S T A T E O F N E W Y O R K
________________________________________________________________________
3569
2021-2022 Regular Sessions
I N S E N A T E
January 30, 2021
___________
Introduced by Sens. BRESLIN, ADDABBO, HARCKHAM, KAMINSKY, KENNEDY --
read twice and ordered printed, and when printed to be committed to
the Committee on Insurance
AN ACT to amend the insurance law, in relation to health insurance
coverage of physical and occupational therapy services and payment for
early intervention services; and to amend the insurance law and the
public health law, in relation to the provision of medically necessary
care and utilization review
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 23 of subsection (i) of section 3216 of the
insurance law, as added by chapter 593 of the laws of 2000, is amended
to read as follows:
(23) If a policy provides for reimbursement for physical and occupa-
tional therapy service which is within the lawful scope of practice of a
duly licensed physical or occupational therapist, an insured shall be
entitled to reimbursement for such service whether the said service is
performed by a physician or through a duly licensed physical or occupa-
tional therapist, provided however, that nothing contained herein shall
be construed to impair any terms of such policy including appropriate
utilization review and the requirement that said service be performed
pursuant to a medical order, or a similar or related service of a physi-
cian PROVIDED, FURTHER, THAT SUCH TERMS SHALL NOT IMPOSE CO-PAYMENTS IN
EXCESS OF TWENTY PERCENT OF THE TOTAL REIMBURSEMENT TO THE PROVIDER OF
CARE. VISIT LIMITS FOR PHYSICAL AND OCCUPATIONAL THERAPY SERVICES SHALL
BE SUBJECT TO AN EXCEPTIONS PROCESS, THAT SHALL INCLUDE THE INSURED'S
PHYSICIAN CERTIFYING THAT THE CESSATION OF SERVICES WOULD MOST LIKELY
RESULT IN FURTHER DISABILITY OR HARM TO THE INSURED. ANY EXCEPTIONS
PROCESS SHALL BE FURTHER DETERMINED BY THE SUPERINTENDENT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07595-01-1
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§ 2. Subsection (b) of section 3235-a of the insurance law, as added
by section 3 of part C of chapter 1 of the laws of 2002, is amended to
read as follows:
(b) Where a policy of accident and health insurance, including a
contract issued pursuant to article forty-three of this chapter,
provides coverage for an early intervention program service, such cover-
age shall not be applied against any maximum annual or lifetime monetary
limits set forth in such policy or contract. Visit limitations [and
other terms and conditions of the policy] will continue to apply to
early intervention services. However, any visits used for early inter-
vention program services shall not reduce the number of visits otherwise
available under the policy or contract for such services.
§ 3. Clause (ii) of subparagraph (A) of paragraph 1 of subsection f of
section 4235 of the insurance law, as amended by chapter 219 of the laws
of 2011, is amended to read as follows:
(ii) a policy under which coverage terminates at a specified age shall
not so terminate with respect to an unmarried child who is incapable of
self-sustaining employment by reason of mental illness, developmental
disability, mental retardation, as defined in the mental hygiene law, or
physical handicap and who became so incapable prior to attainment of the
age at which coverage would otherwise terminate and who is chiefly
dependent upon such employee or member for support and maintenance,
while the insurance of the employee or member remains in force and the
child remains in such condition, if the insured employee or member has
within thirty-one days of such child's attainment of the termination age
submitted proof of such child's incapacity as described [herein] IN THIS
CLAUSE. NO POLICY OF GROUP ACCIDENT, GROUP HEALTH OR GROUP ACCIDENT AND
HEALTH INSURANCE SHALL IMPOSE CO-PAYMENTS IN EXCESS OF TWENTY PERCENT OF
THE TOTAL REIMBURSEMENT TO THE PROVIDER OF CARE. VISIT LIMITS FOR PHYS-
ICAL AND OCCUPATIONAL SERVICES SHALL BE SUBJECT TO AN EXCEPTIONS PROC-
ESS, THAT SHALL INCLUDE AN INSURED'S PHYSICIAN CERTIFYING THAT THE
CESSATION OF SERVICES WOULD MOST LIKELY RESULT IN FURTHER DISABILITY OR
HARM TO THE INSURED. ANY EXCEPTIONS PROCESS SHALL BE FURTHER DETERMINED
BY THE SUPERINTENDENT.
