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A07897 Summary:

BILL NOA07897
 
SAME ASSAME AS S07590
 
SPONSORPaulin
 
COSPNSRDinowitz, Rosenthal L, Steck, Bichotte Hermelyn, Sayegh, Reyes, Gonzalez-Rojas, Rajkumar, Forrest, Kelles, Anderson, Ardila, Barrett, Benedetto, Bronson, Burdick, Burgos, Burke, Carroll, Clark, Colton, Cook, Cruz, Darling, De Los Santos, Dickens, Dilan, Epstein, Fall, Gallagher, Hunter, Hyndman, Jackson, Jean-Pierre, Joyner, Kim, Lavine, Lee, Lunsford, Lupardo, Mamdani, Meeks, Mitaynes, Otis, Peoples-Stokes, Raga, Seawright, Septimo, Shrestha, Sillitti, Simon, Simone, Stirpe, Taylor, Thiele, Vanel, Walker, Wallace, Weprin, Williams, Zinerman, Rivera, Levenberg, Bores, Gibbs, Alvarez, Tapia, Solages
 
MLTSPNSRAubry, Davila, Fahy, Glick, Gunther, Magnarelli, O'Donnell, Pretlow, Rozic
 
Ren Art 50 §§5000 - 5003 to be Art 80 §§8000 - 8003, add Art 51 §§5100 - 5111, Art 49 Title 3 §§4920 - 4928, amd §270, Pub Health L; add §89-k, St Fin L
 
Establishes the New York Health program, a comprehensive system of access to health insurance for New York state residents; provides for administrative structure of the plan; provides for powers and duties of the board of trustees, the scope of benefits, payment methodologies and care coordination; establishes the New York Health Trust Fund which would hold monies from a variety of sources to be used solely to finance the plan; enacts provisions relating to financing of New York Health, including a payroll assessment, similar to the Medicare tax; establishes a temporary commission on implementation of the plan; provides for collective negotiations by health care providers with New York Health.
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A07897 Actions:

BILL NOA07897
 
07/19/2023referred to health
01/03/2024referred to health
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A07897 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7897
 
SPONSOR: Paulin
  TITLE OF BILL: An act to amend the public health law and the state finance law, in relation to enacting the "New York health act" and establishing New York Health   PURPOSE OR GENERAL IDEA OF BILL: This bill would create a universal single payer health plan - New York Health - to provide comprehensive health coverage for all New Yorkers.   SUMMARY OF SPECIFIC PROVISIONS: Every New York resident, and individuals employed full time in New York but living out-of-state, will be eligible to enroll, regardless of age, income, wealth, employment, or other status. There would be no network restrictions, deductibles, or co-pays. Coverage would be publicly fund- ed. The benefits will include comprehensive outpatient and inpatient medical care, long-term care (including home care and nursing home care), primary and preventive care, prescription drugs, laboratory tests, rehabilitative, dental, vision, hearing, and hospice, as well as all benefits required by current state insurance law or provided by any state or local public employers, the Essential Plan, Child Health Plus, Medicare, or Medicaid, and others added by the plan. All these benefits would apply to all NYH enrollees. Everyone would choose a primary care practitioner or other provider to provide care coordination - helping to get the care and follow-up the patient needs, referrals, and navigating the system. As with most health coverage, New York Health covers health care services when a member is out of state, either because health care is needed while the member is traveling or because there is a clinical reason for going to a partic- ular out-of-state provider, or for individuals that are employed in New York but live outside the state. A broadly representative Board of Trustees will advise the Commissioner of Health. The Board shall develop proposals relating to out-of-state retiree health benefits, and coverage of health care services covered under the workers' compensation law, vehicle insurance and veterans' benefits. In addition to the Board, there will be six regional advisory councils to represent the diverse needs and concerns of the region. The councils shall include but not be limited to representatives of health care consumers, providers, municipal and county government, and organized labor. The councils shall advise the Board, Commissioner, Governor, and Legislature on matters relating to the NY Health program and shall adopt community health improvement plans to promote health care access and quality in their regions. Health care providers, including those providing care coordination, would be paid in full by New York Health, with no co-pays or other charges or "balance billing" to patients. The plan would develop payment methods and rates. (Fee-for-service would continue unless new methods are phased in.) Payment is required to be reasonably related to the cost of providing the service and sufficient to assure an adequate supply of the service. The bill would authorize health care providers to form organizations to collectively negotiate with New York Health. Health care would no longer be paid for by insurance companies charging regressive "tax" insurance premiums, deductibles, and co-pays imposed regardless of ability to pay. Instead, New York Health would be paid for based on ability to pay, through a progressively-graduated payroll-based tax (paid at least 80% by employers and not more than 20% by employees, and 100% by self-employed) and a progressively-graduated tax based on other taxable income, such as capital gains, interest, and dividends. An individual's first $25,000 of income ($50,000 for Medicare recipients) would be exempt from the tax. Public employers that are already contrib- uting more than 80% of the cost towards health benefits would be required to maintain the level of financial support that was in effect prior to enactment. A specific revenue plan, following guidelines in the bill, would be submitted to the Legislature by the Governor. Federal funds now received for Medicare, Medicaid, the Essential Plan, Child Health Plus and the Affordable Care Act would continue to come into New York. Depending on the degree of federal cooperation (or not), NYH would wrap around those programs or fold them into NYH. In any event, people eligible for Medicare or the other programs would be enti- tled to every right and benefit they are entitled to under New York Health. The "local share" of Medicaid funding - a major burden on local property taxes - would be ended. Private insurance that duplicates benefits offered under New York Health could not be offered to New York residents.   JUSTIFICATION: The New York State constitution states: "The protection and promotion of the health of the inhabitants of the state are matters of public concern and provision therefor shall be made by the state and by such of its subdivisions and in such manner, and by such means as the legislature shall from time to time determine."(Article XVII, § 3.) All residents of the state have the right to health care. To address the fiscal crisis facing the health care system and the state and to assure New Yorkers can exercise their right to health care, this legislation would establish a comprehensive universal single-payer health care coverage program, funded by broad-based revenue based on ability to pay, for the benefit of all residents and employees of the state of New York. New Yorkers - as individuals, employers, and taxpayers - have experi- enced a rapid rise in the cost of health care and coverage in recent years. A million New Yorkers are without health coverage. Every year, millions of New Yorkers who have health coverage go without needed care because they can't afford it or suffer financial hardship to get it. Businesses have also experienced extraordinary increases in the costs of health benefits for their employees. Health care providers are also affected by inadequate health coverage in New York State. A large portion of voluntary and public hospitals, health centers and other providers experience substantial losses due to the provision of care that is uncompensated. Individuals are often deprived of affordable care and choice of provider because of decisions by health plans guided by the plan's economic needs rather than their health care needs. This act does not create any employment benefit, nor does it require, prohibit, or limit the providing of any employment benefit. In order to promote improved quality of, and access to, health care services and promote improved clinical outcomes, it is the policy of the state to encourage cooperative, collaborative and integrative arrangements among health care providers who might otherwise be competitors, under the active supervision of the commissioner. It is the intent of the state to supplant competition with such arrangements and regulation only to the extent necessary to accomplish the purposes of this act, and to provide state action immunity under the state and federal antitrust laws to health care providers, particularly with respect to their relations with the single-payer New York Health plan created by this act.   PRIOR LEGISLATIVE HISTORY: 1992: A.8912-A - passed Assembly 1993: A.5900 - reported to Ways and Means 1994: A.5900 - referred to Health 1995-96: A.6801 - reported to Ways and Means 1997-98: A.6172 - reported to Ways and Means 1999-00: A.3571 - reported to Ways and Means 2001-02: A.6779 - reported to Ways and Means 2003-04: A.6952 - reported to Ways and Means 2005: A.6576 - reported to Ways and Means 2006: A.6576 - referred to Health 2007-08: A.7354 - reported to Ways and Means 2009-10: A.2356 - referred to Health Committee 2011-12: A.7860-A - reported to Ways and Means 2013: A5389 - referred to Health 2014: A5389 - reported to Ways and Means 2015: A5062 - Passed Assembly / Senate Health 2016: A5062 - passed Assembly / Senate Health 2017: A4738 - passed Assembly / Senate Health 2018: A4738 - passed Assembly / Senate Health 2019: A5248 - reported to Codes / Senate Health 2020: A5248 - referred to Health / Senate Health 2021: A6058 - reported to Codes / Senate Health 2022: A6058 - reported to Ways and Means / Senate Health   FISCAL IMPLICATIONS: Full funding for New York Health would come from the revenue measures to be proposed by the Governor under guidelines in the bill, plus available federal funds. The revenue package would also replace: local share of Medicaid, the state share of Medicaid, state and local payments for public employee health coverage, and various other health care spending. Numerous analyses document that a single-payer system would be most effective for reducing and controlling costs, for taxpayers, employers, and individuals.   EFFECTIVE DATE: Immediately. The program will begin functioning when the Commissioner of Health declares the beginning of the implementation period.
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A07897 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7897
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                      July 19, 2023
                                       ___________
 
        Introduced   by   M.   of  A.  PAULIN,  DINOWITZ,  L. ROSENTHAL,  STECK,
          BICHOTTE HERMELYN, SAYEGH, REYES, GONZALEZ-ROJAS,  RAJKUMAR,  FORREST,
          KELLES,   ANDERSON,  ARDILA,  BARRETT,  BENEDETTO,  BRONSON,  BURDICK,
          BURGOS,  BURKE,  CARROLL,  CLARK,   COLTON,   COOK,   CRUZ,   DARLING,
          DE LOS SANTOS, DICKENS, DILAN, EPSTEIN, FALL, GALLAGHER, HUNTER, HYND-
          MAN,  JACKSON, JEAN-PIERRE, JOYNER, KIM, LAVINE, LEE, LUNSFORD, LUPAR-
          DO, MAMDANI, MEEKS, MITAYNES, OTIS, PEOPLES-STOKES,  RAGA,  SEAWRIGHT,
          SEPTIMO,  SHRESTHA,  SILLITTI,  SIMON, SIMONE, STIRPE, TAYLOR, THIELE,
          VANEL, WALKER, WALLACE, WEPRIN, WILLIAMS, ZINERMAN --  Multi-Sponsored
          by  -- M. of A. AUBRY, DAVILA, FAHY, GLICK, GUNTHER, MAGNARELLI, PRET-
          LOW, ROZIC -- read once and referred to the Committee on Health
 
        AN ACT to amend the public health law and  the  state  finance  law,  in
          relation  to  enacting  the "New York health act" and establishing New
          York Health
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York health act".
     3    § 2. Legislative  findings  and  intent.  1.  The  state  constitution
     4  states:  "The  protection and promotion of the health of the inhabitants
     5  of the state are matters of public concern and provision therefor  shall
     6  be made by the state and by such of its subdivisions and in such manner,
     7  and by such means as the legislature shall from time to time determine."
     8  (Article  XVII,  §3.)  The legislature finds and declares that all resi-
     9  dents of the state have the right to health care.    While  the  federal
    10  Affordable  Care Act brought many improvements in health care and health
    11  coverage, it still leaves many New  Yorkers  without  coverage  or  with
    12  inadequate coverage.  Millions of New Yorkers do not get the health care
    13  they  need  or face financial obstacles and hardships to get it. That is
    14  not acceptable.  There is no plan that has been put forward  other  than
    15  the  New  York  health  act that will enable New York state to meet that
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02408-02-3

