A09557 Summary:

BILL NOA09557B
 
SAME ASSAME AS UNI. S06457-C
 
SPONSORBudget
 
COSPNSR
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts into law major components of legislation necessary to implement the health, mental health budget for the 2006-07 state fiscal year; relates generally to public health; health reform; directs the commissioner of health to develop statewide areas/regional benchmarks regarding racial/ethnic disparities and to develop and implement the public health leaders of tomorrow program; early intervention services; state aid for municipalities; elderly pharmaceutical insurance coverage program; establish a cost of living adjustment for designated human services programs; additional state payments for certain eligible individuals; allocations for worker retraining, Roswell Park, anti-tobacco program, public health programs, EPIC; excess medical malpractice, nursing home financially distressed, pharmacy, family health plus, health care efficiency and affordability law for New Yorkers; HCRA surcharges, assessments and covered lives assessment; bad debt and charity care; high need indigent care; state planning and research cooperative systems and the health care reform act pool reporting requirements; personal care services and worker recruitment and retention program; area health education centers; HCRA resources fund; establish the office of health e-links New York; implementing the state fiscal plan for the 2006-2007 state fiscal year; economically sustainable transportation; Medicaid rate or fee reimbursement for certain alcohol primary care detoxification providers; authorize the dormitory authority of the state of New York to sell certain lands in the county of Queens to the Indian Cultural and Community Center, Inc.; eliminating designation of suburban/rural comprehensive psychiatric emergency programs and to continue such programs as urban programs; extends various provisions of law relating generally to public health and mental health; repeals certain provisions of law relating thereto.
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A09557 Actions:

BILL NOA09557B
 
01/20/2006referred to ways and means
02/23/2006amend (t) and recommit to ways and means
02/23/2006print number 9557a
03/28/2006amend (t) and recommit to ways and means
03/28/2006print number 9557b
03/30/2006reported referred to rules
03/30/2006reported
03/31/2006rules report cal.559
03/31/2006substituted by s6457c
 S06457 AMEND=C BUDGET
 01/20/2006REFERRED TO FINANCE
 02/23/2006AMEND (T) AND RECOMMIT TO FINANCE
 02/23/2006PRINT NUMBER 6457A
 03/10/2006AMEND (T) AND RECOMMIT TO FINANCE
 03/10/2006PRINT NUMBER 6457B
 03/13/2006ORDERED TO THIRD READING CAL.499
 03/13/2006PASSED SENATE
 03/13/2006DELIVERED TO ASSEMBLY
 03/13/2006referred to ways and means
 03/21/2006RECALLED FROM ASSEMBLY
 03/21/2006returned to senate
 03/22/2006VOTE RECONSIDERED - RESTORED TO THIRD READING
 03/22/2006RECOMMITTED TO FINANCE
 03/28/2006AMEND (T) AND RECOMMIT TO FINANCE
 03/28/2006PRINT NUMBER 6457C
 03/29/2006RESTORED TO THIRD READING
 03/31/2006REPASSED SENATE
 03/31/2006RETURNED TO ASSEMBLY
 03/31/2006referred to ways and means
 03/31/2006substituted for a9557b
 03/31/2006ordered to third reading rules cal.559
 03/31/2006motion to amend lost
 03/31/2006passed assembly
 03/31/2006returned to senate
 03/31/2006DELIVERED TO GOVERNOR
 04/12/2006SIGNED CHAP.57
 04/12/2006LINE VETO MEMO.188
 04/12/2006THRU LINE VETO MEMO.207
 04/24/2006TABLED LINE VETO MEMO.188
 04/24/2006THRU LINE VETO MEMO.207
 04/26/2006TAKEN FROM TABLE LINE VETO MEMO.188
 04/26/2006THRU LINE VETO MEMO.198
 04/26/2006MOTION TO OVERRIDE LINE VETO MEMO.188
 04/26/2006THRU LINE VETO MEMO.198
 04/26/2006REPASSED SENATE LINE VETO MEMO.188
 04/26/2006THRU LINE VETO MEMO.198
 04/26/2006RETURNED TO ASSEMBLY LINE VETO MEMO.188
 04/26/2006THRU LINE VETO MEMO.198
 04/26/2006TAKEN FROM TABLE LINE VETO MEMO.200
 04/26/2006THRU LINE VETO MEMO.207
 04/26/2006MOTION TO OVERRIDE LINE VETO MEMO.200
 04/26/2006THRU LINE VETO MEMO.207
 04/26/2006REPASSED SENATE LINE VETO MEMO.200
 04/26/2006THRU LINE VETO MEMO.207
 04/26/2006RETURNED TO ASSEMBLY LINE VETO MEMO.200
 04/26/2006THRU LINE VETO MEMO.207
 04/26/2006motion to override line veto memo.196
 04/26/2006repassed assembly line veto memo.196
 04/26/2006returned to senate line veto memo.196
 04/26/2006motion to override line veto memo.204
 04/26/2006repassed assembly line veto memo.204
 04/26/2006returned to senate line veto memo.204
 04/26/2006motion to override line veto memo.188
 04/26/2006thru line veto memo.195
 04/26/2006repassed assembly line veto memo.188
 04/26/2006thru line veto memo.195
 04/26/2006returned to senate line veto memo.188
 04/26/2006thru line veto memo.195
 04/26/2006motion to override line veto memo.197
 04/26/2006thru line veto memo.198
 04/26/2006repassed assembly line veto memo.197
 04/26/2006thru line veto memo.198
 04/26/2006returned to senate line veto memo.197
 04/26/2006thru line veto memo.198
 04/26/2006motion to override line veto memo.200
 04/26/2006thru line veto memo.203
 04/26/2006repassed assembly line veto memo.200
 04/26/2006thru line veto memo.203
 04/26/2006returned to senate line veto memo.200
 04/26/2006thru line veto memo.203
 04/26/2006motion to override line veto memo.205
 04/26/2006thru line veto memo.207
 04/26/2006repassed assembly line veto memo.205
 04/26/2006thru line veto memo.207
 04/26/2006returned to senate line veto memo.205
 04/26/2006thru line veto memo.207
 04/28/2006DELIVERED TO SECRETARY OF STATE LINE VETO MEMO.188
 04/28/2006THRU LINE VETO MEMO.198
 04/28/2006DELIVERED TO SECRETARY OF STATE LINE VETO MEMO.200
 04/28/2006THRU LINE VETO MEMO.207
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A09557 Floor Votes:

There are no votes for this bill in this legislative session.
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A09557 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9557B
 
SPONSOR: Budget
  TITLE OF BILL: An act to amend the social services law, the public health law, chapter 58 of the laws of 2005, amending the public health law and other laws relating to implementing the state fiscal plan for the 2005-2006 state fiscal year, chapter 66 of the laws of 1994, amend- ing the public health law, the general municipal law and the insurance law relating to the financing of life care communities, chapter 81 of the laws of 1995, amending the public health law and other laws relating to medical reimbursement and welfare reform, chapter 639 of the laws of 1996 amending the public health law and other laws relating to welfare reform, chapter 474 of the laws of 1996, amending the education law and other laws relating to rates for residential health care facilities, chapter 483 of the laws of 1978, amending the public health law relating to rate of payment for each residential health care facility to real property costs, chapter 649 of the laws of 1996, amending the public health law, the mental hygiene law and the social services law relating to authorizing the establishment of special needs plans, chapter 710 of the laws of 1988, amending the social services law and the education law relating to medical assistance eligibility of certain persons and providing for managed medical care demonstration programs, chapter 165 of the laws of 1991, amending the public health law and other laws relating to establishing payments for medical assistance, chapter 19 of the laws of 1998, amending the social services law relating to limiting the method of payment for prescription drugs under the medical assist- ance program, chapter 659 of the laws of 1997, amending the public health law and other laws relating to creation of continuing care retirement communities; to amend chapter 629 of the laws of 1986 amend- ing the social services law relating to establishing a demonstration program for the delivery of long term home health care services to certain persons, and chapter 41 of the laws of 1992 amending the public health law and other laws relating to health care providers; to amend chapter 535 of the laws of 1983, amending the social services law relat- ing to eligibility of certain enrollees for medical assistance, chapter 904 of the laws of 1984, amending the public health law and the social services law relating to encouraging comprehensive health services, in relation to health reform; and to repeal subdivision 1 of section 2808 of the public health law; and providing for the repeal of certain provisions of the social services law upon expiration thereof (Part A); to direct the commissioner of health to develop statewide areas/regional benchmarks regarding racial/ethnic disparities and to develop and imple- ment the public health leaders of tomorrow program; to amend the public health law, in relation to early intervention services; to amend the public health law, in relation to state aid for municipalities; to amend the elder law, in relation to the elderly pharmaceutical insurance coverage program; to amend chapter 62 of the laws of 2003 amending the public health law relating to allowing for the use of funds of the office of professional medical conduct for activities of the patient health information and quality improvement act of 2000, in relation to the effectiveness of such provisions of the public health law relating thereto; and repealing certain provisions of the public health law relating thereto (Part B); to establish a cost of living adjustment for designated human services programs; to amend the social services law in relation to additional state payments for certain eligible individuals; and providing for the repeal of such provisions upon expiration thereof (Part C); to amend the public health law, in relation to allocations for worker retraining, Roswell Park, anti-tobacco program, public health programs, elderly pharmaceutical insurance coverage, excess medical malpractice, nursing home financially distressed, pharmacy, family health plus, healthcare efficiency and affordability law for New York- ers, to amend the public health law, in relation to HCRA surcharges, assessments and covered lives assessment; bad debt and charity care; high need indigent care; state planning and research cooperative systems and the health care reform act pool reporting requirements; to amend the social services law, in relation to personal care services worker recruitment and retention program; to amend the state finance law, in relation to the area health education centers; to amend the public authorities law, in relation to the HCRA resources fund; and to repeal certain provisions of the public health law relating thereto (Part D); Intentionally omitted (Part E); Intentionally omitted (Part F); to establish the office of health e-links New York (Part G); to amend chap- ter 119 of the laws of 1997 relating to authorizing the department of health to establish certain payments to general hospitals, in relation to extending the authorization for the department of health to continue certain payments to general hospitals (Part H); Intentionally omitted (Part I); to amend the elder law, in relation to implementing the state fiscal plan for the 2006-2007 state fiscal year and in relation to economically sustainable transportation and providing for the repeal of certain provisions upon expiration thereof (Part J); in relation to Medicaid rate or fee reimbursement for certain alcohol primary care detoxification providers (Part K); to authorize the dormitory authority of the state of New York to sell certain land in the county of Queens to the Indian Cultural and Community Center, Inc. (Part L); and to amend the mental hygiene law, in relation to eliminating the designation of suburban/rural comprehensive psychiatric emergency programs and to continue such programs as urban programs; and to repeal paragraph 7 of subdivision (a) of section 31.27 of such law relating thereto (Part M)   SUMMARY: Part A Medicaid Program Section 1 continues Medicaid "wrap-around" pharmacy coverage for indi- viduals with both Medicaid and Medicare Part D through January 14, 2007, and provides a permanent coverage for anti-psychotics, anti-retroviral, and anti-rejection drugs. Section 1-A establishes the Nursing Home Quality Incentive Program. Section 1-B establishes the Nursing Home Pay for Performance Program. Sections 2 - 2-B implements nursing home rebasing with a hold harmless provision. Sections 3 - 22 are intentionally omitted. Section 23 establishes the Chemung County Medicaid Research and Demon- stration Project. Sections 24 - 28 are intentionally omitted. Sections 29 - 30 eliminate Medicaid and Family Health Plus coverage for drugs to treat erectile dysfunction. Sections 31-35 are intentionally omitted. Section 36 reduces hospital capital costs to the fair market value. Sections 37 - 38 implement reforms related to patient detoxification services. Sections 39 - 39-A establish new standards for the state's $850 million Indigent Care Program that would require hospitals to provide financial assistance to low-income, uninsured patients, curb abusive debt collection practices and improve accountability. Continue hospital IGT/UPL. Sections 40 - 41 continue hospital IGT/UPL payments for one year. Section 42 is intentionally omitted. Section 43 implements the AIDS adult day health care and diagnostic and treatment center annual cost of living adjustments. Section 44 changes the nursing home working capital interest reimburse- ment, requires nursing home rates be calculated based on cost (after 5 years), and allows a review of nursing home base year costs. Sections 45-46 are intentionally omitted. Section 47 increases the Medicaid rate for AIDS Adult Day Health Care providers. Sections 50 - 50-C implement changes to the long tem care benefit under Medicaid as mandated by the Federal Deficit Reduction Act of 2005 and make these changes contingent on the enactment of the federal statute. Sections 51 - 56 are intentionally omitted. Section 57 changes the Medicaid Managed Care mandatory enrollment requirement from a minimum of two plans per county to one plan per coun- ty. Sections 58 - 58-B implement increased Medicaid rates for services related to the treatment of medically fragile children. Sections 59 - 61 contain technical clean-up items related to the local Medicaid cap. Section 62 makes technical changes to allow the continuation of nursing home IGT payments. Sections 63 - 64 are intentionally omitted. Section 65 allows for the temporary management of managed care providers for certain violations. Section 65-A makes technical corrections related to supplemental Medi- caid payments for emergency medical transportation services. Sections 65 - 65-H extend the Managed long Term Care Program for nine years and make various changes to the program. Section 66 authorized the Commissioner of health to develop demon- stration programs authorized under the Federal Deficit Reduction Act of 2005. Section 67 implements supplemental transition payments for community health centers and academic dental clinics. Section 68 extends provisions of a nursing home amnesty program. Sections 68-A - 68-B are intentionally omitted. Section 68-C requires the Commissioner of Health to convene regular meetings with other state agencies and departments to maintain and improve management of the Medicaid program. Section 68-D extends the Long Term Care Home Health Care Program through March 31, 2009. Section 68-F extends Payments for Claims Service provisions March 31, 2009. Section 68-F increases the reimbursement cap on emergency room services from $95 to $150. Section 68-G increases the fee for emergency room physicians from $17 to $25. Sections 69 - 90 extend various prior years Medicaid cost containments for one year. Section 91 is intentionally omitted. Sections 92 - 98 extend various provisions related to Medicaid Managed care. Section 99 establishes time frames of notice and emergency rule promul- gation. Section 100 is the severability clause. Section 101 establishes the effective dates of the various sections of Part A. Part B Public Health Program Section 1 requires the Commissioner of Health to develop statewide benchmarks for racial and ethnic disparities in access to healthcare by minority populations. Section 2 establishes an Early Intervention Demonstration Program. Section 3 establishes the Public Management Leaders of Tomorrow Program. Sections 4-10 implement various changes to the General Public Health Works (Article 6) program including: an increase in county base grants; an increase reimbursement for optional services; authorization for coun- ty collaborations; and implementation of an emergency fund to be used at the discretion of the Commissioner of Health. Sections 11-12 eliminate EPIC coverage for drugs to treat erectile dysfunction. Sections 13 - 18 make technical corrections to the EPIC statute in Elder Law. Sections 19 - 20 establish the process for mandatory enrollment of low income EPIC enrollees in Medicare Part D and defines patient protections associated with this process. Section 21 extends the Office of Professional Medical Conduct (OPMC) funding from fees for one year. Section 22 sets the effective dates for Part B. Part C Authorizes a cost of living adjustment (COLA), indexed to the federal consumer price index (CPI), to be provided to programs licensed and funded by the Office of Alcoholism and Substance Abuse Services (OASAS), the Office of Mental Health (OMH) or the Office of Mental Retardation and Developmental Disabilities (OMRDD) for each of three years beginning in State Fiscal Year (SFY) 2006-07. It also implements a COLA on the SSI State supplemental payment. Part D Health Care Reform Act Section 1 increases anti-tobacco program allocation to $95 million. Section 2 is intentionally omitted. Section 3 adjusts Public Health Program allocation to pay for avian flu vaccine and reflects funding of the entire $12.1 million for Family Planning shifted from TANF. Section 4 decreases EPIC allocations to reflect facilitation of enroll- ment of low income EPIC enrollees in Part D. Section 5 adjusts the allocations for Roswell Park Cancer Institute. Section 5-A - 5-B establishes the Nursing Home Quality Improvement Program. Section 6 increases the Excess Medical Malpractice allocation to reflect a doubling in the funding from $65 million to $130 million. Section 7 makes a technical change to the allocation language regarding Financially Distressed Nursing Homes, to authorize its use as the state share of a Medicaid payment and not a HCRA payment. Section 8 increases the Pharmacy General Fund offload allocations. Section 9 modifies the Family Health Plus (FHP) allocations to reflect the restoration of FHP related Medicaid cuts with HCRA funding. Section 9 increases HEAL NY transfer from HCRA to Capital Projects Fund by $100M annually. Section 10-A establishes HCRA allocations for the Individual Subsidy Program. Section 10-A establishes HCRA allocations for additional state grants to improve access to infertility services, treatments, and procedures. Section 10-B establishes HCRA allocations for the Medicaid Policy Insti- tute at the United Hospital Fund. Section 10-C establishes HCRA allocations for funding of school based health centers and air conditioning for adult home residents' resident rooms. Sections 10-C-1 - 10-C-2 allocate additional HCRA resources to the Indi- gent Care Pool for diagnostic and treatment centers. Section 10-D establishes an allocation for a program of recruitment, training and retention for home care workers. Section 10-E establishes an allocation for increased upstate home care rates. Section 10-F establishes a program of recruitment, training and retention for home care workers. Section 10-G increases the upstate allocation for personal care train- ing. Section 10-G-l establishes an allocation for the Center for Functional Genomics. Sections 10-H - 10-I implement the workforce managed care differential for recruitment and retention payments. Section 10-J concerns the reallocation of workforce money regarding hospital closures and ties it to the region where a hospital closes. Section 11 requires DOH delinquency billings of all outstanding reports and payments regarding 1% assessment within defined time-frame. Sections 12 - 13 clarify the categories of revenue excluded from the 1% assessment. Section 14 clarifies general hospital indigent care reporting require- ments. Sections 15 - 17 clarify that 6 year audit limit does not apply to DOH pursuing hospital delinquencies or a refund request. Section 18 requires hospitals to comply with Bad Debt and Charity Care requirements of General Hospital Indigent Care Pool in order to partic- ipate in High Need Indigent Care Pool fund distribution. Section 19 allows for the collection of ambulatory care data from Gener- al Hospitals and Diagnostic and Treatment Centers to be included in SPARCS. Section 20 removes AHEC as a formulaic program from HCRA on-budget provisions in State Finance Law. Section 21 is intentionally omitted. Section 22 allows DOH to estimate monthly assessments due if a general hospital fails to produce data or documentation requested in furtherance of an audit. Sections 23 - 27 allow DOH to estimate and bill providers for underpay- ments to HCRA if they fail to produce required data or documentation during an audit. Sections 28 - 29 are intentionally omitted. Section 30 adjust Public Authority Law in relation to HEAL NY transfers to the Capital Projects Fund. Section 30-A implements changes that provide flexibility to the HEAL NY program. Sections 31-34 include standard language and establish time frames of notice, the severability clause; and effective dates for Part D. Part E & F Intentionally omitted. Part G Establishes the Health E-Links New York Program to facilitate the establishment of an interoperable regional health information exchange and technology infrastructure to improve quality, reduce the cost of health care, ensure patient privacy and security, enhance public health reporting including bioterrorism surveillance and facilitate health care research in the State of New York. Part H Extends until 2009 legislation authorizing certain Article 28 hospitals to replace General Fund State aid with federal dispropor- tionate share payments to cover the cost of mental health outpatient services. Part I Intentionally omitted. Part J New York State Office for the Aging Sections 1-2 establish the process by which the additional EISEP money would be distributed to the counties and defines the requirements placed on the counties for spending the additional money. Section 3 establishes the Economically Sustainable Transportation Demon- stration Program. Section 4 sets the effective dates of Part J. Part K Extends until April 1, 2007, the expiration date of legislation authorizing certain providers of inpatient medically supervised with- drawal services, licensed by the Office of Alcoholism and Substance Abuse Services, to receive Medicaid reimbursement at a rate equal to the rate received on April 1, 2005. Part L Authorizes the Dormitory Authority of the State of New York to sell, at fair market value, two parcels of land located within the grounds of the Creedmoor Psychiatric Center, in Queens, New York, to the Indian Culture and Community Center, Incorporated. Part M Amends the Mental Hygiene Law to eliminate the "suburban / rural" Comprehensive Psychiatric Emergency Program (CPEP) designation, so that all providers of emergency psychiatric observation services under the CPEP program will be designated as "urban" providers. The change impacts two of the 18 hospitals that operate 19 CPEP programs Statewide.   JUSTIFICATION: This bill is necessary for the enactment of portions of the State Fiscal Year 2006-07 Budget contained in the Health and Mental Hygiene Budget Bill.   FISCAL IMPACT: The provisions contained in this legislation are related to the appro- priations contained in the Health and Mental Hygiene Budget Bill.   EFFECTIVE DATE: Effective April 1, 2006, with certain exceptions.
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A09557 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 6457--C                                            A. 9557--B
            Cal. No. 499
 
                SENATE - ASSEMBLY
 
                                    January 20, 2006
                                       ___________
 
        IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
          cle seven of the Constitution -- read twice and ordered  printed,  and
          when  printed to be committed to the Committee on Finance -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee  --  committee  discharged,  bill  amended,  ordered

          reprinted  as  amended  and  recommitted to said committee -- reported
          favorably from said committee, ordered to a third reading,  passed  by
          Senate  and  delivered  to  the Assembly, recalled, vote reconsidered,
          restored to third reading, recommitted to the  committee  on  Finance,
          amended  and  ordered  reprinted,  retaining its place in the order of
          third reading
 
        IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
          article  seven  of  the  Constitution -- read once and referred to the
          Committee on Ways and Means --  committee  discharged,  bill  amended,
          ordered  reprinted  as  amended  and  recommitted to said committee --
          again reported from said committee with amendments, ordered  reprinted
          as amended and recommitted to said committee
 
