NY State Senate Bill 2023-S507

Current Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to insurance
Jan 04, 2023	referred to insurance

2023-S507 (ACTIVE) - Details

See Assembly Version of this Bill:: A799
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §3239-a, Ins L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S7262, A7329
2021-2022: S336, A713

2023-S507 (ACTIVE) - Summary

Establishes the wellness program privacy act; requires employers and insurers to take certain measures to protect the security of wellness program participants' private information.

2023-S507 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S507

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the insurance law, in relation to the establishment of
the "Wellness Program Privacy Act"

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill relates to the establishment of the Wellness Program Privacy
Act.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill establishes that this act shall be known and may
be cited as the "Wellness Program Privacy Act."

Section 2 of the bill amends the insurance law by adding a new section
3239-a:

Subdivision (a) provides definitions for this section.

Subdivision (b) states that any insurer or employer collecting personal
information from a participant in their wellness program shall limit the
collection, use and retention, to what is reasonably necessary to admin-
ister and operate the program. Insurers and employers cannot share any
personal information or data collected through a wellness program with
third parties.

Subdivision (c) provides a wellness program participant with transparen-
cy about the handling of their personal data. An insurer or employer
collecting such data shall give the participants a written explanation
about all the data that is collected, practices related to data sharing,
and the rights of the participant concerning the wellness program under
federal and state laws, rules, and regulations.

Subdivision(d) prohibits employers and insurers from engaging in
discrimination against employees or enrollees who do not participate in
their wellness programs.

Subdivision (e) provides wellness program participants with the right to
bring a lawsuit against an employer or insurer who has mishandled their
personal information in violation of this section. This subdivision also
allows the attorney general to bring a civil action against any employer
or insurer in violation of this section.

Section 3 of the bill establishes the effective date.

 
JUSTIFICATION:

Advances in fitness technology have drastically changed the landscape of
employer-lead fitness programming. Fitness devices can electronically
track a range of indicators and health metrics and relay this informa-
tion to a central database controlled by employers.  Employers claim
these programs help improve employee health while helping to limit their
medical spending, but these devices also pose significant privacy risks
for employees.Sensitive personal information on the functions and
performance of an individual's body and biology is often aggregated
without the consent of program participants, who are left with little
recourse or transparency on what is done with that information. This
information can then be sold to third parties like insurers or health
care providers interested in targeting advertising to consumers with
specific health needs.

This legislation aims to set forth a broad regulatory framework for
wellness programs that makes paramount the privacy of program partici-
pants.The legislation establishes parameters for the types of personal
information that can be collected and made publicly available, and guar-
antees employees both the opportunity to opt out of such program and
that information is tracked in full transparency. Critically, this bill
affords program participants with complete control over their data, and
prohibits the discrimination against employees based on their partic-
ipation or the information aggregated via their participation. Finally,
the legislation guarantees program participants specific pathways to
legal recourse in the event that their employer does not meet the stand-
ards for consent and transparency set forth in this legislation.

 
LEGISLATIVE HISTORY:

2021-22: S.336 (Thomas) / A.713 (Rosenthal) - Referred to Insurance.

2019-20: S.7262 (Thomas)/A.7329 (Rosenthal) - Referred to Insurance.

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S507 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    507
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- 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 the  establishment  of
   the "Wellness Program Privacy Act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as  the  "Wellness
 Program Privacy Act".
   §  2.  The  insurance law is amended by adding a new section 3239-a to
 read as follows:
   § 3239-A. WELLNESS PROGRAM PRIVACY. (A) DEFINITIONS. FOR  PURPOSES  OF
 THIS SECTION:
   (1) "EMPLOYER" MEANS:
   (I)  ANY  PERSON WHO DIRECTLY EMPLOYS FIFTY OR MORE PERSONS TO PERFORM
 SERVICES FOR A WAGE OR SALARY; OR
   (II) THE STATE AND ANY POLITICAL OR CIVIL SUBDIVISION OF THE STATE, OR
 ANY COUNTY OR CITY OR OTHER MUNICIPALITY.
   (2) "COLLECTS," "COLLECTED," OR "COLLECTION"  MEANS  BUYING,  RENTING,
 GATHERING,  OBTAINING,  RECEIVING, OR ACCESSING ANY PERSONAL INFORMATION
 OR PROTECTED HEALTH INFORMATION PERTAINING TO A CONSUMER BY  ANY  MEANS.
 THIS  INCLUDES RECEIVING INFORMATION FROM SUCH CONSUMER, EITHER ACTIVELY
 OR PASSIVELY, OR BY OBSERVING SUCH CONSUMER'S BEHAVIOR.
   (3) "ADMINISTRATION AND OPERATION OF A WELLNESS PROGRAM" MEANS, BUT IS
 NOT LIMITED TO, THE USE OF PERSONAL INFORMATION WHEN  REASONABLY  NECES-
 SARY AND PROPORTIONATE TO ACHIEVE ONE OF THE FOLLOWING PURPOSES:
   (I)  DETECTING  AND  RESPONDING  TO  SECURITY INCIDENTS ARISING FROM A
 WELLNESS PROGRAM AND PROTECTING AGAINST  MALICIOUS,  DECEPTIVE,  FRAUDU-
 LENT, OR ILLEGAL ACTIVITY RELATED TO A WELLNESS PROGRAM;
   (II)  EXECUTING FUNCTIONS OF A WELLNESS PROGRAM FOR THE BENEFIT OF THE
 INSURED;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00693-01-3
 S. 507                              2

