S 8590 New York Senate · 2025 Regular Session

Relates to establishing timeframes for the payment of claims to hospitals

This bill requires health insurers to pay hospitals at contracted rates within specific timeframes, regardless of their own medical necessity or administrative policies. It establishes a joint committee process where insurers can request clinical documentation for up to 10% of paid claims (increasing to 15% if over half of requested claims were inappropriate) to review if care was medically necessary after payment. Hospitals must provide documentation within 60 business days, and unresolved disputes escalate to an independent third-party reviewer whose binding decision may require refunds if services weren't necessary. The policy directly affects hospitals and insurers, ensuring timely payments while creating a structured dispute resolution path for claim reviews. The law takes effect January 1, 2026.
Bill status in committee 1 of 4 stages cleared
Introduction
Nov 2025
Committee Review
Floor Vote
Governor
Introduced Nov 26, 2025 Last action Jan 7, 2026
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Actions timeline

Total actions
2
Key actions
0
Committee
2
Jan 7, 2026
Committee
REFERRED TO INSURANCE
upper
Nov 26, 2025
Committee
REFERRED TO RULES
upper
1 primary · 1 co-sponsor

Sponsors