        AN  ACT to amend the social services law, the public health law, chapter

          58 of the laws of 2005, amending the public health law and other  laws
          relating to implementing the state fiscal plan for the 2005-2006 state
          fiscal  year,  chapter  66  of  the  laws of 1994, amending the public
          health law, the general municipal law and the insurance  law  relating
          to  the  financing of life care communities, chapter 81 of the laws of
          1995, amending the public  health  law  and  other  laws  relating  to
          medical  reimbursement  and welfare reform, chapter 639 of the laws of
          1996 amending the public health law and other laws relating to welfare
          reform, chapter 474 of the laws of 1996, amending  the  education  law
          and  other  laws relating to rates for residential health care facili-
          ties, chapter 483 of the laws of 1978, amending the public health  law
          relating  to rate of payment for each residential health care facility

          to real property costs, chapter 649 of the laws of 1996, amending  the
          public  health law, the mental hygiene law and the social services law
          relating to authorizing the  establishment  of  special  needs  plans,
          chapter  710 of the laws of 1988, amending the social services law and
          the education  law  relating  to  medical  assistance  eligibility  of
          certain  persons  and providing for managed medical care demonstration
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD12271-04-6

        S. 6457--C                          2                         A. 9557--B
 
          programs, chapter 165 of the laws of 1991, amending the public  health

          law  and  other  laws  relating  to  establishing payments for medical
          assistance, chapter 19 of  the  laws  of  1998,  amending  the  social
          services   law   relating  to  limiting  the  method  of  payment  for
          prescription drugs under the medical assistance program,  chapter  659
          of  the  laws  of  1997, amending the public health law and other laws
          relating to creation of continuing  care  retirement  communities;  to
          amend chapter 629 of the laws of 1986 amending the social services law
          relating  to  establishing a demonstration program for the delivery of
          long term home health care services to certain persons, and chapter 41
          of the laws of 1992 amending the public  health  law  and  other  laws
          relating to health care providers; to amend chapter 535 of the laws of
          1983,  amending  the  social  services  law relating to eligibility of

          certain enrollees for medical assistance, chapter 904 of the  laws  of
          1984,  amending  the  public  health  law  and the social services law
          relating to encouraging comprehensive health services, in relation  to
          health  reform;  and  to  repeal  subdivision 1 of section 2808 of the
          public health law; and providing for the repeal of certain  provisions
          of the social services law upon expiration thereof (Part A); to direct
          the  commissioner of health to develop statewide areas/regional bench-
          marks regarding racial/ethnic disparities and to develop and implement
          the public health leaders of tomorrow program;  to  amend  the  public
          health  law,  in relation to early intervention services; to amend the
          public health law, in relation to state  aid  for  municipalities;  to
          amend  the elder law, in relation to the elderly pharmaceutical insur-

          ance coverage program; to amend chapter 62 of the laws of 2003  amend-
          ing the public health law relating to allowing for the use of funds of
          the  office  of  professional  medical  conduct  for activities of the
          patient health information and quality improvement  act  of  2000,  in
          relation  to the effectiveness of such provisions of the public health
          law relating thereto; and repealing certain provisions of  the  public
          health  law  relating  thereto (Part B); to establish a cost of living
          adjustment for designated human services programs; to amend the social
          services law in relation to  additional  state  payments  for  certain
          eligible  individuals; and providing for the repeal of such provisions
          upon expiration thereof (Part C); to amend the public health  law,  in
          relation  to allocations for worker retraining, Roswell Park, anti-to-

          bacco program, public health programs, elderly  pharmaceutical  insur-
          ance  coverage,  excess  medical malpractice, nursing home financially
          distressed, pharmacy, family health plus,  healthcare  efficiency  and
          affordability  law for New Yorkers, to amend the public health law, in
          relation to HCRA surcharges, assessments and covered lives assessment;
          bad debt and charity care; high need indigent care; state planning and
          research cooperative systems and  the  health  care  reform  act  pool
          reporting  requirements; to amend the social services law, in relation
          to personal care services worker recruitment and retention program; to
          amend the state finance law, in relation to the area health  education
          centers;  to amend the public authorities law, in relation to the HCRA
          resources fund; and to repeal certain provisions of the public  health

          law  relating thereto (Part D); Intentionally omitted (Part E); Inten-
          tionally omitted (Part F); to establish the office of  health  e-links
          New  York  (Part G); to amend chapter 119 of the laws of 1997 relating
          to authorizing the department of health to establish certain  payments
          to  general  hospitals, in relation to extending the authorization for
          the department of health  to  continue  certain  payments  to  general
          hospitals (Part H); Intentionally omitted (Part I); to amend the elder

        S. 6457--C                          3                         A. 9557--B
 
          law,  in  relation  to  implementing  the  state  fiscal  plan for the
          2006-2007 state fiscal year and in relation to economically  sustaina-
          ble  transportation and providing for the repeal of certain provisions

          upon  expiration thereof (Part J); in relation to Medicaid rate or fee
          reimbursement for certain alcohol primary care detoxification  provid-
          ers (Part K); to authorize the dormitory authority of the state of New
          York  to  sell  certain  land  in  the  county of Queens to the Indian
          Cultural and Community Center, Inc.  (Part L); and to amend the mental
          hygiene  law,  in  relation  to   eliminating   the   designation   of
          suburban/rural  comprehensive  psychiatric  emergency  programs and to
          continue such programs as urban programs; and to repeal paragraph 7 of
          subdivision (a) of section 31.27 of such law relating thereto (Part M)
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This  act enacts into law major components of legislation

     2  which are necessary to implement the state fiscal plan for the 2006-2007
     3  state fiscal year. Each component is  wholly  contained  within  a  Part
     4  identified  as Parts A through M. The effective date for each particular
     5  provision contained within such Part is set forth in the last section of
     6  such Part. Any provision in any section contained within a Part, includ-
     7  ing the effective date of the Part, which makes a reference to a section
     8  "of this act", when used in connection with that  particular  component,
     9  shall  be  deemed  to mean and refer to the corresponding section of the
    10  Part in which it is found. Section three of  this  act  sets  forth  the
    11  general effective date of this act.
 
    12                                   PART A
 
    13    Section  1.  Subdivision 4 of section 365-a of the social services law
    14  is amended by adding a new paragraph (f) to read as follows:

    15    (f) for eligible persons who are also beneficiaries under  part  D  of
    16  title  XVIII of the federal social security act, drugs which are denomi-
    17  nated as "covered part D drugs" under section 1860D-2(e)  of  such  act;
    18  provided  however  that, for purposes of this paragraph, "covered part D
    19  drugs" shall not mean atypical anti-psychotics, anti-depressants,  anti-
    20  retrovirals  used  in the treatment of HIV/AIDS, or anti-rejection drugs
    21  used for the treatment of organ and tissue transplants.
    22    § 1-a. The public health law is amended by adding a new section 2801-f
    23  to read as follows:
    24    § 2801-f. Residential health care facility quality  incentive  payment
    25  program. Subject to amounts appropriated for the residential health care

    26  facility  quality  incentive  payment program, the department may make a
    27  payment to operators of residential health care facilities,  located  in
    28  social  services districts which do not include a city with a population
    29  of over one million persons, that  are  in  compliance  with  applicable
    30  statutes and regulations in order to enhance the quality of patient care
    31  and  patient  safety. Provided that prior to receiving quality incentive
    32  payment program funds, the facility shall submit an expenditure plan  to
    33  the department. Such plan shall detail how the quality incentive payment
    34  program  funds  will  be used to improve the physical environment of the
    35  facility or the quality of care and services rendered to residents.

    36    § 1-b.  Section 2808 of the public health law is amended by  adding  a
    37  new subdivision 22 to read as follows:

        S. 6457--C                          4                         A. 9557--B
 
     1    22.  Nursing home incentives for improved performance in patient care.
     2  Pursuant  to such program, and within amounts as are appropriated there-
     3  for, the commissioner shall investigate adjusted quality indicators  and
     4  quality  measures  including  those  defined  by the federal centers for
     5  medicare and medicaid services (CMS) with respect to nursing home quali-
     6  ty  and  quality  benchmarks. The commissioner shall award rate enhance-
     7  ments to those residential health care facilities who demonstrate to the

     8  satisfaction of the commissioner, they can meet or exceed  such  defined
     9  quality  measures. Such quality measures may include, but not be limited
    10  to, outcomes from state survey data, performance measures, and  resident
    11  outcomes based upon Minimum Data Sets as defined by CMS. The commission-
    12  er  shall consult with associations representing residential health care
    13  facilities and associations representing  nursing  home  residents,  and
    14  shall  by  July  first,  two thousand seven, adopt rules and regulations
    15  that incorporate payment incentives, related to such quality  indicators
    16  and  measures, including, but not limited to programs to improve patient
    17  care outcomes and performance outcomes. Such programs  may  include  but

    18  not  be  limited to, clinician-centric electronic medical records imple-
    19  mentation, automation of  assessments  and  care  plans,  improved  data
    20  collection, and the provision of accessible consumer information as well
    21  as patient satisfaction, into rates of payment.
    22    §  2.  Subdivision  1  of  section  2808  of  the public health law is
    23  REPEALED and a new subdivision 1 is added to read as follows:
    24    1. Notwithstanding any inconsistent law or regulation,  the  rates  of
    25  payment  by  governmental agencies to residential health care facilities
    26  on and after January first, two thousand seven shall  be  based  on  the
    27  payment methodology in effect for the period January first, two thousand
    28  six  through December thirty-first, two thousand six as modified by this

    29  subdivision and subdivisions seventeen and twenty-two of  this  section,
    30  such  subdivision seventeen as amended by section two-a of part A of the
    31  chapter of the laws of two thousand six that added this subdivision. The
    32  modifications to the methodology made pursuant to this section shall  be
    33  for  the  purposes of providing for an updated and more accurate profile
    34  of residential health care facility costs in order to address the  over-
    35  all  increases  in  input costs borne by such facilities. Such modifica-
    36  tions shall also be primarily intended to promote the provision of qual-
    37  ity health  care,  quality  operation  through  updated  technology  and
    38  improved staff development and support, support for basic facility main-

    39  tenance, clinical operations and quality residential life, and for other
    40  allowable input costs borne by such facilities.
    41    Revenue received by a residential health care facility attributable to
    42  an  increase  in  the  rate of payment by governmental agencies from the
    43  utilization of each such facility's reported base year  operating  costs
    44  for  two thousand two pursuant to this subdivision compared to what that
    45  facility would have received utilizing only the reported base year oper-
    46  ating costs used to set each facility's two thousand six rates shall  be
    47  used primarily for purposes which result in an improvement in the quali-
    48  ty  of  patient care in that facility. To ensure funds are utilized in a

    49  manner that improves quality of patient  care,  the  commissioner  shall
    50  establish  a  minimum  standard  for  investment  in the recruitment and
    51  retention of non-supervisory staff or staff  with  direct  patient  care
    52  responsibilities  equal  to  the proportion of amounts expended for such
    53  purposes in the nursing home quality improvement demonstration  program,
    54  pursuant  to  section  twenty-eight  hundred  eight-d  of  this article,
    55  provided, however, in no circumstance shall facilities  be  required  to
    56  spend  more  than  seventy-five  percent of revenue received pursuant to

        S. 6457--C                          5                         A. 9557--B
 
     1  this paragraph for the  recruitment  and  retention  of  non-supervisory

     2  staff or staff with direct patient care responsibilities.  Notwithstand-
     3  ing  the provisions of this subdivision, upon application from a facili-
     4  ty,  the  commissioner  may waive the thresholds established pursuant to
     5  this paragraph to allow funds to be  utilized  to  correct  deficiencies
     6  that  threaten  the life and/or safety of residents. Before waiving such
     7  thresholds pursuant to this subdivision, the commissioner  shall  estab-
     8  lish that other funds are not available to correct such deficiencies.
     9    (a)  The operating portion of the rate shall consist of the sum of the
    10  direct, indirect and noncomparable components of the payment rate  based
    11  on  two  thousand  two  costs  as reported on the facility's annual cost

    12  report trended to two thousand seven in accordance with the  appropriate
    13  trend factors previously applied by the commissioner to rates of payment
    14  for  residential  health  care  facilities, with such sum trended to the
    15  rate year by the applicable trend factor;  provided  however,  that  the
    16  base  year  shall be updated to be current at least every six years. For
    17  the purposes of this paragraph, the term "current" shall mean  that  the
    18  components  of the operating portion of the rate shall be based on costs
    19  as reported on the facility's annual cost  report  for  the  period  two
    20  years prior to the first year of the applicable updated rate period.
    21    (b)  Direct  therapy  costs  and  overhead  costs  of therapy shall be

    22  included in determining the direct component of the rate.  The costs for
    23  facility property, casualty and liability insurance and  property  taxes
    24  and  payments  in  lieu  of  taxes shall be reimbursed based on reported
    25  costs for the year two years prior to the rate year.   The  commissioner
    26  shall  modify the cost reports for residential health care facilities or
    27  otherwise collect adequate data on payments in lieu of  taxes  beginning
    28  with calendar year two thousand five.
    29    (c) For purposes of establishing the allowable direct component of the
    30  rate,  as  well as the allowable indirect component of the rate, facili-
    31  ties shall be combined into peer groups as follows:
    32    (1) Free-standing, less than three hundred beds;

    33    (2) Free-standing, three hundred or more beds; and
    34    (3) Hospital-based, all sizes.
    35    (d) For each peer group, a corridor  shall  be  developed  around  the
    36  statewide  mean  direct  price  per  day and the statewide mean indirect
    37  price per day. The corridor around each mean direct price per day  shall
    38  have  a  base  (floor) equal to eighty-eight percent of each mean direct
    39  price per day and a ceiling equal to one  hundred  fourteen  percent  of
    40  each  mean  direct price per day. The corridor around each mean indirect
    41  price per day shall have a base (floor) equal to eighty-eight percent of
    42  each mean indirect price per day and a ceiling equal to one hundred  ten
    43  percent of each mean indirect price per day.

    44    (e)  A public residential health care facility or a residential health
    45  care facility with fewer than eighty beds  having  a  facility  specific
    46  direct  adjusted payment price per day equal to the ceiling direct price
    47  per day calculated pursuant to paragraph (d) of this  subdivision  shall
    48  have such direct adjusted payment price per day further adjusted through
    49  the  addition  of fifty percent of the difference between the facility's
    50  specific direct cost per day and the ceiling direct  price  per  day.  A
    51  public  residential  health  care  facility or a residential health care
    52  facility with fewer than eighty beds having a facility specific indirect
    53  adjusted payment price per day equal to the ceiling indirect  price  per

    54  day  calculated pursuant to paragraph (d) of this subdivision shall have
    55  such indirect adjusted payment price per day  further  adjusted  through
    56  the  addition  of fifty percent of the difference between the facility's

        S. 6457--C                          6                         A. 9557--B
 
     1  specific indirect cost per day and the ceiling indirect price  per  day.
     2  Such  amount shall be increased to the rate year by the applicable trend
     3  factor and adjusted by the regional  direct  and  indirect  input  price
     4  adjustment  factors calculated pursuant to subdivision seventeen of this
     5  section, as amended by section two-a of part A of  the  chapter  of  the
     6  laws of two thousand six that added this subdivision.

     7    (f)  The  patient classification system shall be the relative resource
     8  utilization groups utilized for purposes of determining rates of payment
     9  for skilled nursing facilities for patients  eligible  for  payments  as
    10  beneficiaries  of  title XVIII of the federal social security act (medi-
    11  care), known as RUG-III. Case mix indices shall be based on the resource
    12  utilization group weights utilized for patients eligible for payments as
    13  beneficiaries of title XVIII of the federal social security  act  (medi-
    14  care), as adjusted by the commissioner pursuant to emergency regulations
    15  to reflect New York state wages and fringe benefits for registered nurs-
    16  es,  certified nurse aides, and therapy staff and New York state therapy

    17  minutes as reported in two  thousand  two.    Furthermore,  the  RUG-III
    18  weights  shall  be  increased  for residents classified in the following
    19  categories to reflect added certified nurse aide staff time as follows:
    20    (1) thirty minutes for the Impaired Cognition A category;
    21    (2) forty minutes for the Impaired Cognition B category; and
    22    (3) twenty-five minutes for the Reduced Physical Functions B category.
    23    (g) Patient assessments to reflect the case mix intensity  of  facili-
    24  ties  for  the  purpose of determining and adjusting reimbursement rates
    25  shall be based on data contained in  the  comprehensive  assessment  and
    26  review  of assessments required to be completed by facilities in accord-

    27  ance with federal regulations and known as the Minimum Data  Set  (MDS).
    28  Payment shall be based on the case mix intensity for all patients.
    29    (h)  A per diem amount of eight dollars, increased to the rate year by
    30  the trend factor determined in accordance with  paragraph  (l)  of  this
    31  subdivision  and  adjusted by the regional direct input price adjustment
    32  factor calculated pursuant to subdivision seventeen of this section,  as
    33  amended  by  section  two-a  of part A of the chapter of the laws of two
    34  thousand six that added this subdivision shall be added to each  facili-
    35  ty's payment rate for each patient who:
    36    (1)  would  qualify for both the RUG-III Impaired Cognition and Behav-
    37  ioral Problems hierarchies; or

    38    (2) has an Alzheimer's Disease or dementia diagnosis, is classified in
    39  the Reduced Physical Functions A, B, or C or Behavioral Problems A or  B
    40  categories,  and has an activities of daily living index score of ten or
    41  less.
    42    (i) A per diem amount of seventeen dollars, increased to the rate year
    43  by the applicable trend factor and adjusted by the regional direct input
    44  price adjustment factor calculated pursuant to subdivision seventeen  of
    45  this  section,  as  amended by section two-a of part A of the chapter of
    46  the laws of two thousand six that added this subdivision, shall be added
    47  to each facility's payment rate for each patient whose body  mass  index
    48  is greater than thirty-five as determined from the MDS assessment infor-

    49  mation.
    50    (j) Rates of payment as modified pursuant to this section for residen-
    51  tial  health  care  facilities  on and after January first, two thousand
    52  seven shall not include certain incremental per diem adjustments to  the
    53  rates  that  will  be reflected in the updated cost base year including,
    54  but not limited to, the nursing salary adjustment, the base year adjust-
    55  ment for facilities that have had bed conversions,  the  adjustment  for
    56  additional federal requirements as added by the Omnibus Budget Reconcil-

        S. 6457--C                          7                         A. 9557--B
 
     1  iation  Act  of  1987 and recalibration. Provided, however, that certain

     2  adjustments not adequately reflected in  the  new  base  year  shall  be
     3  continued  including, but not limited to, the adjustment for recruitment
     4  and  retention of health care workers authorized pursuant to subdivision
     5  eighteen of this section, the adjustment for  financially  disadvantaged
     6  nursing  homes  authorized pursuant to subdivisions nineteen and twenty-
     7  one of this section, grants and adjustments made under the nursing  home
     8  quality  improvement  and supplemental quality improvement demonstration
     9  program authorized pursuant to section twenty-eight hundred  eight-D  of
    10  this  article,  the adjustment for extended care of residents with trau-
    11  matic brain injury, the adjustment for hepatitis B vaccinations and OSHA

    12  universal precautions, reimbursement for the  cash  receipts  assessment
    13  pursuant  to  section  twenty-eight hundred seven-d of this article, and
    14  reimbursement for the cost of criminal history records checks.
    15    (k) Notwithstanding any inconsistent provision  of  this  subdivision,
    16  and  subject  to  the use of the Minimum Data Set patient assessment and
    17  application of the RUG-III patient classification system effective Janu-
    18  ary first, two thousand seven, rates of payment for the following  types
    19  of specialty facilities and units shall be calculated in accordance with
    20  the  methodology for such facilities and units in place prior to January
    21  first, two thousand seven.
    22    (1) AIDS facilities or discrete AIDS units approved by the commission-

    23  er;
    24    (2) discrete units for the care of patients under the long-term  inpa-
    25  tient rehabilitation program for traumatic brain injured patients estab-
    26  lished pursuant to department regulations;
    27    (3)  department  approved  discrete  units  for  the care of long-term
    28  ventilator dependent residents;
    29    (4) department approved discrete units specifically designated for the
    30  purpose of providing specialized programs for residents requiring behav-
    31  ioral interventions; or
    32    (5) residential health care facilities or discrete units which provide
    33  extensive  nursing,  medical,  psychological  and   counseling   support
    34  services solely to children, as determined by the commissioner.