§ 4. Subparagraph (A) of paragraph 4 of subsection (f) of section 4235
of the insurance law, as amended by chapter 593 of the laws of 2000, is
amended to read as follows:
(A) any physical and occupational therapy service which is within the
lawful scope of practice of a licensed physical and occupational thera-
pist, a subscriber to such policy shall be entitled to reimbursement for
such service, whether the said service is performed by a physician or
licensed physical and occupational therapist pursuant to prescription or
referral by a physician. NO POLICY OF GROUP ACCIDENT, GROUP HEALTH OR
GROUP ACCIDENT AND HEALTH INSURANCE SHALL IMPOSE CO-PAYMENTS IN EXCESS
OF TWENTY PERCENT OF THE TOTAL REIMBURSEMENT TO THE PROVIDER OF CARE.
VISIT LIMITS FOR PHYSICAL AND OCCUPATIONAL THERAPY SERVICES SHALL BE
SUBJECT TO AN EXCEPTIONS PROCESS, THAT SHALL INCLUDE AN INSURED'S PHYSI-
CIAN CERTIFYING THAT THE CESSATION OF SERVICES WOULD MOST LIKELY RESULT
IN FURTHER DISABILITY OR HARM TO THE INSURED. ANY EXCEPTIONS PROCESS
SHALL BE FURTHER DETERMINED BY THE SUPERINTENDENT;
§ 5. Subparagraph (G) of paragraph 1 of subsection (b) of section 4301
of the insurance law, as amended by chapter 593 of the laws of 2000, is
amended to read as follows:
(G) physical and occupational therapy care provided through licensed
physical and occupational therapists upon the prescription of a physi-
cian. CO-PAYMENTS RELATED TO REIMBURSEMENT FOR SUCH SERVICES SHALL NOT
S. 3569 3
EXCEED TWENTY PERCENT OF THE TOTAL REIMBURSEMENT TO THE PROVIDER OF
CARE. VISIT LIMITS FOR PHYSICAL AND OCCUPATIONAL THERAPY SERVICES SHALL
BE SUBJECT TO AN EXCEPTIONS PROCESS, THAT SHALL INCLUDE THE COVERED
PERSON'S PHYSICIAN CERTIFYING THAT THE CESSATION OF SERVICES WOULD MOST
LIKELY RESULT IN FURTHER DISABILITY OR HARM TO THE COVERED PERSON. ANY
EXCEPTIONS PROCESS SHALL BE FURTHER DETERMINED BY THE SUPERINTENDENT,
§ 6. Paragraph 13 of subsection (b) of section 4322 of the insurance
law, as added by chapter 504 of the laws of 1995, is amended and a new
paragraph 13-a is added to read as follows:
(13) Outpatient physical therapy up to ninety visits per condition per
calendar year. ANY CO-PAYMENTS RELATED TO REIMBURSEMENT FOR PHYSICAL
THERAPY SERVICES SHALL NOT EXCEED TWENTY PERCENT OF THE TOTAL REIMBURSE-
MENT TO THE PROVIDER OF CARE. VISIT LIMITS FOR PHYSICAL THERAPY SERVICES
SHALL BE SUBJECT TO AN EXCEPTIONS PROCESS, THAT SHALL INCLUDE THE
COVERED PERSON'S PHYSICIAN CERTIFYING THAT THE CESSATION OF SERVICES
WOULD MOST LIKELY RESULT IN FURTHER DISABILITY OR HARM TO THE COVERED
PERSON. ANY EXCEPTIONS PROCESS SHALL BE FURTHER DETERMINED BY THE
SUPERINTENDENT.
(13-A) OUTPATIENT OCCUPATIONAL THERAPY UP TO NINETY VISITS PER CONDI-
TION PER CALENDAR YEAR. ANY CO-PAYMENTS RELATED TO REIMBURSEMENT FOR
OCCUPATIONAL THERAPY SERVICES SHALL NOT EXCEED TWENTY PERCENT OF THE
TOTAL REIMBURSEMENT TO THE PROVIDER OF CARE. VISIT LIMITS FOR OCCUPA-
TIONAL THERAPY SERVICES SHALL BE SUBJECT TO AN EXCEPTIONS PROCESS, THAT
SHALL INCLUDE THE COVERED PERSON'S PHYSICIAN CERTIFYING THAT SUCH CESSA-
TION OF SERVICES WOULD MOST LIKELY RESULT IN FURTHER DISABILITY OR HARM
TO THE COVERED PERSON. ANY EXCEPTIONS PROCESS SHALL BE FURTHER DETER-
MINED BY THE SUPERINTENDENT.
