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BILL NUMBER:S1864

TITLE OF BILL: An act to amend the social services law, in relation to reimbursement for medicaid services required by state law

PURPOSE: This bill would require that the state will pay one hundred percent of the non-federal share of costs for Medicaid services that are not required to be provided under federal law.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 - adds a new paragraph (aa) to subdivision 1 of section 368-a of the Social Services Law to provide that notwithstanding any inconsistent law to the contrary, the Department of Health shall pay one hundred percent of the non-federal share for medical services (Medicaid) required by state law but not required to be provided by Federal Law.

Section 2 - Effective date.

CURRENT LAW: Currently, costs for Medicaid services that are not reimbursed by the federal government are shared in varying percentages between the state and county governments.

JUSTIFICATION: The primary funding mechanisms for county governments, sales taxes and real property taxes, were never designed or expected to fund both local services and a federal and state mandated medical services program. At the Medicaid program has grown, with the active assistance of the state in mandating almost every optional service that may be available under the Federal Medicaid program, real property values and economic activity have remained stagnant throughout the state, and particularly throughout the upstate region. Upstate property owners face some of the highest real property tax rates in the country, with tax rates going higher every year. At the same time, wages and job opportunities continue to disappear. The burden of federally mandated services is difficult enough for counties to bear, and it is important to note that New York is one of only a handful of states that requires local government pay any portion of Medicaid costs. If the state wishes to provide an optional service, it is time for the state to pay for that service.

FISCAL IMPLICATIONS: To be determined

LEGISLATIVE HISTORY: 2010 - S.3522 -- HEALTH 2011-2012 - S.3424 -- HEALTH

EFFECTIVE DATE: This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

1864

2013-2014 Regular Sessions

IN SENATE

(PREFILED)

January 9, 2013
___________

Introduced by Sens. RANZENHOFER, LARKIN -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Health

AN  ACT  to  amend the social services law, in relation to reimbursement
  for medicaid services required by state law

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 1 of section 368-a of the social services law
is amended by adding a new paragraph (aa) to read as follows:
  (AA) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE  CONTRA-
RY,  THE  DEPARTMENT  OF  HEALTH  SHALL  PAY  ONE HUNDRED PERCENT OF THE
NON-FEDERAL SHARE OF ANY PAYMENTS FOR SERVICES REQUIRED TO  BE  PROVIDED
BY APPLICABLE STATE LAW, BUT NOT REQUIRED TO BE PROVIDED BY FEDERAL LAW.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04855-01-3