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Physicians regularly report to MSSNY about substantial delays in receiving payments from insurers for care delivered to their patients. New York has a Prompt Payment law enforced by the Department of Financial Services (DFS) that resulted in $72 million in wrongfully withheld payments being returned to physicians and hospitals in 2025, and $82 million returned in 2024.
While these enforcement actions are commendable, they also underscore that the 30-year-old Prompt Payment statute is an inadequate deterrent to health plans wrongfully denying and delaying payment. Moreover, physicians regularly report substantial delays by regulatory staff in resolving even successful complaints. MSSNY advocates for legislation to significantly increase Prompt Payment penalties and to grant DFS authority to impose additional sanctions on insurers engaging in systemic payment delays.
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