        A. 7897                             2
 
     1  need.  New Yorkers - as individuals, employers,  and  taxpayers  -  have
     2  experienced  a  rise  in  the cost of health care and coverage in recent
     3  years, including rising premiums, deductibles  and  co-pays,  restricted
     4  provider  networks and high out-of-network charges.  Many New Yorkers go
     5  without health care because they cannot afford it or suffer  significant
     6  financial  hardship  to  get  it.    Businesses  have  also  experienced
     7  increases in the costs of health care benefits for their employees,  and
     8  many  employers  are  shifting a larger share of the cost of coverage to
     9  their employees or dropping  coverage  entirely.    Including  long-term
    10  services  and supports (LTSS) in New York Health is a major step forward
    11  for older adults, people with disabilities, and  their  families.  Older
    12  adults  and  people  with disabilities often cannot receive the services
    13  necessary to stay in the community or other LTSS. Even when older adults
    14  and people with disabilities receive LTSS, especially  services  in  the
    15  community, it is often at great cost and creates unreasonable demands on
    16  unpaid  family  caregivers,  depleting their own or family resources, or
    17  impoverishing themselves to qualify for public coverage.    Health  care
    18  providers  are  also  affected by inadequate health coverage in New York
    19  state. A large portion of hospitals, health centers and other  providers
    20  now  experience  substantial losses due to the provision of care that is
    21  uncompensated.  Medicaid and Medicare often do not pay  rates  that  are
    22  reasonably  related  to  the  cost  of efficiently providing health care
    23  services and sufficient to assure an adequate and accessible  supply  of
    24  health  care  services,  as  guaranteed  under  the New York Health Act.
    25  Individuals often find that they are deprived  of  affordable  care  and
    26  choice because of decisions by health plans guided by the plan's econom-
    27  ic  interests rather than the individual's health care needs. To address
    28  the fiscal crisis facing the health care system and  the  state  and  to
    29  assure  New  Yorkers can exercise their right to health care, affordable
    30  and comprehensive health coverage must  be  provided.  Pursuant  to  the
    31  state constitution's charge to the legislature to provide for the health
    32  of  New  Yorkers,  this legislation is an enactment of state concern for
    33  the purpose of establishing a comprehensive universal guaranteed  health
    34  care  coverage  program  and  a  health care cost control system for the
    35  benefit of all residents of the state of New York.
    36    2. (a) It is the intent of the Legislature  to  create  the  New  York
    37  Health program to provide a universal single payer health plan for every
    38  resident of the state, funded by broad-based revenue based on ability to
    39  pay.    The  legislature  intends  that federal waivers and approvals be
    40  sought where they will improve the administration of the New York Health
    41  program, but the legislature intends that  the  program  be  implemented
    42  even  in the absence of such waivers or approvals.  The state shall work
    43  to obtain waivers and other approvals relating to Medicaid, Child Health
    44  Plus, Medicare, the Basic Health Plan (Essential Plan),  the  Affordable
    45  Care Act, and any other appropriate federal programs, under which feder-
    46  al  funds  and  other subsidies that would otherwise be paid to New York
    47  State, New Yorkers, and health care providers for health  coverage  that
    48  will  be  equaled  or  exceeded  by  New York Health will be paid by the
    49  federal government to New York State  and  deposited  in  the  New  York
    50  Health  trust  fund, or paid to health care providers and individuals in
    51  combination with New York Health trust  fund  payments,  and  for  other
    52  program  modifications (including elimination of cost sharing and insur-
    53  ance premiums).  Under such waivers and approvals, health coverage under
    54  those programs will, to the maximum extent  possible,  be  replaced  and
    55  merged  into  New York Health, which will operate as a true single-payer
    56  program.

        A. 7897                             3
 
     1    (b) If any necessary waiver or approval is  not  obtained,  the  state
     2  shall  use state plan amendments and seek waivers and approvals to maxi-
     3  mize, and make as seamless as possible, the use of  federally-subsidized
     4  health  programs  and federal health programs in New York Health.  Thus,
     5  even where other programs such as Medicaid or Medicare may contribute to
     6  paying  for  care,  it is the goal of this legislation that the coverage
     7  will be delivered by New York Health  and,  as  much  as  possible,  the
     8  multiple  sources  of  funding will be pooled with other New York Health
     9  funds and not be apparent to New York Health  members  or  participating
    10  providers.
    11    (c)  This  program  will  promote  movement  away from fee-for-service
    12  payment, which tends to reward quantity and requires excessive  adminis-
    13  trative  expense,  and  towards alternate payment methodologies, such as
    14  global or capitated payments to providers or health care  organizations,
    15  that  promote  quality, efficiency, investment in primary and preventive
    16  care, and innovation and integration in the organizing of health care.
    17    (d) The program shall promote the use of clinical data to improve  the
    18  quality  of health care and public health, consistent with protection of
    19  patient confidentiality. The program shall maximize patient autonomy  in
    20  choice  of  health care providers and health care decision making.  Care
    21  coordination within the program shall ensure management and coordination
    22  among a patient's health care services, consistent with patient autonomy
    23  and person-centered service planning, rather than acting as a gatekeeper
    24  to needed services.
    25    (e) The program shall operate with care, skill,  prudence,  diligence,
    26  and professionalism, and for the best interests primarily of the members
    27  and health care providers.
    28    3.  This  act  does  not create or relate to any employment benefit or
    29  employment benefit plan, nor does it require,  prohibit,  or  limit  the
    30  providing of any employment benefit or employment benefit plan.
    31    4. In order to promote improved quality of, and access to, health care
    32  services and promote improved clinical outcomes, it is the policy of the
    33  state  to  encourage cooperative, collaborative and integrative arrange-
    34  ments among health care providers who might  otherwise  be  competitors,
    35  under  the  active  supervision of the commissioner of health. It is the
    36  intent of the state to supplant competition with such  arrangements  and
    37  regulation  only  to  the extent necessary to accomplish the purposes of
    38  this act, and to provide state  action  immunity  under  the  state  and
    39  federal  antitrust  laws  to  health  care  providers, particularly with
    40  respect to their relations with the single-payer New  York  Health  plan
    41  created by this act.
    42    5.  There  have  been numerous professional economic analyses of state
    43  and national single-payer  health  proposals,  including  the  New  York
    44  Health Act, by noted consulting firms and academic economists. They have
    45  almost  all  come  to  similar conclusions of net savings in the cost of
    46  health coverage and health care. These savings are driven by (a)  elimi-
    47  nating  the  administrative  bureaucracy costs, marketing, and profit of
    48  multiple health plans and replacing that  with  the  dramatically  lower
    49  costs  of  running a single-payer system; (b) substantially reducing the
    50  administrative costs borne by health care providers dealing  with  those
    51  health  plans; and (c) using the negotiating power of 20 million consum-
    52  ers to achieve lower drug prices. These savings will  more  than  offset
    53  costs primarily from (a) relieving patients of deductibles, co-pays, and
    54  out-of-network  charges;  (b)  covering  the  uninsured;  (c) increasing
    55  provider payment rates  above  Medicare  and  Medicaid  rates;  and  (d)
    56  replacing uncompensated home health care with paid care. Unlike premiums

        A. 7897                             4
 
     1  and out-of-pocket spending, the New York Health Act tax will be progres-
     2  sively  graduated  based  on  ability to pay.   The vast majority of New
     3  Yorkers today spend dramatically more in premiums, deductibles and other
     4  out-of-pocket  costs  than they will in New York Health Act taxes.  They
     5  will have broader coverage (including  long-term  care),  no  restricted
     6  provider  networks  or  out-of-network  charges,  and  no deductibles or
     7  co-pays.
     8    § 3. Article 50 and sections 5000, 5001, 5002 and 5003 of  the  public
     9  health  law  are renumbered article 80 and sections 8000, 8001, 8002 and
    10  8003, respectively, and a new article 51 is added to read as follows:
    11                                 ARTICLE 51
    12                               NEW YORK HEALTH
    13  Section 5100. Definitions.
    14          5101. Program created.
    15          5102. Board of trustees.
    16          5103. Eligibility and enrollment.
    17          5104. Benefits.
    18          5105. Health care providers; care coordination; payment  method-
    19                  ologies.
    20          5106. Health care organizations.
    21          5107. Program standards.
    22          5108. Regulations.
    23          5109. Provisions relating to federal health programs.
    24          5110. Additional provisions.
    25          5111. Regional advisory councils.
    26    §  5100.  Definitions.  As  used  in this article, the following terms
    27  shall have the following meanings, unless the context  clearly  requires
    28  otherwise:
    29    1.  "Board" means the board of trustees of the New York Health program
    30  created by section fifty-one hundred two of this article, and  "trustee"
    31  means a trustee of the board.
    32    2.  "Care coordination" means, but is not limited to, managing, refer-
    33  ring to, locating, coordinating, and monitoring health care services for
    34  the member to assure that all medically necessary health  care  services
    35  are made available to and are effectively used by the member in a timely
    36  manner,  consistent  with  patient  autonomy. Care coordination does not
    37  include a requirement for prior authorization for health  care  services
    38  or for referral for a member to receive a health care service.
    39    3.  "Care  coordinator"  means  an  individual  or  entity approved to
    40  provide care coordination under subdivision  two  of  section  fifty-one
    41  hundred five of this article.
    42    4.  "Federally-subsidized  public  health  program"  means the medical
    43  assistance program under title eleven of  article  five  of  the  social
    44  services  law,  the  basic  health  program  under section three hundred
    45  sixty-nine-gg of the social services law,  and  the  child  health  plus
    46  program under title one-A of article twenty-five of this chapter.
    47    5.  "Health care organization" means an entity that is approved by the
    48  commissioner under section fifty-one hundred  six  of  this  article  to
    49  provide health care services to members under the program.
    50    6.  "Health  care  provider"  means  any  individual or entity legally
    51  authorized to provide a health care service under Medicaid  or  Medicare
    52  or this article. "Health care professional" means a health care provider
    53  that  is  an  individual  licensed,  certified,  registered or otherwise
    54  authorized to practice under title eight of the education law  or  under
    55  this  chapter  to  provide such health care service, acting within their
    56  lawful scope of practice.

        A. 7897                             5
 
     1    7. "Health care service" means any health care service, including care
     2  coordination, included as a benefit under the program.
     3    8. "Implementation period" means the period under subdivision three of
     4  section  fifty-one  hundred one of this article during which the program
     5  will be subject to special eligibility and financing provisions until it
     6  is fully implemented under that section.
     7    9. "Medicaid" or "medical assistance" means title  eleven  of  article
     8  five  of  the  social  services  law and the program thereunder.  "Child
     9  health plus" means title one-A of article twenty-five  of  this  chapter
    10  and  the program thereunder. "Medicare" means title XVIII of the federal
    11  social security act and the programs thereunder.  "Affordable care  act"
    12  means the federal patient protection and affordable care act, public law
    13  111-148,  as amended by the health care and education reconciliation act
    14  of 2010, public law 111-152, and as  otherwise  amended  and  any  regu-
    15  lations  or  guidance  issued thereunder.   "Basic health program" means
    16  section three hundred sixty-nine-gg of the social services law  and  the
    17  program thereunder.
    18    10.  "Member" or "enrollee" means an individual who is enrolled in the
    19  program.
    20    11. "New York Health", "New York Health program", and  "program"  mean
    21  the  New York Health program created by section fifty-one hundred one of
    22  this article.
    23    12. "New York Health trust fund" means the New York Health trust  fund
    24  established under section eighty-nine-k of the state finance law.
    25    13.  "Out-of-state  health  care  service" means a health care service
    26  provided to a member: (a) while the member is  temporarily  out  of  the
    27  state  and (i) it is medically necessary that the health care service be
    28  provided while the member is out of the state, or (ii) it is  clinically
    29  appropriate  that  the  health  care service be provided by a particular
    30  health care provider located out of the state rather than in the  state;
    31  or  (b)  provided  to a member deemed to be a "resident" under paragraph
    32  (b) of subdivision seventeen  of  this  section  in  the  state  of  the
    33  member's  primary  place  of  abode.  However,  any  health care service
    34  provided to a New York Health enrollee by a health care provider  quali-
    35  fied  under  paragraph  (a)  of  subdivision  three of section fifty-one
    36  hundred five of this article that is located outside the state shall not
    37  be considered an out-of-state service and shall be covered as  otherwise
    38  provided in this article.
    39    14.  "Participating provider" means any individual or entity that is a
    40  health care  provider  qualified  under  subdivision  three  of  section
    41  fifty-one  hundred  five  of  this  article  that  provides  health care
    42  services to members under the program, or a health care organization.
    43    15. "Person" means any individual or natural person,  trust,  partner-
    44  ship,  association,  unincorporated  association,  corporation, company,
    45  limited liability company, proprietorship, joint  venture,  firm,  joint
    46  stock association, department, agency, authority, or other legal entity,
    47  whether for-profit, not-for-profit or governmental.
    48    16.  "Prescription  drugs"  means  prescription  drugs  as  defined in
    49  section two hundred seventy of this  chapter,  and  shall  also  include
    50  non-prescription smoking cessation products or devices.
    51    17. "Resident" means an individual (a) whose primary place of abode is
    52  in the state; or (b) in the case of an individual whose primary place of
    53  abode is not in the state, who is employed or self-employed full-time in
    54  the  state.    Resident status shall be determined without regard to the
    55  individual's immigration status, and according  to  regulations  of  the

        A. 7897                             6
 
     1  commissioner.    Such  regulations shall include a process for appealing
     2  denials of residency.
     3    §  5101.  Program  created.  1.  The New York Health program is hereby
     4  created in the department. The commissioner shall establish  and  imple-
     5  ment  the  program under this article. The program shall provide compre-
     6  hensive health coverage to every resident who enrolls in the program.
     7    2. The commissioner shall, to the maximum extent  possible,  organize,
     8  administer and market the program and services as a single program under
     9  the  name "New York Health" or such other name as the commissioner shall
    10  determine, regardless of under which law or source the definition  of  a
    11  benefit  is  found including retiree health benefits under this article.
    12  In implementing this article, the commissioner shall avoid  jeopardizing
    13  federal financial participation in these programs and shall take care to
    14  promote  public  understanding  and  awareness of available benefits and
    15  programs.
    16    3. The commissioner shall determine when individuals may begin enroll-
    17  ing in the program. There shall be an implementation period, which shall
    18  begin on the date that individuals may begin enrolling  in  the  program
    19  and  shall  end  as determined by the commissioner.  Individuals may not
    20  enroll in the New York Health program until the legislature has  enacted
    21  the  revenue  proposal, as amended, and as the legislature shall further
    22  provide.
    23    4. An insurer authorized to provide coverage under the  insurance  law
    24  or  a  health maintenance organization certified under this chapter may,
    25  if otherwise authorized, offer benefits that do not  cover  any  service
    26  for  which coverage is offered to individuals under the program, but may
    27  not offer benefits that cover any service for which coverage is  offered
    28  to  individuals under the program. Provided, however, that this subdivi-
    29  sion shall not prohibit (a) the offering of any benefits to or for indi-
    30  viduals, including their families, who are employed or self-employed  in
    31  the state but who are not residents of the state, or (b) the offering of
    32  benefits during the implementation period to individuals who enrolled or
    33  may  enroll  as  members  of the program, or (c) the offering of retiree
    34  health benefits.
    35    5. A college, university or other institution of higher  education  in
    36  the  state  may  purchase coverage under the program for any student, or
    37  student's dependent, who is not a resident of the state.
    38    6. To the extent any provision of this chapter,  the  social  services
    39  law, the insurance law or the elder law:
    40    (a) is inconsistent with any provision of this article or the legisla-
    41  tive  intent  of  the  New York Health Act, this article shall apply and
    42  prevail, except where explicitly provided otherwise by this article;  or
    43  explicitly required by applicable federal law or regulations; and
    44    (b) is consistent with the provisions of this article and the legisla-
    45  tive  intent of the New York Health Act, the provision of that law shall
    46  apply.
    47    7.  (a) (i) The program shall be deemed to be a health care  plan  for
    48  purposes  of  external  appeal  under article forty-nine of this chapter
    49  (referred to in this subdivision as "article  forty-nine"),  subject  to
    50  this subdivision and any other applicable provision of this article.
    51    (ii)    An  external appeal shall not require utilization review or an
    52  adverse determination under title one  of  article  forty-nine  of  this
    53  chapter.  Any reference in article forty-nine to utilization review or a
    54  universal  review agent shall mean the program.  Where the program makes
    55  an adverse determination, an external appeal shall be  automatic  unless
    56  specifically waived or withdrawn by the member or the member's designee.

        A. 7897                             7
 
     1  Services,  including  services  provided  for  a chronic condition, will
     2  continue unchanged until the outcome of the external appeal decision  is
     3  issued.  Where  an  external  appeal  is  initiated  or  pursued  by the
     4  patient's  health care provider, the provider shall notify the member or
     5  the member's designee, and it  shall  be  subject  to  the  member's  or
     6  member's  designee's right to waive or withdraw the external appeal.  No
     7  fee shall be required to be paid by any  party  in  connection  with  an
     8  external appeal, including the member's health care provider.
     9    (iii)    Where an external appeal is denied, the external appeal agent
    10  shall notify the member or the member's designee and, where appropriate,
    11  the member's health care provider,  within  two  business  days  of  the
    12  determination.    The  notice shall include a statement that the member,
    13  member's designee or health care provider has the right  to  appeal  the
    14  determination to a fair hearing under this subdivision and seek judicial
    15  review.
    16    (iv)  An enrollee may designate a person or entity, including, but not
    17  limited  to,  the  enrollee's  family member, care coordinator, a health
    18  care organization providing the service under review  or  appeal,  or  a
    19  labor union or an entity affiliated with and designated by a labor union
    20  of  which the enrollee or enrollee's family member is a member, to serve
    21  as the enrollee's designee for purposes of that article, if  the  person
    22  or entity agrees to be the designee.
    23    (b)  (i)  This paragraph applies where an external appeal is denied in
    24  whole or in part; or the program  denies  coverage  for  a  health  care
    25  service  on  any  grounds  other  than  under article forty-nine; or the
    26  program makes any other determination as to a member or individual seek-
    27  ing to become a member, contrary to the interest of the member or  indi-
    28  vidual (including but not limited to a denial of eligibility for lack of
    29  residence).
    30    (ii)  The  program  shall  notify  the  member or individual, member's
    31  designee or health care provider, as appropriate, that  the  person  has
    32  the  right  to  appeal  the  determination  to a fair hearing under this
    33  subdivision or seek judicial review.
    34    (iii)  The commissioner shall establish by regulation  a  process  for
    35  fair  hearings  under this subdivision.   The process shall at a minimum
    36  conform to the standards for fair hearings under section  twenty-two  of
    37  the social services law.
    38    (c)    Article seventy-eight of the civil practice law and rules shall
    39  apply to any matter under this article.
    40    8. (a) No member shall be required to receive any health care  service
    41  through  any  entity  organized, certified or operating under guidelines
    42  under article forty-four of this chapter,  or  specified  under  section
    43  three hundred sixty-four-j of the social services law, the insurance law
    44  or  the  elder law. No such entity shall receive payment for health care
    45  services (other than care coordination) from the program.
    46    (b) However, this subdivision  shall  not  preclude  the  use  of  any
    47  program  or entity where reasonably necessary to maximize federal finan-
    48  cial participation or other federal financial support under any federal-
    49  ly-subsidized public health program, including but not limited to  Medi-
    50  caid,  Medicare,  or the Affordable Care Act, provided that such program
    51  or entity shall not deprive any member or health care  provider  of  any
    52  right   or   benefit under  the program under this article and otherwise
    53  consistent with this article (including but not limited to the scope  of
    54  benefits;  choice  of  health care provider; prohibition of deductibles,
    55  copayments or other co-insurance, or out-of-network charges; and payment
    56  for services) and shall, to the maximum extent feasible, operate in  the

        A. 7897                             8
 
     1  background, without burden on or interference with the member and health
     2  care provider.
     3    9. The program shall include provisions for appropriate reserves with-
     4  in  the  New  York  health  trust fund account established under section
     5  eighty-nine-k of the state finance law.
     6    10. (a) This subdivision applies to every person who is a retiree of a
     7  public employer, as defined in section two  hundred  one  of  the  civil
     8  service law, and any person who is a beneficiary of the retiree's public
     9  employee retiree health benefit. Any reference to the retiree shall mean
    10  and  include  any  beneficiary of the retiree. This subdivision does not
    11  create or increase any  eligibility  for  any  public  employee  retiree
    12  health  benefit that would not otherwise exist and does not diminish any
    13  public employee retiree health benefit.
    14    (b) This paragraph applies to the retiree while he or she is  a  resi-
    15  dent of New York state. The retiree shall enroll in the program.  If, by
    16  the  end  of  the implementation period, the retiree has not enrolled in
    17  the program, the commissioner shall enroll the retiree in the  New  York
    18  Health  program. If the retiree's public employee retiree health benefit
    19  includes any service for which coverage is not  offered  under  the  New
    20  York  Health program, the retiree shall continue to receive that benefit
    21  from the appropriate public employee retiree health benefit program.
    22    (c) For every retiree, while he or she is not a resident of  New  York
    23  state,  the  appropriate  public employee retiree health benefit program
    24  shall maintain the retiree's public employee retiree health  benefit  as
    25  if this article had not been enacted.
    26    § 5102. Board of trustees. 1. The New York Health board of trustees is
    27  hereby  created  in  the department. The board of trustees shall, at the
    28  request of the commissioner,  consider  any  matter  to  effectuate  the
    29  provisions and purposes of this article, and may advise the commissioner
    30  thereon;  and  it may, from time to time, submit to the commissioner any
    31  recommendations to effectuate the provisions and purposes of this  arti-
    32  cle.  The  commissioner  may  propose regulations under this article and
    33  amendments thereto for consideration by the board. The board of trustees
    34  shall have no executive, administrative or appointive duties  except  as
    35  otherwise  provided  by  law.  The board of trustees shall have power to
    36  establish, and from time to time, amend regulations  to  effectuate  the
    37  provisions  and  purposes  of  this  article, subject to approval by the
    38  commissioner.
    39    2. The board shall be composed of:
    40    (a) the commissioner, the superintendent of  financial  services,  and
    41  the director of the budget, or their designees, as ex officio members;
    42    (b) thirty-one trustees appointed by the governor;
    43    (i) six of whom shall be representatives of health care consumer advo-
    44  cacy  organizations which have a statewide or regional constituency, who
    45  have been involved in issues of interest  to  low-  and  moderate-income
    46  individuals,  older adults, and people with disabilities; at least three
    47  of whom shall represent organizations led by consumers in those groups;
    48    (ii) three of whom shall be representatives of professional  organiza-
    49  tions representing physicians;
    50    (iii)  five of whom shall be representatives of professional organiza-
    51  tions representing licensed  or  registered  health  care  professionals
    52  other than physicians;
    53    (iv)  three of whom shall be representatives of general hospitals, one
    54  of whom shall be a representative of public general hospitals;
    55    (v) one of whom shall be a representative of community health centers;

        A. 7897                             9

     1    (vi) two of whom shall be representatives of  rehabilitation  or  home
     2  care providers;
     3    (vii)  two  of  whom  shall be representatives of behavioral or mental
     4  health or disability service providers;
     5    (viii) two of whom shall be representatives of health  care  organiza-
     6  tions;
     7    (ix) three of whom shall be representatives of organized labor;
     8    (x)  two  of  whom  shall  have  demonstrated expertise in health care
     9  finance; and
    10    (xi) two of whom shall be employers or  representatives  of  employers
    11  who  pay the payroll tax under this article, or, prior to the tax becom-
    12  ing effective, will pay the tax; and
    13    (c) fourteen trustees appointed by the governor; five of  whom  to  be
    14  appointed  on the recommendation of the speaker of the assembly; five of
    15  whom to be appointed on the recommendation of the temporary president of
    16  the senate; two of whom to be appointed on  the  recommendation  of  the
    17  minority  leader of the assembly; and two of whom to be appointed on the
    18  recommendation of the minority leader of the senate.
    19    3. (a) After the end of the implementation period, no person shall  be
    20  a trustee unless he or she is a member of the program.
    21    (b)  Each  trustee shall serve at the pleasure of the appointing offi-
    22  cer, except the ex officio trustees.
    23    4. The chair of the board shall be appointed, and may  be  removed  as
    24  chair,  by the governor from among the trustees. The board shall meet at
    25  least four times each calendar year. Meetings shall  be  held  upon  the
    26  call  of  the  chair  and  as  provided  by the board. A majority of the
    27  appointed trustees shall be a quorum of the board, and  the  affirmative
    28  vote  of  a  majority  of the trustees voting, but not less than twelve,
    29  shall be necessary for any action to be taken by the  board.  The  board
    30  may establish an executive committee to exercise any powers or duties of
    31  the board as it may provide, and other committees to assist the board or
    32  the  executive  committee. The chair of the board shall chair the execu-
    33  tive committee and shall appoint the chair  and  members  of  all  other
    34  committees.  The  board  of  trustees  may  appoint one or more advisory
    35  committees. Members of advisory committees need not be  members  of  the
    36  board of trustees.
    37    5.  Trustees  shall serve without compensation but shall be reimbursed
    38  for their necessary and actual expenses incurred while  engaged  in  the
    39  business  of the board.  However, the board may provide for compensation
    40  in cases where a lack of compensation would limit the ability of a trus-
    41  tee or represented organization to participate in board business.
    42    6. Notwithstanding any provision of law to the contrary, no officer or
    43  employee of the state or any local government shall forfeit or be deemed
    44  to have forfeited their office or employment by reason of being a  trus-
    45  tee.
    46    7.  The  board  and its committees and advisory committees may request
    47  and receive the assistance of the department  and  any  other  state  or
    48  local governmental entity in exercising its powers and duties.
    49    8.  No  later  than  eighteen  months after the effective date of this
    50  article:
    51    (a) The board shall develop proposals for: (i)  incorporating  retiree
    52  health  benefits into New York Health; (ii) accommodating employer reti-
    53  ree health benefits for people who have been members of New York  Health
    54  but  live as retirees out of the state; and (iii) accommodating employer
    55  retiree health benefits for people who earned or accrued  such  benefits

