  provider  using  a credit card, virtual credit card, or electronic funds
    44  transfer payment method that imposes  on  the  provider  a  specifically
    45  identified  fee or similar dedicated charge to process the payment if in
    46  advance of using such reimbursement method:
    47    (i) The health care plan notifies the provider of the  potential  fees
    48  or  other  charges  associated  with the use of the credit card, virtual
    49  credit card, or electronic funds transfer payment;
    50    (ii) The health care plan offers the provider an  alternative  payment
    51  method that does not impose fees or similar charges on the provider; and
    52    (iii)  The  provider  or  a  designee of the provider elects to accept
    53  payment of the claim using the credit  card,  virtual  credit  card,  or
    54  electronic  funds  transfer  payment  method. Such payment type election
    55  shall be made by the provider within  thirty  days  of  receipt  of  the
    56  notice  from the insurer. If the provider fails to make any payment type
        A. 9510                             4
 
     1  election within thirty days, the insurer shall pay  the  provider  using
     2  the  alternative payment method offered in the notice unless the insurer
     3  is unable to pay the provider using that alternative method due  to  the
     4  insurer  lacking  information necessary to make the alternative payment.
     5  In that instance, the insurer may use another fee-free method of payment
     6  in order to meet the timeframes established in  section  three  thousand
     7  two hundred twenty-four-a of the insurance law.
     8    (b)  A  decision  pursuant  to paragraph (a) of this subdivision shall
     9  remain in effect until the provider notifies the health  care  plan,  in
    10  writing, of a change to the designated payment type.
    11    (c)  If a health care plan contracts with a vendor to process payments
    12  of providers' claims, the health care plan shall require the  vendor  to
    13  comply  with  the  provisions of paragraph (a) of this subdivision. This
    14  paragraph shall not apply to a vendor used by the provider in  order  to
    15  receive payments from an insurer.
    16    (d)  No  [policy  or] contract between a health care plan and provider
    17  issued, renewed, modified, altered or amended after the  effective  date
    18  of  this  [section]  subdivision  shall  contain provisions allowing for
    19  waiver of the notice requirements contained in this subdivision.
    20    (e) For any contract that is in effect on or before the effective date
    21  of this subdivision or that is entered into, amended or  renewed  on  or
    22  after  the  effective  date of this subdivision, a health care plan that
    23  initiates a payment to a provider using, or changes the  payment  method
    24  to, a health care electronic funds transfers and remittance advice tran-
    25  saction  shall  not  charge  a fee solely to transmit the payment to the
    26  provider unless the provider elects to accept payment in accordance with
    27  subparagraph [(ii)] (iii) of paragraph (a) of this subdivision.
    28    (f) For purposes of this [section] subdivision,  the  following  defi-
    29  nitions shall apply:
    30    (i)  "Provider"  shall  mean  a health care professional or a group of
    31  health care professionals licensed pursuant to title eight of the educa-
    32  tion law that has a participating provider contract with a  health  care
    33  plan to provide health care services to an enrollee.
    34    (ii)  "Virtual  credit card" shall mean a single-use series of numbers
    35  linked to a fixed dollar amount and provided by a health care plan to  a
    36  provider  for  the  purpose  of  paying a claim for health care services
    37  performed by the provider.
    38    § 4. Section 4 of a chapter of the laws of 2025 amending the insurance
    39  law and the public health law relating to  the  use  of  virtual  credit
    40  cards by insurers and certain health care plans, as proposed in legisla-
    41  tive  bills  numbers  S.  2105-A  and  A.  3986-A, is amended to read as
    42  follows:
    43    § 4. This act shall take effect on the one hundred eightieth day after
    44  it shall have become a law and shall apply to [policies  and]  contracts
    45  issued, renewed, modified, altered or amended on and after such date.
    46    §  5.  This  act  shall  take  effect  immediately; provided, however,
    47  sections one, two, and three of this act shall take effect on  the  same
    48  date  and  in  the same manner as a chapter of the laws of 2025 amending
    49  the insurance law and the public health  law  relating  to  the  use  of
    50  virtual  credit  cards  by  insurers  and  certain health care plans, as
    51  proposed in legislative bills numbers S. 2105-A  and  A.  3986-A,  takes
    52  effect.

A09510 LFIN:

 
NO LFIN

A09510 Chamber Video/Transcript: