New York S05323 authorizes penalties for subcontractors failing to meet health care claim settlement standards.

New York S05323 amends the insurance law to authorize penalties on subcontractors for failure to adhere to standards for prompt, fair, and equitable settlement of health care claims. The bill specifies that penalties can be imposed in addition to those on the insurer or organization, where it can be shown that the subcontractor was responsible for the failure. The penalties can be doubled if the insurer or organization's failure is demonstrated. The act takes effect 90 days after becoming law and applies to all health care claims submitted after that date.

New York S05323 authorizes penalties for subcontractors failing to meet health care claim settlement standards.

New York S05323 amends the insurance law to authorize penalties on subcontractors for failure to adhere to standards for prompt, fair, and equitable settlement of health care claims. The bill specifies that penalties can be imposed in addition to those on the insurer or organization, where it can be shown that the subcontractor was responsible for the failure. The penalties can be doubled if the insurer or organization's failure is demonstrated. The act takes effect 90 days after becoming law and applies to all health care claims submitted after that date.