        A. 7897                            10

     1  while  residing  in  the  state  prior to the implementation of New York
     2  Health and live as retirees out of the state.
     3    (b) The board shall develop a proposal for New York Health coverage of
     4  health  care  services  covered  under  the  workers'  compensation law,
     5  including whether and how to continue funding for those  services  under
     6  that  law  and  whether  and how to incorporate an element of experience
     7  rating.
     8    (c) The board shall develop a proposal for New York  Health  coverage,
     9  for  members,  of  health  care  services covered under paragraph one of
    10  subsection (a) of section fifty-one hundred two  of  the  insurance  law
    11  relating  to  motor vehicle insurance reparations, including whether and
    12  how to continue funding for those services.
    13    (d) The board shall develop a  proposal  for  integration  of  federal
    14  veterans health administration programs with New York Health coverage of
    15  health care services; provided however that enrollment in or eligibility
    16  for  federal  veterans health administration programs shall not affect a
    17  resident's eligibility for New York Health coverage.
    18    (e) The board   shall   present all  proposals  developed  under  this
    19  subdivision to the governor and the legislature.
    20    §  5103.  Eligibility  and  enrollment. 1. Every resident of the state
    21  shall be eligible and entitled to enroll as a member under the program.
    22    2. No individual shall be required to pay any premium or other  charge
    23  for enrolling in or being a member under the program.
    24    3.  A  newborn  child  shall be enrolled as of the date of the child's
    25  birth if enrollment is done prior to the child's birth or  within  sixty
    26  days after the child's birth.
    27    §  5104.  Benefits.  1. The program shall provide comprehensive health
    28  coverage to every member, which shall include all health  care  services
    29  required  to  be  covered  under any of the following, without regard to
    30  whether the member would otherwise be eligible for  or  covered  by  the
    31  program or source referred to:
    32    (a) child health plus;
    33    (b)  Medicaid,  including  but  not limited to services provided under
    34  Medicaid waiver programs, including but not  limited  to  those  granted
    35  under  section  1915  of the federal social security act to persons with
    36  traumatic brain injuries or qualifying for nursing  home  diversion  and
    37  transition services;
    38    (c) Medicare;
    39    (d)  article  forty-four  of  this  chapter  or  article thirty-two or
    40  forty-three of the insurance law;
    41    (e) article eleven of the civil service law, and any employee or reti-
    42  ree health benefit plan of any public employer as defined in section two
    43  hundred one of the civil service law, as of the date one year before the
    44  beginning of the implementation period;
    45    (f) the basic health plan;
    46    (g) reimbursement for any costs or expenses  incurred  as  defined  in
    47  paragraph  one of subsection (a) of section fifty-one hundred two of the
    48  insurance law, provided that this coverage shall  not  replace  coverage
    49  under article fifty-one of the insurance law;
    50    (h)  any  additional health care service authorized to be added to the
    51  program's benefits by the program; and
    52    (i) provided that where any state law or  regulation  related  to  any
    53  federally-subsidized  public  health  program  states  that a benefit is
    54  contingent on federal financial participation, or words to that  effect,
    55  the  benefit shall be included under the New York Health program without
    56  regard to federal financial participation.

        A. 7897                            11

     1    2. No member shall be required to pay any premium, deductible, co-pay-
     2  ment or co-insurance under the program.
     3    3. The program shall provide for payment under the program for:
     4    (a)  emergency and temporary health care services provided to a member
     5  or individual entitled to become a member who has not had  a  reasonable
     6  opportunity to become a member or to enroll with a care coordinator; and
     7    (b) health care services provided in an emergency to an individual who
     8  is  entitled  to  become  a  member or enrolled with a care coordinator,
     9  regardless of having had an opportunity to do so.
    10    § 5105. Health care providers; care  coordination;  payment  methodol-
    11  ogies.   1. Choice of health care provider. (a) Any health care provider
    12  qualified to participate under this  section  may  provide  health  care
    13  services  under  the  program, provided that the health care provider is
    14  otherwise legally authorized to perform the health care service for  the
    15  individual and under the circumstances involved.
    16    (b)  A  member  may  choose  to receive health care services under the
    17  program from any participating provider, consistent with  provisions  of
    18  this  article  relating  to  care coordination and health care organiza-
    19  tions, the willingness or  availability  of  the  provider  (subject  to
    20  provisions  of  this article relating to discrimination), and the appro-
    21  priate clinically-relevant circumstances.
    22    2. Care coordination. (a) A care coordinator may be an  individual  or
    23  entity that is approved by the program that is:
    24    (i)  a  health care practitioner who is: (A) the member's primary care
    25  practitioner; (B) at the option of a female member, the member's provid-
    26  er of primary gynecological care; or (C) at the option of a  member  who
    27  has  a  chronic  condition  that  requires  specialty care, a specialist
    28  health care practitioner who regularly and continually  provides  treat-
    29  ment for that condition to the member;
    30    (ii)  an entity licensed under article twenty-eight of this chapter or
    31  certified under article thirty-six of this chapter, or, with respect  to
    32  a  member  who  receives  chronic mental health care services, an entity
    33  licensed under article thirty-one of the mental  hygiene  law  or  other
    34  entity approved by the commissioner in consultation with the commission-
    35  er of mental health;
    36    (iii) a health care organization;
    37    (iv)  a  labor  union or an entity affiliated with and designated by a
    38  labor union of which the enrollee  or  enrollee's  family  member  is  a
    39  member,  with  respect to its members and their family members; provided
    40  that this provision shall not preclude such an entity  from  becoming  a
    41  care  coordinator  under  subparagraph (v) of this paragraph or a health
    42  care organization under section fifty-one hundred six of  this  article;
    43  or
    44    (v) any not-for-profit or governmental entity approved by the program.
    45    (b)(i)  Every  member shall enroll with a care coordinator that agrees
    46  to provide care coordination to the member  prior  to  receiving  health
    47  care  services  to  be paid for under the program.  Health care services
    48  provided to a member shall not be subject to payment under  the  program
    49  unless  the  member  is enrolled with a care coordinator at the time the
    50  health care service is provided.
    51    (ii) This paragraph shall not apply to health care  services  provided
    52  under  subdivision three of section fifty-one hundred four of this arti-
    53  cle (certain emergency or temporary services).
    54    (iii) The member shall remain  enrolled  with  that  care  coordinator
    55  until  the  member becomes enrolled with a different care coordinator or
    56  ceases to be a member. Members have the right to change their care coor-

        A. 7897                            12
 
     1  dinator on terms at least as permissive as  the  provisions  of  section
     2  three  hundred  sixty-four-j  of  the social services law relating to an
     3  individual changing their primary care provider or managed care  provid-
     4  er.
     5    (c)  Care coordination shall be provided to the member by the member's
     6  care coordinator.  A care coordinator may employ or utilize the services
     7  of other individuals or entities to assist  in  providing  care  coordi-
     8  nation for the member, consistent with regulations of the commissioner.
     9    (d)  A  health  care organization may establish rules relating to care
    10  coordination for members in the health care organization, different from
    11  this subdivision but otherwise consistent with this  article  and  other
    12  applicable laws.
    13    (e) The commissioner shall develop and implement procedures and stand-
    14  ards for an individual or entity to be approved to be a care coordinator
    15  in  the  program,  including but not limited to procedures and standards
    16  relating to the revocation,  suspension,  limitation,  or  annulment  of
    17  approval  on a determination that the individual or entity is not quali-
    18  fied or competent to be a care coordinator or has exhibited a course  of
    19  conduct  which  is  either inconsistent with program standards and regu-
    20  lations or which exhibits an unwillingness to meet  such  standards  and
    21  regulations,  or  is  a potential threat to the public health or safety.
    22  Such procedures and standards shall not limit  approval  to  be  a  care
    23  coordinator  in  the  program  for  criteria other than those under this
    24  section and shall be consistent  with  good  professional  practice.  In
    25  developing  the  procedures  and  standards, the commissioner shall: (i)
    26  consider  existing  standards  developed  by  national  accrediting  and
    27  professional  organizations;  and  (ii)  consult with national and local
    28  organizations working on care coordination or similar models,  including
    29  health  care practitioners, hospitals, clinics, birth centers, long-term
    30  supports and service providers, consumers and their representatives, and
    31  labor organizations representing health care  workers.  When  developing
    32  and implementing standards of approval of care coordinators for individ-
    33  uals  receiving  chronic  mental  health care services, the commissioner
    34  shall consult with the commissioner of mental health. An  individual  or
    35  entity  may  not  be  a care coordinator unless the services included in
    36  care coordination are within  the  individual's  professional  scope  of
    37  practice or the entity's legal authority.
    38    (f)  To  maintain approval under the program, a care coordinator must:
    39  (i) renew its status at a frequency determined by the commissioner;  and
    40  (ii)  provide  data to the department as required by the commissioner to
    41  enable the commissioner to evaluate the impact of care  coordinators  on
    42  quality, outcomes, cost, and patient and provider satisfaction.
    43    (g)  Nothing  in  this  subdivision  shall authorize any individual or
    44  entity to engage in any act in violation of title eight of the education
    45  law.
    46    3. Health care providers. (a) The  commissioner  shall  establish  and
    47  maintain procedures and standards for health care providers to be quali-
    48  fied  to participate in the program, including but not limited to proce-
    49  dures and standards relating to the revocation, suspension,  limitation,
    50  or annulment of qualification to participate on a determination that the
    51  health  care  provider is not qualified or competent to be a provider of
    52  specific health care services or has exhibited a course of conduct which
    53  is either inconsistent with program standards and regulations  or  which
    54  exhibits  an unwillingness to meet such standards and regulations, or is
    55  a potential threat to the public health or safety. Such  procedures  and
    56  standards  shall  not  limit  health  care provider participation in the

        A. 7897                            13
 
     1  program for criteria other than those under this section  and  shall  be
     2  consistent  with good professional practice.  Such procedures and stand-
     3  ards may be different for different types of health care  providers  and
     4  health  care  professionals.    The commissioner may require that health
     5  care providers and health care professionals  participate  in  Medicaid,
     6  child health plus, or Medicare to qualify to participate in the program.
     7  Any  health  care  provider that is qualified to participate under Medi-
     8  caid, child health plus or Medicare shall be deemed to be  qualified  to
     9  participate  in  the program, and any health care provider's revocation,
    10  suspension, limitation, or annulment of qualification to participate  in
    11  any  of  those programs shall apply to the health care provider's quali-
    12  fication to participate in the program;  provided  that  a  health  care
    13  provider  qualified  under  this sentence shall follow the procedures to
    14  become qualified under the program by  the  end  of  the  implementation
    15  period.
    16    (b) The commissioner shall establish and maintain procedures and stan-
    17  dards for recognizing health care providers located out of the state for
    18  purposes of providing coverage under the program for out-of-state health
    19  care services.
    20    (c)  Procedures  and  standards  under  this subdivision shall include
    21  provisions for expedited temporary qualification to participate  in  the
    22  program for health care professionals who are (i) temporarily authorized
    23  to  practice  in  the state or (ii) are recently arrived in the state or
    24  recently authorized to practice in the state.
    25    4. Payment for health care services.  (a)  (i)  The  commissioner  may
    26  establish  by  regulation payment methodologies for health care services
    27  and care coordination provided to members under the program  by  partic-
    28  ipating  providers,  care  coordinators,  and health care organizations.
    29  There may be a variety of  different  payment  methodologies,  including
    30  those established on a demonstration basis.
    31    (ii)  All  payment  methodologies and rates under the program shall be
    32  reasonable and reasonably related to the cost of  efficiently  providing
    33  the  health  care service and assuring an adequate and accessible supply
    34  of the health care service.
    35    (iii) In determining such payment methodologies and rates, the commis-
    36  sioner shall consider factors including usual and customary rates  imme-
    37  diately prior to the implementation of the program, reported in a bench-
    38  marking database maintained by a nonprofit organization specified by the
    39  superintendent of financial services, under section six hundred three of
    40  the  financial services law; the level of training, education, and expe-
    41  rience of the health care provider or providers involved; and the  scope
    42  of  services, complexity, and circumstances of care including geographic
    43  factors. Until and unless other  applicable  payment  methodologies  are
    44  established,  health care services provided to members under the program
    45  shall be paid for on a fee-for-service basis, except  for  care  coordi-
    46  nation.
    47    (b)  The  program  shall engage in good faith negotiations with health
    48  care providers' representatives under title III of article forty-nine of
    49  this chapter, including, but not limited to, in  relation  to  rates  of
    50  payment and payment methodologies.
    51    (c) (i) Prescription drugs eligible for reimbursement under this arti-
    52  cle and dispensed by a pharmacy shall be provided and paid for under the
    53  preferred  drug program and the clinical drug review program under title
    54  one of article two-A of this chapter, except as  otherwise  provided  in
    55  this paragraph.

