Waives interest and penalties due on surcharges and assessments due prior to January 1, 2012, relating to payments to health care providers.
Ayes (32): DeFrancisco, Johnson, Alesi, Bonacic, Farley, Flanagan, Fuschillo, Golden, Hannon, Lanza, Larkin, LaValle, Little, Marcellino, Nozzolio, Robach, Saland, Seward, Young, Krueger, Breslin, Diaz, Dilan, Duane, Gianaris, Montgomery, Oppenheimer, Parker, Rivera, Stavisky, Stewart-Cousins, Squadron
Ayes W/R (3): Griffo, Peralta, Perkins
TITLE OF BILL: An act to amend chapter 58 of the laws of 2010, amending the public health law relating to audits for service providers, in relation to interest and penalties on certain surcharges and assessments due prior to January 1, 2012
PURPOSE: This bill would provide an amnesty period during calendar year 2012 to relieve providers of interest and penalty charges arising from HCRA surcharges calculated based on audits of prior years.
SUMMARY OF PROVISIONS: Section 1 of the bill amends section 18 of part B of chapter 58 of the laws of 2010, as amended by section 67 part H of chapter 59 of 2011, to extend amnesty periods for certain HCRA surcharges and assessments due from periods prior to January 1, 2011 to periods prior to January 1,2012 and paid before December 31, 2012.
Section 2 of the bill provides for an effective date.
JUSTIFICATION: This bill will provide some relief from interest and penalty charges to providers who take advantage of the amnesty period and will likely provide the state with payments sooner thus producing a financial benefit to the state. There are a multitude of insurance payors, electing different methods of making payments and an enormous accounting and reconciliation process that goes on to try and determine the correct amount that a particular provider needs to pay into the HCRA surcharge pool. Misunderstandings and the complicated nature of how to implement the surcharge have existed for many years and, as a result, an amnesty period has been provided in prior years.
Education/clarification to providers on the implementation of the HCRA Surcharge has been relatively recent. The first in-depth educational sessions sponsored by DOH along with KPMG (auditors) for providers started in the fall of 2010 and have continued with other sessions in the spring and winter of 2011 the most recent being in April 2012.
Continuing amnesty related to interest and penalties associated with surcharge audits would provide some relief. This is especially important given the logistical nightmare and hurculean tasks associated with this process.
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: Possible savings as providers make payments to the state sooner in order to avoid interest and penalty charges during the amnesty period.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 7083 IN SENATE April 27, 2012 ___________Introduced by Sen. HANNON -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend chapter 58 of the laws of 2010, amending the public health law relating to audits for service providers, in relation to interest and penalties on certain surcharges and assessments due prior to January 1, 2012 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 18 of part B of chapter 58 of the laws of 2010, amending the public health law relating to audits of service providers, as amended by section 67 of part H of chapter 59 of the laws of 2011, is amended to read as follows: S 18. Notwithstanding any contrary provision of law, surcharges and assessments due and owing pursuant to sections 2807-j, 2807-s and 2807-t of the public health law for any period prior to January 1,
2012, which are paid and accompanied by all required reports and which are received on or before December 31, 2012 shall not be subject to interest or penalties as otherwise provided in such sections, provided, however, that such reports may be based on estimates by payors and designated providers of services of the amounts owed, subject to subse- quent audit by the commissioner of health or the commissioner's desig- nee, and provided further, however, with regard to all principal, inter- est and penalty amounts collected by the commissioner of health prior to the effective date of this act, the penalty provisions of sections 2807-j, 2807-s and 2807-t of the public health law shall remain in full force and effect and such amounts collected shall not be subject to further adjustment pursuant to this section, and provided further, however, that payments of principal amounts of surcharges and assess- ments which were paid late and received prior to the effective date of this provision, and in regard to which interest and penalty amounts have not been collected, shall not be subject to such interest and penalties, and provided, further, however, that the provisions of this section shall not apply to delinquent amounts which have been referred by the commissioner of health for recoupment or collection proceeding.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15541-01-2 S. 7083 2
Furthermore, the provisions of this section shall not apply to any surcharge or assessment payments made in response to a final audit find- ing issued by the commissioner of health or the commissioner's designee. S 2. This act shall take effect immediately.