S T A T E O F N E W Y O R K
________________________________________________________________________
5909--B
2023-2024 Regular Sessions
I N S E N A T E
March 22, 2023
___________
Introduced by Sens. RIVERA, BROUK, MAY -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Health --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- reported favorably from said commit-
tee and committed to the Committee on Finance -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the public health law and the tax law, in relation to
establishing a pilot hospital medical debt relief program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "hospital medical debt relief act".
§ 2. Article 2 of the public health law is amended by adding a new
title 2-G to read as follows:
TITLE 2-G
HOSPITAL MEDICAL DEBT RELIEF PROGRAM
SECTION 245. DEFINITIONS.
246. HOSPITAL MEDICAL DEBT RELIEF PROGRAM.
§ 245. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "ELIGIBLE RESIDENT" MEANS AN INDIVIDUAL THAT MEETS THE FOLLOWING
CONDITIONS:
(A) IS A RESIDENT OF THE STATE;
(B) HAS A HOUSEHOLD INCOME AT OR BELOW FOUR HUNDRED PERCENT OF THE
FEDERAL POVERTY GUIDELINES OR HAS HOSPITAL-BASED MEDICAL DEBT EQUAL TO
FIVE PERCENT OR MORE OF THE INDIVIDUAL'S HOUSEHOLD INCOME; AND
(C) HAS HAD HOSPITAL MEDICAL DEBT RELIEVED UNDER THIS PROGRAM.
2. "GENERAL HOSPITAL MEDICAL DEBT" MEANS AN OBLIGATION OR AN ALLEGED
OBLIGATION OF AN ELIGIBLE RESIDENT TO PAY ANY AMOUNT WHATSOEVER RELATED
TO THE RECEIPT OF HEALTH CARE SERVICES, PRODUCTS, OR DEVICES PROVIDED TO
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04741-07-3
S. 5909--B 2
A PERSON BY A GENERAL HOSPITAL LICENSED UNDER ARTICLE TWENTY-EIGHT OF
THE PUBLIC HEALTH LAW OR A HEALTH CARE PROFESSIONAL AUTHORIZED UNDER
TITLE EIGHT OF THE EDUCATION LAW WHO PRACTICES WITHIN A HOSPITAL, WHETH-
ER OR NOT SUCH OBLIGATION HAS BEEN REDUCED TO JUDGMENT.
§ 246. HOSPITAL MEDICAL DEBT RELIEF PROGRAM. 1. THE COMMISSIONER,
SUBJECT TO GENERAL FUND APPROPRIATIONS FOR THIS PURPOSE, SHALL ESTABLISH
A THREE-YEAR PILOT PROGRAM TO PROVIDE HOSPITAL MEDICAL DEBT RELIEF TO
ELIGIBLE RESIDENTS IN THE STATE.
2. PURSUANT TO SECTIONS ONE HUNDRED TWELVE AND ONE HUNDRED SIXTY-THREE
OF THE STATE FINANCE LAW, THE COMMISSIONER SHALL CONTRACT WITH A NOT-
FOR-PROFIT ORGANIZATION TO IDENTIFY AND CANCEL THE HOSPITAL MEDICAL DEBT
OWED BY ELIGIBLE RESIDENTS TO HOSPITALS AND THEIR CONTRACTED PROVIDERS
LOCATED WITHIN THE STATE, TO THE EXTENT POSSIBLE. SUCH NOT-FOR-PROFIT
ORGANIZATION SHALL ENTER INTO AGREEMENTS WITH GENERAL HOSPITALS IN THE
STATE TO IDENTIFY ELIGIBLE RESIDENTS UTILIZING PATIENT DATA PROVIDED BY
SUCH PARTICIPATING HOSPITALS INCLUDING, DEMOGRAPHIC INFORMATION, RESI-
DENTS' ZIP CODES, INSURANCE STATUS AND PAYER, DATES OF SERVICE,
BALANCES STILL OWED, AND OTHER INFORMATION NECESSARY TO IDENTIFY AN
ELIGIBLE RESIDENT. THE NOT-FOR-PROFIT ORGANIZATION SHALL RETIRE SUCH
ELIGIBLE RESIDENTS' HOSPITAL MEDICAL DEBT BY ACQUIRING SUCH DEBT THROUGH
PURCHASE OR RECEIPT AS A DONATION FROM A PARTICIPATING GENERAL HOSPITAL
AND THEN CANCELLING SUCH DEBT. ANY SUCH PURCHASE OF HOSPITAL MEDICAL
DEBT SHALL BE FOR AN AMOUNT AT OR BELOW THE FAIR MARKET VALUE OF SUCH
DEBT. ALL DATA SHARING SHALL COMPLY WITH THE PROVISIONS OF THE FEDERAL
HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT AND ANY OTHER
APPLICABLE STATE OR FEDERAL LAW.
3. TO THE EXTENT POSSIBLE, FOR GENERAL HOSPITALS THAT HAVE ENTERED
INTO AN AGREEMENT UNDER THE PROGRAM, PRIORITY SHALL BE GIVEN: (A) TO
ELIGIBLE RESIDENTS WHOSE DEBT IS EIGHTEEN MONTHS OR OLDER; AND/OR (B)
WHO RESIDES IN THE LOWEST-INCOME ZIP CODES.