        A. 7897                            14
 
     1    (ii)  Where  prescription  drugs are not dispensed through a pharmacy,
     2  payment shall be made as otherwise provided in this  article,  including
     3  use of the 340B program as appropriate.
     4    (d)  Payment  for  health care services established under this article
     5  shall be considered payment in full. A participating provider shall  not
     6  charge  any rate in excess of the payment established under this article
     7  for any health care service provided under the  program  and  shall  not
     8  solicit  or  accept  payment from any member or third party for any such
     9  service except as provided under section fifty-one hundred nine of  this
    10  article.    However,  this paragraph shall not preclude the program from
    11  acting as a primary or  secondary  payer  in  conjunction  with  another
    12  third-party  payer  where permitted under section fifty-one hundred nine
    13  of this article.
    14    (e) The program may provide in payment methodologies for  payment  for
    15  capital  related  expenses  for specifically identified capital expendi-
    16  tures.
    17    (f) Payment methodologies and rates shall include a distinct component
    18  of reimbursement for direct and indirect graduate medical  education  as
    19  defined,  calculated  and implemented under section twenty-eight hundred
    20  seven-c of this chapter.
    21    (g) The commissioner shall provide by  regulation for payment  method-
    22  ologies and procedures for paying for out-of-state health care services.
    23    5.  Prior  authorization. The program shall not require prior authori-
    24  zation for any health care service in any  manner  more  restrictive  of
    25  access  to  or  payment  for  the service than would be required for the
    26  service under Medicare  Part  A  or  Part  B.  Prior  authorization  for
    27  prescription  drugs  provided  by  pharmacies under the program shall be
    28  under title one of article two-A of this chapter.
    29    § 5106. Health care organizations. 1. A member may  choose  to  enroll
    30  with  and  receive  health care services under the program from a health
    31  care organization.
    32    2. A health care organization shall be  a  not-for-profit  or  govern-
    33  mental entity that is approved by the commissioner that is:
    34    (a)  an  accountable  care organization under article twenty-nine-E of
    35  this chapter; or
    36    (b) a labor union or an entity affiliated with  and  designated  by  a
    37  labor  union  of  which  the  enrollee  or enrollee's family member is a
    38  member (i) with respect to its members and  their  family  members,  and
    39  (ii)  if allowed by applicable law and approved by the commissioner, for
    40  other members of the program.
    41    3. A health care organization may be responsible for providing all  or
    42  part of the health care services to which its members are entitled under
    43  the  program,  consistent  with the terms of its approval by the commis-
    44  sioner.
    45    4. (a) The commissioner shall develop  and  implement  procedures  and
    46  standards  for an entity to be approved to be a health care organization
    47  in the program, including but not limited to  procedures  and  standards
    48  relating  to  the  revocation,  suspension,  limitation, or annulment of
    49  approval on a determination that the entity is not  competent  to  be  a
    50  health  care  organization or has exhibited a course of conduct which is
    51  either inconsistent with program  standards  and  regulations  or  which
    52  exhibits  an unwillingness to meet such standards and regulations, or is
    53  a potential threat to the public health or safety. Such  procedures  and
    54  standards  shall  not limit approval to be a health care organization in
    55  the program for criteria other than those under this section  and  shall
    56  be  consistent with good professional practice. In developing the proce-

        A. 7897                            15
 
     1  dures and standards, the commissioner shall: (i) consider existing stan-
     2  dards developed by national accrediting and professional  organizations;
     3  and  (ii)  consult  with national and local organizations working in the
     4  field of health care organizations, including health care practitioners,
     5  hospitals,  clinics,  birth  centers,  long-term  supports  and  service
     6  providers, consumers and their representatives and  labor  organizations
     7  representing health care workers. When developing and implementing stan-
     8  dards  of  approval of health care organizations, the commissioner shall
     9  consult with the commissioner of  mental  health,  the  commissioner  of
    10  developmental  disabilities,  the  director  of the state office for the
    11  aging,  the  commissioner  of  the  office  of  addiction  services  and
    12  supports, and the commissioner of the division of human rights.
    13    (b) To maintain approval under the program, a health care organization
    14  must:  (i) renew its status at a frequency determined by the commission-
    15  er; and (ii) provide data to the department as required by  the  commis-
    16  sioner  to enable the commissioner to evaluate the health care organiza-
    17  tion in relation  to  quality  of  health  care  services,  health  care
    18  outcomes, cost, and patient and provider satisfaction.
    19    5.  The  commissioner  shall  make regulations relating to health care
    20  organizations consistent with and to ensure compliance with  this  arti-
    21  cle.
    22    6.  The  provision of health care services directly or indirectly by a
    23  health care organization through health  care  providers  shall  not  be
    24  considered  the practice of a profession under title eight of the educa-
    25  tion law by the health care organization.
    26    §  5107.  Program  standards.  1.  The  commissioner  shall  establish
    27  requirements and standards for the program and for health care organiza-
    28  tions,  care  coordinators,  and  health care providers, consistent with
    29  this article, including requirements and standards for, as applicable:
    30    (a) the scope, quality and accessibility of health care services;
    31    (b) relations between health care organizations or health care provid-
    32  ers and members; and
    33    (c) relations  between  health  care  organizations  and  health  care
    34  providers,  including  (i) credentialing and participation in the health
    35  care organization; and (ii) terms, methods and rates of payment.
    36    2. Requirements and standards under the program shall include, but not
    37  be limited to, provisions to promote the following:
    38    (a) simplification, transparency, uniformity, and fairness  in  health
    39  care  provider  credentialing and participation in health care organiza-
    40  tion networks, referrals, payment procedures and rates, claims  process-
    41  ing, and approval of health care services, as applicable;
    42    (b)  primary  and  preventive  care,  care coordination, efficient and
    43  effective health care  services,  quality  assurance,  coordination  and
    44  integration  of health care services, including use of appropriate tech-
    45  nology, and promotion of public, environmental and occupational health;
    46    (c) elimination of health care disparities;
    47    (d) non-discrimination with respect to members and health care provid-
    48  ers on the basis of race, ethnicity, national origin, religion, disabil-
    49  ity, age, sex, sexual orientation, gender  identity  or  expression,  or
    50  economic  circumstances;  provided  that  health  care services provided
    51  under the program shall be appropriate to the patient's clinically-rele-
    52  vant circumstances;
    53    (e) accessibility  of  care  coordination,  health  care  organization
    54  services  and  health  care services, including accessibility for people
    55  with disabilities and people with limited ability to speak or understand
    56  English, and the providing of care coordination, health  care  organiza-

        A. 7897                            16
 
     1  tion services and health care services in a culturally competent manner;
     2  and
     3    (f)  especially  in  relation  to long-term supports and services, the
     4  maximization and prioritization of the most  integrated  community-based
     5  supports and services.
     6    3. Any participating provider or care coordinator that is organized as
     7  a  for-profit  entity (other than a professional practice of one or more
     8  health care professionals) shall be required to meet the  same  require-
     9  ments  and  standards  as entities organized as not-for-profit entities,
    10  and payments under the program paid to such entities shall not be calcu-
    11  lated to accommodate the generation of profit or revenue  for  dividends
    12  or  other return on investment or the payment of taxes that would not be
    13  paid by a not-for-profit entity.
    14    4. Every participating provider shall  furnish  to  the  program  such
    15  information  to,  and permit examination of its records by, the program,
    16  as may be reasonably required for purposes  of  reviewing  accessibility
    17  and  utilization  of  health care services, quality assurance, promoting
    18  improved patient outcomes and cost containment, the making of  payments,
    19  and  statistical or other studies of the operation of the program or for
    20  protection and  promotion  of  public,  environmental  and  occupational
    21  health.
    22    5.  In  developing  requirements and standards and making other policy
    23  determinations under this article, the commissioner shall  consult  with
    24  the  commissioner  of  mental  health, the commissioner of developmental
    25  disabilities, the director of  the  state  office  for  the  aging,  the
    26  commissioner  of  the  office  of  addiction  services and supports, the
    27  commissioner  of  the  division  of  human  rights,  representatives  of
    28  members, health care providers, care coordinators, health care organiza-
    29  tions    employers,  organized labor including representatives of health
    30  care workers, and other interested parties.
    31    6. The program shall maintain the security and confidentiality of  all
    32  data  and  other  information collected under the program when such data
    33  would be normally considered confidential patient data.  Aggregate  data
    34  of  the  program  which  is  derived from confidential data but does not
    35  violate patient confidentiality shall be  public  information  including
    36  for purposes of article six of the public officers law.
    37    §  5108.  Regulations.  The  commissioner shall make regulations under
    38  this article by approving  regulations  and  amendments  thereto,  under
    39  subdivision  one  of  section fifty-one hundred two of this article. The
    40  commissioner may make regulations or amendments thereto under this arti-
    41  cle on an emergency basis under section two hundred  two  of  the  state
    42  administrative  procedure  act, provided that such regulations or amend-
    43  ments shall not become permanent unless adopted under subdivision one of
    44  section fifty-one hundred two of this article.
    45    § 5109. Provisions relating to federal health programs. 1. The commis-
    46  sioner shall seek all federal waivers and other  federal  approvals  and
    47  arrangements and submit state plan amendments appropriate to operate the
    48  program consistent with this article to the maximum extent possible.  No
    49  provision of this article and no action under the program shall diminish
    50  any  right or benefit the member or health care provider would otherwise
    51  have under any federally-subsidized public health program or Medicare.
    52    2. (a) The commissioner shall apply to the  secretary  of  health  and
    53  human  services or other appropriate federal official for all waivers of
    54  requirements, and make other arrangements, under Medicare, any  federal-
    55  ly-subsidized  public  health  program, the affordable care act, and any
    56  other federal programs that provide federal funds for payment for health

