BILL NUMBER:S3354

TITLE OF BILL:  An act to amend the general business law, in relation to
special provisions of the not-for-profit sales

PURPOSE OR GENERAL IDEA OF BILL:  This bill would repeal a portion of
section eight hundred two of the general business law to permit the
for-profit sale of hearing aids by physicians.

SUMMARY OF SPECIFIC PROVISIONS:  This bill would amend the general busi-
ness law by a portion of section eight hundred two of the general busi-
ness law to permit the for-profit sale of hearing aids by physicians.

Section 1 of the bill repeals a portion of section eight hundred two of
the general business law to permit the for-profit sale of hearing aids
by physicians.

Section 2 of the bill provides that the bill shall take effect imme-
diately.

JUSTIFICATION:  Currently, physicians are prohibited by section eight
hundred two of the general business law to sell hearing aids for a
profit. This prohibition, however, dates back to the mid-seventies, a
time in which even hearing aid dealers were prohibited by law from sell-
ing hearing aids without a referral from a physician. Since that time,
the law has changed as has the practice of medicine and otolaryngology.
              

New York State is the only state that prohibits the sale of hearing aids
by physicians for-profit, which effectively eliminates the sale of any
hearing aids by physicians. By enabling consumers to purchase hearing
aids from physicians, access to such devices and care coordination would
be enhanced.

Moreover, it is an unfair restraint of trade to prohibit a profession to
operate at a profit. The practice of fitting and dispensing of hearing
aids has long been a recognized part of the scope of practice of otolar-
yngology. The American Academy of Otolaryngology position statement
reads: "The American Academy of Otolaryngology Head and Neck Surgery,
Inc. states: dispensing of hearing aids, hearing assisted devices and
other hearing rehabilitation devices is within the scope of practice for
otolaryngologists head and neck surgeons.  "Physician practices are
small business, and cannot effectively run their businesses by offering
services without earning a profit.

Lifting the prohibition on earning a profit would be in the best inter-
est of patients as it would improve access to hearing aids and the dual-
ity of care delivered by enabling all appropriately trained and quali-
fied healthcare providers to offer hearing aid services to patients.

Patients are also likely to enjoy more competitive pricing among all
hearing aid dispensers through the application of market forces for an
item which is often not covered by insurance.

PRIOR LEGISLATIVE HISTORY:  2009-10: S.5257 - Referred to Consumer
Protection

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  This act shall take effect immediately.