NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1043
SPONSOR: Kim (MS) TITLE OF BILL:
An act to amend the social services law, in relation to increasing the
amount of the savings exemption for eligibility for Medicaid
PURPOSE OR GENERAL IDEA OF BILL:
This bill would increase the ABD (Aged, Blind Disabled) asset test in
Medicaid, which would bring greater equity to the Medicaid program for
seniors and people with disabilities and to reduce health disparities
for communities of color, who are disproportionately harmed by the
current eligibility criteria.
SUMMARY OF PROVISIONS:
Sections 1 and 2 would amend section 366 of the social services law to
increase the asset limit to $300,000 for Medicaid applicants and recipi-
ents who are 65 year of age or older, certified blind or certified disa-
bled.
Section 3 of the bill establishes the effective date of January 1, 2025
for sections 1 and 2
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
Increasing the asset test is necessary to meaningfully address racial
disparities in access to health care, exposed so vividly by COVID-19.
Older New Yorkers and people with disabilities with monthly incomes
below 138% of the Federal Poverty Line (FPO ($1563/month) are dispropor-
tionately people of color. The savings people at this income level have
are typically minimal and tend to be in cash rather than in a home or in
retirement accounts. When reviewing assets, however, Medicaid counts
cash but does not consider an applicant's home and retirement accounts.
Given the disparities in homeownership and retirement savings between
New Yorkers of color and white New Yorkers, this leads to racial inequi-
ties, as well as disparities for people with disabilities. The asset
poverty rate in New York varies dramatically by race.
* New York has the highest asset poverty rate for Latinx households
nationally-53.4% compared to 17.2% for white households in New York
State.
* New York has the sixth highest asset poverty rate nationally for
households of color-40.8% compared to 17.2% for white households.
* New York has the sixth highest rate for households with an adult with
a disability-47.4% compared to 25.3% for non-disabled households. We
recognize political and fiscal realities may make it difficult to repeal
the asset limit this year as California has done, so we suggest an
incremental approach with the increase of the asset test effective Janu-
ary 1, 2025 and a full repeal in the future.
Prior to the full repeal, increasing the liquid asset limit will make
access to health care more equitable. A home worth $995,000 is exempt
from Medicaid, but a tenant who cannot afford to buy a home, and saves
$100,000, is disqualified from Medicaid. An asset limit of six times the
annual income limit would be $112,536 in 2022 (single person). This is
lower than California's asset limit, now increased to $130,000 as Cali-
fornia phases in full repeal of the asset test.
PRIOR LEGISLATIVE HISTORY:
2023-2024: A5940/Kim, Referred to Health S4881/Cleare, Passed Senate
(24) Referred to Health (23)
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined
EFFECTIVE DATE:
See as follows: effective date of January 1,2025 for sections 1 and 2
STATE OF NEW YORK
________________________________________________________________________
1043
2025-2026 Regular Sessions
IN ASSEMBLY
January 8, 2025
___________
Introduced by M. of A. KIM, GIBBS, GONZALEZ-ROJAS, SEAWRIGHT, CHANDLER-
WATERMAN, DAVILA -- Multi-Sponsored by -- M. of A. COOK -- read once
and referred to the Committee on Health
AN ACT to amend the social services law, in relation to increasing the
amount of the savings exemption for eligibility for Medicaid
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph 4 of paragraph (a) of subdivision 2 of
2 section 366 of the social services law, as amended by section 3 of part
3 AAA of chapter 56 of the laws of 2022, is amended to read as follows:
4 (4) savings in amounts equal to [one hundred fifty percent of the
5 income amount permitted under subparagraph seven of this paragraph,
6 provided, however, that the amounts for one and two person households
7 shall not be less than the amounts permitted to be retained by house-
8 holds of the same size in order to qualify for benefits under the feder-
9 al supplemental security income program] three hundred thousand dollars;
10 § 2. Subparagraph 5 of paragraph (c) of subdivision 1 of section 366
11 of the social services law, as amended by chapter 583 of the laws of
12 2023, is amended to read as follows:
13 (5) A disabled individual at least sixteen years of age, but under the
14 age of sixty-five, who: would be eligible for benefits under the supple-
15 mental security income program but for earnings in excess of the allow-
16 able limit; has net available income that does not exceed two hundred
17 fifty percent of the applicable federal income official poverty line, as
18 defined and updated by the United States department of health and human
19 services, for a one-person or two-person household, as defined by the
20 commissioner in regulation; has household resources, as defined in para-
21 graph (e) of subdivision two of section three hundred sixty-six-c of
22 this title, other than retirement accounts, that do not exceed [one
23 hundred fifty percent of the income amount permitted under subparagraph
24 seven of paragraph (a) of subdivision two of this section, for a one-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00970-02-5
A. 1043 2
1 person or two-person household] three hundred thousand dollars, as
2 defined by the commissioner in regulation; and contributes to the cost
3 of medical assistance provided pursuant to this subparagraph in accord-
4 ance with subdivision twelve of section three hundred sixty-seven-a of
5 this title; for purposes of this subparagraph, disabled means having a
6 medically determinable impairment of sufficient severity and duration to
7 qualify for benefits under section 1902(a)(10)(A)(ii)(xv) of the social
8 security act.
9 § 3. This act shall take effect January 1, 2026; provided, however,
10 that the effectiveness of sections one and two of this act shall be
11 subject to federal financial participation; provided, further, however,
12 that the commissioner of health shall notify the legislative bill draft-
13 ing commission upon the occurrence of federal financial participation in
14 order that the commission may maintain an accurate and timely effective
15 data base of the official text of the laws of the state of New York in
16 furtherance of effectuating the provisions of section 44 of the legisla-
17 tive law and section 70-b of the public officers law. Effective imme-
18 diately, the addition, amendment and/or repeal of any rule or regulation
19 necessary for the implementation of this act on its effective date are
20 authorized to be made and completed on or before such effective date.
