On October 20th, 2024, new laws in New York will take effect which will make it illegal to obtain a patient’s consent to pay before the patient receives services. Specifically, NYS Public Health Law 18-c, will require that “consent to pay for any health care services by a patient [may not be given until after] discussing treatment costs [with the patient and until after the patient] receives such services”. In current practice, it is commonplace for a provider to seek a patient’s consent to pay for health care services before the patient actually receives such services. It is also customary for patient financial acknowledgement forms to be signed prior to treatment along with clinical consents.
This new law applies to numerous providers, including but not limited to, physicians, physician assistants, chiropractors, dentists, physical therapists, nurses, podiatrists, optometrists, ophthalmic dispensers, psychologists, social workers and speech language pathologist.
Given the new law’s quickly approaching effective date, New York providers should take immediate action to ensure compliance with the new law, which will likely include modifying their existing intake and payment procedures. In addition to making these changes, New York providers should also consider how complying with this new requirement may impact contracts with third parties and their current compliance procedures for other state and federal balance billing and fraud and abuse laws. Specifically, New York’s prohibitions on balance billing, the Federal No Surprises Act, and where federal funds are involved, the Anti-Kickback Statute and Beneficiary Inducements civil monetary penalty law, should be considered.
Frier Levitt’s New York healthcare and regulatory attorneys are equipped to assist (1) providers with navigating New York’s new requirements, (2) in assessing intake forms and procedures to ensure compliance with the new law, and (3) providing guidance on the interplay between the new requirements and existing balance billing and fraud and abuse laws. Contact us today to speak with an attorney.
