BILL NUMBER:S790

TITLE OF BILL:

An act to amend the insurance law, in relation to private air
ambulance service

PURPOSE OR GENERAL IDEA OF BILL:

To clarify that a subscription plan offered by a non-profit air
ambulance service is exempt from insurance licensing and other
requirements.

SUMMARY OF PROVISIONS:

Section 1108 of the insurance law is amended by adding a new
subsection (o) stating that a private air ambulance services that
solicits membership subscriptions does not fall under the purview of
insurance provided it meets certain criteria.

JUSTIFICATION:

Subscription plans have a long history of serving as a means for
charitable donations to emergency medical transporters. Many volunteer
ambulance companies and air medical transports have used subscription
plans as a way to encourage their communities' participation and to
              

supplement their financial needs. In recent years, there were some
concerns that these subscription plans may have fallen within the
definition of insurance and therefore needed to be licensed by the New
York State Insurance Department. This bill will clarify that a
subscription plan offered by a non-profit air ambulance service is not
insurance and therefore allowable.

Air medical services generally handle on-scene emergency calls which
include car accidents, skiing injuries, and industrial accidents. The
rapid transport and quality of care received in the air has saved
thousands of lives and improved recovery outcomes for thousands more.
Emergency and inter-facility air transportation is expensive and the
cost is not wholly covered by insurance. Non-profit providers struggle
to keep their organizations viable and staffed with high quality and
well trained individuals yet their services are essential,
particularly in rural parts of New York. Rather than face losing these
vital non-profits, this legislation would allow these organizations to
use a subscription plan as one of their many fundraising tools.

PRIOR LEGISLATIVE HISTORY:

2013/2014 - S.1152 Referred to the Senate Committee on Insurance
2011/2012 - S.3518 Referred to Senate Committee on Insurance
2009/2010 - S.8076 Referred to Senate Committee

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:


This act shall take effect on the thirtieth day after it shall have
become a law.