Client Advisory: New York Healthcare Consumer Protection Laws
Introduction
We have received several inquiries from clients regarding recent New York consumer protection laws impacting healthcare providers. To assist our clients and the broader healthcare community, we are providing an overview of the key laws enacted in October 2024. These laws include:
NY General Business Law § 519-a: Prohibits healthcare providers from requiring pre-authorization or a credit card on file for medically necessary services and requires specific disclosures to patients when they pay for medical services with a credit card.
NY General Business Law § 349-g: Prohibits healthcare providers from assisting patients with medical credit applications and requires patients to independently complete all financial product applications.
NY Public Health Law § 18-c (implementation suspended/not effective as of August 7, 2025): Requires separate consents for treatment and payment of services.
Analysis
1. NY General Business Law § 519-a
A. Key Requirements
I. Prohibits Requiring Credit Card Pre-Authorization/Credit Card on File
Healthcare providers cannot require credit card pre-authorization or mandate that patients have a credit card on file prior to providing emergency or medically necessary services (but patients may voluntarily choose to have a credit card on file).
II. Requires Credit Card Payment Disclosures
Healthcare providers must notify patients about the risks of paying for medical services with a credit card. Such risks include:
Medical bills paid by credit card are no longer considered medical debt.
By paying with a credit card, patients are foregoing federal and state protections around medical debt.
Patients must acknowledge foregoing the following protections:
Prohibitions against wage garnishment and property liens.
Prohibition against reporting medical debt to credit bureaus.
Limitations on interest rates.
Providers must provide the notification each time a patient uses a credit card to pay for medical services. Patients must affirmatively acknowledge foregoing the protections listed above and may do so by using a credit card for payment.
B. Enforcement
While NY General Business Law § 519-a does not explicitly define enforcement actions, the New York Attorney General’s office likely could enforce this law through one or more of the following means:
Seeking an injunction,
Seeking restitution and damages,
Revoking a business registration and/or assumed name certificate, or
Requiring assurance that any violation of the law will be discontinued, potentially coupled with payment of costs incurred during the Attorney General’s investigation.
C. Pending Legislation
Assembly Bill 8460, introduced on May 16, 2025, proposes to revise NY General Business Law § 519-a to require providers to obtain a written consent form from the patient prior to keeping a credit card on file. This Bill was referred to the Committee on Health. Currently, this is not expected to pass during the 2025 legislative session.
D. Next Steps
Healthcare providers should take appropriate steps to ensure compliance with NY General Business Law § 519-a. Steps to consider may include, without limitation:
Offering alternative payment methods, other than credit cards, for membership and other fees.
Implementing a process to provide the required notifications each time a patient uses a credit card to pay for medical services.
Training staff on the requirements.
Maintaining records of compliance efforts.
2. NY General Business Law § 349-g
A. Key Requirements
I. Prohibits Providers from Assisting with Medical Credit Applications
II. Requires Patients to Independently Complete Financial Product Applications
Healthcare providers, facilities, and their employees/agents are prohibited from completing any portion of a patient’s application for medical financial products or to otherwise arrange for or establish an application that is not completely filled out by the patient. However, providers may answer patient’s questions and provide assistance if requested, so long as the application in its entirety is completed by the patient.
B. Enforcement
Individuals or entities who fail to comply with the requirements of NY General Business Law § 349-g will be subject to civil penalties up to $5,000 per violation. Additionally, the New York Attorney General may seek injunction and restitution in response to such unlawful acts or practices. Further, the New York Attorney General’s office likely could enforce this law by revoking business registration and/or assumed name certificate or requiring assurance that any violation of the law will be discontinued, potentially coupled with payment of costs incurred during the Attorney General’s investigation.
C. Next Steps
Healthcare providers should take appropriate steps to ensure compliance with NY General Business Law § 349-g. Such steps could include, but may not be limited to, implementing internal policies and procedures and training staff on the requirements.
3. NY Public Health Law § 18-c (Implementation Suspended/Not Currently Effective)
A. Key Requirements
I. Requires Separate Consents for Payment of Services and Treatment
Under this law, consent for payment can only be obtained after the patient has received services and discussed treatment costs. However, due to questions and logistical challenges raised by healthcare facilities and providers, the New York Department of Health (NYDOH) issued guidance on October 18, 2024, putting the implementation of this provision "on hold until further guidance is released". As of August 7, 2025, no further guidance has been provided by the NYDOH.
B. Next Steps
While this law is not currently in force, healthcare providers should monitor for future developments while focusing compliance efforts on the active laws. We will continue to monitor the situation and provide updated guidance to our clients if the NYDOH indicates any changes or imposes new requirements.
Conclusion
Healthcare providers operating in New York should review their current practices to ensure compliance with NY General Business Law §§ 519-a and 349-g. While NY Public Health Law § 18-c is currently not in force, healthcare providers should monitor for future developments.
If you have specific questions about how these laws apply to your practice or need assistance with implementing compliance measures, please contact our office.
This advisory document is intended as general guidance and does not constitute legal advice for specific situations. Please consult with legal counsel regarding the application of these laws to your particular circumstances.
NY DOH, DAL CPSO 2024-01 (October 18, 2024), https://mcusercontent.com/2de28de77f2e0a7bdec8a3b79/files/360e31e6-3a03-cf73-a786-6b3a5252ef08/hfal_DAL.pdf?utm_source=MSSNY&utm_campaign=03eac56fe8-EMAIL_CAMPAIGN_2024_10_21_02_40&utm_medium=email&utm_term=0_-03eac56fe8-%5BLIST_EMAIL_ID%5D, page 6
NY General Business Law § 513, which provides that the attorney general may seek injunctive relief in response to any violations of Article 29A of the General Business Law (§ 519-a falls within Article 29A).
NY Executive Law § 63, which grants the attorney general broad discretion to enforce the laws of the state. Specifically, it allows the attorney general to (a) apply for an injunction, restitution, and damages for repeated illegal acts or illegality, (b) in appropriate circumstances, cancel a certificate of incorporation and/or an assumed name certificate, and (c) in the attorney general’s discretion, accept an assurance from the individual or entity that they will discontinue the act or practice of concern, and such assurance may include a stipulation for voluntary payment of the reasonable costs and disbursements incurred by the attorney general during the course of the relevant investigation.
NY General Business Law § 349(b)