S T A T E O F N E W Y O R K
________________________________________________________________________
7199
2021-2022 Regular Sessions
I N S E N A T E
June 7, 2021
___________
Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the insurance law and the public health law, in relation
to certain prohibited contract provisions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 3217-b of the insurance law is amended by adding a
new subsection (m) to read as follows:
(M) (1) NO INSURER THAT OFFERS A MANAGED CARE PRODUCT OR A COMPREHEN-
SIVE POLICY THAT UTILIZES A NETWORK OF PROVIDERS SHALL ENTER INTO A
CONTRACT, WRITTEN POLICY, WRITTEN PROCEDURE OR AGREEMENT (HEREINAFTER
AND SOLELY FOR PURPOSES OF THIS SUBSECTION COLLECTIVELY REFERRED TO AS A
"CONTRACT") WITH ANY HEALTH CARE PROVIDER THAT:
(A) REQUIRES THE INSURER TO INCLUDE WITHIN THE SCOPE OF THE CONTRACT
ALL COVERED GROUPS OF THE INSURER, INCLUDING GROUPS OR BENEFIT FUNDS
THAT CONTRACT WITH THE INSURER, OR AN AFFILIATE OF THE INSURER, FOR
ACCESS TO THE INSURER'S NETWORK OF PARTICIPATING PROVIDERS;
(B) REQUIRES AN INSURER TO INCLUDE ALL MEMBERS OF A PROVIDER SYSTEM,
INCLUDING MEDICAL PRACTICE GROUPS AND AFFILIATED FACILITIES, IN ITS
NETWORK OF PARTICIPATING PROVIDERS;
(C) REQUIRES AN INSURER, OR AN AFFILIATE OF AN INSURER, TO INCLUDE ALL
MEMBERS OF A PROVIDER SYSTEM, INCLUDING MEDICAL PRACTICE GROUPS AND
AFFILIATED FACILITIES, IN ALL PRODUCTS OFFERED BY THE INSURER OR AN
AFFILIATE OF THE INSURER;
(D) RESTRICTS THE ABILITY OF AN INSURER TO CREATE OR MODIFY A TIERED
NETWORK BENEFIT PLAN OR REQUIRES AN INSURER TO PLACE ALL MEMBERS OF A
PROVIDER SYSTEM, INCLUDING MEDICAL PRACTICE GROUPS AND AFFILIATED FACIL-
ITIES, IN THE SAME NETWORK TIER OR OTHERWISE LIMITS THE RIGHT OF AN
INSURER TO PLACE A PROVIDER IN A PARTICULAR TIER;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11774-01-1
S. 7199 2
(E) PROHIBITS INSURERS FROM USING BENEFIT DESIGNS, INCLUDING WELLNESS
PROGRAMS AND OTHER BENEFITS, TO ENCOURAGE MEMBERS TO SEEK SERVICES FROM
VALUE-BASED HEALTH CARE PROVIDERS;
(F) CONTAINS A MOST-FAVORED-NATION PROVISION; PROVIDED, HOWEVER, NOTH-
ING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT A HEALTH INSURER AND
A PROVIDER FROM NEGOTIATING PAYMENT RATES AND PERFORMANCE-BASED CONTRACT
TERMS THAT WOULD RESULT IN THE INSURER RECEIVING A RATE THAT IS AS
FAVORABLE, OR MORE FAVORABLE, THAN THE RATES NEGOTIATED BETWEEN A HEALTH
CARE PROVIDER AND ANOTHER ENTITY; OR
(G) RESTRICTS THE ABILITY OF THE INSURER TO DISCLOSE PRICE OR QUALITY
INFORMATION, INCLUDING THE ALLOWED AMOUNT, NEGOTIATED RATES OR
DISCOUNTS, OR ANY OTHER CLAIM-RELATED FINANCIAL OBLIGATIONS COVERED BY
THE PROVIDER CONTRACT TO ANY ENROLLEE, GROUP OR OTHER ENTITY RECEIVING
HEALTH CARE SERVICES PURSUANT TO THE CONTRACT.
(2) BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-TWO, ANY CONTRACT,
WRITTEN POLICY, WRITTEN PROCEDURE OR AGREEMENT THAT CONTAINS A CLAUSE
CONTRARY TO THE PROVISIONS SET FORTH IN THIS SECTION SHALL BE NULL AND
VOID; PROVIDED, HOWEVER, THE REMAINING CLAUSES OF THE CONTRACT SHALL
REMAIN IN EFFECT FOR THE DURATION OF THE CONTRACT TERM.