        A. 7897                            17
 
     1  care services, that are  appropriate  to  enable  all  New  York  Health
     2  members to receive all benefits under the program through the program to
     3  enable  the  state  to implement this article and to receive and deposit
     4  all  federal  payments under those programs (including funds that may be
     5  provided in lieu of premium tax  credits,  cost-sharing  subsidies,  and
     6  small  business  tax credits) in the state treasury to the credit of the
     7  New York Health trust fund and to use  those  funds  for  the  New  York
     8  Health  program  and  other provisions under this article. To the extent
     9  possible, the commissioner shall negotiate arrangements with the federal
    10  government in which bulk or lump-sum federal payments are  paid  to  New
    11  York  Health in place of federal spending or tax benefits for federally-
    12  subsidized public health programs  or  federal  health  programs.    The
    13  commissioner shall take actions under paragraph (b) of subdivision eight
    14  of  section  fifty-one  hundred one of this article as reasonably neces-
    15  sary.
    16    (b) The commissioner may require members or applicants to  be  members
    17  to  provide  information  necessary  for  the program to comply with any
    18  waiver or arrangement under this subdivision.
    19    3. (a) The commissioner may take actions consistent with this  article
    20  to  enable  New  York  Health  to administer Medicare in New York state,
    21  including but not limited to actions necessary to be a provider of  drug
    22  coverage under Medicare part D for eligible members of New York Health.
    23    (b)  The  commissioner  may  waive  or  modify  the  applicability  of
    24  provisions of this section relating to any  federally-subsidized  public
    25  health  program  or  Medicare  as  necessary  to implement any waiver or
    26  arrangement under this section or to maximize the  benefit  to  the  New
    27  York  Health program under this section, provided that the commissioner,
    28  in consultation with the director of the budget,  shall  determine  that
    29  such  waiver  or  modification  is  in the best interests of the members
    30  affected by the action and the state.
    31    (c) The commissioner may apply for coverage under any federally-subsi-
    32  dized public health program on behalf  of  any  member  and  enroll  the
    33  member  in the federally-subsidized public health program or Medicare if
    34  the member is eligible for it.   Enrollment  in  a  federally-subsidized
    35  public health program or Medicare shall not cause any member to lose any
    36  health  care  service  provided  by the program or diminish any right or
    37  benefit the member would otherwise have.
    38    (d) The commissioner shall by regulation increase the income eligibil-
    39  ity level, increase or eliminate  the  resource  test  for  eligibility,
    40  simplify any procedural or documentation requirement for enrollment, and
    41  increase   the  benefits  for  any  federally-subsidized  public  health
    42  program, and for any program to  reduce  or  eliminate  an  individual's
    43  coinsurance, cost-sharing or premium obligations or increase an individ-
    44  ual's  eligibility for any federal financial support related to Medicare
    45  or the affordable care act notwithstanding any law or regulation to  the
    46  contrary.  The commissioner may act under this paragraph upon a finding,
    47  approved by the director of the budget, that the action (i) will help to
    48  increase the number of members who are  eligible  for  and  enrolled  in
    49  federally-subsidized  public  health  programs,  or  for  any program to
    50  reduce or eliminate an individual's coinsurance, cost-sharing or premium
    51  obligations or increase an  individual's  eligibility  for  any  federal
    52  financial  support  related to Medicare or the affordable care act; (ii)
    53  will not diminish any individual's access to any  health  care  service,
    54  benefit  or  right  the individual would otherwise have; (iii) is in the
    55  interest of the program; and (iv) does not require or has  received  any

        A. 7897                            18
 
     1  necessary  federal  waivers  or  approvals  to  ensure federal financial
     2  participation.
     3    (e)  To  enable  the  commissioner  to apply for coverage or financial
     4  support  under  any  federally-subsidized  public  health  program,  the
     5  Affordable  Care Act, or Medicare on behalf of any member and enroll the
     6  member in any such program, including an entity under paragraph  (b)  of
     7  subdivision  eight  of  section fifty-one hundred one of this article if
     8  the member is eligible for it, the commissioner may require  that  every
     9  member  or  applicant to be a member shall provide information to enable
    10  the commissioner to determine whether the applicant is eligible for such
    11  program.  The program shall make a reasonable effort to  notify  members
    12  of their obligations under this paragraph. After a reasonable effort has
    13  been made to contact the member, the member shall be notified in writing
    14  that  he  or she has sixty days to provide such required information. If
    15  such information is not  provided  within  the  sixty  day  period,  the
    16  member's coverage under the program may be terminated. Upon the member's
    17  satisfactory  provision  of the information, the member's coverage under
    18  the program shall be reinstated retroactive to the date upon  which  the
    19  coverage was terminated.
    20    (f)  To the extent necessary for purposes of this section, as a condi-
    21  tion of  continued  eligibility  for  health  care  services  under  the
    22  program,  a  member  who  is  eligible for benefits under Medicare shall
    23  enroll in Medicare, including parts A, B and D.
    24    (g) The program shall  provide  premium  assistance  for  all  members
    25  enrolling  in  a  Medicare  part  D drug coverage under section 1860D of
    26  Title XVIII of the federal social security act limited to the low-income
    27  benchmark premium amount established by the federal centers for Medicare
    28  and Medicaid services and any other amount which such agency establishes
    29  under its de minimis premium  policy,  except  that  such  payments  may
    30  exceed  the low-income benchmark premium amount if determined to be cost
    31  effective to the program.
    32    (h) If the commissioner has  reasonable  grounds  to  believe  that  a
    33  member  could  be  eligible  for an income-related subsidy under section
    34  1860D-14 of Title XVIII of the federal social security act,  the  member
    35  shall  provide,  and authorize the program to obtain, any information or
    36  documentation required to establish the member's  eligibility  for  such
    37  subsidy,  provided that the commissioner shall attempt to obtain as much
    38  of the information and documentation as possible from records  that  are
    39  available to him or her.
    40    (i)  The  program  shall make a reasonable effort to notify members of
    41  their obligations under this subdivision. After a reasonable effort  has
    42  been made to contact the member, the member shall be notified in writing
    43  that  he  or she has sixty days to provide such required information. If
    44  such information is not  provided  within  the  sixty  day  period,  the
    45  member's  coverage  under  the  program  may  be  terminated.   Upon the
    46  member's satisfactory provision of the information, the member's  cover-
    47  age  under  the program shall be reinstated retroactive to the date upon
    48  which the coverage was terminated.
    49    4.  No action under this section shall deprive any  member  or  health
    50  care provider of any right or benefit under the program and shall other-
    51  wise  be  consistent  with  this article (including, but not limited to,
    52  complying with provisions  of  this  article  relating  to  health  care
    53  provider  payment  levels;  barring  premiums,  deductibles, copayments,
    54  other coinsurance and restricted provider networks;  and  providing  for
    55  choice of provider and prescription drug coverage).

        A. 7897                            19
 
     1    §  5110.  Additional  provisions.   1. The commissioner shall contract
     2  with not-for-profit organizations to provide:
     3    (a)  consumer  assistance to individuals with respect to selection and
     4  changing selection of a care coordinator or  health  care  organization,
     5  enrolling, obtaining health care services, and other matters relating to
     6  the program;
     7    (b) health care provider assistance to health care providers providing
     8  and  seeking  or  considering  whether  to provide, health care services
     9  under the program, with respect to participating in a health care organ-
    10  ization and dealing with a health care organization; and
    11    (c) care coordinator assistance to individuals and entities  providing
    12  and  seeking  or  considering  whether  to provide, care coordination to
    13  members.
    14    2. The commissioner shall provide grants from funds in  the  New  York
    15  Health  trust fund or otherwise appropriated for this purpose, to health
    16  systems agencies under section twenty-nine hundred four-b of this  chap-
    17  ter to support the operation of such health systems agencies.
    18    3.  Retraining and re-employment of impacted employees. (a) As used in
    19  this subdivision:
    20    (i) "Third party payer" has its  ordinary  meaning  and  includes  any
    21  entity  that  provides or arranges reimbursement in whole or in part for
    22  the purchase of health care services.
    23    (ii) "Health care provider administrative employee" means an  employee
    24  of  a  health  care  provider primarily engaged in relations or dealings
    25  with third party payers or seeking payment or reimbursement  for  health
    26  care services from third party payers.
    27    (iii)  "Impacted  employee"  means an individual who, at any time from
    28  the date this section becomes a law until two years after the end of the
    29  implementation period, is employed by a third party payer or is a health
    30  care provider administrative employee, and whose employment ends  or  is
    31  reasonably  anticipated  to end as a result of the implementation of the
    32  New York Health program.
    33    (b) Within ninety days after this section  shall  become  a  law,  the
    34  commissioner  of labor shall convene a retraining and re-employment task
    35  force  including  but  not  limited  to:  representatives  of  potential
    36  impacted employees, human resource departments of third party payers and
    37  health  care  providers,  individuals  with  experience and expertise in
    38  retraining and re-employment programs relevant to the  circumstances  of
    39  impacted  employees,  and  representatives of the commissioner of labor.
    40  The commissioner of labor and the task force shall review and provide:
    41    (i)  analysis  of  potential  impacted  employees  by  job  title  and
    42  geography;
    43    (ii) competency mapping and labor market analysis of impacted employee
    44  occupations with job openings; and
    45    (iii)  establishment of regional retraining and re-employment systems,
    46  including but not limited to  job  boards,  outplacement  services,  job
    47  search  services, career advisement services, and retraining advisement,
    48  to be coordinated with the regional advisory councils established  under
    49  section fifty-one hundred eleven of this article.
    50    (c)  (i) Three or more impacted employees, a recognized union of work-
    51  ers including impacted employees, or an employer of  impacted  employees
    52  may  file  a  petition  with  the  commissioner of labor to certify such
    53  employees as being impacted employees.
    54    (ii) Impacted employees shall be eligible for:
    55    (A) up to two years of retraining at any training provider approved by
    56  the commissioner of labor; and

        A. 7897                            20
 
     1    (B) up to two  years  of  unemployment  benefits,  provided  that  the
     2  impacted employee is enrolled in a department of labor approved training
     3  program,  is  actively seeking employment, and is not currently employed
     4  full time; provided, however, that such impacted employee  may  maintain
     5  unemployment  benefits  for  up  to two years even if he or she does not
     6  meet the criteria set forth in this clause but is sixty-three  years  of
     7  age or older at the time of loss of employment as an impacted employee.
     8    (d)  The  commissioner  shall  provide  funds from the New York Health
     9  trust fund or otherwise appropriated for this purpose to the commission-
    10  er of labor for  retraining  and  re-employment  programs  for  impacted
    11  employees under this subdivision.
    12    (e)  The  commissioner  of labor shall make regulations and take other
    13  actions reasonably necessary to implement this subdivision. This  subdi-
    14  vision  shall  be  implemented  consistent with applicable law and regu-
    15  lations.
    16    4. The commissioner shall, directly and through grants to not-for-pro-
    17  fit entities, conduct programs using data collected through the New York
    18  Health program, to promote  and  protect  the  quality  of  health  care
    19  services,  patient  outcomes, and public, environmental and occupational
    20  health, including cooperation with other data  collection  and  research
    21  programs of the department, consistent with this article, the protection
    22  of the security and confidentiality of individually identifiable patient
    23  information, and otherwise applicable law.
    24    5.  Settlements  and  judgments.  This  subdivision  applies where any
    25  settlement, judgment or order  in  the  course  of  litigation,  or  any
    26  contract  or  agreement  made  as an alternative to litigation, provides
    27  that one party shall pay for health care coverage for another party  who
    28  is entitled to enroll in the program. Any party to the settlement, judg-
    29  ment, order, contract or agreement may apply to an appropriate court for
    30  modification  of the judgment, order, contract or agreement. The modifi-
    31  cation may provide that the paying party, instead of paying  for  health
    32  care  coverage, shall pay all or part of the New York Health tax that is
    33  owed by the other party, and may include other  or  further  provisions.
    34  The modifications shall be appropriate, consistent with the program, and
    35  in  the  interest  of  justice.  As  used in this subdivision, "New York
    36  Health tax" means the tax or taxes enacted by the legislature as part of
    37  the revenue proposal, as amended, to fund the program.
    38    § 5111. Regional advisory councils.  1. The New York  Health  regional
    39  advisory councils (each referred to in this article as a "regional advi-
    40  sory council") are hereby created in the department.
    41    2.  There  shall be a regional advisory council established in each of
    42  the following regions:
    43    (a) Long Island, consisting of Nassau and Suffolk counties;
    44    (b) New York City;
    45    (c) Hudson Valley, consisting of Delaware, Dutchess,  Orange,  Putnam,
    46  Rockland, Sullivan, Ulster, Westchester counties;
    47    (d)  Northern,  consisting of Albany, Clinton, Columbia, Essex, Frank-
    48  lin, Fulton, Greene, Hamilton, Herkimer, Jefferson,  Lewis,  Montgomery,
    49  Otsego,  Rensselaer,  Saratoga,  Schenectady,  Schoharie,  St. Lawrence,
    50  Warren, Washington counties;
    51    (e) Central, consisting of Broome, Cayuga,  Chemung,  Chenango,  Cort-
    52  land,  Livingston,  Madison,  Monroe, Oneida, Onondaga, Ontario, Oswego,
    53  Schuyler, Seneca, Steuben, Tioga, Tompkins, Wayne, Yates counties; and
    54    (f) Western, consisting of Allegany,  Cattaraugus,  Chautauqua,  Erie,
    55  Genesee, Niagara, Orleans, Wyoming counties.

