NY Physicians Applaud DFS for $80 Million in Recoveries Under Prompt Payment Law

For Immediate Release
March 22, 2023

NY Physicians Applaud DFS for $80 Million in Recoveries
Under Prompt Payment Law

But Calls for Updates to the Law with Stricter Penalties for Insurers who Illegally Delay Payment for Patient Care

Statement Attributable to:
Parag Mehta, MD, MACP
President, Medical Society of the State of New York 

“New York’s physicians are grateful to the State’s Department of Financial Services for their outstanding efforts in 2022 to significantly increase—to $80 million—the recoveries for violations of the State’s Prompt Payment law, as reported in their 2022 Annual Report Microsoft Word – 2022 CPFED Annual Report.final 3-15-23 (ny.gov).  This is twice as much in recoveries for violations of this law when compared to each of the previous several years.

“However, it is outrageous that physicians, hospitals, and other care providers must continue to regularly resort to governmental intervention to be paid fairly and accurately for delivering needed patient care, particularly for those physician practices that are hanging on by a thread to continue to deliver essential patient care in their communities.  Practice transactional costs are often immense.  Physicians and their staff often must spend hours or days on unnecessary phone calls and e-mails to ensure they are reimbursed for the patient care these insurers are legally obligated to cover.

“The problem is that there is little incentive for health insurers to pay claims promptly.

“New York’s Prompt Payment law, enacted over 25 years ago, needs to be updated to increase the penalties and interest that can be imposed on health insurers for illegally delaying payment for health care claims that should be paid pursuant to enrollees’ contract with their health insurer. MSSNY is grateful for the diligent work that DFS has done on enforcement.  MSSNY further supports increased funding to DFS so that the agency can hire even more enforcement staff to help ensure that complaints regarding health insurer delay tactics can be promptly investigated and remedied.”

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Founded in 1807, the Medical Society of the State of New York is the state’s principal non-profit professional organization for physicians, residents, and medical students of all specialties. Its mission is to represent the interests of patients and physicians to assure quality healthcare services for all. 

Media Contact:
Roseann Raia | Manager, Communications
Medical Society of the State of New York
865 Merrick Avenue
Westbury, NY 11590
516.488.6100 x302 | [email protected]

Julie Vecchione
Vice President, Communications
Medical Society of the State of New York
865 Merrick Avenue
Westbury, NY 11590
516.488.6100 x340 | [email protected]