SYRACUSE, NY- Attorney General Cuomo announced historic nationwide reform of the consumer reimbursement system for out-of-network healthcare charges. A new not-for-profit company, FAIR Health, Inc., and an upstate research network headquartered at Syracuse University will develop a new independent database for consumer reimbursement and a new Web site where for the first time consumers can compare prices before they choose their doctors.
In addition to Syracuse University, the upstate research network consists of the State University of New York (“SUNY”) at Buffalo, Cornell University, University of Rochester, and SUNY Upstate Medical University. Almost $100 million in settlement money will fund the new reimbursement system, creating jobs and helping develop New York’s upstate economy. The new database will make FAIR Health a center for healthcare research and an engine of healthcare reform.
“FAIR Health and the upstate research network headquartered at Syracuse University will bring much-needed transparency, accountability and fairness to a broken consumer reimbursement system we have called Code Blue,” said Attorney General Cuomo. “By transforming this system for consumers nationwide, New York proves its reputation as a reform leader for the nation. By spending almost $100 million in settlement proceeds from health insurers, this initiative will also create new jobs and contribute to the development of the upstate economy which is vital to New York. Today is truly a triple win for consumers, New York and the nation.”
Nancy Ann DeParle, director of the White House Office of Health Reform, said, “This is an important step forward for consumers, who too often are unable to penetrate the secrecy and bureaucracy of insurance companies. Transparency is one of the central goals of health insurance. For consumers struggling to navigate today's health insurance system, knowledge is power. President Obama is working with Congress to enact health insurance reform that will protect Americans against unfair insurance industry practices. We applaud the steps taken by Attorney General Cuomo and the state of New York to give consumers the ability to make informed decisions when purchasing health insurance.”