A 3986 New York Assembly · 2025 Regular Session

Relates to the use of virtual credit cards by insurers and certain health care plans

Summary

Authorizes an insurer to pay a claim for reimbursement made by a provider using a credit card, virtual credit card or electronic funds transfer payment method that imposes on the provider a free or similar charge to process the payment; defines "virtual credit card" as a single-use series of numbers linked to a fixed dollar amount and provided by an insurer to a provider for the purpose of paying a claim for health care services performed by the provider; makes related provisions.

Issues: ✓ Healthcare

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

May 2025

Assembly Passage

May 2025

Senate Passage

Jun 2025

Signed into Law

Dec 2025

Introduced Jan 30, 2025 Signed Dec 19, 2025

Maddy AI version diff · 1 comparison

What changed between versions

A3986 → A3986A · 5 edits

MODERATE

This bill was amended to clarify how insurers and health care corporations must handle fees when paying providers using virtual credit cards or electronic transfers. The changes require fees to be specifically identified, add clearer notification requirements for payment type changes, and expand the definition of 'provider' to include health care professionals with participating contracts.

Scope change

The bill now applies to both insurers and corporations organized under the insurance law, with expanded definitions of who qualifies as a 'provider' and clearer rules about when payment method decisions take effect.

REQUIREMENT

Changed fee language from general 'fee or similar charge' to 'specifically identified fee or similar dedicated charge' to require clearer disclosure of costs.

Added requirement that providers must notify insurers in writing to change designated payment types, rather than just 'changing' the type.

Added new requirement that corporations must require vendors to comply with payment method provisions, matching insurer obligations.

DEFINITION

Expanded 'provider' definition to include health care professionals with participating contracts, not just those licensed under education law title eight.

ELIGIBILITY

Modified consent requirements for transmission fees to require provider election of alternative payment method rather than simple consent.

Floor votes · Senate Jun 11, 2025 · Assembly May 27, 2025

How they voted

59–0

Passed · 4 other

Total votes 63

Jun 11, 2025

D Democratic41

38 Yea 3

92% Yea

R Republican22

21 Yea 1

95% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Dec 19, 2025

Signed into law

SIGNED CHAP.647

lower

Jun 11, 2025

Upper · Passed

PASSED SENATE

upper

May 27, 2025

Committee

REFERRED TO INSURANCE

upper

May 27, 2025

Lower · Passed

PASSED ASSEMBLY

lower

May 20, 2025

Committee

REPORTED REFERRED TO RULES

lower

May 16, 2025

Lower · Passed

PRINT NUMBER 3986A

lower

May 16, 2025

Lower · Passed

AMEND AND RECOMMIT TO INSURANCE

lower

Jan 30, 2025

Committee

REFERRED TO INSURANCE

lower

1 primary · 2 co-sponsors