        A. 7897                            21
 
     1    3.  Each regional advisory council shall be composed of not fewer than
     2  twenty-seven members, as determined by the commissioner and  the  board,
     3  as  necessary  to appropriately represent the diverse needs and concerns
     4  of the region. Members of a regional advisory council shall be residents
     5  of or have their principal place of business in the region served by the
     6  regional advisory council.
     7    4. Appointment of members of the regional advisory councils.
     8    (a) The twenty-seven members shall be appointed as follows:
     9    (i) nine members shall be appointed by the governor;
    10    (ii) six members shall be appointed by the governor on the recommenda-
    11  tion of the speaker of the assembly;
    12    (iii)  six members shall be appointed by the governor on the recommen-
    13  dation of the temporary president of the senate;
    14    (iv) three members shall be appointed by the governor on the recommen-
    15  dation of the minority leader of the assembly; and
    16    (v) three members shall be appointed by the governor on the  recommen-
    17  dation of the minority leader of the senate.
    18    Where  a regional advisory council has more than twenty-seven members,
    19  additional members shall be appointed and recommended by these officials
    20  in the same proportion as the twenty-seven members.
    21    (b) Regional advisory council membership  shall  include  but  not  be
    22  limited to:
    23    (i) representatives of organizations with a regional constituency that
    24  advocate  for health care consumers, older adults, and people with disa-
    25  bilities including organizations led by members  of  those  groups,  who
    26  shall  constitute  at least one-third of the membership of each regional
    27  council;
    28    (ii) representatives of professional organizations representing physi-
    29  cians;
    30    (iii)  representatives  of  professional  organizations   representing
    31  health care professionals other than physicians;
    32    (iv) representatives of general hospitals, including public hospitals;
    33    (v) representatives of community health centers;
    34    (vi)  representatives  of  mental health, behavioral health (including
    35  substance use), physical disability, developmental disability, rehabili-
    36  tation, home care and other service providers;
    37    (vii) representatives of women's health service providers;
    38    (viii) representatives of health service  providers  serving  lesbian,
    39  gay,   bisexual,   transgender,  gender  non-conforming,  and  nonbinary
    40  patients;
    41    (ix) representatives of health care organizations;
    42    (x) representatives of organized labor  including  representatives  of
    43  health care workers;
    44    (xi) representatives of employers; and
    45    (xii) representatives of municipal and county government.
    46    5. Members of a regional advisory council shall be appointed for terms
    47  of  three  years provided, however, that of the members first appointed,
    48  one-third shall be appointed for one year terms and one-third  shall  be
    49  appointed  for  two  year  terms.  Vacancies shall be filled in the same
    50  manner as original appointments for the remainder of any unexpired term.
    51  No person shall be a member of a regional advisory council for more than
    52  six years in any period of twelve consecutive years.
    53    6. Members of the  regional  advisory  councils  shall  serve  without
    54  compensation  but  shall  be  reimbursed  for their necessary and actual
    55  expenses incurred while engaged in the business of  the  advisory  coun-
    56  cils.  The program shall provide financial support for such expenses and

        A. 7897                            22
 
     1  other expenses of the regional advisory councils. However, the board may
     2  provide for compensation in cases where a  lack  of  compensation  would
     3  limit  the  ability  of a trustee or represented organization to partic-
     4  ipate in council business.
     5    7.  Each regional advisory council shall meet at least quarterly. Each
     6  regional advisory council may form committees to assist it in its  work.
     7  Members  of  a  committee  need  not be members of the regional advisory
     8  council.   The New York City regional  advisory  council  shall  form  a
     9  committee  for  each  borough  of  New York City, to assist the regional
    10  advisory council in its work as it relates particularly to that borough.
    11    8. Each regional advisory council shall advise the  commissioner,  the
    12  board,  the  governor and the legislature on all matters relating to the
    13  development and implementation of the New York Health program.
    14    9. Each regional advisory council shall adopt, and from time  to  time
    15  revise,  a  community  health  improvement  plan  for its region for the
    16  purpose of:
    17    (a) promoting the delivery of health  care  services  in  the  region,
    18  improving  the  quality  and  accessibility  of care, including cultural
    19  competency, clinical  integration  of  care  between  service  providers
    20  including  but  not  limited to physical, mental, and behavioral health,
    21  physical and developmental disability services, and  long-term  supports
    22  and services;
    23    (b) facility and health services planning in the region;
    24    (c) identifying gaps in regional health care services;
    25    (d)  promoting increased public knowledge and responsibility regarding
    26  the availability and appropriate utilization of  health  care  services.
    27  Each community health improvement plan shall be submitted to the commis-
    28  sioner and the board and shall be posted on the department's website;
    29    (e)  identifying  needs in professional and service personnel required
    30  to deliver health care services; and
    31    (f) coordinating regional implementation of retraining and  re-employ-
    32  ment  programs for impacted employees under subdivision three of section
    33  fifty-one hundred ten of this article.
    34    10. Each regional advisory council shall hold  at  least  four  public
    35  hearings annually on matters relating to the New York Health program and
    36  the  development  and implementation of the community health improvement
    37  plan.
    38    11. Each regional advisory council shall publish an annual  report  to
    39  the  commissioner  and the board on the progress of the community health
    40  improvement plan. These reports shall  be  posted  on  the  department's
    41  website.
    42    12.  All  meetings  of  the  regional advisory councils and committees
    43  shall be subject to article six of the public officers law.
    44    § 4. Financing of New York Health. 1. (a) As  used  in  this  section,
    45  unless the context clearly requires otherwise:
    46    (i)  "New  York  Health  program"  and the "program" mean the New York
    47  Health program, as created by article 51 of the public  health  law  and
    48  all provisions of that article.
    49    (ii)  "Revenue proposal" means the revenue plan and legislative bills,
    50  as proposed and enacted under  this  section,  to  provide  the  revenue
    51  necessary to finance the New York Health program.
    52    (iii)  "Tax"  means  the  payroll tax or non-payroll tax to be enacted
    53  under the revenue proposal. "Payroll  tax"  means  the  tax  on  payroll
    54  income  and  self-employed  income  subject  to the Medicare Part A tax,
    55  provided for in subdivision two of this section. "Non-payroll tax" means
    56  the tax on taxable income (such  as  interest,  dividends,  and  capital

        A. 7897                            23
 
     1  gains)  not  subject to the payroll tax, provided for in subdivision two
     2  of this section.
     3    (b)  The  governor shall submit to the legislature a revenue proposal.
     4  The revenue proposal shall be submitted to the legislature  as  part  of
     5  the  executive  budget  under article VII of the state constitution, for
     6  the fiscal year commencing on the first day of  April  in  the  calendar
     7  year  after  this  act  shall  become  a  law. In developing the revenue
     8  proposal, the governor shall consult with appropriate officials  of  the
     9  executive  branch; the temporary president of the senate; the speaker of
    10  the assembly; the chairs of the fiscal  and  health  committees  of  the
    11  senate  and  assembly; and representatives of business, labor, consumers
    12  and local government.
    13    2. (a) Basic structure. The basic structure of  the  revenue  proposal
    14  shall  be as follows: Revenue for the program shall come from two taxes.
    15  First, there shall be a progressively graduated tax on all  payroll  and
    16  self-employed  income,  paid  by  employers, employees and self-employed
    17  individuals.  Second, there shall be a progressively  graduated  tax  on
    18  taxable  income  (such  as  interest,  dividends, and capital gains) not
    19  subject to the payroll tax.   Income in the  bracket  below  twenty-five
    20  thousand  dollars per year shall be exempt from the taxes; provided that
    21  for individuals enrolled in Medicare as defined in the  program,  income
    22  in  the  bracket  below  fifty thousand dollars per year shall be exempt
    23  from the taxes.  Higher brackets of income subject to the taxes shall be
    24  assessed at a higher marginal rate than lower brackets.  The taxes shall
    25  be set at levels anticipated to produce sufficient  revenue  to  finance
    26  the  program, to be scaled up as enrollment grows, taking into consider-
    27  ation anticipated federal revenue available for the  program.  Provision
    28  shall  be  made  for  state residents who are employed out-of-state, and
    29  non-residents who are employed in the state  (including  those  employed
    30  less than full-time).
    31    (b) Payroll tax. (i) The income to be subject to the payroll tax shall
    32  be  all income subject to the Medicare Part A tax. The payroll tax shall
    33  be set at a percentage of that  income,  which  shall  be  progressively
    34  graduated, so the percentage is higher on higher brackets of income. For
    35  employed  individuals,  the  employer  shall  pay  eighty percent of the
    36  payroll tax and the employee shall pay twenty percent of the tax, except
    37  that an employer may agree to pay all or part of the  employee's  share.
    38  A self-employed individual shall pay the full tax.
    39    (ii)  Each  public  employer,  as  defined in section 201 of the civil
    40  service law, shall pay a percentage of the payroll tax for each  of  its
    41  employees that is equal to at least the greater of (A) the percentage of
    42  the  cost  of the employee's health benefit that is paid by the employer
    43  as of January 1 immediately preceding the date  on  which  this  section
    44  becomes  a  law,  or  (B)  a  greater  percentage provided by collective
    45  bargaining, or (C) eighty percent.
    46    (c) Non-payroll income tax. There shall be a tax  on  income  that  is
    47  subject  to  the personal income tax under article 22 of the tax law and
    48  is not subject to the payroll tax. It shall be set at  a  percentage  of
    49  that  income,  which shall be progressively graduated, so the percentage
    50  is higher on higher brackets of income.
    51    (d) Phased-in rates. Early in the program, when enrollment is growing,
    52  the amount of the taxes shall be at an appropriate level, and  shall  be
    53  changed as anticipated enrollment grows, to cover the actual cost of the
    54  program.  The revenue proposal shall include a mechanism for determining
    55  the rates of the taxes.

        A. 7897                            24

     1    (e) Cross-border employees. (i) State residents employed out-of-state.
     2  If an individual is employed out-of-state by an employer that is subject
     3  to New York state law, the employer and employee shall  be  required  to
     4  pay the payroll tax as to that employee as if the employment were in the
     5  state.  If an individual is employed out-of-state by an employer that is
     6  not subject to New York state law, either (A) the employer and  employee
     7  shall  voluntarily comply with the tax or (B) the employee shall pay the
     8  tax as if he or she were self-employed.
     9    (ii) Out-of-state residents employed in the state.   The  payroll  tax
    10  shall  apply  to  any  out-of-state resident who is employed or self-em-
    11  ployed in the state.  Such individual and individual's employer shall be
    12  able to take a credit against the payroll taxes each would otherwise pay
    13  as to that individual for amounts  they  spend  respectively  on  health
    14  benefits (A) for the individual, if the individual is not eligible to be
    15  a  member  of  the  program,  and (B) for any member of the individual's
    16  immediate family.   For the employer,  the  credit  shall  be  available
    17  regardless  of the form of the health benefit (e.g., health insurance, a
    18  self-insured plan, direct services, or reimbursement for  services),  to
    19  make  sure that the revenue proposal does not relate to employment bene-
    20  fits in violation of any federal law. For non-employment-based  spending
    21  by  the  individual,  the  credit  shall be available for and limited to
    22  spending for health coverage (not out-of-pocket  health  spending).  The
    23  credit  shall  be available without regard to how little is spent or how
    24  sparse the benefit. The credit may only be  taken  against  the  payroll
    25  tax.  Any  excess  amount may not be applied to other tax liability. The
    26  credit shall be distributed between the employer  and  employee  in  the
    27  same  proportion  as  the  spending  by  each for the benefit and may be
    28  applied to their respective portion of the tax. If any provision of this
    29  subparagraph or any application of it shall be ruled to violate  federal
    30  law,  the  provision or the application of it shall be null and void and
    31  the ruling shall not affect any other provision or application  of  this
    32  section or the act that enacted it.
    33    3.  (a)  The  revenue  proposal  shall  include a plan and legislative
    34  provisions  for  ending  the  requirement  for  local  social   services
    35  districts  to  pay  part  of  the  cost  of Medicaid and replacing those
    36  payments with revenue from the taxes under the revenue proposal.
    37    (b) The taxes under this section shall not supplant  the  spending  of
    38  other  state  revenue to pay for the Medicaid program as it exists as of
    39  the enactment of the revenue proposal as  amended,  unless  the  revenue
    40  proposal as amended provides otherwise.
    41    4.  To  the extent that the revenue proposal differs from the terms of
    42  subdivision two or paragraph (b) of subdivision three of  this  section,
    43  the  revenue  proposal  shall  state how it differs from those terms and
    44  reasons for and the effects of the differences.
    45    5. All revenue from the taxes shall  be  deposited  in  the  New  York
    46  Health trust fund account under section 89-k of the state finance law.
    47    §  5.  Article  49 of the public health law is amended by adding a new
    48  title 3 to read as follows:
    49                                  TITLE III
    50            COLLECTIVE NEGOTIATIONS BY HEALTH CARE PROVIDERS WITH
    51                               NEW YORK HEALTH
    52  Section 4920. Definitions.
    53          4921. Collective negotiation authorized.
    54          4922. Collective negotiation requirements.
    55          4923. Requirements for health care providers' representative.
    56          4924. Mediation.

