Provided by: Jennifer Kirschenbaum, Esq.
October 30, 2024
Guidance provided by the Director of Center for Health Care Provider Services and Oversight, Mark Hennessey, issued October 18, 2024, and not publicly promulgated (released to certain Hospitals and MSSNY) delays implementation of separate financial and care consents forms, and provides guidance for additional consumer protection laws effective October 20, 2024, as follows -
The following is a summary of changes to Public Health Law (§ 18C) and New York General Business Law (§ 349-G and 519-A), that will go into effect on 10/20/24.All patients receiving direct health care services, regardless of income level, eligibility for financial assistance, or the type of provider from which the patient receives direct health care services, are covered by this law.
1) Separating consent to treat / consent to pay
The Department of Health has received outreach and questions from a variety of stakeholders about the meaning of this provision. While the Department considers these questions, the implementation of this provision is on hold until further guidance is released.
2) Medical Financial Product Applications
a. Medical financial products are medical credit cards or third-party medical installment loans.
i. A medical credit card is a credit card issued under an open-end or closed end plan offered specifically for the payment of health care services, products, or devices provided to a person.
b. It is prohibited for any hospital, health care provider, or employee/agent of a hospital or health care provider to complete any portion of an application for medical financial products for the patient, or otherwise arrange for or establish an application that is not completely filled out by the patient. Providers may answer patient’s questions and provide assistance if requested, so long as the application is completed wholly by the patient.
3) Credit card pre-authorization
a. No hospital or health care provider shall require credit card pre-authorization or require the patient to have a credit card on file prior to rendering emergency or necessary medical services.
b. Health care providers may ask patients to voluntarily choose to have a credit card on file but may not require patients to do so.
4) Credit card risk notification
a. Each time a credit card is used to pay for services, patients must be notified of the risks of paying for medical services with a credit card; including:
i. Medical bills paid by credit card are no longer considered medical debt.
ii. By paying with a credit card, patients are forgoing federal and state protections around medical debt.
iii. Protections that patients must acknowledge forgoing include:
1. Prohibitions against wage garnishment and property liens
2. Prohibition against reporting medical debt to credit bureaus
3. Limitations on interest rates
iv. Patients must affirmatively acknowledge forgoing these protections by paying with a credit card.
1) Separating consent to treat / consent to pay
The Department of Health has received outreach and questions from a variety of stakeholders about the meaning of this provision. While the Department considers these questions, the implementation of this provision is on hold until further guidance is released.
2) Medical Financial Product Applications
a. Medical financial products are medical credit cards or third-party medical installment loans.
i. A medical credit card is a credit card issued under an open-end or closed end plan offered specifically for the payment of health care services, products, or devices provided to a person.
b. It is prohibited for any hospital, health care provider, or employee/agent of a hospital or health care provider to complete any portion of an application for medical financial products for the patient, or otherwise arrange for or establish an application that is not completely filled out by the patient. Providers may answer patient’s questions and provide assistance if requested, so long as the application is completed wholly by the patient.
3) Credit card pre-authorization
a. No hospital or health care provider shall require credit card pre-authorization or require the patient to have a credit card on file prior to rendering emergency or necessary medical services.
b. Health care providers may ask patients to voluntarily choose to have a credit card on file but may not require patients to do so.
4) Credit card risk notification
a. Each time a credit card is used to pay for services, patients must be notified of the risks of paying for medical services with a credit card; including:
i. Medical bills paid by credit card are no longer considered medical debt.
ii. By paying with a credit card, patients are forgoing federal and state protections around medical debt.
iii. Protections that patients must acknowledge forgoing include:
1. Prohibitions against wage garnishment and property liens
2. Prohibition against reporting medical debt to credit bureaus
3. Limitations on interest rates
iv. Patients must affirmatively acknowledge forgoing these protections by paying with a credit card.
Have a question for Jennifer? Email is best. You can reach her at Jennifer@Kirschenbaumesq.com.
