Relates to the use of virtual credit cards by insurers and certain health care plans

Latest action Dec 19, 2025

Authorizes an insurer to pay a claim for reimbursement made by a provider using a credit card, virtual credit card or electronic funds transfer payment method that imposes on the provider a free or similar charge to process the payment; defines "virtual credit card" as a single-use series of numbers linked to a fixed dollar amount and provided by an insurer to a provider for the purpose of paying a claim for health care services performed by the provider; makes related provisions.

Not chosen yet

Where it stands

Signed into law.

Introduced
In committee
Up for a vote
Passed one chamber
Passed
Enacted

New York State Senate

Same as A3986, the matching bill in the Assembly.

Passed as A3986, the matching Assembly bill.

Amends the Insurance Law.

Committee

Insurance · New York State Assembly

Also referred to Insurance · New York State Senate.

Purpose, from the sponsor's memo

The purpose of this bill is to allow the use of alternative payment methods for claims. Section 1. Amends Section 3217-b of the insurance law to require that an insurer seeking to pay a provider using a credit card, virtual credit card, or EFT that imposes a fee or similar charge on the provider to process the payment must first (1) notify the provider of the potential fees or charges, (2) offer the provider an alternative payment method that does not impose fees or charges, and (3) allow the provider or a designee to elect to accept such payment type. Further, this section establishes that an election to accept or not accept a specific type of payment shall remain in effect until it is changed, requires contracted vendors to adhere to these provisions, prohibits a waiver of this section in new contracts and requires an insurance carrier to seek permission to charge a fee solely to transmit a payment to a provider. The section also defines provider and virtual credit card for purposes of this section of law. Section 2. Create a new Section 4242 of the Insurance Law to include the same provisions as section 1. Section 3. Amends section 4325 of the Insurance Law to include the same provisions as section 1. Section 4. Amends section 4406-C of the Public Health Law to include the same provisions as section 1. Section 5. Establishes an effective date.

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Recorded votes

Vote: Floor vote
NY SenateJun 11, 2025Result: passedSenate vote on A3986, the matching Assembly bill.
(59) (0) (0) (4)
Vote: Committee vote · Rules
Senate RulesJun 11, 2025Result: passed
(20) (0) (0) (1)

Cosponsors

David Weprin and Leroy Comrie

Democratic2

See the full list on nysenate.gov

The sponsor's argument

Why Jeremy Cooney says this is needed

As alternative payment methods increase, provider choice in payment method decreases. Payment types such as virtual credit cards may apply higher processing fees than those agreed upon for regular credit cards under insurer provider contracts. As a result, providers are left to deal with bank charges and other fees levied to counter the evolving software and security needs for new payment types. Unless insurers are required to seek permission, they often begin paying providers using costly alternative payment types without providing any notice. To increase transparency and provider choice, this legislation would require insurers to give appropriate notice and allow providers to elect to utilize an alternative payment method for claims.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.

Full history

Dec 19, 2025
Approval MEMO.31
APPROVAL MEMO.31
NY Assembly
Dec 19, 2025
Signed
SIGNED CHAP.647
NY Assembly
Dec 8, 2025
Sent to the executive
DELIVERED TO GOVERNOR
NY Assembly
Jun 11, 2025
In committee
COMMITTEE DISCHARGED AND COMMITTED TO RULES
NY Senate
Jun 11, 2025
Ordered to Third Reading CAL.1801
ORDERED TO THIRD READING CAL.1801
NY Senate

Show full history (12 earlier events)

Jun 11, 2025
Passed a chamber
PASSED SENATE
NY Senate
Jun 11, 2025
Substituted
SUBSTITUTED BY A3986A
NY Senate
May 27, 2025
Sent to the executive
DELIVERED TO SENATE
NY Assembly
May 27, 2025
Passed a chamber
PASSED ASSEMBLY
NY Assembly
May 27, 2025
Referred to committee
REFERRED TO INSURANCE
NY Senate
May 27, 2025
Reported out of committee
REPORTED
NY Assembly
May 27, 2025
Rules Report CAL.263
RULES REPORT CAL.263
NY Assembly
May 20, 2025
Reported out of committee
REPORTED REFERRED TO RULES
NY Assembly
May 19, 2025
Amend and Recommit to Insurance
AMEND AND RECOMMIT TO INSURANCE
NY Senate
May 16, 2025
Amend and Recommit to Insurance
AMEND AND RECOMMIT TO INSURANCE
NY Assembly
Jan 30, 2025
Referred to committee
REFERRED TO INSURANCE
NY Assembly
Jan 15, 2025
Referred to committee
REFERRED TO INSURANCE
NY Senate

About this record

Summary: The summary comes from NY Open Legislation, the New York State Senate's public record. For more, see How we handle summaries.
Cosponsors: The list shows the cosponsors who are on Agora, A to Z. The official record may list more.
Party colors: Parties are shown in the same neutral colors.
Source: From NY Open Legislation, the NY Senate and Assembly, and official rosters. This record was last updated Oct 21, 2026. About our data

Read the record

Read on NY Senate (opens in a new tab) The official record on nysenate.gov.

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