Senator Hannon Supports Reform of Consumer Reimbursement System for Out-Of-Network Health Care Charges
Posted on November 4, 2009
Senator Kemp Hannon (6th District) announced his support of a new not-for-profit company, FAIR Health, Inc., and an upstate research network headquartered at Syracuse University, in an effort to reform a consumer reimbursement system for out-of-network health care charges.
FAIR Health coupled with the research network will develop a new independent database for consumer reimbursement and a new website where, for the first time, consumers can compare prices before they choose their doctors.
“Many are quick to address the problem, but few go above and beyond to create an ingenious solution,” said Senator Hannon as he congratulated Attorney General Andrew Cuomo on his reform efforts at recent press conference held at North Shore University Hospital in Manhasset. “It’s one thing to highlight the problem, it’s another thing to actually fix it,” Hannon continued. “This new initiative is an achievement for our State and for our health care system.”
The creation of FAIR Health arises from a wide-ranging investigation by Cuomo’s office into how the health insurance industry reimburses consumers for out-of-network health care charges. The investigation uncovered a fraudulent and conflict-of-interest ridden reimbursement system affecting millions of patients and their families and costing Americans hundreds of millions of dollars in unexpected and unjust medical costs.
Almost $100 million in settlement money will fund the new reimbursement system, while simultaneously creating new jobs and aiding the development of New York’s upstate economy.
Attorney General Cuomo thanked Senator Hannon for his support regarding this major reform and for working with the Attorney General on numerous other key health policy initiatives.