Cuomo Orders Health Insurers to Pay NY Hospitals

NY Governor Andrew Cuomo has ordered the NY State Department of Financial Services to direct health insurers to provide cash flow relief to, and ease administrative burdens on, New York State hospitals in response to COVID-19. Relief provided to hospitals during the pandemic includes insurers’ immediate payment of outstanding accounts receivables, suspension of preauthorization requirements for all hospital services, and prohibition of retrospective review of claims.

DFS will issue a circular letter directing health insurers to:

• Immediately process for payment outstanding hospital claims;
• In collaboration with DFS, work with hospitals in insurers’ network to provide additional financial assistance if needed and feasible, focusing on community, rural, and safety-net hospitals;
• Suspend preauthorization requirements for all services performed at hospitals, including lab work and radiology, until June 18, 2020;
• Not conduct retrospective reviews of hospital claims, until June 18, 2020, subject to limited exceptions; and
• Not make medical necessity denials related to emergency department and inpatient hospital treatment for COVID-19.

“We are at a profound moment in this crisis where we are finally passing the apex of the curve, but if we make a bad move now it’s going to set us back,” Governor Cuomo said. “We’re beginning to make plans on how to re-open our economy and start the return to the new normal, but in the meantime we have to ensure our health care system and our hospitals that have been so critical in combating this virus have the support they need. The Department of Financial Services is going to issue a directive to health insurers to provide financial and administrative relief to our hospitals so they can continue safely and quickly providing the care that is so desperately needed right now.”