4. THE NOT-FOR-PROFIT ORGANIZATION SHALL ALSO NOTIFY EACH ELIGIBLE
RESIDENT WHO HAS HAD A DEBT CANCELLED PURSUANT TO THE PROVISIONS OF THIS
SECTION THAT THEIR SPECIFIC HOSPITAL MEDICAL DEBT HAS BEEN CANCELLED
AND THAT THE DEBT CANCELATION DOES NOT LEAD TO INCOME TAX LIABILITIES
FOR PROGRAM RECIPIENTS. SUCH NOTICE SHALL INCLUDE A COPY OF THE HOSPI-
TAL'S FINANCIAL ASSISTANCE APPLICATION AND POLICY PURSUANT TO SECTION
TWENTY-EIGHT HUNDRED OF THIS CHAPTER.
5. ONCE A HOSPITAL MEDICAL DEBT HAS BEEN CANCELLED, THE PARTICIPATING
GENERAL HOSPITAL OR THEIR THIRD PARTY AGENT, THAT REPORTED THE HOSPITAL
MEDICAL DEBT TO THE CREDIT REPORTING AGENCIES, SHALL INFORM THE CREDIT
REPORTING AGENCIES OF SUCH CANCELLATION TO ENSURE THAT THE DEBT HAS BEEN
REMOVED FROM AN ELIGIBLE RECIPIENT'S CREDIT REPORT.
6. THE NOT-FOR-PROFIT ORGANIZATION SHALL CONDUCT AN OUTREACH PROGRAM
TO HAVE DISCUSSIONS WITH GENERAL HOSPITALS ABOUT THE BENEFITS OF THE
HOSPITAL MEDICAL DEBT RELIEF PROGRAM TO PATIENTS, COMMUNITIES AND TO THE
HOSPITALS THEMSELVES. SUCH OUTREACH SHALL FIRST BE INITIATED WITH
ENHANCED SAFETY NET HOSPITALS AS DEFINED IN SECTION TWENTY-EIGHT HUNDRED
SEVEN-C OF THIS CHAPTER.
7. THE NOT-FOR-PROFIT ORGANIZATION SHALL, IN CONSULTATION WITH THE
DEPARTMENT REPORT ANNUALLY ON THE PROGRESS AND SUCCESS OF THE HOSPITAL
MEDICAL DEBT RELIEF PROGRAM ESTABLISHED PURSUANT TO THIS SECTION TO THE
GOVERNOR AND THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE DEPARTMENT, AND THE CHAIR OF THE SENATE COMMITTEE ON
HEALTH AND THE CHAIR OF THE ASSEMBLY COMMITTEE ON HEALTH. SUCH REPORT
SHALL BE PUBLISHED AND PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
SUCH REPORT SHALL INCLUDE BUT NOT BE LIMITED TO:
S. 5909--B 3
(A) THE AMOUNT OF HOSPITAL MEDICAL DEBT PURCHASED AND DISCHARGED UNDER
THE PROGRAM;
(B) THE NUMBER OF ELIGIBLE RESIDENTS WHO RECEIVED RELIEF UNDER THE
PROGRAM;
(C) TO THE EXTENT PRACTICABLE THE CHARACTERISTICS OF THE ELIGIBLE
RESIDENTS;
(D) THE NUMBER OF INDIVIDUAL DEBTS PURCHASED;
(E) TOTAL NUMBER OF ELIGIBLE RESIDENTS BY ZIP CODE;
(F) THE NUMBER OF INDIVIDUAL DEBTS PURCHASED BY ZIP CODE;
(G) THE NUMBER OF INDIVIDUAL DEBTS CANCELED BY COUNTY SEPARATED BY THE
FEDERAL POVERTY LINE AS DEFINED AND ANNUALLY REVISED BY THE UNITED
STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR A HOUSEHOLD OF THE
SAME SIZE, AS FOLLOWS: (I) TWO HUNDRED PERCENT AND BELOW, (II) ABOVE TWO
HUNDRED PERCENT UP TO THREE HUNDRED PERCENT, (III) ABOVE THREE HUNDRED
PERCENT UP TO FOUR HUNDRED PERCENT, (IV) ABOVE FOUR HUNDRED PERCENT; AND
(H) ANY OTHER DATA OR INFORMATION REQUESTED BY THE DEPARTMENT AND THAT
CAN BE INCLUDED PURSUANT TO APPLICABLE LAWS AND REGULATIONS AND WITHIN
BUDGETED RESOURCES.
8. THE COMMISSIONER SHALL PROMULGATE ANY RULES AND REGULATIONS NECES-
SARY FOR THE IMPLEMENTATION OF THIS SECTION.
§ 3. Subsection (i) of section 601 of the tax law is relettered
subsection (j) and a new subsection (i) is added to read as follows:
(I) HOSPITAL MEDICAL DEBT RELIEF. NOTWITHSTANDING THE PROVISIONS OF
SUBSECTIONS (A), (B), (C) AND (D) OF THIS SECTION AND ANY OTHER
PROVISION OF THIS ARTICLE, FOR TAXABLE YEARS BEGINNING AFTER THE EFFEC-
TIVE DATE OF THIS SUBSECTION, THE INCOME OF AN INDIVIDUAL RECEIVED
PURSUANT TO THE PROVISIONS OF SECTION TWO HUNDRED FORTY-SIX OF THE
PUBLIC HEALTH LAW IN THE FORM OF DEBT CANCELATION SHALL BE EXEMPT FROM
TAX UNDER THIS ARTICLE REGARDLESS OF WHETHER SUCH INCOME IS SUBJECT TO
FEDERAL INCOME TAXATION.
§ 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date are authorized to be made and
completed on or before such effective date.
