New York To Implement Major Consumer Protection Laws For Healthcare Providers
New consumer protection laws would go into effect on October 20, 2024, in all of New York State and should impact providers of healthcare dramatically. The laws were contained in the FY 2025 Executive Budget to safeguard patient rights concerning consent to receive service and pay for it as well as the utilization of credit cards in medical bills.
Separate Consent for Payment and Services Under Public Health Law Section 18-c One of the important changes is the use of Separate Consent for Payment and Services. This ensures patient consent for treatment must be different from consent to pay for any of the medical services. Previously most providers used to put both into one consent form.
The new law also prevents the providers from getting consent for payment until after the service has been performed and the cost has been discussed with the patient. According to reports, the New York Department of Health would further detail how this law must be carried out. Failure to do so makes them susceptible to fines, which may reach a high of $2,000 per violation.
Another highly relevant alteration contains Prohibitions on Applications for Medical Financial Products under General Business Law Section 349-g. A healthcare provider or its employees are forbidden to assist in any way a patient may use an application for medical loans or credit cards, which are exclusively designed to pay any healthcare cost. That way, a patient will fill out the applications so that they will not be influenced and misguided. Violations can be liable for a fine of $5,000 every time.
In addition, Section 519-a of General Business Law gives Credit Card Preauthorization Restrictions. The provision prohibits providers from requiring patients to have credit cards on file and from offering preauthorization before providing medically necessary or emergency services. Providers must also apprise the patient of the risks of having his credit card exposed to medical payments that may result in losing state and federal protections regarding medical debt.
By the October 20 deadline, healthcare providers are supposed to review and update their policies to avoid penalties. In the next few weeks, there will be additional clarifications on regulatory requirements.
