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Health: Feb 29, 2012

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Floor Calendar: Mar 1, 2012 , Floor Calendar: Mar 5, 2012

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Memo

BILL NUMBER:S6493

TITLE OF BILL: An act to amend the public health law, in relation to medical assistance recoupments and reductions for home care services

PURPOSE: To alleviate the burdensome fiscal impacts of the recent Medicaid recoupment rate policy of the Department of Health on home care agencies and its subsequent impacts on patients and the health care workforce.

SUMMARY OF PROVISIONS: Section one adds a new Public Health Law º3623 providing that on and after April 1, 2009, any recoupments or reductions in medical assistance payments for licensed home care services agencies and certified home health agencies (CHHAs) shall not be subject to interest. This section further provides that on and after January 1, 2009, any recoupments or reductions in medical assistance payments shall be made payable in equitable monthly amounts over two years on or after January 1, 2012, unless an increased payment is requested by the agency.

Section two provides that this act shall take effect immediately.

JUSTIFICATION: Multi-year delays in Medicaid rate change approval and related overpayments have resulted in Personal Care providers and Certified Home Health Agencies (CHHAs) being subject to the massive recoupment of funds within a condensed period of time with punitive interest penalties.  This results in severe cash flow issues and will have a direct impact on the home care workforce and patients. Payment accuracy is critical to maintaining the integrity of the Medicaid system, but burdensome recoupment practices create new obstacles for an industry already facing severe financial challenges. Changes to the current Medicaid recoupment policy are necessary to mitigate the negative impact of the State's most recent rate adjustments on the home care system.

LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: No net fiscal impact as this legislation will not reduce the amounts recouped.

EFFECTIVE DATE: Immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

6493

IN SENATE

February 16, 2012
___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law, in relation to medical assistance
  recoupments and reductions for home care services

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

  Section  1.  The  public health law is amended by adding a new section
3621 to read as follows:
  S 3621. MEDICAL ASSISTANCE RECOUPMENTS AND REDUCTIONS.   NOTWITHSTAND-
ING  ANY  OTHER  PROVISION  OF  LAW  TO THE CONTRARY, ON AND AFTER APRIL
FIRST, TWO THOUSAND NINE,  ANY  RECOUPMENTS  OR  REDUCTIONS  IN  MEDICAL
ASSISTANCE  PAYMENTS FOR LICENSED HOME CARE SERVICES AGENCIES AND CERTI-
FIED HOME HEALTH AGENCIES LICENSED PURSUANT TO THIS ARTICLE SHALL NOT BE
SUBJECT TO INTEREST AND ANY SUCH RECOUPMENTS OR  REDUCTIONS  IN  MEDICAL
ASSISTANCE  PAYMENTS  SHALL BE PAYABLE IN EQUITABLE MONTHLY AMOUNTS OVER
TWO YEARS ON OR AFTER JANUARY  FIRST,  TWO  THOUSAND  TWELVE  UNLESS  AN
INCREASED PAYMENT IS REQUESTED BY AN AGENCY.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14595-01-2