§ 500-h. Payment of costs for medical and dental services. 1. Diagnoses, tests, studies or analyses for the diagnosis of a disease or disability, and care and treatment by a hospital, as defined in article twenty-eight of the public health law, or by a physician, or by a dentist to incarcerated individuals of a local correctional facility which are provided by a county or the city of New York shall be available without cost or charge to the incarcerated individuals receiving such examinations, care or treatment.

2. Notwithstanding the provisions of subdivision one of this section, any county or the city of New York may, by local law, provide that such entity may be reimbursed for costs paid pursuant to subdivision one of this section from any third party coverage or indemnification carried by an incarcerated individual. Such third party coverage or indemnification shall first be applied against the total cost to the hospital or other provider as established in accordance with the provisions of section twenty-eight hundred seven of the public health law relating to rates of payment of an individual's care and treatment, as provided herein.