    35    For  rate periods on and after January first, two thousand seven, such
    36  rates shall be trended to  the  rate  period  by  the  applicable  trend
    37  factor.    The  commissioner shall adopt emergency regulations effective
    38  January first, two thousand seven to ensure that reimbursement for resi-
    39  dents residing in these speciality facilities and units based on the use
    40  of the Minimum Data Set and the RUG-III classification system is  equiv-
    41  alent  to such reimbursement had it been calculated based on the Patient
    42  Review Instrument and the RUG-II classification system.
    43    (1) Notwithstanding section three of chapter four hundred eighty-three
    44  of the laws of nineteen hundred seventy-eight,  as  amended,  after  the

    45  expiration of the useful facility life (land, building, improvements and
    46  nonmoveable  equipment), a facility shall be paid seventy percent of the
    47  average regional capital costs for such capital costs. For  purposes  of
    48  this  paragraph,  the  regions  shall  be those regions utilized for the
    49  calculations governed  by  subdivision  seventeen  of  this  section  as
    50  amended  by  section  two-a  of part A of the chapter of the laws of two
    51  thousand six that added this subdivision.
    52    (m) Notwithstanding any inconsistent provision  of  this  subdivision,
    53  rates  of  payment  based upon the methodology established in accordance
    54  with this subdivision shall be phased in as follows: rates of payment in

    55  effect January first, two thousand seven through December  thirty-first,
    56  two  thousand  seven shall be based fifty percent on the new methodology

        S. 6457--C                          8                         A. 9557--B
 
     1  (hereinafter the "new rate") and fifty percent on the rate of payment in
     2  effect December thirty-first, two thousand six, inclusive of all adjust-
     3  ments required by law and regulation through that date (hereinafter  the
     4  "existing rate"), rates of payment in effect January first, two thousand
     5  eight  through December thirty-first, two thousand eight, shall be based
     6  seventy-five percent on the new rate and twenty-five percent on existing
     7  rate; and rates of payment in effect on and  after  January  first,  two

     8  thousand nine shall be based one hundred percent on the new rate.
     9    For  each  facility  for  which  the old rate, trended to two thousand
    10  seven exceeds the new rate trended to two thousand  seven,  the  commis-
    11  sioner  shall  determine  the absolute difference between the two rates.
    12  The rate resulting from the new methodology shall be increased by a hold
    13  harmless adjustment equal to fifty percent of such difference  in  rates
    14  for  the period January first, two thousand seven through December thir-
    15  ty-first, two thousand seven; seventy-five percent of such difference in
    16  rates for the period January first, two thousand eight through  December
    17  thirty-first,  two  thousand  eight,  and  one  hundred  percent of such

    18  difference in rates for rates of payment in effect on and after  January
    19  first,  two  thousand  nine. For rate periods on or after January first,
    20  two thousand eight, such hold harmless adjustment shall be trended    to
    21  the rate year by the applicable trend factor.
    22    (n)  The council, in consultation with associations representing resi-
    23  dential health  care  facilities,  shall  adopt  rules  and  regulations
    24  subject  to approval of the commissioner to effectuate the provisions of
    25  this subdivision.
    26    (o) The appointment of a receiver or the establishment of a new opera-
    27  tor or replacement/renovation of an ongoing facility shall not result in
    28  a revision in the operating portion of the rate as defined in  paragraph

    29  (a) of this subdivision.
    30    (p)  Notwithstanding any inconsistent provision of law, if in any rate
    31  year on and after January first, two thousand seven, the total  increase
    32  in medical assistance payments to public residential health care facili-
    33  ties  resulting  from the calculation of rates pursuant to this subdivi-
    34  sion exceeds the applicable federal upper  payment  limit,  such  public
    35  facilities shall receive:
    36    (1)  the  rate  adjustments  resulting  from  the calculation of rates
    37  pursuant to this subdivision to the extent they are eligible for federal
    38  financial participation based on application of the upper payment limit;
    39  plus
    40    (2) the non-federal share of  any  remaining  rate  adjustments  which

    41  would  have  resulted  from  the  calculation  of rates pursuant to this
    42  subdivision but for the application of the upper payment limit.
    43    § 2-a. Subdivision 17 of section 2808 of the  public  health  law,  as
    44  amended  by  section  24 of part C of chapter 58 of the laws of 2004, is
    45  amended to read as follows:
    46    17. Notwithstanding any inconsistent provision of law or regulation to
    47  the contrary, for purposes of establishing rates of payment  by  govern-
    48  mental  agencies  for  residential  health  care facilities for services
    49  provided on and after January first, nineteen hundred ninety-eight,  the
    50  regional  direct  and  indirect  input  price  adjustment  factors to be
    51  applied to any such facility's rate calculation shall be based upon  the
    52  utilization  of  either  nineteen hundred eighty-three, nineteen hundred

    53  eighty-seven or nineteen hundred ninety-three  calendar  year  financial
    54  and statistical data and for periods beginning April first, two thousand
    55  four  [and  thereafter]  through December thirty-first, two thousand six
    56  based on either nineteen hundred eighty-three, nineteen hundred  eighty-

        S. 6457--C                          9                         A. 9557--B
 
     1  seven,  nineteen  hundred ninety-three or two thousand one calendar year
     2  financial and statistical  data;  provided,  however,  the  state  share
     3  amount  for the utilization of two thousand one calendar year data shall
     4  be  no  more  than  twenty-two  million  dollars on a pro rata basis per
     5  calendar year. The  determination  of  which  calendar  year's  data  to
     6  utilize  shall be based upon a methodology that ensures that the partic-

     7  ular year chosen by each facility results in a  factor  that  yields  no
     8  less reimbursement to the facility than would result from the use of any
     9  of the other three years' data. Such methodology shall utilize the nine-
    10  teen  hundred  eighty-three  and  nineteen hundred eighty-seven regional
    11  direct and indirect input price adjustment factor  corridor  percentages
    12  in  existence on January first, nineteen hundred ninety-seven as well as
    13  nineteen hundred ninety-three regional direct and indirect  input  price
    14  adjustment factor corridor percentage in existence on January first, two
    15  thousand four as well as a two thousand one regional direct and indirect
    16  input price adjustment factor corridor percentage calculated in the same
    17  manner  as  the  nineteen hundred ninety-three direct and indirect input
    18  price adjustment factor corridor percentages  in  existence  on  January

    19  first,  two thousand four provided however, that for purposes of comput-
    20  ing the nineteen hundred eighty-three, nineteen hundred eighty-seven and
    21  nineteen hundred ninety-three regional input  price  adjustment  factors
    22  for rate periods beginning April first, two thousand four through Decem-
    23  ber  thirty-first  two  thousand  six,  any  facility that was adversely
    24  impacted by having its nineteen hundred eighty-three,  nineteen  hundred
    25  eighty-seven  and/or  nineteen hundred ninety-three regional input price
    26  adjustment factor recomputed in connection with  the  implementation  of
    27  section  twenty-four of part C of chapter fifty-eight of the laws of two
    28  thousand four to reflect the imposition of a maximum  statewide  average

    29  variable  corridor  percentage  of  plus or minus ten percent shall have
    30  such input price adjustment factors calculated without  regard  to  such
    31  maximum statewide average variable corridor percentage. For rate periods
    32  on and after January first, two thousand seven, the regional input price
    33  adjustment factors shall be based on the case mix predicted staffing for
    34  registered  nurses,  licensed  practical nurses, nurses' aides, licensed
    35  therapists and therapist aides. For periods beginning January first, two
    36  thousand seven through December thirty-first,  two  thousand  nine,  the
    37  regional  direct  and  indirect  input  price  adjustment  factors to be
    38  applied to a facility's rate calculation shall be based upon the  utili-

    39  zation of two thousand two calendar year financial and statistical data.
    40  Such  methodology  shall  utilize  two  thousand two regional direct and
    41  indirect input price adjustment factor corridor  percentages  calculated
    42  in  the same manner as the two thousand one regional direct and indirect
    43  input price adjustment  factor  corridor  percentages  in  existence  on
    44  December  thirty-first,  two thousand six except that every region shall
    45  receive a corridor to reflect  the  region's  actual  variation  without
    46  regard  to  any  maximum statewide average variable corridor percentage.
    47  For the three year period beginning January first, two thousand ten  and
    48  every  three year period thereafter, the regional direct price and indi-

    49  rect input price adjustment factors and the regional direct and indirect
    50  input price adjustment factor corridor percentages shall be  based  upon
    51  the utilization of calendar year financial and statistical data from two
    52  years prior to the first year of each three year period. The commission-
    53  er  shall modify the cost reports for residential health care facilities
    54  beginning with calendar year two thousand five to  ensure  reporting  of
    55  adequate data on agency staffing costs and hours by occupation.

        S. 6457--C                         10                         A. 9557--B
 
     1    §  2-b.  Section  2808 of the public health law is amended by adding a
     2  new subdivision 1-a to read as follows:

     3    1-a.  a.   Notwithstanding sections one hundred twelve and one hundred
     4  sixty-three  of  the  state  finance  law  and  any  other  inconsistent
     5  provision  of law, the commissioner shall make grants to public residen-
     6  tial health care facilities without a competitive  bid  or  request  for
     7  proposal process for the purposes of addressing the overall increases in
     8  input  costs  borne by such facilities. Such modifications shall also be
     9  primarily intended to promote the  provision  of  quality  health  care,
    10  quality operation, updated technology and improved staff development and
    11  support by such facilities. Such grants shall be in the following aggre-
    12  gate  amounts  for  the  following  periods:  thirty-three million three

    13  hundred thirty-three thousand dollars on an  annualized  basis  for  the
    14  period  January first, two thousand seven through December thirty-first,
    15  two thousand seven; sixty-six million  six  hundred  sixty-six  thousand
    16  dollars  on  an annualized basis for the period January first, two thou-
    17  sand eight through December thirty-first, two thousand  eight;  and  one
    18  hundred million dollars on an annualized basis for annual periods on and
    19  after January first, two thousand nine.
    20    b.  The  amount  allocated  to each eligible public residential health
    21  care facility for each period shall be calculated as the result  of  (i)
    22  the  total  payment  for  each  period  multiplied  by (ii) the ratio of

    23  patient days for patients eligible for medical  assistance  pursuant  to
    24  title  eleven of article five of the social services law provided by the
    25  public residential health care facility, divided by the  total  of  such
    26  patient  days  summed  for  all  eligible public residential health care
    27  facilities.  Grants under this subdivision shall be made on a  quarterly
    28  basis.
    29    § 3. Intentionally omitted.
    30    § 4. Intentionally omitted.
    31    § 5. Intentionally omitted.
    32    § 5-a. Intentionally omitted.
    33    § 6. Intentionally omitted.
    34    § 7. Intentionally omitted.
    35    § 8. Intentionally omitted.
    36    § 9. Intentionally omitted.
    37    § 10. Intentionally omitted.
    38    § 11. Intentionally omitted.
    39    § 12. Intentionally omitted.

    40    § 13. Intentionally omitted.
    41    § 14. Intentionally omitted.
    42    § 15. Intentionally omitted.
    43    § 16. Intentionally omitted.
    44    § 17. Intentionally omitted.
    45    § 18. Intentionally omitted.
    46    § 19. Intentionally omitted.
    47    § 20. Intentionally omitted.
    48    § 21. Intentionally omitted.
    49    § 22. Intentionally omitted.
    50    § 23.  Section 364-j of the social services law is amended by adding a
    51  new subdivision 22 to read as follows:
    52    22.  Chemung  county  demonstration project. (a) The legislature finds
    53  that the particular circumstances of Chemung county warrant  authorizing
    54  this  demonstration  project,  including the rural nature of the county,
    55  the absence of a comprehensive medicaid managed  care  provider  serving


        S. 6457--C                         11                         A. 9557--B
 
     1  the  area  at  this  time, patient care needs, and aspects of the health
     2  care provider base.
     3    (b) within all or part of Chemung county (referred to in this subdivi-
     4  sion  as "the catchment area"), the department of health and the Chemung
     5  county department of social services are authorized to conduct  a  Medi-
     6  caid research and demonstration project (referred to in this subdivision
     7  as  the  "demonstration  project") for the purpose of testing the use of
     8  innovative administrative techniques,  new  reimbursement  methods,  and
     9  management of care models, so as to promote more efficient use of health
    10  resources,  a  healthier  population and containment of Medicaid program

    11  costs.
    12    (c) As part of the demonstration project, the Chemung  county  depart-
    13  ment  of  social  services is authorized to contract with a managed care
    14  provider for the purposes of, without limitation, developing and  manag-
    15  ing  a provider of care network, establishing provider payment rates and
    16  fees, paying provider claims,  providing  care  management  services  to
    17  project participants, and managing the utilization of project services.
    18    (d)  The demonstration project shall be consistent with the provisions
    19  of this section, except:
    20    (i) The department may waive any rules or regulations, as necessary to
    21  implement and consistent with this subdivision.
    22    (ii) The demonstration project shall not be subject to:

    23    (A) paragraph (b) of subdivision four of this section;
    24    (B) subparagraphs (i), (ii), (iii) (v) and (viii) of paragraph (e)  of
    25  subdivision four of this section;
    26    (C) paragraph (f) of subdivision four of this section;
    27    (D) paragraph (g) of subdivision four of this section;
    28    (E)  subdivision  five of this section; provided that in approving the
    29  demonstration project or  modifications  to  it,  the  department  shall
    30  consider the criteria in that subdivision;
    31    (F)  sections two hundred seventy-two and two hundred seventy-three of
    32  the public health law;
    33    (G) section three hundred sixty-five-i of this title.
    34    (iii) Notwithstanding subdivision three of this section, participation

    35  in the project shall be mandatory for all or any specified categories of
    36  persons eligible for services under this  title  for  whom  the  Chemung
    37  county  department of social services has fiscal responsibility pursuant
    38  to section three hundred sixty-five of this title and who reside  within
    39  the  demonstration  project catchment area, as determined by the commis-
    40  sioner of health; provided, however, that eligible persons who are  also
    41  beneficiaries  under  title XVIII of the federal social security act and
    42  persons who reside in residential health care facilities  shall  not  be
    43  eligible to participate in the project.
    44    (e)(i)  Persons who are enrolled in or apply for medical assistance on

    45  or before the date the demonstration project takes effect shall  receive
    46  sixty  days  written  notice prior to participating in the demonstration
    47  project, including an explanation of the demonstration project  and  the
    48  participant's rights and responsibilities. Persons who apply for medical
    49  assistance  thereafter shall receive such notice at the time of applying
    50  for medical assistance.
    51    (ii) The demonstration project  shall  provide  adequate  services  to
    52  overcome language barriers for participants.
    53    (iii) Participants in the demonstration project whose participation in
    54  a  managed  care program would not otherwise be mandatory under subdivi-
    55  sion three of this section, who, at  the  time  they  enter  the  demon-

    56  stration  project, have an established relationship with and are receiv-

        S. 6457--C                         12                         A. 9557--B
 
     1  ing services from one or more medical services providers  that  are  not
     2  included  in  the  demonstration project's provider network (an "out-of-
     3  network provider"), shall be permitted to continue to  receive  services
     4  from  such  providers until their course of treatment is complete, or in
     5  the case of a pregnant woman, while pregnant and for  sixty  days  post-
     6  partum.  Out-of-network providers that provide services pursuant to this
     7  subparagraph shall be subject to the utilization review and care manage-
     8  ment procedures prescribed by the managed care  provider  and  shall  be

     9  reimbursed  at  the  rate  that  would  be paid to such providers by the
    10  medical assistance program on a fee for service basis pursuant  to  this
    11  title, and shall accept such reimbursement as payment in full.
    12    (f)  The  provisions  of  this  subdivision shall not apply unless all
    13  necessary approvals under federal law and regulation have been  obtained
    14  to  receive  federal financial participation in the costs of health care
    15  services provided pursuant to this subdivision.
    16    (g) The commissioner of health is authorized to submit  amendments  to
    17  the state plan for medical assistance and/or submit one or more applica-
    18  tions for waivers of the federal social security act as may be necessary

    19  to obtain the federal approvals necessary to implement this subdivision.
    20    (h)  The  demonstration project shall terminate five years after it is
    21  approved by the department and all necessary approvals under federal law
    22  and regulations under  paragraph  (f)  of  this  subdivision  have  been
    23  obtained,  unless  terminated sooner by the Chemung county department of
    24  social services.
    25    § 24. Intentionally omitted.
    26    § 25. Intentionally omitted.
    27    § 26. Intentionally omitted.
    28    § 27. Intentionally omitted.
    29    § 28. Intentionally omitted.
    30    § 29. Paragraphs (d) and (e) of subdivision 4 of section 365-a of  the
    31  social services law, paragraph (d) as amended and paragraph (e) as added
    32  by  chapter 645 of the laws of 2005, are amended and a new paragraph (f)

    33  is added to read as follows:
    34    (d) any medical care,  services  or  supplies  furnished  outside  the
    35  state, except, when prior authorized in accordance with department regu-
    36  lations  or  for care, services and supplies furnished: as a result of a
    37  medical emergency; because the recipient's health would have been endan-
    38  gered if he or she had been required to travel to the state; because the
    39  care, services or supplies were more  readily  available  in  the  other
    40  state; or because it is the general practice for persons residing in the
    41  locality  wherein  the recipient resides to use medical providers in the
    42  other state; [or]
    43    (e) drugs, procedures and  supplies  for  the  treatment  of  erectile
    44  dysfunction  when provided to, or prescribed for use by, a person who is
    45  required to register as a sex offender pursuant to article six-C of  the

    46  correction  law,  provided  that any denial of coverage pursuant to this
    47  paragraph shall provide the patient with the means  of  obtaining  addi-
    48  tional information concerning both the denial and the means of challeng-
    49  ing such denial[.]; or
    50    (f)  drugs for the treatment of sexual or erectile dysfunction, unless
    51  such drugs are used to treat a condition, other than sexual or  erectile
    52  dysfunction,  for which the drugs have been approved by the federal food
    53  and drug administration.
    54    § 30. Paragraph (e-1) of subdivision 1 of section 369-ee of the social
    55  services law, as added by chapter 645 of the laws of 2005, is amended to
    56  read as follows:

        S. 6457--C                         13                         A. 9557--B
 

     1    (e-1) "Health care services" shall not include: (i) drugs,  procedures
     2  and supplies for the treatment of erectile dysfunction when provided to,
     3  or  prescribed for use by, a person who is required to register as a sex
     4  offender pursuant to article six-C of the correction law  provided  that
     5  any  denial  of  coverage  pursuant  to this paragraph shall provide the
     6  patient with the means of obtaining  additional  information  concerning
     7  both the denial and the means of challenging such denial; (ii) drugs for
     8  the  treatment  of sexual or erectile dysfunction, unless such drugs are
     9  used to treat a condition, other than sexual  or  erectile  dysfunction,
    10  for  which  the  drugs  have  been approved by the federal food and drug
    11  administration.
    12    § 31. Intentionally omitted.

    13    § 32. Intentionally omitted.
    14    § 33. Intentionally omitted.
    15    § 34. Intentionally omitted.
    16    § 35. Intentionally omitted.
    17    § 36. Notwithstanding sections 2807 and 2807-c of  the  public  health
    18  law,  section  1  of  part  C of chapter 58 of the laws of 2005, and any
    19  other contrary provision of law  and  subject  to  the  availability  of
    20  federal  financial  participation,  for  designated  rate periods on and
    21  after April 1, 2006:
    22    (a) the commissioner of health, with the approval of the  director  of
    23  the budget, may increase the capital cost components of rates of payment
    24  by  governmental agencies for inpatient and outpatient services provided
    25  by public general hospitals,  not  including  public  general  hospitals
    26  operated  by  the  state of New York or the state university of New York

    27  but including public general hospitals operated by public benefit corpo-
    28  rations, to reflect the difference between the current fair market value
    29  of the fixed capital assets held by such hospitals  and  the  amount  of
    30  capital  cost  reimbursement  of  such  fixed capital assets as computed
    31  pursuant to the provisions of section 2807-c of the public  health  law;
    32  provided, however, that reimbursement by the state of the amount of such
    33  increased  capital cost reimbursement to such general hospitals, whether
    34  made by the department of health on behalf of a social service  district
    35  or  by  a  social services district directly, for general hospital inpa-
    36  tient and outpatient hospital services provided in accordance with para-
    37  graph (b) of subdivision 2 of section 365-a of the social services  law,
    38  shall  be limited to the amount of federal funds properly received or to

    39  be received on account of such expenditures; provided further,  however,
    40  that  the  social  services district in which an eligible public general
    41  hospital is physically located shall be responsible  for  the  increased
    42  payments provided herein for such public general hospital for all hospi-
    43  tal  inpatient  and  outpatient services provided by such general public
    44  hospital in accordance with section 365-a of the  social  services  law,
    45  regardless of whether another social services district or the department
    46  of health may otherwise be responsible for furnishing medical assistance
    47  to the eligible persons receiving such services; and
    48    (b)  the  commissioner of health, with the approval of the director of
    49  the budget, may also increase the capital cost components  of  rates  of
    50  payment  by  governmental agencies for inpatient and outpatient services

    51  provided by public general hospitals operated by the state of  New  York
    52  and  by  the  state  university  of  New York, to reflect the difference
    53  between the fair market value of the fixed capital assets held  by  such
    54  hospitals  and  the  amount  of capital cost reimbursement of such fixed
    55  capital assets as computed pursuant to the provisions of section  2807-c
    56  of  the public health law; further provided, however, that such payments

        S. 6457--C                         14                         A. 9557--B
 
     1  made to public general hospitals operated by the state of New  York  and
     2  the  state  university  of  New  York shall be the responsibility of the
     3  state and shall not include a local share; and
     4    (c)  the commissioner of health shall issue regulations, and may issue
     5  emergency regulations if deemed necessary by the commissioner of health,

     6  to implement the adjustments to rates  of  payment  authorized  by  this
     7  section.
     8    §  37.    Subdivision  4 of section 2807-c of the public health law is
     9  amended by adding two new paragraphs (l) and (m) to read as follows:
    10    (l) Notwithstanding any law or regulation to the contrary, for general
    11  hospitals which are certified pursuant  to  article  thirty-two  of  the
    12  mental  hygiene  law  and  regulations promulgated thereunder to provide
    13  chemical dependence related crisis services and which are  certified  to
    14  provide  short  stay  outlier  services and receive a short stay outlier
    15  rate pursuant to paragraph (m) of this subdivision,  inpatient  payments
    16  for  and services provided to patients who are determined to be in diag-

    17  nosis-related groups numbered seven hundred forty-three,  seven  hundred
    18  forty-four,  seven  hundred  forty-five,  seven hundred forty-six, seven
    19  hundred forty-seven, seven hundred  forty-eight,  seven  hundred  forty-
    20  nine,  seven  hundred fifty, or seven hundred fifty-one shall be subject
    21  to subsequent review by the office of  alcoholism  and  substance  abuse
    22  services  and  the  retention  by such general hospitals of payments for
    23  such patients shall be conditioned upon a determination by  such  office
    24  that  services  provided  by  such  hospitals  to such patients, and the
    25  assignment by such hospitals of such patients to the appropriate diagno-
    26  sis-related groups, are in compliance with standards  and  criteria  set

