Under current law, a bill for medical care or supplies generally must be paid, or the provider must receive an explanation for non-payment within 45 days. When a bill is ultimately determined to be due and owed, the Workers’ Compensation Board may include interest of up to 1.5% per month in the award. A11714 would increase interest to 3% per month when an award is not paid within 15 days after it is rendered.
The bill would also establish enhanced penalties for a “pattern or practice” of non-payment. A medical provider or supplier could ask the Workers’ Compensation Board to determine whether such a pattern exists. If the Board finds that a pattern or practice exists and payment is due, the bill will require interest of between 3% and 5% per month, based on factors including the severity, duration, and frequency of the non-payment and the number of providers affected. In cases involving egregious or repeated violations, the Board could also impose a civil penalty of up to 25% of the amount due. The bill defines a pattern or practice to include three or more violations within a 12-month period, as well as other repeated conduct demonstrating a systemic failure to comply with the law’s payment requirements.
MSSNY supports efforts to ensure that physicians and other medical professionals providing workers’ compensation care are reimbursed in a timely manner. A11714 would not change the existing process for disputing the value of, or responsibility for a medical bill, but would strengthen the financial consequences for delayed payment once an obligation has been established or where repeated non-payment is demonstrated. MSSNY is now working to secure a Senate sponsor for companion legislation.
