New York Senate Bill S08817

New York 2025-2026 Regular Session

• Introduced: 1/8/26
• Refer: 1/8/26

Caption

Relates to the use of virtual credit cards by insurers and certain health care plans and the effectiveness of provisions of law relating thereto.

Impact

The passage of S08817 would amend statutory provisions related to payment processing methods available to insurers and health care plans. By mandating notification and options for alternative payment methods, the bill is designed to foster transparency and protect providers from unexpected fees when they opt to receive payments via credit or virtual credit cards. This is particularly significant for smaller health care providers who might struggle with the financial implications of processing fees that could reduce their reimbursements.

Summary

Bill S08817 relates to the usage of virtual credit cards by insurers and certain health care plans. It aims to amend existing insurance law and public health law by stipulating specific requirements for insurers when processing payments to healthcare providers. The bill ensures that providers are adequately informed about any fees or charges associated with the use of virtual credit cards or electronic funds transfer payment methods prior to their use. Insurers must also offer alternative fee-free payment options to providers.

Contention

One of the notable points of contention surrounding S08817 involves the balance of power between insurers and healthcare providers. Some advocates argue that the bill enhances financial fairness for providers by ensuring they are not burdened with unexpected costs during the reimbursement process. However, critics worry that the requirements imposed on insurers could lead to operational challenges and delays in the claims payment process, potentially affecting the availability of services for patients as insurers adapt to comply with these regulations.