§ 7. Subsection (e) of section 4803 of the insurance law, as added by
chapter 705 of the laws of 1996, is amended and a new subsection (a-1)
is added to read as follows:
(A-1) UPON WRITTEN REQUEST BY A PARTICIPATING HEALTH CARE PROFES-
SIONAL, A HEALTH CARE PLAN SHALL PROVIDE SPECIFIC WRITTEN CLINICAL
REVIEW CRITERIA RELATING TO A PARTICULAR CONDITION, DISEASE, SERVICE OR
PROCEDURE AND, WHERE APPROPRIATE, OTHER CLINICAL INFORMATION WHICH THE
HEALTH CARE PLAN OR ITS UTILIZATION REVIEW AGENT MIGHT CONSIDER IN ITS
UTILIZATION REVIEW AND THE HEALTH CARE PLAN SHALL INCLUDE WITH THE
INFORMATION A DESCRIPTION OF HOW IT WILL BE USED IN THE UTILIZATION
REVIEW PROCESS; PROVIDED, HOWEVER, THAT TO THE EXTENT SUCH INFORMATION
IS PROPRIETARY TO THE HEALTH CARE PLAN, THE PARTICIPATING HEALTH CARE
PROVIDER OR PROSPECTIVE HEALTH CARE PROVIDER SHALL ONLY USE THE INFORMA-
TION FOR THE PURPOSES OF ASSISTING THE PARTICIPATING HEALTH CARE PROVID-
ER IN EVALUATING COVERED SERVICES PROVIDED BY THE ORGANIZATION, AN
ADVERSE DETERMINATION OR AN APPEAL OF ADVERSE DETERMINATION.
(e) No insurer shall terminate [or], THREATEN TO TERMINATE, refuse to
renew OR THREATEN REFUSAL TO RENEW a contract for participation in the
in-network benefits portion of an insurer's network for a managed care
product [solely] because the health care professional has (1) advocated
on behalf of an insured; (2) has filed a complaint against the insurer;
(3) has appealed a decision of the insurer; (4) provided information or
filed a report pursuant to section forty-four hundred six-c of the
public health law; [or] (5) requested a hearing or review pursuant to
this section; OR (6) ORDERED OR RENDERED MEDICALLY NECESSARY CARE.
§ 8. Paragraph 1 of subsection (b) of section 4901 of the insurance
law, as added by chapter 705 of the laws of 1996, is amended to read as
follows:
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(1) The utilization review plan, INCLUDING BUT NOT LIMITED TO THE
CLINICAL REVIEW CRITERIA AND STANDARDS AND THE DEFINITION/STANDARDS OF
MEDICAL NECESSITY USED UNDER THE UTILIZATION REVIEW PLAN. A UTILIZATION
REVIEW AGENT SHALL REPORT ANY AMENDMENT OR CHANGES TO THE UTILIZATION
REVIEW PLAN TO THE SUPERINTENDENT WITHIN THIRTY DAYS OF MAKING SUCH
AMENDMENT OR CHANGE;
§ 9. Paragraph 4 of subsection (a) of section 4902 of the insurance
law, as added by chapter 705 of the laws of 1996, is amended to read as
follows:
(4) Establishment of a process for rendering utilization review deter-
minations which shall, at a minimum, include: written procedures to
assure that utilization reviews and determinations are conducted within
the timeframes established herein; procedures to notify an insured, an
insured's designee [and/or] AND an insured's health care provider of
adverse determinations; and procedures for appeal of adverse determi-
nations including the establishment of an expedited appeals process for
denials of continued inpatient care or where there is imminent or seri-
ous threat to the health of the insured;
§ 10. The opening paragraph of subsection (d) of section 4905 of the
insurance law, as added by chapter 705 of the laws of 1996, is amended
to read as follows:
A utilization review agent OR THE HEALTH CARE PLAN FOR WHICH THE AGENT
PROVIDES UTILIZATION REVIEW shall not, with respect to utilization
review activities, permit or provide compensation or anything of value
to its employees, agents, or contractors based on:
