Relates to reimbursement for Medicaid for services required by state law; provides department of health must pay 100% of the non-federal share for services required by state law, not federal.
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
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3424 2011-2012 Regular Sessions IN SENATE February 22, 2011 ___________Introduced by Sens. RANZENHOFER, GOLDEN, LARKIN, SALAND -- read twice and ordered printed, 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. LBD02581-01-1