ALBANY, NY — A new law in New York requires health insurance plans to reimburse ambulance providers for transporting out-of-network patients.
On Dec. 1, Gov. Kathy Hochul signed the …
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ALBANY, NY — A new law in New York requires health insurance plans to reimburse ambulance providers for transporting out-of-network patients.
On Dec. 1, Gov. Kathy Hochul signed the “Direct Pay Bill” into law, which requires insurance companies to send payments directly to ambulance service providers.
Previously, insurers would pay customers directly unless they had a preferred provider agreement with EMS. EMS would then bill the customers, who often failed to pay, leaving EMS with unpaid costs.
The new law prohibits insurance companies from sending ambulance reiumbursements to customers.
Assemblymember Phil Steck (D-Schenectady), who co-sponsored the legislation, said ambulances are one of the few medical services where payment is not expected at the time of service.
“It is a constant struggle to collect monies from patients that receive these direct payments,” said Paul Sugrue, the EMS chief in Colonie, NY. “Last year, one patient had accumulated more than $12,000 in insurance checks that were directly paid to them but owed to our service. Not only does this delay in payment deny us these funds, it leads to an increase in administrative and collections costs.”
The Direct Pay Bill passed both the Senate and Assembly unanimously earlier this year.
“During my time as a fire chief, my agency had to write off thousands of dollars annually because payment was not sent directly to our agency, but to the insured person,” said Assemblyman Joseph Angelino (R,C-Norwich), a former fire chief of the City of Norwich, where he supervised ambulance services and billing. “With Direct Pay now law, EMS providers can rest a little easier knowing they will receive the resources they need.”
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