BILL NUMBER:  S3488

 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 business law by a portion of section
eight hundred two of the general business 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
immediately.

 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 selling 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 otolaryngology. 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
interest of patients as it would improve access to hearing aids and
the duality of care delivered by enabling all appropriately trained
and qualified 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
2011-12:S.3788- Committed to Rules
2013-14:S.3354- Referred to Consumer Protection
2015-16:S.2024- Referred to Consumer Protection

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.