§ 11. Subdivision 5 of section 4406-d of the public health law, as
added by chapter 705 of the laws of 1996, is amended and a new subdivi-
sion 1-a is added to read as follows:
1-A. UPON WRITTEN REQUEST BY A PARTICIPATING HEALTH CARE PROFESSIONAL,
A HEALTH CARE PLAN SHALL PROVIDE SPECIFIC WRITTEN CLINICAL REVIEW CRITE-
RIA RELATING TO A PARTICULAR CONDITION, DISEASE, SERVICE OR PROCEDURE
AND, WHERE APPROPRIATE, OTHER CLINICAL INFORMATION WHICH THE HEALTH CARE
PLAN OR ITS UTILIZATION REVIEW AGENT MIGHT CONSIDER IN ITS UTILIZATION
REVIEW AND THE HEALTH CARE PLAN SHALL INCLUDE WITH THE INFORMATION A
DESCRIPTION OF HOW IT WILL BE USED IN THE UTILIZATION REVIEW PROCESS;
PROVIDED, HOWEVER, THAT TO THE EXTENT SUCH INFORMATION IS PROPRIETARY TO
THE HEALTH CARE PLAN, THE PARTICIPATING HEALTH CARE PROVIDER OR PROSPEC-
TIVE HEALTH CARE PROVIDER SHALL ONLY USE THE INFORMATION FOR THE
PURPOSES OF ASSISTING THE PARTICIPATING HEALTH CARE PROVIDER IN EVALUAT-
ING COVERED SERVICES PROVIDED BY THE ORGANIZATION, AN ADVERSE DETERMI-
NATION OR AN APPEAL OF ADVERSE DETERMINATION.
5. No health care plan shall terminate, OR THREATEN TO TERMINATE a
contract or employment, [or] refuse to renew, OR THREATEN REFUSAL TO
RENEW a contract, [solely] because a health care provider has:
(a) advocated on behalf of an enrollee;
(b) filed a complaint against the health care plan;
(c) appealed a decision of the health care plan;
(d) provided information or filed a report pursuant to section forty-
four hundred six-c of this article; [or]
(e) requested a hearing or review pursuant to this section; OR
(F) ORDERED OR RENDERED MEDICALLY NECESSARY CARE.
§ 12. Paragraph (a) of subdivision 2 of section 4901 of the public
health law, as added by chapter 705 of the laws of 1996, is amended to
read as follows:
(a) The utilization review plan, INCLUDING BUT NOT LIMITED TO THE
CLINICAL REVIEW CRITERIA AND STANDARDS AND THE DEFINITION/STANDARDS OF
S. 3569 5
MEDICAL NECESSITY USED UNDER THE UTILIZATION REVIEW PLAN. A UTILIZATION
REVIEW AGENT SHALL REPORT ANY AMENDMENT OR CHANGES TO THE UTILIZATION
REVIEW PLAN TO THE COMMISSIONER WITHIN THIRTY DAYS OF MAKING SUCH AMEND-
MENT OR CHANGE;
§ 13. Paragraph (d) of subdivision 1 of section 4902 of the public
health law, as added by chapter 705 of the laws of 1996, is amended to
read as follows:
(d) Establishment of a process for rendering utilization review deter-
minations which shall, at a minimum, include: written procedures to
assure that utilization reviews and determinations are conducted within
the timeframes established herein; procedures to notify an enrollee, an
enrollee's designee [and/or] AND an enrollee's health care provider of
adverse determinations; and procedures for appeal of adverse determi-
nations including the establishment of an expedited appeals process for
denials of continued inpatient care or where there is imminent or seri-
ous threat to the health of the enrollee;
§ 14. The opening paragraph of subdivision 4 of section 4905 of the
public health law, as added by chapter 705 of the laws of 1996, is
amended to read as follows:
A utilization review agent OR THE HEALTH CARE PLAN FOR WHICH THE AGENT
PROVIDES UTILIZATION REVIEW shall not, with respect to utilization
review activities, permit or provide compensation or anything of value
to its employees, agents, or contractors based on:
§ 15. This act shall take effect on the one hundred eightieth day
after it shall have become a law.