    27  forth  in  article  thirty-two  of the mental hygiene law and applicable
    28  regulations promulgated thereunder  with  regard  to  the  provision  of
    29  medically  managed  withdrawal services. If after such review the office
    30  of alcoholism and substance abuse determines that  based  upon  clinical
    31  criteria  developed  pursuant to subdivision (h) of section 32.05 of the
    32  mental hygiene law for treatment in short stay outlier status, that  the
    33  patient  should  have  received short stay outlier services, the commis-
    34  sioner may recoup the difference between the payment applicable  to  the
    35  hospital  under  paragraph (m) of this subdivision and the payment under
    36  the diagnosis-related group to which the patient had  been  assigned  by

    37  the  hospital.  Such  adjustments  shall  not be made in cases where the
    38  hospital was unable to secure an appropriate discharge placement for the
    39  patient after making reasonable efforts to secure such placement and the
    40  unavailability of such placement is documented in  the  patient  medical
    41  record.
    42    (m)  The  commissioner  shall promulgate rates of payment to qualified
    43  general hospitals for patients equal to the average of the hospital-spe-
    44  cific short-stay per diem payment rates pursuant  to  paragraph  (d)  of
    45  this  subdivision  applicable  to diagnosis-related groups seven hundred
    46  forty-five, seven hundred  forty-eight,  and  seven  hundred  fifty-one,
    47  provided  that  for  short  stay  outlier  patients  no  longer  needing

    48  medically managed or medically  supervised  chemical  dependence  crisis
    49  services,  payment  shall be made at the per diem rate specified in this
    50  subdivision, and for patients requiring medically managed  or  medically
    51  supervised  chemical  dependence  crisis  services in a general hospital
    52  after transfer from a short-stay outlier bed, payments for such patients
    53  shall be made in accordance with the provisions of this  section  other-
    54  wise  applicable  to  the  operating,  capital, and add-on components of
    55  inpatient case-based payments, provided, however, in no instance shall a
    56  hospital receive  a  short-stay  outlier  payment  for  a  patient  that

        S. 6457--C                         15                         A. 9557--B
 

     1  requires  medically  managed or medically supervised chemical dependence
     2  crisis services in a general hospital after transfer from  a  short-stay
     3  outlier  bed  to  a  medically managed or medically supervised inpatient
     4  bed.
     5    §  37-a.  Section 32.05 of the mental hygiene law is amended by adding
     6  two new subdivisions (g) and (h) to read as follows:
     7    (g) The commissioner of the office of alcoholism and  substance  abuse
     8  services  shall  promulgate  regulations  for  the licensure of extended
     9  observation beds for up to forty-eight hours of care for alcoholism  and
    10  substance  abuse  services  provided in general hospitals licensed under
    11  this article. The regulations may require that hospitals licensed  under

    12  this  article also be licensed for short stay outlier beds. The rates of
    13  payment for such services shall be those stipulated under paragraph  (m)
    14  of  subdivision  four  of  section  twenty-eight  hundred seven-c of the
    15  public health law. The continued need  for  such  regulations  shall  be
    16  evaluated  when  the  commissioner  of  health implements regulations to
    17  update the base year  used  to  calculate  the  diagnosis-related  group
    18  service  intensity weights, average lengths of stay, and trimpoints to a
    19  more current base year. Such evaluation shall consider  the  recommenda-
    20  tions  of  the  joint task force on the continuum of care for alcoholism
    21  and substance abuse services in New York state with respect to the clin-

    22  ical  efficacy  and  need  for  maintaining  such  extended  observation
    23  services.
    24    (h)  The  commissioner of the office of alcoholism and substance abuse
    25  services shall in consultation  with  representatives  of  providers  of
    26  inpatient hospital detoxification services, including the hospital asso-
    27  ciations  representing  such  providers, develop clinical criteria to be
    28  used to determine appropriate  placement  in  short  stay  outlier  beds
    29  pursuant  to  paragraph  (l) of subdivision four of section twenty-eight
    30  hundred seven-c of the public health law and this section.
    31    § 37-b. Joint task force on the continuum of care for  alcoholism  and
    32  substance  abuse  services  in  New  York state. The commissioner of the

    33  office of alcoholism and substance  abuse  services  shall  establish  a
    34  joint task force comprised of representatives from the hospital industry
    35  and  community-based alcoholism and substance abuse service providers to
    36  study the availability of substance abuse services in New York state and
    37  make recommendations with respect to improving the continuum of care for
    38  substance abuse services.  Such  recommendations  shall  address  needed
    39  levels  of patient care within the continuum of alcoholism and substance
    40  abuse services, including the need for short stay outlier beds, consider
    41  ways to improve linkages between inpatient hospital and  community-based
    42  residential  and  outpatient programs, as well as other social services,
    43  and the appropriateness of the payments provided for such services.  The
    44  joint  task  force  shall issue a report on its findings and recommenda-

    45  tions to the legislature by June 30, 2007.
    46    § 38. Notwithstanding any law, rule or regulation to the contrary  and
    47  in  accordance  with the provisions of subdivision 10 of section 2807 of
    48  the public health law, and subject to the availability of federal finan-
    49  cial participation for the period April 1,  2006  through  December  31,
    50  2008,  the commissioner of health, in consultation with the commissioner
    51  of the office of alcoholism and substance abuse services,  shall  estab-
    52  lish  a demonstration program, to be administered by the office of alco-
    53  holism and substance abuse services in conjunction with  the  department
    54  of  health,  for  adjustments  to  inpatient rates of payment to general
    55  hospitals to provide supplemental Medicaid rates  of  payments  to  such
    56  general hospitals to provide for enhanced discharge planning with regard


        S. 6457--C                         16                         A. 9557--B
 
     1  to inpatients who are determined to be at risk for multiple re-admission
     2  for  inpatient  detoxification services, for the purpose of ensuring the
     3  transitioning of such patients to community  based  chemical  dependence
     4  treatment  programs  certified  pursuant  to  article  32  of the mental
     5  hygiene law, and to reduce  the  rate  of  chemical  dependence  related
     6  re-admission  of  such  patients to general hospitals.  In addition, the
     7  commissioner of health, in consultation with  the  commissioner  of  the
     8  office  of  alcoholism  and  substance abuse services, may seek authori-
     9  zation from the federal government for additional Medicaid  payments  to
    10  providers of chemical dependence treatment services to perform expedited
    11  chemical dependence assessments of Medicaid eligible hospital inpatients

    12  who  are  also  potentially  eligible for inclusion in the demonstration
    13  program authorized by this section.
    14    § 39. It shall be the policy of the state of New York that  a  compre-
    15  hensive  law be enacted for the purpose of creating a uniform, statewide
    16  system of standards, procedures and reporting for financial aid policies
    17  of general hospitals. Currently, there is  a  wide  discrepancy  in  how
    18  general hospitals apply financial aid policies to low-income individuals
    19  without  health insurance, or who have exhausted their health insurance.
    20  In addition, there is a need for consistent reporting  related  to  such
    21  policies  and  levels  of uncompensated care.  Such uniform policies and
    22  reporting requirements are needed in order to  ensure  that  low  income
    23  individuals  without health insurance or who have exhausted their health

    24  insurance are treated similarly throughout the state.
    25    § 39-a.  Section 2807-k of the public health law is amended by  adding
    26  a new subdivision 9-a to read as follows:
    27    9-a.  (a)  As  a  condition  for  participation  in pool distributions
    28  authorized pursuant to this section  and  section  twenty-eight  hundred
    29  seven-w  of  this  article  for  periods on and after January first, two
    30  thousand nine, general hospitals shall, effective  for  periods  on  and
    31  after  January  first, two thousand seven, establish financial aid poli-
    32  cies and procedures, in accordance with the provisions of this  subdivi-
    33  sion,  for  reducing charges otherwise applicable to low-income individ-
    34  uals without health  insurance,  or  who  have  exhausted  their  health

    35  insurance  benefits,  and  who  can demonstrate an inability to pay full
    36  charges, and  also,  at  the  hospital's  discretion,  for  reducing  or
    37  discounting the collection of co-pays and deductible payments from those
    38  individuals who can demonstrate an inability to pay such amounts.
    39    (b)  Such  reductions from charges for uninsured patients with incomes
    40  below at least three hundred percent of the federal poverty level  shall
    41  result  in a charge to such individuals that does not exceed the greater
    42  of the amount that would have been paid for the  same  services  by  the
    43  "highest  volume payor" for such general hospital as defined in subpara-
    44  graph (v) of this paragraph, or for services provided pursuant to  title

    45  XVIII  of  the  federal  social security act (medicare), or for services
    46  provided pursuant to title XIX of the federal social security act (medi-
    47  caid), and provided further that such amounts shall be adjusted  accord-
    48  ing to income level as follows:
    49    (i) For patients with incomes at or below at least one hundred percent
    50  of  the federal poverty level, the hospital shall collect no more than a
    51  nominal payment amount, consistent with guidelines  established  by  the
    52  commissioner;
    53    (ii)  For  patients  with  incomes  between  at  least one hundred one
    54  percent and one hundred fifty percent of the federal poverty level,  the
    55  hospital shall collect no more than the amount identified after applica-

    56  tion  of  a  proportional sliding fee schedule under which patients with

        S. 6457--C                         17                         A. 9557--B
 
     1  lower incomes shall pay the lowest amount. Such schedule  shall  provide
     2  that  the  amount  the  hospital may collect for such patients increases
     3  from the nominal amount described in subparagraph (i) of this  paragraph
     4  in  equal  increments  as  the  income of the patient increases, up to a
     5  maximum of twenty percent of the greater of the amount that  would  have
     6  been  paid  for the same services by the "highest volume payor" for such
     7  general hospital, as defined in subparagraph (v) of this  paragraph,  or
     8  for  services  provided  pursuant  to  title XVIII of the federal social

     9  security act (medicare) or for services provided pursuant to  title  XIX
    10  of the federal social security act (medicaid);
    11    (iii) For patients with incomes between at least one hundred fifty-one
    12  percent  and two hundred fifty percent of the federal poverty level, the
    13  hospital shall collect no more than the amount identified after applica-
    14  tion of a proportional sliding fee schedule under  which  patients  with
    15  lower  income shall pay the lowest amounts.  Such schedule shall provide
    16  that the amount the hospital may collect  for  such  patients  increases
    17  from  the  twenty  percent figure described in subparagraph (ii) of this
    18  paragraph in equal increments as the income of the patient increases, up

    19  to a maximum of the greater of the amount that would have been paid  for
    20  the  same services by the "highest volume payor" for such general hospi-
    21  tal, as defined in subparagraph (v) of this paragraph, or  for  services
    22  provided  pursuant  to  title  XVIII  of the federal social security act
    23  (medicare) or for services provided pursuant to title XIX of the federal
    24  social security act (medicaid); and
    25    (iv) For patients with incomes between at least two hundred  fifty-one
    26  percent  and  three  hundred  percent  of the federal poverty level, the
    27  hospital shall collect no more than the greater of the amount that would
    28  have been paid for the same services by the "highest volume  payor"  for

    29  such  general hospital as defined in subparagraph (v) of this paragraph,
    30  or for services provided pursuant to title XVIII of the  federal  social
    31  security  act (medicare), or for services provided pursuant to title XIX
    32  of the federal social security act (medicaid).
    33    (v) For the purposes of this paragraph, "highest volume  payor"  shall
    34  mean  the  insurer,  corporation  or organization licensed, organized or
    35  certified pursuant to article thirty-two, forty-two  or  forty-three  of
    36  the insurance law or article forty-four of this chapter, or other third-
    37  party  payor,  which  has  a  contract  or  agreement  to pay claims for
    38  services provided by the  general  hospital  and  incurred  the  highest
    39  volume of claims in the previous calendar year.

    40    (vi)  A  hospital may implement policies and procedures to permit, but
    41  not require, consideration on a case-by-case basis of exceptions to  the
    42  requirements  described  in subparagraphs (i) and (ii) of this paragraph
    43  based upon the existence of significant assets owned by the patient that
    44  should be taken into account  in  determining  the  appropriate  payment
    45  amount  for  that  patient's care, provided, however, that such proposed
    46  policies and procedures  shall  be  subject  to  the  prior  review  and
    47  approval  of the commissioner and, if approved, shall be included in the
    48  hospital's financial assistance  policy  established  pursuant  to  this
    49  section,  and  provided  further  that, if such approval is granted, the

    50  maximum amount that may be collected shall not exceed the greater of the
    51  amount that would have been paid for the same services by  the  "highest
    52  volume  payor"  for such general hospital as defined in subparagraph (v)
    53  of this paragraph, or for services provided pursuant to title  XVIII  of
    54  the  federal  social  security  act (medicare), or for services provided
    55  pursuant to title XIX of the federal social security act (medicaid).  In
    56  the event that a general hospital reviews a patient's assets  in  deter-

        S. 6457--C                         18                         A. 9557--B
 
     1  mining  payment  adjustments  such  policies  and  procedures  shall not
     2  consider as assets a patient's primary residence, assets held in a  tax-

     3  deferred  or  comparable  retirement  savings  account,  college savings
     4  accounts,  or  cars  used  regularly  by  a  patient or immediate family
     5  members.
     6    (vii) Nothing in this paragraph shall be construed to limit  a  hospi-
     7  tal's  ability to establish patient eligibility for payment discounts at
     8  income levels higher than  those  specified  herein  and/or  to  provide
     9  greater  payment  discounts for eligible patients than those required by
    10  this paragraph.
    11    (c) Such policies and procedures shall be  clear,  understandable,  in
    12  writing and publicly available in summary form and each general hospital
    13  participating  in the pool shall ensure that every patient is made aware

    14  of the existence of such policies and procedures and is provided,  in  a
    15  timely  manner,  with  a  summary  of  such policies and procedures upon
    16  request.  Any summary provided to patients shall, at a minimum,  include
    17  specific  information  as to income levels used to determine eligibility
    18  for assistance, a description of the primary service area of the  hospi-
    19  tal  and  the  means  of applying for assistance.  For general hospitals
    20  with twenty-four hour emergency departments, such  policies  and  proce-
    21  dures  shall  require the notification of patients during the intake and
    22  registration process, through the conspicuous posting of language-appro-
    23  priate information in the general hospital, and information on bills and

    24  statements sent to patients, that financial  aid  may  be  available  to
    25  qualified  patients and how to obtain further information. For specialty
    26  hospitals without twenty-four hour emergency departments, such notifica-
    27  tion shall take place through written  materials  provided  to  patients
    28  during the intake and registration process prior to the provision of any
    29  health care services or procedures, and through information on bills and
    30  statements  sent  to  patients,  that  financial aid may be available to
    31  qualified patients and how to obtain further information.    Application
    32  materials  shall  include a notice to patients that upon submission of a
    33  completed application, including any information or documentation needed

    34  to determine the patient's eligibility pursuant to the hospital's finan-
    35  cial assistance policy, the patient may disregard any  bills  until  the
    36  hospital  has  rendered a decision on the application in accordance with
    37  this paragraph.
    38    (d) Such policies and procedures shall include clear, objective crite-
    39  ria for determining a patient's ability to pay and  for  providing  such
    40  adjustments  to  payment  requirements  as are necessary. In addition to
    41  adjustment mechanisms such as sliding fee  schedules  and  discounts  to
    42  fixed standards, such policies and procedures shall also provide for the
    43  use  of  installment  plans  for  the payment of outstanding balances by
    44  patients pursuant to the provisions of the hospital's financial  assist-

    45  ance policy.  The monthly payment under such a plan shall not exceed ten
    46  percent  of  the gross monthly income of the patient, provided, however,
    47  that if patient assets are considered under such a policy, then  patient
    48  assets  which  are  not excluded assets pursuant to subparagraph (vi) of
    49  paragraph (b) of this subdivision may be considered in addition  to  the
    50  limit  on monthly payments.  The rate of interest charged to the patient
    51  on the unpaid balance, if any, shall not exceed the rate for  a  ninety-
    52  day security issued by the United States Department of Treasury, plus .5
    53  percent and no plan shall include an accelerator or similar clause under
    54  which  a higher rate of interest is triggered upon a missed payment.  If

    55  such policies and procedures include a requirement of a deposit prior to
    56  non-emergent, medically-necessary care, such deposit must be included as

        S. 6457--C                         19                         A. 9557--B
 
     1  part of any financial aid consideration.  Such policies  and  procedures
     2  shall be applied consistently to all eligible patients.
     3    (e)  Such  policies  and procedures shall permit patients to apply for
     4  assistance within at least ninety days of the date of discharge or  date
     5  of  service  and  provide  at least twenty days for patients to submit a
     6  completed application. Such policies and  procedures  may  require  that
     7  patients  seeking  payment  adjustments  provide  appropriate  financial

     8  information and documentation in support of their application, provided,
     9  however, that such application process shall not be unduly burdensome or
    10  complex. General hospitals  shall,  upon  request,  assist  patients  in
    11  understanding the hospital's policies and procedures and in applying for
    12  payment  adjustments. Application forms shall be printed in the "primary
    13  languages" of patients served by the general hospital. For the  purposes
    14  of  this  paragraph, "primary languages" shall include any language that
    15  is either (i) used to communicate,  during  at  least  five  percent  of
    16  patient  visits  in a year, by patients who cannot speak, read, write or
    17  understand the English language at the level  of  proficiency  necessary

    18  for  effective  communication with health care providers, or (ii) spoken
    19  by non-English speaking individuals comprising more than one percent  of
    20  the  primary hospital service area population, as calculated using demo-
    21  graphic information available from  the  United  States  Bureau  of  the
    22  Census,  supplemented  by  data from school systems. Decisions regarding
    23  such applications shall be made within  thirty  days  of  receipt  of  a
    24  completed  application.  Such policies and procedures shall require that
    25  the hospital issue any denial/approval of such  application  in  writing
    26  with  information  on  how  to  appeal  the denial and shall require the
    27  hospital to establish an appeals process under which  it  will  evaluate

    28  the  denial  of  an  application.  Nothing  in this subdivision shall be
    29  interpreted as prohibiting a hospital from making  the  availability  of
    30  financial  assistance  contingent  upon  the  patient first applying for
    31  coverage under title XIX of the social security act (medicaid) or anoth-
    32  er insurance program if, in the judgment of the  hospital,  the  patient
    33  may  be eligible for medicaid or another insurance program, and upon the
    34  patient's cooperation in following the hospital's  financial  assistance
    35  application  requirements, including the provision of information needed
    36  to make a determination on the patient's application in accordance  with
    37  the hospital's financial assistance policy.

    38    (f)  Such  policies  and  procedures  shall provide that patients with
    39  incomes below three hundred percent of the  federal  poverty  level  are
    40  deemed  presumptively eligible for payment adjustments and shall conform
    41  to the requirements set forth in  paragraph  (b)  of  this  subdivision,
    42  provided, however, that nothing in this subdivision shall be interpreted
    43  as precluding hospitals from extending such payment adjustments to other
    44  patients, either generally or on a case-by-case basis. Such policies and
    45  procedures  shall provide financial aid for emergency hospital services,
    46  including emergency transfers pursuant to the federal emergency  medical
    47  treatment  and  active labor act (42 USC 1395dd), to patients who reside

    48  in New York state and for  medically  necessary  hospital  services  for
    49  patients who reside in the hospital's primary service area as determined
    50  according  to  criteria  established by the commissioner.  In developing
    51  such criteria, the commissioner shall consult  with  representatives  of
    52  the  hospital  industry, health care consumer advocates and local public
    53  health officials. Such criteria shall be made available to the public no
    54  less than thirty days prior to the date of implementation and shall,  at
    55  a minimum:

        S. 6457--C                         20                         A. 9557--B
 
     1    (i)  prohibit  a  hospital  from  developing  or  altering its primary

     2  service area in a manner designed to avoid medically underserved  commu-
     3  nities or communities with high percentages of uninsured residents;
     4    (ii)  ensure that every geographic area of the state is included in at
     5  least one general hospital's  primary  service  area  so  that  eligible
     6  patients may access care and financial assistance; and
     7    (iii)  require the hospital to notify the commissioner upon making any
     8  change to its primary service area, and to include a description of  its
     9  primary  service  area  in  the  hospital's annual implementation report
    10  filed pursuant to subdivision  three  of  section  twenty-eight  hundred
    11  three-l of this article.
    12    (g)  Nothing  in  this  subdivision shall be interpreted as precluding

    13  hospitals from extending payment  adjustments  for  medically  necessary
    14  non-emergency  hospital  services  to patients outside of the hospital's
    15  primary service area. For patients determined to be eligible for  finan-
    16  cial  aid  under  the  terms  of a hospital's financial aid policy, such
    17  policies and procedures shall prohibit any limitations on financial  aid
    18  for services based on the medical condition of the applicant, other than
    19  typical  limitations  or  exclusions  based  on medical necessity or the
    20  clinical or therapeutic benefit of a procedure or treatment.
    21    (h) Such policies and procedures shall not permit the forced  sale  or
    22  foreclosure  of  a  patient's  primary  residence in order to collect an

    23  outstanding medical bill and shall require the hospital to refrain  from
    24  sending  an  account  to  collection  if  the  patient  has  submitted a
    25  completed application for financial aid, including any required support-
    26  ing documentation, while the hospital determines the patient's eligibil-
    27  ity for such aid. Such policies and procedures shall provide for written
    28  notification, which shall include notification on a patient bill,  to  a
    29  patient  not  less  than  thirty days prior to the referral of debts for
    30  collection and shall require  that  the  collection  agency  obtain  the
    31  hospital's  written  consent  prior  to  commencing a legal action. Such
    32  policies and procedures shall require all  general  hospital  staff  who

    33  interact   with   patients   or  have  responsibility  for  billing  and
    34  collections to be trained in such policies and procedures,  and  require
    35  the  implementation  of  a mechanism for the general hospital to measure
    36  its compliance with such policies  and  procedures.  Such  policies  and
    37  procedures  shall require that any collection agency under contract with
    38  a general hospital for the collection of  debts  follow  the  hospital's
    39  financial assistance policy, including providing information to patients
    40  on  how  to apply for financial assistance where appropriate. Such poli-
    41  cies and procedures shall prohibit collections from  a  patient  who  is
    42  determined  to  be eligible for medical assistance pursuant to title XIX

