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The Business Council of New York State opposes S.5064 (Hannon) which would require health insurers to accept any third-party payments for insurance premium coverage.
While this legislation is seemingly innocuous, allowing third-party payments of premium would severely limit a health plans’ ability to restrict providers, acting in their own self-interest, from making third party payments in an effort to maximize billing. This practice is rejected in states throughout the Union and on the federal level.
Under the ACA, federal rules allow Qualified Health Plans to contractually prohibit third-party payments of premiums and the Department of Health and Human Services discourages the practice of third-party payers and encourages issuers to reject the same.
Since the discouragement of third-party payments is well established and the federal government has provided adequate and logical guidance, there is no need for this legislation.
For these reasons, The Business Council respectfully opposes S.5064 (Hannon).