 
   (III) UNDERTAKING INTERNAL RESEARCH FOR TECHNOLOGICAL DEVELOPMENT  AND
 DEMONSTRATION RELATED TO A WELLNESS PROGRAM; OR
   (IV) UNDERTAKING ACTIVITIES TO VERIFY OR MAINTAIN THE QUALITY OR SAFE-
 TY  OF  A  SERVICE OR DEVICE THAT IS OWNED BY, MANUFACTURED BY, MANUFAC-
 TURED FOR, OR CONTROLLED BY THE INSURER,  OR  TO  IMPROVE,  UPGRADE,  OR
 ENHANCE  THE  SERVICE OR DEVICE THAT IS OWNED BY, MANUFACTURED BY, MANU-
 FACTURED FOR, OR  CONTROLLED  BY  THE  INSURER  RELATED  TO  A  WELLNESS
 PROGRAM.
   (4)  "PERSONAL INFORMATION" MEANS INFORMATION THAT IDENTIFIES OR COULD
 REASONABLY BE LINKED, DIRECTLY OR INDIRECTLY, WITH A PARTICULAR  CONSUM-
 ER,  HOUSEHOLD,  OR  CONSUMER  DEVICE.  "PERSONAL INFORMATION" SHALL NOT
 INCLUDE PUBLICLY AVAILABLE INFORMATION.
   (5) "PUBLICLY AVAILABLE"  MEANS  INFORMATION  THAT  IS  LAWFULLY  MADE
 AVAILABLE  FROM  FEDERAL,  STATE,  OR  LOCAL  GOVERNMENT RECORDS, IF ANY
 CONDITIONS ASSOCIATED WITH SUCH INFORMATION. "PUBLICLY AVAILABLE"  SHALL
 NOT MEAN INFORMATION COLLECTED BY AN EMPLOYER OR INSURER ABOUT AN ENROL-
 LEE  WITHOUT  THE  ENROLLEE'S KNOWLEDGE. "PERSONAL INFORMATION" DOES NOT
 INCLUDE ENROLLEE INFORMATION THAT IS DE-IDENTIFIED OR AGGREGATE ENROLLEE
 INFORMATION.
   (6) "RETALIATORY" OR "ADVERSE ACTION" IN THE CONTEXT  OF  AN  EMPLOYER
 OFFERING  A  WELLNESS  PROGRAM TO ITS EMPLOYEES SHALL INCLUDE: DENIAL OF
 COVERAGE, TERMINATION  OF  EMPLOYMENT,  REQUIRING  ONE  HUNDRED  PERCENT
 PAYMENT  OF MEDICAL CARE PREMIUMS WHEN AN EMPLOYER PAYS A PORTION OF THE
 PREMIUM FOR WELLNESS PROGRAM PARTICIPANTS, OR REDUCING CONTRIBUTIONS  TO
 PARTICIPANTS' HEALTH SAVINGS ACCOUNTS.
   (7)  "RETALIATORY"  OR  "ADVERSE  ACTION" IN THE CONTEXT OF AN INSURER
 OFFERING A WELLNESS PROGRAM SHALL INCLUDE: DENIAL  OF  COVERAGE,  TERMI-
 NATION  OF  COVERAGE  BASED  ON  NON-PARTICIPATION OR FAILURE TO ACHIEVE
