The New York State Department of Financial Services will direct health insurers to ease administrative burdens and provide cash flow relief to 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, according to Gov. Andrew Cuomo’s office.

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.

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