        A. 7897                            25
 
     1          4925. Certain collective action prohibited.
     2          4926. Fees.
     3          4927. Confidentiality.
     4          4928. Severability and construction.
     5    § 4920. Definitions. For purposes of this title:
     6    1. "New York Health" means the program under article fifty-one of this
     7  chapter.
     8    2.  "Person"  means  an  individual,  association, corporation, or any
     9  other legal entity.
    10    3. "Health care providers' representative" means a third party that is
    11  authorized by health care providers to negotiate on  their  behalf  with
    12  New  York  Health  over terms and conditions affecting those health care
    13  providers.
    14    4. "Strike" means a work stoppage in part or in whole, direct or indi-
    15  rect, by a body of workers to gain compliance with demands  made  on  an
    16  employer.
    17    5.  "Health  care provider" means a health care provider under article
    18  fifty-one of this chapter.
    19    § 4921. Collective negotiation authorized. 1.  Health  care  providers
    20  may  meet  and  communicate  for the purpose of collectively negotiating
    21  with New York Health on any matter relating to New York Health,  includ-
    22  ing but not limited to rates of payment and payment methodologies.
    23    2. Nothing in this section shall be construed to allow or authorize an
    24  alteration  of  the terms of the internal and external review procedures
    25  set forth in law.
    26    3. Nothing in this section shall be construed to allow a strike of New
    27  York Health by health care providers.
    28    4. Nothing in this section shall be construed to  allow  or  authorize
    29  terms or conditions which would impede the ability of New York Health to
    30  obtain  or  retain  accreditation  by the national committee for quality
    31  assurance or a similar body or to comply with applicable state or feder-
    32  al law.
    33    § 4922. Collective negotiation requirements. 1. Collective negotiation
    34  rights granted by this title must conform to the following requirements:
    35    (a) health care providers  may  communicate  with  other  health  care
    36  providers  regarding  the terms and conditions to be negotiated with New
    37  York Health;
    38    (b) health care providers may communicate with health care  providers'
    39  representatives;
    40    (c)  a health care providers' representative is the only party author-
    41  ized to negotiate with New York Health on  behalf  of  the  health  care
    42  providers as a group;
    43    (d)  a  health  care provider can be bound by the terms and conditions
    44  negotiated by the health care providers' representatives; and
    45    (e) in communicating or negotiating with the  health  care  providers'
    46  representative, New York Health is entitled to offer and provide differ-
    47  ent terms and conditions to individual competing health care providers.
    48    2.  Nothing  in this title shall affect or limit the right of a health
    49  care provider or group of health care providers to collectively petition
    50  a government entity for a change in a law, rule, or regulation.
    51    3. Nothing in this title shall affect or limit  collective  action  or
    52  collective  bargaining  on the part of any health care provider with his
    53  or her employer or any other  lawful  collective  action  or  collective
    54  bargaining.
    55    § 4923. Requirements for health care providers' representative. Before
    56  engaging  in  collective  negotiations with New York Health on behalf of

        A. 7897                            26
 
     1  health care providers, a health  care  providers'  representative  shall
     2  file  with the commissioner, in the manner prescribed by the commission-
     3  er, information identifying  the  representative,  the  representative's
     4  plan of operation, and the representative's procedures to ensure compli-
     5  ance with this title.
     6    §  4924. Mediation. 1. In the event the commissioner, or a health care
     7  providers' representative that is party to the  negotiation,  determines
     8  that  an  impasse  exists  in  the  negotiations, the commissioner shall
     9  render assistance as follows:
    10    (a) to assist the parties to effect  a  voluntary  resolution  of  the
    11  negotiations,  the commissioner shall appoint a mediator who is mutually
    12  acceptable to both the health care  providers'  representative  and  the
    13  representative  of  New  York  Health.  If the mediator is successful in
    14  resolving the impasse, then the health  care  providers'  representative
    15  shall proceed as set forth in this article;
    16    (b)  if  an  impasse continues, the commissioner shall appoint a fact-
    17  finding board of not more than three members, who are mutually  accepta-
    18  ble  to both the health care providers' representative and the represen-
    19  tative of New  York  Health.  The  fact-finding  board  shall  have,  in
    20  addition  to  the powers delegated to it by the board, the power to make
    21  recommendations for the resolution of the dispute;
    22    (c) the fact-finding board, acting by a majority of its members, shall
    23  transmit its findings of fact and recommendations for resolution of  the
    24  dispute  to  the  commissioner, and may thereafter assist the parties to
    25  effect a voluntary resolution of the  dispute.  The  fact-finding  board
    26  shall  also  share  its  findings  of  fact and recommendations with the
    27  health care providers' representative and the representative of New York
    28  Health. If within twenty days after the submission of  the  findings  of
    29  fact  and recommendations, the impasse continues, the commissioner shall
    30  order a resolution to the negotiations based upon the findings  of  fact
    31  and recommendations submitted by the fact-finding board.
    32    §  4925.  Certain  collective  action prohibited. 1. This title is not
    33  intended to authorize competing health care providers to act in  concert
    34  in  response to a health care providers' representative's discussions or
    35  negotiations with New York Health except as authorized by other law.
    36    2. No health care providers' representative shall negotiate any agree-
    37  ment that excludes, limits the participation  or  reimbursement  of,  or
    38  otherwise limits the scope of services to be provided by any health care
    39  provider  or group of health care providers with respect to the perform-
    40  ance of services that are within the health care provider's lawful scope
    41  or terms of practice, license, registration, or certificate.
    42    § 4926. Fees. Each person who acts as the representative of  negotiat-
    43  ing parties under this title shall pay to the department a fee to act as
    44  a  representative.  The  commissioner,  by regulation, shall set fees in
    45  amounts deemed reasonable and necessary to cover the costs  incurred  by
    46  the department in administering this title.
    47    § 4927. Confidentiality. All reports and other information required to
    48  be  reported  to the department under this title shall not be subject to
    49  disclosure under article six of the public officers law.
    50    § 4928. Severability and construction. If any provision or application
    51  of this title shall be held to be invalid, or to violate  or  be  incon-
    52  sistent  with  any  applicable federal law or regulation, that shall not
    53  affect other provisions or applications of this title which can be given
    54  effect without that provision or  application;  and  to  that  end,  the
    55  provisions  and applications of this title are severable. The provisions

        A. 7897                            27
 
     1  of this title shall  be  liberally  construed  to  give  effect  to  the
     2  purposes thereof.
     3    §  6.  Subdivision  11  of  section  270  of the public health law, as
     4  amended by section 2-a of part C of chapter 58 of the laws of  2008,  is
     5  amended to read as follows:
     6    11.  "State  public  health plan" means the medical assistance program
     7  established by title eleven of article five of the social  services  law
     8  (referred  to in this article as "Medicaid"), the elderly pharmaceutical
     9  insurance coverage program established by title three of article two  of
    10  the  elder  law (referred to in this article as "EPIC"), and the [family
    11  health plus program established by section three  hundred  sixty-nine-ee
    12  of  the social services law to the extent that section provides that the
    13  program shall be subject to this article] New York Health program estab-
    14  lished by article fifty-one of this chapter.
    15    § 7. The state finance law is amended by adding a new section 89-k  to
    16  read as follows:
    17    §  89-k. New York Health trust fund. 1. There is hereby established in
    18  the joint custody of the state comptroller and the commissioner of taxa-
    19  tion and finance a special revenue fund to be known  as  the  "New  York
    20  Health trust fund", referred to in this section as "the fund". The defi-
    21  nitions  in  section  fifty-one  hundred  of the public health law shall
    22  apply to this section.
    23    2. The fund shall consist of:
    24    (a) all monies  obtained  from  taxes  under  legislation  enacted  as
    25  proposed under section three of the New York Health act;
    26    (b)  federal  payments  received  as  a  result of any waiver or other
    27  arrangements agreed to by the United  States  secretary  of  health  and
    28  human  services  or  other appropriate federal officials for health care
    29  programs established under  Medicare,  any  federally-subsidized  public
    30  health program, or the affordable care act;
    31    (c)  the  amounts paid by the department of health that are equivalent
    32  to those amounts that are paid on behalf  of  residents  of  this  state
    33  under  Medicare,  any federally-subsidized public health program, or the
    34  affordable care act for health benefits which are equivalent  to  health
    35  benefits covered under New York Health;
    36    (d)  federal and state funds for purposes of the provision of services
    37  authorized under title XX of the federal social security act that  would
    38  otherwise  be  covered under article fifty-one of the public health law;
    39  and
    40    (e) state monies that would otherwise be appropriated to  any  govern-
    41  mental  agency,  office,  program,  instrumentality or institution which
    42  provides health services, for services and benefits  covered  under  New
    43  York  Health.  Payments  to the fund under this paragraph shall be in an
    44  amount equal to the money appropriated for such purposes in  the  fiscal
    45  year  beginning immediately preceding the effective date of the New York
    46  Health act.
    47    3. Monies in the fund shall only  be  used  for  purposes  established
    48  under article fifty-one of the public health law.
    49    § 8. Temporary commission on implementation. 1. There is hereby estab-
    50  lished  a  temporary commission on implementation of the New York Health
    51  program, referred to in this section as the  commission,  consisting  of
    52  fifteen  members:  five members, including the chair, shall be appointed
    53  by the governor; four members shall be appointed by the temporary presi-
    54  dent of the senate, one member shall be appointed by the senate minority
    55  leader; four members shall be appointed by the speaker of the  assembly,
    56  and  one  member shall be appointed by the assembly minority leader. The

        A. 7897                            28
 
     1  commissioner of health, the superintendent of  financial  services,  the
     2  commissioner of taxation and finance, and the director of the budget, or
     3  their  designees  shall  serve  as  non-voting ex officio members of the
     4  commission.
     5    2.  Members  of the commission shall receive such assistance as may be
     6  necessary from other state agencies  and  entities,  and  shall  receive
     7  reasonable  and  necessary expenses incurred in the performance of their
     8  duties. The commission may  employ  staff  as  needed,  prescribe  their
     9  duties,  and  fix their compensation within amounts appropriated for the
    10  commission.
    11    3. The commission shall examine the laws and regulations of the  state
    12  and  consult with health care providers, consumers, and other stakehold-
    13  ers and make such recommendations as are necessary to conform  the  laws
    14  and  regulations  of  the  state and article 51 of the public health law
    15  establishing the New York Health program and  other  provisions  of  law
    16  relating  to  the  New York Health program, and to improve and implement
    17  the program. The commission shall  report  its  recommendations  to  the
    18  governor  and  the legislature.   The commission shall immediately begin
    19  development of proposals consistent with the principles of article 51 of
    20  the public health law for provision  of  health  care  services  covered
    21  under the workers' compensation law; and incorporation of retiree health
    22  benefits,  as  described in paragraphs (a), (b) and (c) of subdivision 8
    23  of section 5102 of the public health law.  The commission shall  provide
    24  its  work  product and assistance to the board established under section
    25  5102 of the public health law upon completion of the appointment of  the
    26  board.
    27    §  9.  Severability. If any provision or application of this act shall
    28  be held to be invalid, or to violate or be inconsistent with any  appli-
    29  cable  federal law or regulation, that shall not affect other provisions
    30  or applications of this act which  can  be  given  effect  without  that
    31  provision  or  application; and to that end, the provisions and applica-
    32  tions of this act are severable.
    33    § 10. This act shall take effect immediately.
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