On December 19, the governor of New York enacted a law amending the insurance law and the public health law regarding the use of virtual credit cards by insurers and certain health care plans. The legislation permits insurers, corporations, and health care plans to pay claims for reimbursement to providers using credit cards, virtual credit cards, or electronic funds transfer payment methods that impose specifically identified fees or similar charges, provided that: (1) the provider is notified in advance of any potential fees or charges; (2) the provider is offered an alternative payment method that does not impose such fees; and (3) the provider or their designee consents to the payment method.
The statute prohibits waiving the notice requirement and restricts charging fees solely for transmitting payments unless the provider consents. The law also requires that any vendors processing payments on behalf of insurers or health care plans comply with these provisions. The Act is set to take effect 180 days after becoming law.
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