    43  of the federal social security act at the time  services  were  rendered
    44  and for which services medicaid payment is available.
    45    (i) Reports required to be submitted to the department by each general
    46  hospital  as  a  condition  for  participation  in  the pools, and which
    47  contain, in accordance with applicable regulations, a certification from
    48  an independent  certified  public  accountant  or  independent  licensed
    49  public accountant or an attestation from a senior official of the hospi-
    50  tal  that the hospital is in compliance with conditions of participation
    51  in the pools, shall also contain, for reporting  periods  on  and  after
    52  January first, two thousand seven:
    53    (i)  a  report  on  hospital costs incurred and uncollected amounts in

    54  providing services to eligible patients without insurance, including the
    55  amount of care provided for a nominal payment amount, during the  period
    56  covered by the report;

        S. 6457--C                         21                         A. 9557--B
 
     1    (ii)  hospital  costs incurred and uncollected amounts for deductibles
     2  and coinsurance for eligible patients with insurance or other third-par-
     3  ty payor coverage;
     4    (iii)  the  number  of  patients, organized according to United States
     5  postal service zip code, who applied for financial  assistance  pursuant
     6  to the hospital's financial assistance policy, and the number, organized
     7  according  to  United States postal service zip code, whose applications

     8  were approved and whose applications were denied;
     9    (iv) the reimbursement received for indigent care from the pool estab-
    10  lished pursuant to this section;
    11    (v) the amount of funds that have been expended on charity  care  from
    12  charitable  bequests  made  or  trusts  established  for  the purpose of
    13  providing financial assistance to patients who are eligible  in  accord-
    14  ance with the terms of such bequests or trusts;
    15    (vi)  for  hospitals located in social services districts in which the
    16  district allows hospitals to assist patients with such applications, the
    17  number of applications for eligibility under title  XIX  of  the  social
    18  security  act (medicaid) that the hospital assisted patients in complet-

    19  ing and the number denied and approved;
    20    (vii) the hospital's financial losses resulting from services provided
    21  under medicaid; and
    22    (viii) the number  of  liens  placed  on  the  primary  residences  of
    23  patients through the collection process used by a hospital.
    24    (j)  Within ninety days of the effective date of this subdivision each
    25  hospital shall submit to the commissioner a written report on its  poli-
    26  cies  and procedures for financial assistance to patients which are used
    27  by the hospital on the effective date of this subdivision.  Such  report
    28  shall  include copies of its policies and procedures, including material
    29  which is distributed to patients, and a description  of  the  hospital's

    30  financial  aid  policies  and procedures. Such description shall include
    31  the income levels of patients on which eligibility is based, the  finan-
    32  cial  aid  eligible  patients  receive and the means of calculating such
    33  aid, and the service area, if any, used by  the  hospital  to  determine
    34  eligibility.
    35    §  40. Paragraph (a) of subdivision 1 of section 212 of chapter 474 of
    36  the laws of 1996, amending the education law and other laws relating  to
    37  rates  for residential health care facilities, as amended by chapter 161
    38  of the laws of 2005, is amended to read as follows:
    39    (a) Notwithstanding any inconsistent provision of law or regulation to
    40  the contrary, effective beginning August 1, 1996, for the  period  April
    41  1,  1997  through  March 31, 1998, April 1, 1998 for the period April 1,

    42  1998 through March 31, 1999, August 1, 1999, for  the  period  April  1,
    43  1999 through March 31, 2000, April 1, 2000, for the period April 1, 2000
    44  through  March  31,  2001,  April  1, 2001, for the period April 1, 2001
    45  through March 31, 2002, April 1, 2002, for  the  period  April  1,  2002
    46  through March 31, 2003, and for the state fiscal year beginning April 1,
    47  2005  through  March  31,  2006, and for the state fiscal year beginning
    48  April 1, 2006 through March  31,  2007,  the  department  of  health  is
    49  authorized to pay public general hospitals, as defined in subdivision 10
    50  of  section  2801 of the public health law, operated by the state of New
    51  York or by the state university of New York or by a county, which  shall
    52  not  include  a city with a population of over one million, of the state
    53  of New York, and those public general hospitals located in the county of

    54  Westchester, the county of Erie or  the  county  of  Nassau,  additional
    55  payments  for inpatient hospital services as medical assistance payments
    56  pursuant to title 11 of  article  5  of  the  social  services  law  for

        S. 6457--C                         22                         A. 9557--B
 
     1  patients eligible for federal financial participation under title XIX of
     2  the  federal  social  security act in medical assistance pursuant to the
     3  federal laws and regulations governing disproportionate  share  payments
     4  to  hospitals  up  to  one  hundred  percent of each such public general
     5  hospital's medical assistance and uninsured  patient  losses  after  all
     6  other  medical  assistance, including disproportionate share payments to
     7  such public general hospital for  1996,  1997,  1998,  and  1999,  based

     8  initially  for  1996  on reported 1994 reconciled data as further recon-
     9  ciled to actual reported  1996  reconciled  data,  and  for  1997  based
    10  initially  on  reported  1995  reconciled  data as further reconciled to
    11  actual reported 1997  reconciled  data,  for  1998  based  initially  on
    12  reported  1995  reconciled data as further reconciled to actual reported
    13  1998 reconciled data, for 1999 based initially on reported  1995  recon-
    14  ciled  data  as  further  reconciled  to actual reported 1999 reconciled
    15  data, for 2000 based initially  on  reported  1995  reconciled  data  as
    16  further reconciled to actual reported 2000 data, for 2001 based initial-
    17  ly  on  reported  1995  reconciled  data as further reconciled to actual
    18  reported 2001 data, for 2002 based initially on reported 2000 reconciled
    19  data as further reconciled to actual reported 2002 data, and  for  state

    20  fiscal  years  beginning  on  April 1, 2005, based initially on reported
    21  2000 reconciled data as further reconciled to actual reported  data  for
    22  2005,  and  for  state  fiscal  years  beginning on April 1, 2006, based
    23  initially on reported 2000 reconciled  data  as  further  reconciled  to
    24  actual  reported  data for 2006.   The payments may be added to rates of
    25  payment or made as aggregate payments  to  an  eligible  public  general
    26  hospital.
    27    § 41.  Paragraph (b) of subdivision 1 of section 211 of chapter 474 of
    28  the  laws of 1996, amending the education law and other laws relating to
    29  rates for residential health care facilities, as amended by chapter  161
    30  of the laws of 2005, is amended to read as follows:
    31    (b) Notwithstanding any inconsistent provision of law or regulation to

    32  the  contrary,  effective  beginning  April  1,  2000, the department of
    33  health is authorized to pay public general hospitals, other  than  those
    34  operated  by  the state of New York or the state university of New York,
    35  as defined in subdivision 10 of section 2801 of the public  health  law,
    36  located  in  a  city  with  a  population  of over 1 million, additional
    37  initial payments for inpatient hospital services of $120 million  during
    38  each  state  fiscal  year  until  March 31, 2003, and up to $120 million
    39  during the state fiscal year beginning April 1, 2005 through  March  31,
    40  2006  and  during  the state fiscal year beginning April 1, 2006 through
    41  March 31, 2007, as medical assistance payments pursuant to title  11  of
    42  article  5  of the social services law for patients eligible for federal
    43  financial participation under title XIX of the federal  social  security

    44  act  in  medical assistance pursuant to the federal laws and regulations
    45  governing disproportionate share payments  to  hospitals  based  on  the
    46  relative  share  of each such non-state operated public general hospital
    47  of medical assistance and  uninsured  patient  losses  after  all  other
    48  medical  assistance,  including  disproportionate share payments to such
    49  public general hospitals for payments made during the state fiscal  year
    50  ending  March 31, 2001, based initially on reported 1995 reconciled data
    51  as further reconciled to  actual  reported  2000  or  2001  data,    for
    52  payments  made during the state fiscal year ending March 31, 2002, based
    53  initially on reported 1995 reconciled  data  as  further  reconciled  to
    54  actual  reported  2001  or 2002 data, for payments made during the state
    55  fiscal year ending March 31, 2003,  based  initially  on  reported  2000

    56  reconciled  data  as  further reconciled to actual reported 2002 or 2003

        S. 6457--C                         23                         A. 9557--B
 
     1  data, for payments made during state fiscal years ending  on  and  after
     2  March  31,  2006,  based  initially  on reported 2000 reconciled data as
     3  further reconciled to actual reported 2005 or 2006  data,  for  payments
     4  made during state fiscal years ending on and after March 31, 2007, based
     5  initially  on  reported  2000  reconciled  data as further reconciled to
     6  actual reported 2006 or 2007 data.  The payments may be added  to  rates
     7  of  payment  or made as aggregate payments to an eligible public general
     8  hospital.
     9    § 42. Intentionally omitted.
    10    § 43. Notwithstanding section 4 of chapter 81 of the laws of 1995,  as

    11  amended,  and  any  other inconsistent provision of law or regulation to
    12  the contrary, on and after October 1, 2006, rates of payment by  govern-
    13  mental  agencies  to   residential health care facilities and diagnostic
    14  and treatment centers licensed under article 28 of the public health law
    15  for adult day health care services provided to registrants with acquired
    16  immunodeficiency syndrome (AIDS) or other human  immunodeficiency  virus
    17  (HIV) related illnesses, shall reflect trend factor adjustments computed
    18  pursuant  to  paragraph  (c)  of subdivision 10 of section 2807-c of the
    19  public health law to project for the effects of  inflation  attributable
    20  to periods on and after October 1, 2006 through December 31, 2009.
    21    § 44. Section 2808 of the public health law is amended by adding a new
    22  subdivision 22-a to read as follows:

    23    22-a.  Modifications.   (a) Notwithstanding any inconsistent provision
    24  of law or regulation to the contrary, effective April first,  two  thou-
    25  sand  six  and  thereafter,  residential  health  care facility rates of
    26  payment determined pursuant to this section for payments made by govern-
    27  mental agencies shall not contain  a  payment  factor  for  interest  on
    28  current indebtedness if the residential health care facility cost report
    29  utilized  to  determine  such  payment factor also shows a withdrawal of
    30  equity, a transfer of assets, or a positive net income.
    31    (b) Notwithstanding any inconsistent provision of law or regulation to
    32  the contrary, for residential health  care  facility  rates  of  payment

    33  determined  pursuant  to this article for services provided on and after
    34  April first, two thousand six, the annual  cost  report  filed  by  each
    35  residential health care facility for two thousand five and for each year
    36  thereafter  shall  be  examined  and  in  the  event the operating costs
    37  reported by each such facility in any such  cost  report  is  less  than
    38  ninety  percent of the operating costs reported in the cost report which
    39  is being utilized to set  such  facility's  existing  rates  of  payment
    40  trended  to  two thousand five and each year thereafter, then such rates
    41  of payment shall be recalculated  utilizing  the  more  recent  reported
    42  operating cost data.
    43    (c) Notwithstanding any inconsistent provision of law or regulation to

    44  the  contrary, effective on and after April first, two thousand six, for
    45  purposes of establishing rates of payment by governmental  agencies  for
    46  residential  health  care  facilities licensed pursuant to this article,
    47  the operating component of the rate  for  any  residential  health  care
    48  facility  that  did  not  or  does not achieve ninety percent or greater
    49  occupancy for any year within five  calendar  years  from  the  date  of
    50  commencing  operation,  shall  be  recalculated utilizing the facility's
    51  most recently available reported allowable costs divided by patient days
    52  imputed at ninety percent occupancy. Such recalculated rates of  payment
    53  shall  be  effective  January first of the sixth calendar year following

    54  the date the facility commenced operations or April first, two  thousand
    55  six, whichever is later.
    56    § 45. Intentionally omitted.

        S. 6457--C                         24                         A. 9557--B
 
     1    § 46. Intentionally omitted.
     2    §  47.  Notwithstanding section 448 of chapter 170 of the laws of 1994
     3  and section 4 of chapter 81 of the laws of 1995,  as  amended,  and  any
     4  other  inconsistent  provision of law or regulation, for rate periods on
     5  and after April first, two thousand six,  medical  assistance  rates  of
     6  payment  to  residential health care facilities and diagnostic treatment
     7  centers licensed under article 28 of the public health law for adult day
     8  health care services provided to registrants with acquired immunodefici-

     9  ency syndrome (AIDS) or other human immunodeficiency virus (HIV) related
    10  illnesses, shall be increased by an annual amount of two  million  eight
    11  hundred  thousand  dollars  in the aggregate. Such amount shall be allo-
    12  cated among such providers of adult day health services as  an  increase
    13  in  the daily rate of payment for services to such registrants.  Medical
    14  assistance adjustments under this section shall be subject to the avail-
    15  ability of federal financial participation under title XIX of the feder-
    16  al social security act.
    17    § 48. Intentionally omitted.
    18    § 49. Intentionally omitted.
    19    § 50.  Subparagraph 1 of paragraph (a) of subdivision 2 of section 366
    20  of the social services law, as amended by chapter 184  of  the  laws  of
    21  1969, is amended to read as follows:
    22    (1)  (i)  for  applications  for medical assistance filed on or before

    23  December thirty-first, two thousand five, a homestead which is essential
    24  and appropriate to the needs of the household;
    25    (ii) for applications for medical assistance filed on or after January
    26  first, two thousand six, a homestead which is essential and  appropriate
    27  to  the  needs  of the household; provided, however, that in determining
    28  eligibility of an individual for medical assistance for nursing facility
    29  services, the individual shall not be eligible for  such  assistance  if
    30  the  individual's equity interest in the homestead exceeds seven hundred
    31  fifty thousand dollars; provided further, that the dollar amount  speci-
    32  fied  in  this  clause  shall  be increased, beginning with the year two

    33  thousand eleven, from year to year, based on the percentage increase  in
    34  the consumer price index for all urban consumers, rounded to the nearest
    35  one  thousand  dollars.  Nothing  in  this  clause shall be construed as
    36  preventing an individual from using a reverse mortgage  or  home  equity
    37  loan  to reduce the individual's total equity interest in the homestead.
    38  The home equity limitation established by this clause shall be waived in
    39  the case of a demonstrated hardship, as determined pursuant to  criteria
    40  established  by  the  Secretary  of  Health and Human Services. The home
    41  equity limitation shall not apply  if  one  or  more  of  the  following
    42  persons  is  lawfully residing in the individual's homestead at the time

    43  of application for medical assistance: (A) the spouse of the individual;
    44  or (B) the individual's child who is under the age of twenty-one, or  is
    45  blind or permanently or totally disabled.
    46    §  50-a.  Paragraph  (e) of subdivision 5 of section 366 of the social
    47  services law, as relettered by chapter 170  of  the  laws  of  1994,  is
    48  relettered  paragraph  (f)  and  a new paragraph (e) is added to read as
    49  follows:
    50    (e) For transfers made on or after February eighth, two thousand six:
    51    (1) (i) "assets" means all income and resources of an  individual  and
    52  of  the  individual's spouse, including income or resources to which the
    53  individual or the individual's spouse is  entitled  but  which  are  not
    54  received  because  of  action  by:  the  individual  or the individual's

    55  spouse; a person with legal authority to act in place of or on behalf of
    56  the individual or the individual's spouse; a person acting at the direc-

        S. 6457--C                         25                         A. 9557--B
 
     1  tion or upon the request of the individual or the  individual's  spouse;
     2  or  by  a  court  or  administrative body with legal authority to act in
     3  place of or on behalf of the individual or the individual's spouse or at
     4  the  direction or upon the request of the individual or the individual's
     5  spouse.
     6    (ii) "blind" has the same  meaning  given  to  such  term  in  section
     7  1614(a)(2) of the federal social security act.
     8    (iii)  "disabled"  has  the same meaning given to such term in section

     9  1614(a)(3) of the federal social security act.
    10    (iv) "income" has the same meaning given to such term in section  1612
    11  of the federal social security act.
    12    (v)  "resources"  has  the  same meaning given to such term in section
    13  1613 of the federal social security act, without regard, in the case  of
    14  an  institutionalized  individual,  to  the  exclusion  provided  for in
    15  subsection (a)(1) of such section.
    16    (vi) "look-back  period"  means  the  sixty-month  period  immediately
    17  preceding the date that an institutionalized individual is both institu-
    18  tionalized and has applied for medical assistance.
    19    (vii)  "institutionalized  individual"  means any individual who is an

    20  in-patient in a nursing facility, including an intermediate care facili-
    21  ty for the mentally retarded, or who  is  an  in-patient  in  a  medical
    22  facility  and is receiving a level of care provided in a nursing facili-
    23  ty, or who is receiving care, services or supplies pursuant to a  waiver
    24  granted pursuant to subsection (c) of section 1915 of the federal social
    25  security act.
    26    (viii)  "intermediate care facility for the mentally retarded" means a
    27  facility certified under article sixteen of the mental hygiene  law  and
    28  which has a valid agreement with the department for providing intermedi-
    29  ate  care  facility  services and receiving payment therefor under title
    30  XIX of the federal social security act.

    31    (ix) "nursing facility" means a nursing home  as  defined  by  section
    32  twenty-eight  hundred  one  of the public health law and an intermediate
    33  care facility for the mentally retarded.
    34    (x) "nursing facility services" means nursing care and health  related
    35  services  provided  in a nursing facility; a level of care provided in a
    36  hospital which is equivalent to the care which is provided in a  nursing
    37  facility;  and  care, services or supplies provided pursuant to a waiver
    38  granted pursuant to subsection (c) of section 1915 of the federal social
    39  security act.
    40    (2) The uncompensated value of an asset is the fair  market  value  of
    41  such asset at the time of transfer, minus the amount of the compensation

    42  received in exchange for the asset.
    43    (3)  In  determining the medical assistance eligibility of an institu-
    44  tionalized individual, any transfer of an asset by the individual or the
    45  individual's spouse for less than fair market value made within or after
    46  the look-back period shall render the individual ineligible for  nursing
    47  facility  services for the period of time specified in subparagraph four
    48  of this paragraph. For purposes of this paragraph:
    49    (i) the purchase of an annuity shall be treated as the disposal of  an
    50  asset  for  less  than fair market value unless: the state is named as a
    51  beneficiary in the first position for  at  least  the  total  amount  of
    52  medical  assistance  paid  on  behalf  of the annuitant, or the state is

    53  named in the second position after the  community  spouse  or  minor  or
    54  disabled  child  and  is  named  in the first position if such spouse or
    55  representative of such child disposes of any  such  remainder  for  less

        S. 6457--C                         26                         A. 9557--B
 
     1  than  fair  market  value;  and  the  annuity  meets the requirements of
     2  section 1917(c)(1)(G) of the federal social security act;
     3    (ii)  the  purchase of a life estate interest in another person's home
     4  shall be treated as the disposal of an asset for less than  fair  market
     5  value unless the purchaser resided in such home for a period of at least
     6  one year after the date of purchase.