 WELLNESS TARGETS, OR ADJUSTMENTS TO INSURANCE PREMIUMS.
   (B) FAIR COLLECTION AND USE OF PERSONAL INFORMATION. (1)  ANY  INSURER
 OR  EMPLOYER  THAT  COLLECTS  A  WELLNESS PROGRAM PARTICIPANT'S PERSONAL
 INFORMATION IN THE ADMINISTRATION AND OPERATION OF  A  WELLNESS  PROGRAM
 SHALL  LIMIT  ITS  COLLECTION TO WHAT IS REASONABLY NECESSARY TO OPERATE
 THE WELLNESS PROGRAM IN WHICH A CONSUMER IS ENROLLED.
   (2) ANY INSURER OR EMPLOYER THAT COLLECTS A WELLNESS  PROGRAM  PARTIC-
 IPANT'S  PERSONAL  INFORMATION  IN THE ADMINISTRATION AND OPERATION OF A
 WELLNESS PROGRAM SHALL LIMIT ITS USE AND RETENTION OF PERSONAL  INFORMA-
 TION TO WHAT IS REASONABLY NECESSARY TO ADMINISTER AND OPERATE THE WELL-
 NESS PROGRAM IN WHICH A CONSUMER IS ENROLLED AND FOR RELATED ADMINISTRA-
 TIVE AND OPERATIONAL PURPOSES.
   (3) NO INSURER OR EMPLOYER SHALL SHARE WITH THIRD PARTIES ANY PERSONAL
 INFORMATION OR DATA COLLECTED THROUGH A WELLNESS PROGRAM.
   (4)  FOLLOWING  THE  CLOSE OF A WELLNESS PROGRAM, AN EMPLOYEE'S TERMI-
 NATION, OR THE END OF AN ENROLLEE'S  TERM  OF  INSURANCE,  ANY  PERSONAL
 INFORMATION OR DATA SHALL BE DELETED OR DE-IDENTIFIED.
   (5)  WELLNESS  PROGRAM  PARTICIPANTS  SHALL HAVE THE RIGHT TO OBTAIN A
 COPY OF THEIR WELLNESS PROGRAM DATA, AND SHALL HAVE THE RIGHT  TO  CHAL-
 LENGE  THE  COMPLETENESS  AND ACCURACY OF ANY DATA THE PROGRAM HAS ABOUT
 THEM.
   (6) THE REQUIREMENTS DESCRIBED IN THIS SUBDIVISION SHALL APPLY, TO THE
 EXTENT THAT THEY ARE APPLICABLE,  TO  ANY  ENTITY  THAT  AN  INSURER  OR
 EMPLOYER  CONTRACTS  WITH  FOR  PURPOSES OF ADMINISTERING OR OPERATING A
 WELLNESS PROGRAM ON SUCH INSURER OR EMPLOYER'S BEHALF.
   (C) TRANSPARENCY. ANY INSURER OR AN EMPLOYER THAT COLLECTS A  WELLNESS
 PROGRAM  PARTICIPANT'S  PERSONAL  INFORMATION  IN THE ADMINISTRATION AND
 S. 507                              3
 
