Insurance Trade Group Applauds NY's Pataki On Signing Legislation Preventing Fraudulent Billing Practices

Extension of Property Owners Program Also Becomes Law

DeWitt, NY — The Independent Insurance Agents & Brokers of New York, Inc. and its industry coalition NY First congratulates New York State Gov. George Pataki for recently signing legislation designed to curb fraudulent billing practices in the state's no-fault automobile insurance system. The physician decertification bill will prohibit health-care providers and medical mills that engage in deceptive billing or fraudulent practices from receiving no-fault insurance payments. These practices have cost New York policyholders millions of dollars.

IIABNY, a statewide trade association representing 1,900 insurance agencies and brokerages, has supported the bill since its introduction into the New York State Legislature by Assemblyman Ruben Diaz, Jr. (D-Bronx) and Sen. James Seward (R-Oneonta), chairman of the Senate Insurance Committee.

Medical mills are organized criminal enterprises that attempt to defraud insurers and their policyholders through unethical billing practices, staged auto accidents and fake injuries.

"Thanks to the efforts of the IIABNY-led NY First coalition, the governor and legislature focused on the high insurance premiums New Yorkers pay because of this fraud," said Kathy Weinheimer, IIABNY senior vice president of industry relations and education. "With Gov. Pataki's signature, these unscrupulous medical mills will now be punished through decertification."

IIABNY also applauded another bill that met with Pataki's approval which extends authorization for the New York Property Insurance Underwriting Association for one year. NYPIUA provides fire and other related coverages for damage to property to those who cannot obtain them in the voluntary market, regardless of property location. Legislators reauthorized NYPIUA without a lapse in authority, which caused service disruptions to policyholders in previous years. IIABNY has often called on the legislature to make NYPIUA permanent.

Still waiting its fate is the Information Security Breach and Notification Act, which will impose new requirements on businesses that maintain computerized customer records. IIABNY worked with the bill's sponsors and others in an effort to streamline the legislation and make it less burdensome to New York's business community.

To view recent New York insurance-related legislation, visit www.iiabny.org. In the blue section on the left side, click on Government Affairs, followed by Insurance Legislation. The same Website hosts a list of NY First members. Link to Industry Relations in the blue section, then Strategic Alliances.

SOURCE: The Independent Insurance Agents & Brokers of New York, Inc.