The administrative expense of arbitrations shall be paid from the arbitration administration fund established pursuant to section five thousand six hundred three of the insurance law.
§ 7553.Costs of the proceeding
Article 75-A. Health Care Arbitration · Last amended 1986 · Last verified July 21, 2026
In one sentenceCPLR 7553 provides that the administrative expense of health care arbitrations under Article 75-A is paid out of the arbitration administration fund created under the insurance law.
Full Text of CPLR 7553
Plain-English Summary
Running an arbitration program costs money, and CPLR 7553 answers where that money comes from. Administrative expenses, the overhead of maintaining the arbitration administrator's office, processing cases, and keeping the system functioning, are paid from a dedicated fund established under section five thousand six hundred three of the insurance law rather than billed piecemeal to the parties.
Because the fund is set up separately in the insurance law, this CPLR section functions mainly as a pointer, confirming that Article 75-A's arbitrations draw on that existing mechanism rather than creating a new funding source. Other sections in the article deal separately with arbitrator compensation and witness fees, so 7553 is best read as covering the administrative side of the process rather than every cost a party might incur.
Frequently Asked Questions
Who pays for running the health care arbitration program?
Administrative expenses come from the arbitration administration fund established under section five thousand six hundred three of the insurance law, not directly from the parties.
Does CPLR 7553 cover arbitrator pay or witness fees?
No. Those are addressed separately in CPLR 7562. Section 7553 covers the administrative expense of the proceeding itself.
Why is the arbitration administration fund created under the insurance law rather than the CPLR?
Because Article 75-A's arbitration system grew out of HMO regulation, which falls under the insurance law, so the funding mechanism sits there while the procedural rules sit in the CPLR.
Do the parties to a health care arbitration pay administrative fees out of pocket?
No. CPLR 7553 routes the administrative expense of the proceeding through the arbitration administration fund rather than charging it directly to the parties.
Is the arbitration administration fund the same fund that pays arbitrators?
Yes. CPLR 7562 draws arbitrator salaries, fees, and expenses from the same arbitration administration fund that CPLR 7553 uses to cover administrative expenses.
Amendment History
Add, L 1986, ch 266, § 5, eff July 8, 1986.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: arbitration administration fund New Yorkwho pays for HMO arbitrationhealth care arbitration costs