 OPERATION OF A WELLNESS PROGRAM SHALL PROVIDE SUCH  PARTICIPANT  WITH  A
 WRITTEN EXPLANATION OF:
   (1) ALL DATA COLLECTED IN THE PROGRAM;
   (2)  PRACTICES RELATED TO DATA SHARING, INCLUDING WHO WILL HAVE ACCESS
 TO SUCH DATA; AND
   (3) THE WELLNESS PROGRAM ENROLLEE'S  RIGHTS  CONCERNING  THE  WELLNESS
 PROGRAM UNDER FEDERAL AND STATE LAWS, RULES, AND REGULATIONS.
   (D)  PROHIBITION  OF  DISCRIMINATION  BASED  ON PARTICIPATION. (1) ANY
 EMPLOYER THAT OFFERS A WELLNESS PROGRAM TO ITS EMPLOYEES, OR ANY INSURER
 THAT OFFERS A WELLNESS PROGRAM TO ENROLLEES, SHALL NOT ENGAGE IN RETALI-
 ATORY OR ADVERSE ACTION AGAINST INDIVIDUALS WHO DO  NOT  PARTICIPATE  IN
 WELLNESS PROGRAMS.
   (2)  THE  TOTAL  AMOUNT  OF  ALL  WELLNESS PROGRAM INCENTIVES SHALL BE
 LIMITED TO AN AMOUNT DEEMED BY THE SUPERINTENDENT NOT TO BE COERCIVE.
   (E) ENFORCEMENT AND ENROLLEE PRIVATE RIGHT OF ACTION. (1) ANY CONSUMER
 WHO HAS SUFFERED FROM A VIOLATION OF THIS  SECTION  BY  AN  EMPLOYER  OR
 INSURER  MAY  BRING  A  LAWSUIT  AGAINST  SUCH  EMPLOYER  OR  INSURER. A
 VIOLATION OF THIS SECTION SHALL BE DEEMED TO  CONSTITUTE  AN  INJURY  IN
 FACT  TO  THE  CONSUMER  WHO  HAS  SUFFERED FROM SUCH VIOLATION, AND THE
 CONSUMER NEED NOT SUFFER A LOSS OF MONEY OR PROPERTY AS A RESULT OF  THE
 VIOLATION IN ORDER TO BRING AN ACTION FOR A VIOLATION OF THIS SECTION.
   (2) A CONSUMER WHO PREVAILS IN SUCH A LAWSUIT SHALL OBTAIN THE FOLLOW-
 ING REMEDIES:
   (I) DAMAGES IN AN AMOUNT NOT GREATER THAN THE INCREASED HEALTH OR LIFE
 INSURANCE  PREMIUM  COST  DUE  TO PENALTIES OR LOST INCENTIVES, OR SEVEN
 HUNDRED FIFTY DOLLARS PER CONSUMER  PER  INCIDENT,  OR  ACTUAL  DAMAGES,
 WHICHEVER IS GREATER;
   (II) INJUNCTIVE OR DECLARATORY RELIEF, AS THE COURT DEEMS PROPER;
   (III) REASONABLE ATTORNEYS' FEES AND COSTS; AND
   (IV) ANY OTHER RELIEF THE COURT DEEMS PROPER.
   (3)  IN  ASSESSING  THE  AMOUNT  OF STATUTORY DAMAGES, THE COURT SHALL
 CONSIDER ANY ONE OR MORE OF THE RELEVANT CIRCUMSTANCES PRESENTED BY  ANY
 OF  THE  PARTIES  TO THE CASE, INCLUDING, BUT NOT LIMITED TO, THE NATURE
 AND SERIOUSNESS  OF  THE  MISCONDUCT,  THE  NUMBER  OF  VIOLATIONS,  THE
 PERSISTENCE OF THE MISCONDUCT, THE LENGTH OF TIME OVER WHICH THE MISCON-
 DUCT  OCCURRED,  THE  WILLFULNESS OF THE DEFENDANT'S MISCONDUCT, AND THE
 DEFENDANT'S ASSETS, LIABILITIES, AND NET WORTH.
   (4) A CONSUMER BRINGING AN ACTION SHALL NOTIFY  THE  ATTORNEY  GENERAL
 WITHIN THIRTY DAYS THAT THE ACTION HAS BEEN FILED.
   (5)  THE ATTORNEY GENERAL MAY BRING A CIVIL ACTION, IN THE NAME OF THE
 PEOPLE OF THE STATE, AGAINST ANY EMPLOYER OR  INSURER  IN  VIOLATION  OF
 THIS SECTION.
   (6) THE DEPARTMENT MAY PURSUE ENFORCEMENT ACTION AGAINST HEALTH INSUR-
 ERS, HEALTH PLANS, OR LIFE INSURERS IN VIOLATION OF THIS SECTION.
   (7)  ANY  EMPLOYER OR INSURER THAT VIOLATES THIS SECTION MAY BE LIABLE
 FOR A CIVIL PENALTY OF UP TO SEVEN THOUSAND  FIVE  HUNDRED  DOLLARS  FOR
 EACH  INTENTIONAL VIOLATION, AND UP TO TWO THOUSAND FIVE HUNDRED DOLLARS
 FOR EACH UNINTENTIONAL VIOLATION.
   § 3. This act shall take effect immediately.

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Senate Bill S507

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

2023-S507 (ACTIVE) - Details

2023-S507 (ACTIVE) - Summary

2023-S507 (ACTIVE) - Sponsor Memo

2023-S507 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S507

Share this bill

Sponsored By

Kevin Thomas

Current Bill Status - In Senate Committee Insurance Committee

2023-S507 (ACTIVE) - Details

2023-S507 (ACTIVE) - Summary

2023-S507 (ACTIVE) - Sponsor Memo

2023-S507 (ACTIVE) - Bill Text download pdf

Comments