ALBANY, NY — A new law in New York requires that health insurers directly reimburse ambulance providers for transporting out-of-network patients.

On December 1, New York Gov. Kathy Hochul signed into law the Direct Pay Bill, which requires insurance companies to send payments to ambulance service providers, not customers. 

Currently, insurers pay customers directly unless they have a preferred provider agreement with EMS. EMS then bills the customers, who often fail to pay, according to a news release—leaving EMS with unpaid costs. 

The new law, which will take effect in January 2025, prohibits insurance companies from sending ambulance reiumbursements to customers. 

“It is a constant struggle to collect monies from patients that receive these direct payments,” said Paul Sugrue, the EMS chief in Colonie. “Last year, one patient had accumulated more than $12,000 in insurance checks that were directly paid to them but owed to our service.”