In this letter, NYSSLHA strongly opposed the proposed legislation which would repeal Section 802 of the General Business Law which currently prohibits physicians who conduct evaluations of hearing loss from engaging in the business of dispensing a hearing aid for a profit.

We highlighted that New York State is a leader in protecting the rights of health care consumers. Among the many pro-consumer laws enacted in the State is a 1998 law to ensure consumer access to safe, reliable hearing aid dispensing services. The Hearing Aid Dispensing law imposes rigorous education, training and business practice standards for individuals who dispense hearing aids, and requires that information be provided to consumers prior to sale. In addition, the 1998 law continued a long-standing prohibition in New York State on the for-profit sale of hearing aids by physicians.

We also pointed out that the provisions of this bill that authorize physicians to dispense hearing aids for-profit would not benefit consumers in any way. Physicians are already permitted to dispense hearing aids to patients as long as they make no more than a 5% profit. In addition, physicians may charge their regular fee for any medical examination of the patient. The proposed legislation would allow a physician to make an additional profit on the sale of a medical device that the physician has ordered for a patient, presenting a potential conflict of interest.

Further, New York State has acted in a number of areas to prohibit physician "self-referral" to ensure that a physician does not benefit financially from the sale of products or services to a patient that are ordered by a physician. Chapter 18 of the Laws of 1990 prohibits a physician from selling prescription drugs, except for a 72-hour supply or in the case of an emergency. Chapter 803 of the Laws of 1992 prohibits a physician from receiving any financial benefit from the referral of a patient to a clinical laboratory for testing. These laws were enacted to protect consumers from the possibility that personal financial gain could interfere with the physician's independent medical judgment.

In 1998, the Legislature acted to retain the prohibition on physician for-profit sale of hearing aids. This prohibition, coupled with stringent requirements for education and training of dispensers and disclosure of information concerning the cost, price, fittings, various types of hearings aids and warranty information, was enacted to afford the consumer the broadest possible choice of quality hearing aids at the best possible price.

To view the Letter of Opposition, click on the Legislative Advocacy link.

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