     7    (iii)  the  purchase  of a promissory note, loan, or mortgage shall be
     8  treated as the disposal of an asset for  less  than  fair  market  value
     9  unless  such  note,  loan, or mortgage meets the requirements of section
    10  1917(c)(1)(I) of the federal social security act.
    11    (4) Notwithstanding the provisions of this  paragraph,  an  individual
    12  shall not be ineligible for services solely by reason of any such trans-
    13  fer to the extent that:
    14    (i)  in  the case of an institutionalized individual, the asset trans-
    15  ferred was a home and title to the home as transferred to:
    16    (A) the spouse of the individual; or (B) a child of the individual who
    17  is under the age of twenty-one years or blind  or  disabled;  or  (C)  a

    18  sibling  of  the  individual who has an equity interest in such home and
    19  who resided in such home for a period of at least one  year  immediately
    20  before  the  date the individual became an institutionalized individual;
    21  or (D) a child of the individual who was residing in  such  home  for  a
    22  period  of at least two years immediately before the date the individual
    23  became an institutionalized individual, and who  provided  care  to  the
    24  individual  which permitted the individual to reside at home rather than
    25  in an institution or facility; or
    26    (ii) the assets: (A) were transferred to the individual's  spouse,  or
    27  to  another for the sole benefit of the individual's spouse; or (B) were

    28  transferred from the individual's spouse to another for the sole benefit
    29  of the individual's spouse; or (C) were transferred to the  individual's
    30  child who is blind or disabled, or to a trust established solely for the
    31  benefit  of  such  child; or (D) were transferred to a trust established
    32  solely for the benefit of an individual under sixty-five  years  of  age
    33  who is disabled; or
    34    (iii)  a  satisfactory showing is made that: (A) the individual or the
    35  individual's spouse intended to dispose of the  assets  either  at  fair
    36  market  value,  or  for  other valuable consideration; or (B) the assets
    37  were transferred exclusively for a purpose other  than  to  qualify  for
    38  medical  assistance;  or  (C)  all assets transferred for less than fair

    39  market value have been returned to the individual; or
    40    (iv) denial of eligibility would cause an undue  hardship,  such  that
    41  application of the transfer of assets provision under this section would
    42  deprive  the individual of medical care, such that the individual's life
    43  or health would be in danger, or would deprive the individual  of  food,
    44  clothing, shelter, or other necessities of life. The commissioner of the
    45  office  of  temporary and disability assistance shall develop a hardship
    46  waiver process which shall include  a  timely  process  for  determining
    47  whether  an  undue  hardship waiver will be granted and a timely process
    48  under which an adverse determination can be appealed.  The  commissioner

    49  of  the  office  of  temporary  and  disability assistance shall provide
    50  notice of the hardship waiver process in writing  to  those  individuals
    51  who  are  required to comply with the transfer of assets provision under
    52  this section. If such an individual is an institutionalized  individual,
    53  the  facility  in which he or she is residing shall be permitted to file
    54  an undue hardship waiver application on behalf of such  individual  with
    55  the  consent  of  the  individual  or the personal representative of the
    56  individual. If the application for an undue  hardship  waiver  for  such

        S. 6457--C                         27                         A. 9557--B
 
     1  individual is pending and meets certain criteria specified by the secre-

     2  tary  of  health  and  human  services,  the  commissioner of health may
     3  provide for payments for nursing facility services in order to hold  the
     4  bed  for  the  individual at the facility, but not in excess of payments
     5  for thirty days.
     6    (5) Any transfer made by an  individual  or  the  individual's  spouse
     7  under  subparagraph three of this paragraph shall cause the person to be
     8  ineligible for services for a period  equal  to  the  total,  cumulative
     9  uncompensated  value of all assets transferred during or after the look-
    10  back period, divided by the average monthly costs  of  nursing  facility
    11  services provided to a private patient for a given period of time at the
    12  time  of  application,  as determined pursuant to the regulations of the

    13  office of temporary and disability assistance. The period of ineligibil-
    14  ity shall begin the first day of a month during or  after  which  assets
    15  have  been transferred for less than fair market value, or the first day
    16  the individual is receiving services for which medical assistance cover-
    17  age would be available based on an approved application  for  such  care
    18  but for the provisions of subparagraph three of this paragraph, whichev-
    19  er  is  later, and which does not occur in any other periods of ineligi-
    20  bility under this paragraph. For  purposes  of  this  subparagraph,  the
    21  average  monthly costs of nursing facility services to a private patient
    22  for a given period of time at the time of application shall be  presumed

    23  to  be one hundred twenty percent of the average medical assistance rate
    24  of payment as of the first day of  January  of  each  year  for  nursing
    25  facilities  within  the  region wherein the applicant resides, as estab-
    26  lished pursuant to paragraph (b) of subdivision sixteen of section twen-
    27  ty-eight hundred seven-c of the public health law.
    28    (6) In the case of an asset held  by  an  individual  in  common  with
    29  another  person  or  persons  in  a joint tenancy, tenancy in common, or
    30  similar arrangement, the asset, or the affected portion  of  the  asset,
    31  shall be considered to be transferred by such individual when any action
    32  is taken, either by such individual or by any other person, that reduces

    33  or eliminates such individual's ownership or control of such asset.
    34    (7)  In  the  case of a trust established by the individual, as deter-
    35  mined pursuant to the regulations of the office of temporary  and  disa-
    36  bility assistance, any payment, other than a payment to or for the bene-
    37  fit  of  the  individual,  from  a revocable trust is considered to be a
    38  transfer of assets by the individual and any payment, other than  to  or
    39  for  the  benefit  of the individual, from the portion of an irrevocable
    40  trust which, under any circumstance, could  be  made  available  to  the
    41  individual  is  considered  to be a transfer of assets by the individual
    42  and, further, the value of any portion  of  an  irrevocable  trust  from

    43  which no payment could be made to the individual under any circumstances
    44  is  considered to be a transfer of assets by the individual for purposes
    45  of this section as of the date of establishment of  the  trust,  or,  if
    46  later, the date on which payment to the individual is foreclosed.
    47    (f) The commissioner of the office of temporary and disability assist-
    48  ance  shall promulgate such rules and regulations as may be necessary to
    49  carry out the provisions of this subdivision.
    50    § 50-b. Section 366-a of the social services law is amended by  adding
    51  a new subdivision 10 to read as follows:
    52    (10)  As a condition for the provision of medical assistance for nurs-
    53  ing facility services, the application of an individual for such assist-

    54  ance, including any recertification of eligibility for such  assistance,
    55  shall disclose a description of any interest the individual or community
    56  spouse  has in an annuity or similar financial instrument, regardless of

        S. 6457--C                         28                         A. 9557--B
 
     1  whether the annuity is irrevocable or  is  treated  as  an  asset.  Such
     2  application  or  recertification form shall include a statement that the
     3  state of New York becomes a remainder beneficiary under such annuity  or
     4  similar  financial instrument by virtue of the provision of such medical
     5  assistance.
     6    § 50-c.  Applicability  of  certain  limitations  on  eligibility  for
     7  medical  assistance.  1.  The  federal  deficit  reduction  act  of 2005

     8  mandates that New York state enact certain  limitations  on  eligibility
     9  for  medical  assistance  as  a condition of receiving federal financial
    10  participation for  that  medical  assistance.  The  amendments  made  to
    11  subparagraph (1) of paragraph (a) of subdivision 2 of section 366 of the
    12  social  services  law  and  paragraphs  (e)  and (f) of subdivision 5 of
    13  section 366 of the social services law and the  new  subdivision  10  of
    14  section  366-a  of  the  social  services  law,  enacted respectively by
    15  sections 50, 50-a, and 50-b of the chapter of the laws of 2006 (referred
    16  to in this section as the "limitations on eligibility"), to  the  extent
    17  they  limit  eligibility for medical assistance, shall only be effective
    18  and apply as and when they are and continue to be mandated by applicable
    19  federal law as a condition for the  state  receiving  federal  financial

    20  participation  for  that  medical  assistance. If at any time a court of
    21  competent jurisdiction finds that any provision of  the  limitations  on
    22  eligibility,  or any application thereof, is not so mandated by applica-
    23  ble federal law, then  that  provision,  or  that  application  of  that
    24  provision,  shall  have  no  legal  force  or  effect  and  the relevant
    25  provision of the social services law in effect immediately prior to this
    26  section becoming law shall apply.
    27    2. If any provision of the limitations on eligibility, or any applica-
    28  tion thereof, is found under this section to have  no  legal  force  and
    29  effect,  that finding shall not affect the legal force and effect of any
    30  other provision of the limitations on eligibility or any other  applica-
    31  tion thereof.
    32    § 51. Intentionally omitted.
    33    § 52. Intentionally omitted.

    34    § 53. Intentionally omitted.
    35    § 54. Intentionally omitted.
    36    § 55. Intentionally omitted.
    37    § 56. Intentionally omitted.
    38    §  57.  Paragraph  (b) of subdivision 4 of section 364-j of the social
    39  services law, as amended by chapter 649 of the laws of 1996, is  amended
    40  to read as follows:
    41    (b) Participants shall select a managed care provider from among those
    42  designated  under the managed care program, provided, however, a partic-
    43  ipant shall be provided with a choice of no less than two  managed  care
    44  providers.    Notwithstanding  the  foregoing,  a  local social services
    45  district designated a rural area as defined  in  42  U.S.C.  1395ww  may
    46  limit  a  participant  to one managed care provider, if the commissioner
    47  and the local social services district find that only one  managed  care

    48  provider  is  available.   A managed care provider in a rural area shall
    49  offer a participant a choice of at least three primary care  practition-
    50  ers  and  permit  the  individual to obtain a service or seek a provider
    51  outside of the managed care network where such service  or  provider  is
    52  not available from within the managed care provider network.
    53    §  58.   Section 3614 of the public health law, is amended by adding a
    54  new subdivision 3-a to read as follows:
    55    3-a. Medically fragile children. Rates of payment for continuous nurs-
    56  ing services for medically fragile children provided by a certified home

        S. 6457--C                         29                         A. 9557--B
 

     1  health agency, a licensed home care services agency or a long term  home
     2  health  care  program shall be established to ensure the availability of
     3  such services, whether provided by registered nurses or licensed practi-
     4  cal  nurses  who are employed by or under contract with such agencies or
     5  programs, and shall be established at a rate that is at least  equal  to
     6  rates  of  payment  for  such services rendered to patients eligible for
     7  AIDS home care programs; provided, however, that a certified home health
     8  agency, a licensed home care services agency or a long term home  health
     9  care  program  that  receives such enhanced rates for continuous nursing
    10  services for medically fragile children shall use such enhanced rates to

    11  increase payments to registered nurses and licensed practical nurses who
    12  provide such services. In the case of  services  provided  by  certified
    13  home  health  agencies  and  long term home health care programs through
    14  contracts with licensed home  care  services  agencies,  rate  increases
    15  received  by  such  certified  home  health  agencies and long term home
    16  health care programs pursuant to this subdivision shall be reflected  in
    17  payments  made  to  the  registered  nurses or licensed practical nurses
    18  employed by such licensed home care services agencies to render services
    19  to these children. In establishing rates of payment under this  subdivi-
    20  sion,  the commissioner shall consider the cost neutrality of such rates

    21  as related to the cost effectiveness of  caring  for  medically  fragile
    22  children  in a non-institutional setting as compared to an institutional
    23  setting.   For the purposes of this  subdivision,  a  medically  fragile
    24  child  shall  mean a child who is at risk of hospitalization or institu-
    25  tionalization, including but not limited to children who are technologi-
    26  cally-dependent for life or health-sustaining functions, require complex
    27  medication regimen or medical interventions to maintain  or  to  improve
    28  their health status or are in need of ongoing assessment or intervention
    29  to  prevent  serious  deterioration  of  their  health status or medical
    30  complications that place their life, health or development at risk,  but

    31  who  are capable of being cared for at home if provided with appropriate
    32  home care  services,  including  but  not  limited  to  case  management
    33  services and continuous nursing services.
    34    §  58-a. Section 367-r of the social services law, as added by section
    35  44 of part J of chapter 82 of the laws of 2002, is amended  to  read  as
    36  follows:
    37    §   367-r.  Private  duty  nursing  services  worker  recruitment  and
    38  retention program. 1. The commissioner of health shall, subject  to  the
    39  provisions of subdivision two of this section and to the availability of
    40  federal  financial  participation,  increase medical assistance rates of
    41  payment by three percent for services provided  on  and  after  December
    42  first,  two  thousand  two,  for  private  duty nursing services for the

    43  purposes of improving recruitment and retention of private duty nurses.
    44    1-a. Medically fragile children.  In addition, the commissioner  shall
    45  further  increase  rates  for  private  duty  nursing  services that are
    46  provided to medically fragile children to  ensure  the  availability  of
    47  such  services to such children.  In establishing rates of payment under
    48  this subdivision, the commissioner shall consider the cost neutrality of
    49  such rates as related to the cost effectiveness of caring for  medically
    50  fragile children in a non-institutional setting as compared to an insti-
    51  tutional setting.  Medically fragile children shall, for the purposes of
    52  this  subdivision,  have  the  same  meaning  as in subdivision three of

    53  section thirty-six hundred fourteen  of  the  public  health  law.  Such
    54  increased  rates  for services rendered to such children shall take into
    55  consideration the elements of cost, geographical  differentials  in  the
    56  elements  of  cost considered, economic factors in the area in which the

        S. 6457--C                         30                         A. 9557--B
 
     1  private duty nursing service is  provided,  costs  associated  with  the
     2  provision  of  private  duty nursing services to medically fragile chil-
     3  dren, and the need for incentives  to  improve  services  and  institute
     4  economies and shall be payable only to those private duty nurses who can
     5  demonstrate,  to the satisfaction of the department of health, satisfac-

     6  tory training and experience to provide services to such children.
     7    2. Private duty nursing services  providers  which  have  their  rates
     8  adjusted  pursuant  to  this section shall use such funds solely for the
     9  purposes of recruitment and retention  of  private  duty  nurses  or  to
    10  ensure  the delivery of private duty nursing services to medically frag-
    11  ile children and are prohibited from using  such  funds  for  any  other
    12  purpose.  Funds provided under this section are not intended to supplant
    13  support provided by a local government. Each  such  provider,  with  the
    14  exception  of self-employed private duty nurses, shall submit, at a time
    15  and in a manner to be determined by the commissioner of health, a  writ-
    16  ten  certification attesting that such funds will be used solely for the

    17  purpose of recruitment and retention of private duty nurses or to ensure
    18  the delivery of private duty nursing services to medically fragile chil-
    19  dren. The commissioner of  health  is  authorized  to  audit  each  such
    20  provider to ensure compliance with the written certification required by
    21  this subdivision and shall recoup all funds determined to have been used
    22  for purposes other than recruitment and retention of private duty nurses
    23  or  the  delivery  of private duty nursing services to medically fragile
    24  children. Such recoupment shall be in addition to  any  other  penalties
    25  provided by law.
    26    §  58-b.  Subdivision 2 of section 365-a of the social services law is
    27  amended by adding a new paragraph (p) to read as follows:
    28    (p) targeted case management services provided to children who

    29    (i) are eighteen years of age or under; and
    30    (ii) either
    31    (1) are physically disabled, according  to  the  federal  supplemental
    32  security  income program criteria, including but not limited to a person
    33  who is multiply disabled; or
    34    (2) have a developmental disability, as defined in  subdivision  twen-
    35  ty-two of section 1.03 of the mental hygiene law and demonstrate complex
    36  health  needs  as defined in paragraph c of subdivision seven of section
    37  three hundred sixty-six of this title; or
    38    (3) have a mental illness, as defined in subdivision twenty of section
    39  1.03 of the mental hygiene law and demonstrate complex health or  mental
    40  health  care  needs  as  defined  in  paragraph d of subdivision nine of

    41  section three hundred sixty-six of this title; and
    42    (iii) require the level of  care  provided  by  an  intermediate  care
    43  facility  for the developmentally disabled, a nursing facility, a hospi-
    44  tal or any other institution; and
    45    (iv) are capable of being cared for in the community if provided  with
    46  case  management  services  and/or  other  services  provided under this
    47  title; and
    48    (v) are capable of being cared for in the community at less cost  than
    49  in the appropriate institutional setting; and
    50    (vi) are not receiving services under section three hundred sixty-sev-
    51  en-c  of  this  title and for whom services provided under section three
    52  hundred sixty-seven-a of this title are not available or  sufficient  to

    53  support the children's care in the community.
    54    §  59.  Paragraph  (iii)  of subdivision (g) of section 1 of part C of
    55  chapter 58 of the laws of 2005, amending the public health law and other

        S. 6457--C                         31                         A. 9557--B
 
     1  laws relating to implementing the state fiscal plan for  the  2005--2006
     2  state fiscal year, is amended to read as follows:
     3    (iii)  During each state fiscal year subject to the provisions of this
     4  section, the commissioner shall maintain an accounting, for each  social
     5  services  district, of the net amounts that would have been expended by,
     6  or on behalf of, such district had the social services district  medical
     7  assistance  shares  provisions in effect on January 1, 2005 been applied
     8  to such district.  For purposes of this paragraph, fifty percent of  the

     9  payments  made by New York State to the secretary of the federal depart-
    10  ment of health and human services pursuant to  section  1935(c)  of  the
    11  social  security  act  shall  be deemed to be payments made on behalf of
    12  social services districts; such fifty percent share shall be apportioned
    13  to each district in the same ratio as the number of  "full-benefit  dual
    14  eligible  individuals," as that term is defined in section 1935(c)(6) of
    15  such act, for whom such district has fiscal responsibility  pursuant  to
    16  section  365  of  the  social services law, relates to the total of such
    17  individuals for whom districts have fiscal responsibility.  As  soon  as
    18  practicable  after  the  conclusion  of each such fiscal year, but in no

    19  event later than six months after the conclusion  of  each  such  fiscal
    20  year, the commissioner shall reconcile such net amounts with such fiscal
    21  year's  social  services district expenditure cap amount. Such reconcil-
    22  iation shall be based on actual expenditures made by  or  on  behalf  of
    23  social  services  districts,  and  revenues  received by social services
    24  districts, during such fiscal year and shall be made without  regard  to
    25  expenditures  made, and revenues received, outside such fiscal year that
    26  are related to services provided during, or prior to, such fiscal  year.
    27  The  commissioner shall pay to each social services district the amount,
    28  if any, by which such district's expenditure cap amount exceeds such net
    29  amount.
    30    § 60. Subdivision (a) of section 1 of part C of chapter 58 of the laws
    31  of 2005, amending the public health  law  and  other  laws  relating  to

    32  implementing  the state fiscal plan for the 2005-2006 state fiscal year,
    33  as amended by chapter 161 of the laws of 2005, is  amended  to  read  as
    34  follows:
    35    (a)  Notwithstanding  the  provisions  of  section 368-a of the social
    36  services law, or any other provision of law, the  department  of  health
    37  shall  provide  reimbursement  for  expenditures made by or on behalf of
    38  social services districts for medical assistance for needy persons,  and
    39  the  administration  thereof,  in accordance with the provisions of this
    40  section; provided, however, that this section shall not apply to amounts
    41  expended for health care services under section  369-ee  of  the  social
    42  services law, which amounts shall be reimbursed in accordance with para-
    43  graph  (t)  of  subdivision  1 of section 368-a of such law and shall be
    44  excluded from all  calculations  made  pursuant  to  this  section;  and

    45  provided  further  that amounts paid to the public hospitals pursuant to
    46  subdivision 14-f of section 2807-c of the public health law and  amounts
    47  expended  pursuant  to:  subdivision  12  of  section 2808 of the public
    48  health law; sections 211 and 212 of chapter 474 of the laws of 1996,  as
    49  amended;  and sections 11 through 14 of part A and sections 13 and 14 of
    50  part B of chapter 1 of the laws of 2002,  shall  be  excluded  from  all
    51  calculations made pursuant to this section.
    52    §  61.  Any  payments  made  on  and after January 1, 2006: (i) by the
    53  department of health to a social services district for  the  purpose  of
    54  providing  such  district  with  reimbursement  for  medical  assistance
    55  district share  overpayments  caused  by  miscategorization  of  persons
    56  described in subdivision 5 of section 365 of the social services law, or

        S. 6457--C                         32                         A. 9557--B
 
     1  (ii)  by  a social services district to the department of health for the
     2  purpose of providing  the  department  with  reimbursement  for  medical
     3  assistance  district  share underpayments caused by miscategorization of
     4  such  persons,  shall  not be governed by the provisions of section 1 of
     5  Part C of chapter 58 of the laws of 2005; provided,  however,  that  any
     6  portion  of  such  payments  that are made on or before June 1, 2006 and
     7  that are attributable to shares adjustments  for  expenditures  made  in
     8  calendar  year  2005  shall  be  included  in  the base year calculation
     9  required by subdivision (b) of such section 1.
    10    § 62. Paragraph (e-1) of subdivision 12 of section 2808 of the  public
    11  health  law,  as added by section 39 of part C of chapter 58 of the laws

    12  of 2005, is amended to read as follows:
    13    (e-1) Notwithstanding any inconsistent provision of law or regulation,
    14  the commissioner shall provide,  in  addition  to  payments  established
    15  pursuant  to  this  article  prior to application of this section, addi-
    16  tional payments under the medical assistance program pursuant  to  title
    17  eleven of article five of the social services law for non-state operated
    18  public  residential health care facilities, including public residential
    19  health care facilities located in the county of Nassau,  the  county  of
    20  Westchester  and  the  county  of Erie, but excluding public residential
    21  health care facilities operated by a town or city within a county, in an
    22  aggregate amount of up to one hundred fifty  million  dollars  in  addi-
    23  tional  payments  for state fiscal year beginning April first, two thou-

    24  sand [five] six.  The amount allocated to each eligible public  residen-
    25  tial  health  care  facility  for  this  period  shall  be  computed  in
    26  accordance with the provisions of paragraph  (f)  of  this  subdivision,
    27  provided, however, that patient days shall be utilized for such computa-
    28  tion  reflecting  actual  reported  data for two thousand three and each
    29  representative succeeding year as applicable.
    30    § 63. Intentionally omitted.
    31    § 64. Intentionally omitted.
    32    § 65. Section 364-j of the social services law is amended by adding  a
    33  new subdivision 23 to read as follows:
    34    23.  (a)  As  a  means of protecting the health, safety and welfare of
    35  recipients, in addition to any other sanctions that may be imposed,  the
    36  commissioner  shall  appoint  temporary  management  of  a  managed care

    37  provider upon determining that the managed care provider has  repeatedly
    38  failed to meet the substantive requirements of sections 1903(m) and 1932
    39  of  the federal Social Security Act and regulations. A hearing shall not
    40  be required prior to the appointment of temporary management.
    41    (b) The commissioner and/or his or her designees, which may  be  indi-
    42  viduals  within  the  department  or  other individuals or entities with
    43  appropriate knowledge and experience,  may  be  appointed  as  temporary
    44  management. The commissioner may appoint the superintendent of insurance
    45  and/or  his or her designees as temporary management of any managed care
    46  provider which is subject to rehabilitation pursuant to  article  seven-
    47  ty-four of the insurance law.

    48    (c)  The  responsibilities of temporary management shall include over-
    49  sight of the managed care provider for the purpose of removing the caus-
    50  es and conditions which led to  the  determination  requiring  temporary
    51  management,  the  imposition  of  improvements to remedy violations and,
    52  where necessary, the orderly reorganization, termination or  liquidation
    53  of the managed care provider.
    54    (d)  Temporary  management  may  hire  and  fire managed care provider
    55  personnel and expend managed care provider funds  in  carrying  out  the
    56  responsibilities imposed pursuant to this subdivision.

