Assemblyman Michael Montesano (R,I,C – Glen Head) is co-sponsoring legislation to combat the rising costs of out-of-network health insurance policies. Currently, many health insurance providers base the reimbursement rate for out-of-network coverage on Medicare rates, which are typically reimbursed much lower than what a patient would pay. Assemblyman Montesano’s legislation would protect the consumer from purchasing policies that purport, but fail to, actually provide adequate out-of-network coverage by requiring insurers to fully disclose the cost of out-of-network coverage.
“Health insurers are misleading consumers when it comes to disclosing the price of out-of-network coverage,” said Montesano. “The legislation I am co-sponsoring would increase transparency by requiring health plans to disclose all likely actual costs covered in their policies. This legislation will save consumers money by informing them of the real costs entailed in their health plans, allowing them to choose a policy that suits their needs.”
A recent study from the New York State Department of Financial Services found that nearly five million residents, or 76 percent of those with out-of-network coverage, have experienced significant reductions in the reimbursement of their healthcare costs. Assemblyman Montesano’s co-sponsored legislation is supported by the Medical Society of the State of New York due to the bill’s ability to remedy this situation.