STATE OF NEW YORK
________________________________________________________________________
5040--A
2011-2012 Regular Sessions
IN ASSEMBLY
February 10, 2011
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Introduced by M. of A. GOTTFRIED, PAULIN, LANCMAN -- Multi-Sponsored by
-- M. of A. KELLNER, MILLMAN, WEISENBERG -- read once and referred to
the Committee on Insurance -- recommitted to the Committee on Insur-
ance in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the insurance law, in relation to assignment of rights
by the insured
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (i) of section 3216 of the insurance law is
2 amended by adding a new paragraph 29 to read as follows:
3 (29) Every policy which provides medical, major medical, or similar
4 comprehensive-type coverage shall permit by contract, written policy or
5 written procedure an insured to assign his rights under his contract
6 with the insurer to an out-of-plan health care provider. When an insured
7 assigns his right to receive reimbursement for medically necessary
8 health care services to a health care provider, the insurer shall remit
9 payment for the reimbursement directly to the health care provider. When
10 an assignment has been made, any payment sent to the insured rather than
11 to the health care provider shall not satisfy the plan's obligation or
12 requirements under section three thousand two hundred twenty-four-a of
13 this article and is subject to interest charge pursuant to section three
14 thousand two hundred twenty-four-a of this article.
15 § 2. Section 3221 of the insurance law is amended by adding a new
16 subsection (s) to read as follows:
17 (s) Every policy which provides medical, major medical, or similar
18 comprehensive-type coverage shall permit by contract, written policy or
19 written procedure an insured to assign his rights under his contract
20 with the insurer to an out-of-plan health care provider. When an insured
21 assigns his right to receive reimbursement for medically necessary
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08565-03-2
A. 5040--A 2
1 health care services to a health care provider, the insurer shall remit
2 payment for the reimbursement directly to the health care provider. When
3 an assignment has been made, any payment sent to the insured rather than
4 to the health care provider shall not satisfy the plan's obligation or
5 requirements under section three thousand two hundred twenty-four-a of
6 this article and is subject to interest charge pursuant to section three
7 thousand two hundred twenty-four-a of this article.
8 § 3. Section 4303 of the insurance law is amended by adding a new
9 subsection (a-1) to read as follows:
10 (a-1) Every contract issued by a medical expense indemnity corporation
11 or health service corporation which provides medical, major medical or
12 similar comprehensive-type coverage shall permit by contract, written
13 policy or written procedure an insured to assign his rights under his
14 contract with the insurer to an out-of-plan health care provider. When
15 an insured assigns his right to receive reimbursement for medically
16 necessary health care services to an out-of-plan health care provider,
17 the insurer shall remit payment for the reimbursement directly to the
18 health care provider. When an assignment has been made, any payment made
19 to the insured rather than to the health care provider shall not satisfy
20 the plan's obligation or requirements under section three thousand two
21 hundred twenty-four-a of this chapter and is subject to an interest
22 charge pursuant to section three thousand two hundred twenty-four-a of
23 this chapter.
24 § 4. This act shall take effect on the first of January next succeed-
25 ing the date on which it shall have become a law, and shall apply to all
26 policies and contracts issued, renewed, modified, altered or amended on
27 or after such effective date.