        S. 6457--C                         33                         A. 9557--B
 

     1    (e)  The  commissioner,  in  consultation with the superintendent with
     2  respect to any managed care provider subject to rehabilitation  pursuant
     3  to  article  seventy-four  of  the  insurance law, may make available to
     4  temporary management for the benefit of a managed care provider for  the
     5  maintenance  of required reserves and deposits monies from such funds as
     6  are appropriated for such purpose.
     7    (f)  The  commissioner  is  authorized  to  establish  in   regulation
     8  provisions  for the payment of fees and expenses from funds appropriated
     9  for such purpose for non-governmental individuals and entities appointed
    10  as temporary management pursuant to this subdivision.
    11    (g) The commissioner may not terminate temporary management  prior  to

    12  his or her determination that the managed care provider has the capabil-
    13  ity to ensure that the sanctioned behavior will not recur.
    14    (h)  During any period of temporary management individuals enrolled in
    15  the managed care provider being managed  may  disenroll  without  cause.
    16  Upon  reaching  a  determination that requires temporary management of a
    17  managed care provider,  the  commissioner  shall  notify  all  recipient
    18  enrollees  of  such  provider that they may terminate enrollment without
    19  cause during the period of temporary management.
    20    (i) The commissioner may adopt and  amend  rules  and  regulations  to
    21  effectuate the purposes and provisions of this subdivision.
    22    §  65-a. Section 367-s of the social services law, as added by section

    23  30 of part E of chapter 63 of the laws of 2005, is amended  to  read  as
    24  follows:
    25    § 367-s. Emergency medical transportation services. 1. Notwithstanding
    26  any  provision of law to the contrary, a supplemental medical assistance
    27  payment shall be made on an  annual  basis  to  providers  of  emergency
    28  medical  transportation  services  in  an aggregate amount not to exceed
    29  four million dollars for two thousand six and six  million  dollars  for
    30  two thousand seven pursuant to the following methodology:
    31    (a)  For  each emergency medical transportation services provider that
    32  receives medical assistance [payments] reimbursement  processed  through
    33  the state Medicaid payment system, the department of health shall deter-
    34  mine  the ratio of such provider's [payments] state-processed reimburse-

    35  ment to the total such [payments] reimbursement made during each quarter
    36  of the applicable calendar year, expressed as a percentage;
    37    (b) For each such provider, the department of  health  shall  multiply
    38  the percentage obtained pursuant to paragraph (a) of this subdivision by
    39  one-quarter  of the applicable aggregate amount specified in the opening
    40  paragraph of this subdivision.   The result of  such  calculation  shall
    41  represent  the  "emergency  medical  transportation service supplemental
    42  payment" and shall be paid expeditiously to such provider on a quarterly
    43  basis;
    44    [(c) Provided however that aggregate payments to providers within  any
    45  social services district cannot exceed twenty-five percent of the aggre-

    46  gate supplemental payment provided for in the opening paragraph.]
    47    2.  The  amount disbursed to emergency medical transportation services
    48  providers whose area of operation is within the city of New York will be
    49  twenty-five percent of the applicable aggregate amount, with the remain-
    50  ing seventy-five percent to be disbursed to all other emergency  medical
    51  transportation services providers.
    52    3. If all necessary approvals under federal law and regulation are not
    53  obtained  to  receive  federal  financial  participation in the payments
    54  authorized by this section, payments under this section shall be made in
    55  an aggregate amount not to exceed two million dollars for  two  thousand
    56  six  and three million dollars for two thousand seven. In such case, the

        S. 6457--C                         34                         A. 9557--B
 
     1  multiplier set forth in paragraph (b) of subdivision one of this section
     2  shall be deemed to be two million dollars or three  million  dollars  as
     3  applicable to the annual period.
     4    [3.]  4.  Notwithstanding any inconsistent provisions of section three
     5  hundred sixty-eight-a of this title, or of any other law, to the contra-
     6  ry, the department of health shall pay one hundred  per  centum  of  the
     7  non-federal share of any payments made pursuant to this section.
     8    §  65-b.  Section  97 of chapter 659 of the laws of 1997, amending the
     9  public health law and other laws relating to creation of continuing care
    10  retirement communities, is amended to read as follows:

    11    § 97. This act shall take effect immediately, provided, however,  that
    12  the  amendments to subdivision 4 of section 854 of the general municipal
    13  law made by section seventy of this act shall not affect the  expiration
    14  of such subdivision and shall be deemed to expire therewith and provided
    15  further  that  sections  sixty-seven  and  sixty-eight of this act shall
    16  apply to taxable years  beginning  on  or  after  January  1,  1998  and
    17  provided  further  that sections eighty-one through eighty-seven of this
    18  act shall expire and be deemed repealed on December 31, [2006] 2015  and
    19  provided further, however, that the amendments to section ninety of this
    20  act  shall  take effect January 1, 1998 and shall apply to all policies,
    21  contracts, certificates, riders or other evidences of coverage  of  long

    22  term  care  insurance  issued,  renewed, altered or modified pursuant to
    23  section 3229 of the insurance law on or after such date.
    24    § 65-c. Subdivision 7 of section 4403-f of the public  health  law  is
    25  amended by adding a new paragraph (k) to read as follows:
    26    (k)  (i)  Managed  long  term care plans and demonstrations may enroll
    27  eligible persons in the plan or demonstration upon the completion  of  a
    28  comprehensive  assessment  that shall include, but not be limited to, an
    29  evaluation of the  medical,  social  and  environmental  needs  of  each
    30  prospective  enrollee  in such program. This assessment shall also serve
    31  as the basis for the development and provision of an appropriate plan of
    32  care for the prospective enrollee.

    33    (ii) The assessment shall be completed  by  a  representative  of  the
    34  managed  long  term care plan or demonstration, in consultation with the
    35  prospective enrollee's health care practitioner. The commissioner  shall
    36  prescribe the forms on which the assessment shall be made.
    37    (iii)  The  completed  assessment  and documentation of the enrollment
    38  shall be submitted by the managed long term care plan  or  demonstration
    39  to  the local department of social services prior to the commencement of
    40  services under the managed long term care  plan  or  demonstration.  For
    41  purposes  of  reimbursement of the managed long term care plan or demon-
    42  stration, if the completed assessment and documentation are submitted on

    43  or before the twentieth day of the month, the enrollment shall  commence
    44  on  the  first  day of the month following the completion and submission
    45  and if the completed assessment and documentation  are  submitted  after
    46  the  twentieth  day  of  the month, the enrollment shall commence on the
    47  first day  of  the  second  month  following  submission.    Enrollments
    48  conducted  by  a  plan  or  demonstration shall be subject to review and
    49  audit by the department and the local social services district.
    50    (iv) Continued enrollment in a managed long term care plan  or  demon-
    51  stration  paid  for by government funds shall be based upon a comprehen-
    52  sive assessment of the medical, social and environmental  needs  of  the

    53  recipient  of  the services. Such assessment shall be performed at least
    54  annually by the managed long term care plan serving  the  enrollee.  The
    55  commissioner  shall  prescribe the forms on which the assessment will be
    56  made.

        S. 6457--C                         35                         A. 9557--B
 
     1    § 65-d. Paragraph (f) of subdivision 1 of section 4403-f of the public
     2  health law, as added by chapter 659 of the laws of 1997, is  amended  to
     3  read as follows:
     4    (f) "Health and long term care services" means services including, but
     5  not  limited  to  primary care, acute care, home and community-based and
     6  institution-based long term care  and  ancillary  services  (that  shall
     7  include medical supplies and nutritional supplements) that are necessary

     8  to meet the needs of persons whom the plan is authorized to enroll.
     9    § 65-e. Paragraph (a) of subdivision 1 of section 4403-f of the public
    10  health  law,  as added by chapter 659 of the laws of 1997, is amended to
    11  read as follows:
    12    (a) "Managed long term care plan" means an entity that has received  a
    13  certificate of authority pursuant to this section to provide, or arrange
    14  for, health and long term care services, on a capitated basis in accord-
    15  ance  with  this section, for a population, age eighteen and over, which
    16  the plan is authorized to enroll.
    17    § 65-f. Subdivision 7 of section 4403-f of the public  health  law  is
    18  amended by adding a new paragraph (l) to read as follows:
    19    (l)  The  commissioner shall, upon request by a managed long term care
    20  plan, approved managed long term care demonstration, or operating demon-

    21  stration, and consistent with federal regulations  promulgated  pursuant
    22  to  the  Health Insurance Portability and Accountability Act, share with
    23  such plan or demonstration the following data if it is available:
    24    (i) information concerning utilization of services  and  providers  by
    25  each  of its enrollees prior to and during enrollment, including but not
    26  limited to utilization of emergency  department  services,  prescription
    27  drugs, and hospital and nursing facility admissions.
    28    (ii) aggregate data concerning utilization and costs for enrollees and
    29  for  comparable  cohorts  served  through  the  Medicaid fee-for-service
    30  program.
    31    § 65-g. Subdivision 8 of section 4403-f of the public health  law,  as

    32  added by chapter 659 of the laws of 1997, is amended to read as follows:
    33    8.  Payment  rates  for managed long term care plan enrollees eligible
    34  for medical assistance.  The  commissioner,  in  consultation  with  the
    35  superintendent  of insurance, shall establish payment rates for services
    36  provided to enrollees eligible under title XIX  of  the  federal  social
    37  security  act.  Such  payment  rates shall be subject to approval by the
    38  director of the division of the budget and shall reflect savings to both
    39  state and local governments  when  compared  to  costs  which  would  be
    40  incurred  by such program if enrollees were to receive comparable health
    41  and long term care services on a fee-for-service basis in the geographic
    42  region in which such services are proposed to be provided. Payment rates
    43  [may] shall be risk-adjusted to take into account the characteristics of

    44  enrollees, or proposed enrollees, including, but not limited to:  frail-
    45  ty, disability level, health and functional  status,  age,  gender,  the
    46  nature  of  services  provided  to  such enrollees, and other factors as
    47  determined by the commissioner in consultation with  the  superintendent
    48  of insurance. [Any such] The risk adjusted premiums may also be combined
    49  with  disincentives  or requirements designed to mitigate any incentives
    50  to obtain higher payment categories.
    51    § 65-h. Paragraph (e) of subdivision 6 of section 4403-f of the public
    52  health law, as amended by section 16 of part E of chapter 63 of the laws
    53  of 2005, is amended to read as follows:
    54    (e) The majority leader of the senate and the speaker of the  assembly
    55  may  each  designate  in  writing up to [six] ten eligible applicants as

    56  approved managed long term care  demonstrations.  The  commissioner  may

        S. 6457--C                         36                         A. 9557--B
 
     1  designate  in  writing up to two eligible applicants as approved managed
     2  long term care  demonstrations.  Subsequent  to  such  designation,  the
     3  commissioner  and the superintendent of insurance shall impose terms and
     4  conditions pursuant to a written agreement with each such demonstration,
     5  not  inconsistent  with  this  section,  under which such demonstrations
     6  shall be authorized to  operate.  If  any  such  demonstration  has  not
     7  commenced  operations  by January first, two thousand four, the majority
     8  leader of the senate or the speaker of the assembly, as the case may be,
     9  may, consistent with this  paragraph,  rescind  its  designation  as  an

    10  approved  managed  long term care demonstration and its authorization to
    11  operate, and, consistent with this  paragraph,  designate  an  alternate
    12  applicant as an approved managed long term care demonstration.
    13    §  66.  The  commissioner  of health is hereby directed to examine and
    14  develop proposals for  authorization  from  the  federal  government  to
    15  establish,  under  the  medical assistance program, a health opportunity
    16  account demonstration program and a self  directed  personal  assistance
    17  demonstration  program  pursuant to the federal deficit reduction act of
    18  2005. Pursuant to a chapter of the laws  of  2006  the  commissioner  of
    19  health shall provide written recommendations to the legislature concern-
    20  ing such proposals within 30 days of the effective date of this section.
    21  Such recommendations shall be public documents.

    22    §  67.  Subdivisions 2 and 5 of section 364-j-2 of the social services
    23  law, as amended by chapter 12 of the laws of 2005, are amended  to  read
    24  as follows:
    25    2.  (a)  Notwithstanding  paragraphs (b) and (h) of subdivision two of
    26  section twenty-eight hundred seven of the public health law, the commis-
    27  sioner of health shall make supplemental payments of nine million  eight
    28  hundred  twenty-four thousand dollars ($9,824,000), to covered providers
    29  described in subdivision one of this section who are qualified providers
    30  as described in paragraph (a) of  subdivision  three  of  this  section,
    31  based  on  adjustments  to fee-for-service rates for the period February
    32  first through March thirty-first, two  thousand  two  and  nine  million
    33  eight  hundred  twenty-four thousand dollars ($9,824,000) for the period
    34  October first through December thirty-first, two thousand two  and  four

    35  million nine hundred twelve thousand dollars ($4,912,000) for the period
    36  October  first  through December thirty-first, two thousand three and an
    37  additional amount of four million nine hundred twelve  thousand  dollars
    38  ($4,912,000) for the period October first through December thirty-first,
    39  two  thousand  three and nine million eight hundred twenty-four thousand
    40  dollars ($9,824,000) for the period April first through June  thirtieth,
    41  two  thousand  five, and nine million eight hundred twenty-four thousand
    42  dollars ($9,824,000) for the period October first through December thir-
    43  ty-first, two thousand five, and nine million eight hundred  twenty-four
    44  thousand  dollars  ($9,824,000)  for  the  period  October first through
    45  December thirty-first, two thousand six, as medical assistance  payments

    46  for  services  provided  pursuant to this title for persons eligible for
    47  federal financial participation under title XIX of  the  federal  social
    48  security  act to reflect additional costs associated with the transition
    49  to a managed care environment. There shall be no local  share  in  these
    50  payments.  The  director  of  the  budget shall allocate the non-federal
    51  share of such payments  from  an  appropriation  for  the  miscellaneous
    52  special revenue fund - 339 community service provider assistance program
    53  account for the two thousand one--two thousand two state fiscal year for
    54  adjustments  for  the  period February first through March thirty-first,
    55  two thousand two. Adjustments for the period October first, two thousand
    56  two through December thirty-first, two  thousand  two  shall  be  within


        S. 6457--C                         37                         A. 9557--B
 
     1  amounts  appropriated for the two thousand two--two thousand three state
     2  fiscal year and adjustments for the period October first,  two  thousand
     3  three  through December thirty-first, two thousand three shall be within
     4  amounts appropriated for the two thousand three--two thousand four state
     5  fiscal  year and adjustments for the non-federal share of the additional
     6  amount of four million nine hundred twelve thousand dollars ($4,912,000)
     7  for such period shall be allocated by the director of the budget from an
     8  appropriation  for  maintenance  undistributed  general  fund  community
     9  projects  fund  -  007  account for the two thousand three--two thousand
    10  four state fiscal year.  The director of the budget shall  allocate  the
    11  non-federal  share  of adjustments for the period April first, two thou-

    12  sand five through June thirtieth, two thousand five  from  an  appropri-
    13  ation  for the maintenance undistributed general fund community projects
    14  fund - 007 account for the two thousand four--two  thousand  five  state
    15  fiscal  year.  The director of the budget shall allocate the non-federal
    16  share of adjustments for the period October  first,  two  thousand  five
    17  through  December  thirty-first, two thousand five from an appropriation
    18  for the maintenance undistributed, general fund, community projects fund
    19  - 007 account for the two thousand five--two thousand six  state  fiscal
    20  year.    The director of the budget shall allocate the non-federal share
    21  of adjustments for the period October first, two  thousand  six  through

    22  December  thirty-first,  two  thousand  six  from the medical assistance
    23  local assistance appropriation for the two  thousand  six--two  thousand
    24  seven state fiscal year. Such adjustments to fee for service rates shall
    25  not  be subject to subsequent adjustment or reconciliation. Alternative-
    26  ly, such payments may be made as aggregate payments to eligible  provid-
    27  ers.
    28    (a-1) Notwithstanding the provisions of paragraph (a) of this subdivi-
    29  sion,  for  facilities licensed under article twenty-eight of the public
    30  health law that are sponsored by a university or dental school which has
    31  been granted an operating certificate pursuant to  article  twenty-eight
    32  of the public health law and which provides dental services as its prin-
    33  cipal  mission,  two  hundred twenty-four thousand dollars ($224,000) in

    34  the aggregate for use pursuant to this section shall  be  allocated  for
    35  distribution to such facilities pursuant to the methodology described in
    36  paragraph  (b)  of subdivision two and subparagraph (i) of paragraph (b)
    37  of subdivision four of section two thousand eight hundred seven-p of the
    38  public health law for services provided for the period  February  first,
    39  two thousand two through March thirty-first, two thousand two to persons
    40  eligible  for  federal  financial  participation  under title XIX of the
    41  federal social security act, provided, however,  that  the  amount  paid
    42  pursuant to this paragraph for each such facility shall equal the facil-
    43  ity's proportional share of the total nominal payment amounts calculated
    44  under  this section of all such facilities multiplied by the total funds
    45  allocated for such payments.  There shall be no  local  share  in  these

    46  payments.  The  director  of  the  budget shall allocate the non-federal
    47  share of such payments  from  an  appropriation  for  the  miscellaneous
    48  special revenue fund - 339 community service provider assistance program
    49  account  for  the  two thousand one--two thousand two state fiscal year.
    50  Such adjustments to fee for service rates shall not be subject to subse-
    51  quent adjustment or reconciliation. Alternatively, such payments may  be
    52  made as aggregate payments to eligible providers.
    53    (a-2)  (i)  Notwithstanding  the  provisions  of paragraph (a) of this
    54  subdivision, for facilities licensed under article twenty-eight  of  the
    55  public  health  law  that are sponsored by a university or dental school
    56  which has been granted an  operating  certificate  pursuant  to  article

        S. 6457--C                         38                         A. 9557--B
 

     1  twenty-eight of the public health law and which provides dental services
     2  as  its  principal  mission,  two  hundred  twenty-four thousand dollars
     3  ($224,000) in the aggregate of the amount appropriated for the two thou-
     4  sand  two--two thousand three state fiscal year for use pursuant to this
     5  section shall be allocated for the period October first through December
     6  thirty-first, two thousand two and one hundred twelve  thousand  dollars
     7  ($112,000) in the aggregate of the amount appropriated for the two thou-
     8  sand  three--two  thousand  four  state  fiscal  year, and an additional
     9  amount of one hundred twelve thousand dollars ($112,000) in  the  aggre-
    10  gate  for use pursuant to this section shall be allocated for the period
    11  October first through December thirty-first, two thousand three and  two
    12  hundred  twenty-four thousand dollars ($224,000) in the aggregate of the

    13  amount appropriated for the two thousand four--two thousand  five  state
    14  fiscal  year shall be allocated for the period April first, two thousand
    15  five through June thirtieth, two thousand five, and two hundred  twenty-
    16  four  thousand  dollars ($224,000) in the aggregate of the amount appro-
    17  priated for the two thousand five--two thousand six  state  fiscal  year
    18  shall  be  allocated  for  the  period  October first, two thousand five
    19  through December thirty-first, two thousand five, and two hundred  twen-
    20  ty-four  thousand  dollars  ($224,000)  in  the  aggregate of the amount
    21  appropriated for the two thousand six--two thousand seven  state  fiscal
    22  year  shall  be allocated for the period October first, two thousand six

    23  through December thirty-first, two thousand  six,  for  distribution  to
    24  such  facilities  pursuant to subparagraphs (ii) and (iii) of this para-
    25  graph. Adjustments for the non-federal share of the additional amount of
    26  one hundred twelve thousand dollars ($112,000) for  the  period  October
    27  first,  two  thousand  three through December thirty-first, two thousand
    28  three shall be allocated by the director of the budget from an appropri-
    29  ation for maintenance undistributed general fund community projects fund
    30  - 007 account for the two thousand three--two thousand four state fiscal
    31  year. The non-federal share of adjustments for the period  April  first,
    32  two  thousand  five  through  June thirtieth, two thousand five shall be
    33  allocated by the director of the budget from an  appropriation  for  the
    34  maintenance  undistributed  general  fund  community projects fund - 007

    35  account for the two thousand four--two thousand five state fiscal  year.
    36  The  non-federal  share of adjustments for the period October first, two
    37  thousand five through December thirty-first, two thousand five shall  be
    38  allocated  by  the  director of the budget from an appropriation for the
    39  maintenance undistributed, general fund, community projects fund  -  007
    40  account  for  the two thousand five--two thousand six state fiscal year.
    41  The non-federal share of adjustments for the period October  first,  two
    42  thousand  six  through  December  thirty-first,  two thousand six shall,
    43  subject to the availability of funds, be allocated by  the  director  of
    44  the  budget  from  the medical assistance local assistance appropriation

    45  for the two thousand six--two thousand seven state fiscal year.
    46    (ii) Forty percent shall be allocated for equal distribution  to  such
    47  facilities,  reduced  by the amount, if any, that a distribution exceeds
    48  forty percent of a facility's uncompensated  care  need  as  defined  in
    49  paragraph  (b)  of subdivision two of section two thousand eight hundred
    50  seven-p of the public health law. Any funds allocated but  not  distrib-
    51  uted  in  accordance  with  this  subparagraph  shall  be added to those
    52  amounts distributed in accordance with subparagraph (iii) of this  para-
    53  graph.
    54    (iii)  Sixty  percent, plus any funds allocated and not distributed in
    55  accordance with subparagraph (ii) of this paragraph, shall be  allocated
    56  for   distribution  to  such  facilities  pursuant  to  the  methodology


        S. 6457--C                         39                         A. 9557--B
 
     1  described in paragraph (b) of subdivision two and  subparagraph  (i)  of
     2  paragraph  (b) of subdivision four of section two thousand eight hundred
     3  seven-p of the public health law, provided,  however,  that  the  amount
     4  paid  pursuant to this allocation for each such facility shall equal the
     5  facility's proportional share  of  the  total  nominal  payment  amounts
     6  calculated  under  this section of all such facilities multiplied by the
     7  total funds allocated for such payments.
     8    (iv) There shall be no local share in these payments.
     9    (b) Notwithstanding the provisions of subdivision one of section three
    10  hundred sixty-eight-a of this title, there shall be paid to each  social
    11  services  district  the full amount expended on behalf of the department

    12  of health for medical assistance furnished pursuant to the provisions of
    13  this section, after first deducting therefrom any federal funds properly
    14  received or to be received on account thereof.
    15    5. (a) The  commissioner  of  health  shall  make  medical  assistance
    16  payments  to  qualified  providers from funds made available pursuant to
    17  the provisions of this section contingent upon the receipt of all feder-
    18  al approvals necessary and subject to the availability of federal finan-
    19  cial participation under title XIX of the federal  social  security  act
    20  for  the  transitional  supplemental payments. In the event such federal
    21  approval is not received prior to March thirty-first, two thousand  two,
    22  for  adjustments for the period February first, two thousand two through
    23  March thirty-first, two thousand two and prior  to  October  first,  two