§ 2. Section 4406 of the public health law is amended by adding a new
subdivision 6 to read as follows:
6. (A) NO HEALTH MAINTENANCE ORGANIZATION THAT OFFERS A MANAGED CARE
PRODUCT OR A COMPREHENSIVE POLICY THAT UTILIZES A NETWORK OF PROVIDERS
SHALL ENTER INTO A CONTRACT, WRITTEN POLICY, WRITTEN PROCEDURE OR AGREE-
MENT WITH ANY HEALTH CARE PROVIDER THAT:
(I) REQUIRES THE INSURER TO INCLUDE WITHIN THE SCOPE OF THE CONTRACT
ALL COVERED GROUPS OF THE INSURER, INCLUDING GROUPS OR BENEFIT FUNDS
THAT CONTRACT WITH THE INSURER, OR AN AFFILIATE OF THE INSURER, FOR
ACCESS TO THE INSURER'S NETWORK OF PARTICIPATING PROVIDERS;
(II) REQUIRES AN INSURER TO INCLUDE ALL MEMBERS OF A PROVIDER SYSTEM,
INCLUDING MEDICAL PRACTICE GROUPS AND AFFILIATED FACILITIES, IN ITS
NETWORK OF PARTICIPATING PROVIDERS;
(III) REQUIRES AN INSURER, OR AN AFFILIATE OF AN INSURER, TO INCLUDE
ALL MEMBERS OF A PROVIDER SYSTEM, INCLUDING MEDICAL PRACTICE GROUPS AND
AFFILIATED FACILITIES, IN ALL PRODUCTS OFFERED BY THE INSURER OR AN
AFFILIATE OF THE INSURER;
(IV) RESTRICTS THE ABILITY OF AN INSURER TO CREATE OR MODIFY A TIERED
NETWORK BENEFIT PLAN OR REQUIRES AN INSURER TO PLACE ALL MEMBERS OF A
PROVIDER SYSTEM, INCLUDING MEDICAL PRACTICE GROUPS AND AFFILIATED FACIL-
ITIES, IN THE SAME NETWORK TIER OR OTHERWISE LIMITS THE RIGHT OF AN
INSURER TO PLACE A PROVIDER IN A PARTICULAR TIER;
(V) PROHIBITS INSURERS FROM USING BENEFIT DESIGNS, INCLUDING WELLNESS
PROGRAMS AND OTHER BENEFITS, TO ENCOURAGE MEMBERS TO SEEK SERVICES FROM
VALUE-BASED HEALTH CARE PROVIDERS;
(VI) CONTAINS A MOST-FAVORED-NATION PROVISION; PROVIDED, HOWEVER,
NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT A HEALTH INSURER
AND A PROVIDER FROM NEGOTIATING PAYMENT RATES AND PERFORMANCE-BASED
CONTRACT TERMS THAT WOULD RESULT IN THE INSURER RECEIVING A RATE THAT IS
AS FAVORABLE, OR MORE FAVORABLE, THAN THE RATES NEGOTIATED BETWEEN A
HEALTH CARE PROVIDER AND ANOTHER ENTITY; OR
(VII) RESTRICTS THE ABILITY OF THE INSURER TO DISCLOSE PRICE OR QUALI-
TY INFORMATION, INCLUDING THE ALLOWED AMOUNT, NEGOTIATED RATES OR
DISCOUNTS, OR ANY OTHER CLAIM-RELATED FINANCIAL OBLIGATIONS COVERED BY
THE PROVIDER CONTRACT TO ANY ENROLLEE, GROUP OR OTHER ENTITY RECEIVING
HEALTH CARE SERVICES PURSUANT TO THE CONTRACT.
S. 7199 3
(B) AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO, ANY CONTRACT, WRIT-
TEN POLICY, WRITTEN PROCEDURE OR AGREEMENT THAT CONTAINS A CLAUSE
CONTRARY TO THE PROVISIONS SET FORTH IN THIS SECTION SHALL BE NULL AND
VOID; PROVIDED, HOWEVER, THE REMAINING CLAUSES OF THE CONTRACT SHALL
REMAIN IN EFFECT FOR THE DURATION OF THE CONTRACT TERM.
§ 3. This act shall take effect January 1, 2022.