    24  thousand  two for adjustments for the period October first, two thousand
    25  two through December thirty-first, two thousand two and prior to October
    26  first, two thousand three for adjustments for the period October  first,
    27  two  thousand  three  through December thirty-first, two thousand three,
    28  and prior to October first, two thousand five for  adjustments  for  the
    29  period  April first, two thousand five through June thirtieth, two thou-
    30  sand five, and prior to October first, two thousand five for adjustments
    31  for the period October first, two thousand five through  December  thir-
    32  ty-first,  two  thousand  five, and prior to October first, two thousand
    33  six for adjustments for the  period  October  first,  two  thousand  six
    34  through  December  thirty-first,  two  thousand six, the commissioner of

    35  health shall make medical assistance  payments  to  qualified  providers
    36  consisting  of  the  state  share  amount available for purposes of this
    37  section and apportioned in accordance with subdivisions two and three of
    38  this section. In the event such federal approval is denied,  such  state
    39  share  amount  payments  shall  be deemed to be grants to such qualified
    40  providers and such qualified providers shall not be eligible to  receive
    41  any other payments pursuant to this section.
    42    (b)  The  commissioner  of  health  shall take all steps necessary and
    43  shall use best efforts to secure federal financial  participation  under
    44  title  XIX of the social security act, for the purposes of this section,
    45  including the prompt submission of appropriate amendments to  the  title
    46  XIX state plan.
    47    § 68.  Notwithstanding any provision of law, rule or regulation to the

    48  contrary,  monthly  assessments  due  for any period commencing March 1,
    49  2005 and ending February 28, 2006 which are paid in full and accompanied
    50  by appropriate reports pursuant to section 2807-d of the  public  health
    51  law, and which are received on or before December 31, 2006, shall not be
    52  subject to interest or penalties as otherwise provided in section 2807-d
    53  of  the  public  health  law, provided, however, that with regard to all
    54  assessment, interest and penalty amounts collected by  the  commissioner
    55  of health by the effective date of the chapter of the laws of 2006 which
    56  added  this  section,  the  interest  and  penalty provisions of section

        S. 6457--C                         40                         A. 9557--B
 
     1  2807-d of the public health law shall remain in full  force  and  effect

     2  and  such  amounts  collected  shall not be subject to further reconcil-
     3  iation or adjustment.
     4    § 68-a. Intentionally omitted.
     5    § 68-b. Intentionally omitted.
     6    §  68-c.  The  social  services law is amended by adding a new section
     7  363-c to read as follows:
     8    § 363-c. Medicaid management. 1. The commissioner  of  the  department
     9  periodically shall convene, but not less than quarterly and no more than
    10  monthly,  meetings of the directors and commissioners of all state agen-
    11  cies and departments  receiving  general  fund  appropriations  for  the
    12  purpose  of  state  matching funds for medicaid services and appropriate
    13  representation of local departments of social services. The  purpose  of
    14  these meetings is to identify, without limitation:

    15    (a) methods to contain the growth of medicaid spending;
    16    (b)  methods to improve the quality of and recipient satisfaction with
    17  medicaid state agency and department services;
    18    (c) opportunities for consolidation and methods to improve  the  effi-
    19  ciency and effectiveness of existing service delivery;
    20    (d) opportunities for education and prevention;
    21    (e)  annually  the  number  of  persons  on  waiting  lists to receive
    22  services and the type of services for each list; and
    23    (f) the collective priority of critical needs for the  medicaid  popu-
    24  lation.
    25    2. The department annually shall compile the results of these meetings
    26  and  provide  them  to  the  governor, the senate finance committee, the

    27  assembly ways and means committee,  the  senate  health  committee,  the
    28  assembly  health  committee,  the  senate  social services, children and
    29  families committee, and the assembly social services committee.
    30    3. By December thirty-first of each year, the department shall  submit
    31  to  the  governor,  the  senate finance committee, the assembly ways and
    32  means committee,  the  senate  health  committee,  the  assembly  health
    33  committee,  the senate social services, children and families committee,
    34  and the assembly social services committee medicaid expenditures made to
    35  other state agencies in the preceding  state  fiscal  year.  The  report
    36  shall include, but is not limited to:
    37    (a) amounts paid to each agency according to category of service; and

    38    (b)  rates  paid  to  each state agency and the associated methodology
    39  used in developing those rates.
    40    § 68-d. Section 3 of chapter 629 of the laws  of  1986,  amending  the
    41  social services law relating to establishing a demonstration program for
    42  the  delivery of long term home health care services to certain persons,
    43  as amended by chapter 38 of the laws of 2003,  is  amended  to  read  as
    44  follows:
    45    §  3.    This  act shall take effect July 1, 1986, and shall remain in
    46  effect until March 31, [2006] 2009, when upon such date  the  provisions
    47  of this act shall be deemed repealed.
    48    §  68-e.  Subdivision  (x) of section 165 of chapter 41 of the laws of
    49  1992, amending the public health law and other laws relating  to  health
    50  care providers, as amended by chapter 38 of the laws of 2003, is amended

    51  to read as follows:
    52    (x)  provided further that the provisions of paragraphs (a), (b), (d),
    53  (e), (f) and (g) of  subdivision  6  of  section  367-a  of  the  social
    54  services  law, as added by, and the amendatory language of paragraph (c)
    55  of such subdivision as added by section ninety-one of  this  act,  shall
    56  expire  and be deemed repealed on and after March 31, [2006] 2009 and on

        S. 6457--C                         41                         A. 9557--B
 
     1  such date the provisions of paragraph (c) shall be read as set out imme-
     2  diately preceding the effective date of this act;
     3    § 68-f. Subparagraph (ii) of paragraph (g) of subdivision 2 of section
     4  2807  of the public health law, as amended by chapter 170 of the laws of
     5  1994, is amended to read as follows:

     6    (ii) During the period [April] October first, [nineteen hundred  nine-
     7  ty-four]  two  thousand  six  through  December  thirty-first, [nineteen
     8  hundred ninety-four and for each calendar year rate period commencing on
     9  January first thereafter] two thousand six and each calendar year there-
    10  after, rates of payment by governmental agencies for the operating  cost
    11  component  of  general hospital emergency services shall be based on the
    12  operating costs reported in the base year cost report  adjusted  by  the
    13  trend  factor  applicable  to the general hospital in which the services
    14  were provided, [and in  addition  shall  include  that  portion  of  the
    15  reasonable  incremental  emergency  service  operating costs incurred by

    16  such hospital in excess of emergency service costs reported in the nine-
    17  teen hundred eighty-eight cost report, after application  of  the  trend
    18  factor, attributable to meeting additional quality of care standards for
    19  emergency  services  that  became  effective  on or after January first,
    20  nineteen hundred  eighty-nine;]  provided,  however,  that  the  maximum
    21  payment  for  the operating component shall be [ninety-five dollars] one
    22  hundred fifty dollars.  A capital cost per visit shall be based  on  the
    23  base  year  cost  report  except  that the capital cost per visit may be
    24  adjusted for the major outpatient capital expenditures  incurred  subse-
    25  quent  to  the  report  year,  when  such expenditures have received the

    26  requisite approvals and the facility has provided the commissioner  with
    27  a  certified  statement  of expenditures.   The base year for the period
    28  [April] October first, [nineteen hundred ninety-four] two  thousand  six
    29  through  December thirty-first, [nineteen hundred ninety-four] two thou-
    30  sand six shall be [nineteen hundred ninety-two] two  thousand  four  and
    31  shall  be advanced one year thereafter for each subsequent calendar year
    32  rate period. Further,  the  provisions  of  subdivision  seven  of  this
    33  section shall not apply prior to January first, two thousand seven.
    34    §  68-g.  The  social  services law is amended by adding a new section
    35  367-t to read as follows:

    36    § 367-t.  Payment for emergency physician  services.  Amounts  payable
    37  under  this title for medical assistance for items and services provided
    38  to eligible persons by qualified emergency physicians,  provided  in  an
    39  emergency  room  or  inpatient  unit  of an entity certified pursuant to
    40  article twenty-eight of the public health  law  to  treat  an  emergency
    41  condition, as defined in subdivision three of section forty-nine hundred
    42  of the public health law, which are authorized pursuant to section three
    43  hundred  sixty-five-a  of  this  title shall be no less than twenty-five
    44  dollars per visit. For the purpose  of  this  section  eligible  persons
    45  shall  not  include  persons provided items and services by the medicaid
    46  managed care program.

    47    § 69. Subdivisions 2 and 4 of section 246 of chapter 81 of the laws of
    48  1995, amending the public health law and other laws relating to  medical
    49  reimbursement  and welfare reform, as amended by section 53 of part C of
    50  chapter 58 of the laws of 2005 are amended to read as follows:
    51    2. Sections five, seven through nine,  twelve  through  fourteen,  and
    52  eighteen  of  this  act  shall  be deemed to have been in full force and
    53  effect on and after April 1, 1995 through March  31,  1999  and  on  and
    54  after July 1, 1999 through March 31, 2000 and on and after April 1, 2000
    55  through  March 31, 2003 and on and after April 1, 2003 through March 31,
    56  2006 and on and after April 1, 2006 through March 31, 2007;

        S. 6457--C                         42                         A. 9557--B
 

     1    4. Section one of this act shall be deemed to have been in full  force
     2  and  effect on and after April 1, 1995 through March 31, 1999 and on and
     3  after July 1, 1999 through March 31, 2000 and on and after April 1, 2000
     4  through March 31, 2003 and on and after April 1, 2003 through March  31,
     5  2006 and on and after April 1, 2006 through March 31, 2007.
     6    §  70. Subparagraph (iii) of paragraph (f) of subdivision 4 of section
     7  2807-c of the public health law, as amended by section 69 of part  C  of
     8  chapter 58 of the laws of 2005, is amended to read as follows:
     9    (iii)  commencing  April  first, nineteen hundred ninety-seven through
    10  March thirty-first, nineteen hundred  ninety-nine  and  commencing  July
    11  first,  nineteen  hundred  ninety-nine  through  March thirty-first, two
    12  thousand and April first, two thousand through March  thirty-first,  two

    13  thousand  five and for periods commencing April first, two thousand five
    14  through March thirty-first, two thousand six and for periods  commencing
    15  on  and  after April first, two thousand six through March thirty-first,
    16  two thousand seven, the reimbursable inpatient operating cost  component
    17  of  case  based  rates of payment per diagnosis-related group, excluding
    18  any operating cost components related to direct and indirect expenses of
    19  graduate medical education, for patients eligible for payments  made  by
    20  state  governmental  agencies shall be reduced by three and thirty-three
    21  hundredths percent to encourage improved  productivity  and  efficiency.
    22  Such  election shall not alter the calculation of the group price compo-
    23  nent calculated pursuant to subparagraph (i) of paragraph (a) of  subdi-
    24  vision seven of this section;

    25    §  71. Subparagraph (iii) of paragraph (k) of subdivision 4 of section
    26  2807-c of the public health law, as amended by section 70 of part  C  of
    27  chapter 58 of the laws of 2005, is amended to read as follows:
    28    (iii)  commencing  April  first, nineteen hundred ninety-seven through
    29  March thirty-first, nineteen hundred  ninety-nine  and  commencing  July
    30  first,  nineteen  hundred  ninety-nine  through  March thirty-first, two
    31  thousand and April first, two thousand through March  thirty-first,  two
    32  thousand  five  and  commencing  April  first, two thousand five through
    33  March thirty-first, two thousand six, and for periods commencing on  and
    34  after  April  first,  two  thousand  six through March thirty-first, two
    35  thousand seven, the  operating  cost  component  of  rates  of  payment,

    36  excluding  any  operating cost components related to direct and indirect
    37  expenses of  graduate  medical  education,  for  patients  eligible  for
    38  payments  made  by a state governmental agency shall be reduced by three
    39  and thirty-three hundredths percent to encourage  improved  productivity
    40  and  efficiency.  The facility will be eligible to receive the financial
    41  incentives for  the  physician  specialty  weighting  incentive  towards
    42  primary  care pursuant to subparagraph (ii) of paragraph (a) of subdivi-
    43  sion twenty-five of this section.
    44    § 72. The opening paragraph of subparagraph (vi) of paragraph  (b)  of
    45  subdivision  5 of section 2807-c of the public health law, as amended by
    46  section 71 of part C of chapter 58 of the laws of 2005,  is  amended  to
    47  read as follows:
    48    for  discharges on or after April first, nineteen hundred ninety-seven

    49  through  March  thirty-first,  nineteen  hundred  ninety-nine  and   for
    50  discharges  on or after July first, nineteen hundred ninety-nine through
    51  March thirty-first, two thousand and for discharges on  or  after  April
    52  first,  two  thousand  through March thirty-first, two thousand five and
    53  for discharges on or after April first, two thousand five through  March
    54  thirty-first,  two  thousand  six,  and for discharges on or after April
    55  first, two thousand six through March thirty-first, two thousand  seven,
    56  for  purposes  of  reimbursement  of  inpatient  hospital  services  for

        S. 6457--C                         43                         A. 9557--B
 
     1  patients eligible for payments made by state governmental agencies,  the
     2  average reimbursable inpatient operating cost per discharge of a general

     3  hospital  shall,  to  encourage improved productivity and efficiency, be
     4  the sum of:
     5    §  73.  The opening paragraph and subparagraph (i) of paragraph (c) of
     6  subdivision 5 of section 2807-c of the public health law, as amended  by
     7  section  72  of  part C of chapter 58 of the laws of 2005, is amended to
     8  read as follows:
     9    Notwithstanding any inconsistent provision of this section, commencing
    10  July first, nineteen  hundred  ninety-six  through  March  thirty-first,
    11  nineteen  hundred  ninety-nine  and July first, nineteen hundred ninety-
    12  nine through March thirty-first, two thousand and April first, two thou-
    13  sand through March thirty-first, two thousand five and  for  periods  on
    14  and after April first, two thousand five through March thirty-first, two
    15  thousand six, and for periods on and after April first, two thousand six

    16  through  March  thirty-first, two thousand seven, rates of payment for a
    17  general hospital for  patients  eligible  for  payments  made  by  state
    18  governmental  agencies  shall  be further reduced by the commissioner to
    19  encourage improved productivity and efficiency by providers by a  factor
    20  determined as follows:
    21    (i) an aggregate reduction shall be calculated for each general hospi-
    22  tal  commencing  July  first,  nineteen hundred ninety-six through March
    23  thirty-first, nineteen hundred  ninety-nine  and  July  first,  nineteen
    24  hundred  ninety-nine  through March thirty-first, two thousand and April
    25  first, two thousand through March thirty-first, two  thousand  five  and
    26  for  periods  on  and after April first, two thousand five through March
    27  thirty-first, two thousand six, and  for  periods  on  and  after  April

    28  first,  two thousand six through March thirty-first, two thousand seven,
    29  as the result of (A) eighty-nine million dollars on an annualized  basis
    30  for  each year, multiplied by (B) the ratio of patient days for patients
    31  eligible for payments made by state governmental agencies provided in  a
    32  base  year  two  years  prior  to  the  rate year by a general hospital,
    33  divided by the total of such patient days summed for all general  hospi-
    34  tals; and
    35    § 74. Clause (B-1) of subparagraph (i) of paragraph (f) of subdivision
    36  11  of section 2807-c of the public health law, as amended by section 73
    37  of part C of chapter 58 of the laws of  2005,  is  amended  to  read  as
    38  follows:
    39    (B-1)  The  increase  in the statewide average case mix in the periods
    40  January first, nineteen hundred ninety-seven through March thirty-first,

    41  two thousand and on and after April first, two  thousand  through  March
    42  thirty-first,  two  thousand six and on and after April first, two thou-
    43  sand six through March thirty-first, two thousand seven, from the state-
    44  wide average case mix for the period  January  first,  nineteen  hundred
    45  ninety-six  through  December  thirty-first, nineteen hundred ninety-six
    46  shall not exceed one percent  for  nineteen  hundred  ninety-seven,  two
    47  percent  for nineteen hundred ninety-eight, three percent for the period
    48  January first, nineteen hundred ninety-nine through September thirtieth,
    49  nineteen hundred ninety-nine, four percent for the period October first,
    50  nineteen hundred ninety-nine  through  December  thirty-first,  nineteen
    51  hundred  ninety-nine,  and  four  percent for two thousand plus an addi-

    52  tional one percent per year thereafter, based on comparison of data only
    53  for patients that are eligible for medical assistance pursuant to  title
    54  eleven  of  article  five  of  the  social  services law, including such
    55  patients enrolled in health maintenance organizations.

        S. 6457--C                         44                         A. 9557--B
 
     1    § 75. Subdivision 1 of section 46 of chapter 639 of the laws  of  1996
     2  amending  the  public  health  law  and  other  laws relating to welfare
     3  reform, as amended by section 74 of part C of chapter 58 of the laws  of
     4  2005, is amended to read as follows:
     5    1.  Notwithstanding any inconsistent provision of law or regulation to
     6  the contrary, the trend factors used to project  reimbursable  operating
     7  costs  to  the  rate period for purposes of determining rates of payment

     8  pursuant to article 28 of the public health law  for  general  hospitals
     9  for  reimbursement  of  inpatient hospital services provided to patients
    10  eligible for payments made by state governmental agencies on  and  after
    11  April 1, 1996 through June 30, 1996 and on or after July 1, 1996 through
    12  March  31, 1999 and on and after July 1, 1999 through March 31, 2000 and
    13  on and after April 1, 2000 through March 31, 2005 and on and after April
    14  1, 2005 through March [thirty-first, two thousand six] 31, 2006  and  on
    15  and  after  April 1, 2006 through March 31, 2007, shall reflect no trend
    16  factor projections or adjustments for the period April 1, 1996,  through
    17  March 31, 1997.
    18    § 76. Section 4 of chapter 81 of the laws of 1995, amending the public
    19  health  law and other laws relating to medical reimbursement and welfare

    20  reform, as amended by section 54 of part C of chapter 58 of the laws  of
    21  2005, is amended to read as follows:
    22    §  4. Notwithstanding any inconsistent provision of law, except subdi-
    23  vision 15 of section 2807 of the public health law and  section  364-j-2
    24  of  the social services law and section 32-g of part F of chapter 412 of
    25  the laws of 1999, rates of payment for diagnostic and treatment  centers
    26  established  in  accordance with paragraphs (b) and (h) of subdivision 2
    27  of section 2807 of the public health law for the period ending September
    28  30, 1995 shall continue in effect through September 30, 2000 and for the
    29  periods October 1, 2000 through September 30, 2003 and October  1,  2003
    30  through  September  30,  [2006] 2007, and further provided that rates in
    31  effect on March 31, 2003 as established in accordance with paragraph (e)

    32  of subdivision 2 of section 2807 of the public health law shall continue
    33  in effect for the period April 1,  2003  through  September  30,  [2006]
    34  2007,  provided however that, subject to the approval of the director of
    35  the budget, such rates may be adjusted to include expenditures in  those
    36  components  of  rates  not  subject to the ceilings of the corresponding
    37  rate methodology.
    38    § 77. Subdivision 5 of section 246 of chapter 81 of the laws of  1995,
    39  amending  the  public  health  law  and  other  laws relating to medical
    40  reimbursement and welfare reform, as amended by section 55 of part C  of
    41  chapter 58 of the laws of 2005, is amended to read as follows:
    42    5.  Section  three  of  this  act shall be deemed to have been in full
    43  force and effect on and after April 1, 1995 through March 31,  1999  and

    44  on  and after July 1, 1999 through March 31, 2000 and on and after April
    45  1, 2000 through March 31, 2003 and on and after April  1,  2003  through
    46  March 31, [2006] 2007;
    47    §  78.  Section  194  of chapter 474 of the laws of 1996, amending the
    48  education law and other laws relating to rates  for  residential  health
    49  care facilities, as amended by section 56 of part C of chapter 58 of the
    50  laws of 2005, is amended to read as follows:
    51    §  194.  1. Notwithstanding any inconsistent provision of law or regu-
    52  lation, the trend factors used to project reimbursable  operating  costs
    53  to the rate period for purposes of determining rates of payment pursuant
    54  to  article  28  of  the  public  health law for residential health care
    55  facilities for reimbursement of inpatient services provided to  patients

    56  eligible  for  payments made by state governmental agencies on and after

        S. 6457--C                         45                         A. 9557--B
 
     1  April 1, 1996 through March 31, 1999 and for payments made on and  after
     2  July  1,  1999  through  March  31,  2000 and on and after April 1, 2000
     3  through March 31, 2003 and on and after April 1, 2003 through March  31,
     4  [2006] 2007 shall reflect no trend factor projections or adjustments for
     5  the period April 1, 1996, through March 31, 1997.
     6    2.  The  commissioner  of health shall adjust such rates of payment to
     7  reflect the exclusion pursuant to this section of such  specified  trend
     8  factor projections or adjustments.
     9    § 79. Intentionally omitted.
    10    § 80. Intentionally omitted.
    11    § 81. Intentionally omitted.

    12    §  82.  Paragraph  (f) of subdivision 1 of section 64 of chapter 81 of
    13  the laws of 1995, amending the public health law and other laws relating
    14  to medical reimbursement and welfare reform, as amended by section 60 of
    15  part C of chapter 58 of the laws of 2005, is amended to read as follows:
    16    (f) Prior to February 1, 2001, February 1,  2002,  February  1,  2003,
    17  February 1, 2004, February 1, 2005 [and], February 1, 2006, and February
    18  1,  2007,  the  commissioner of health shall calculate the result of the
    19  statewide total  of  residential  health  care  facility  days  of  care
    20  provided  to beneficiaries of title XVIII of the federal social security
    21  act (medicare), divided by the sum of such days of  care  plus  days  of
    22  care provided to residents eligible for payments pursuant to title 11 of

    23  article  5  of the social services law minus the number of days provided
    24  to residents receiving hospice care, expressed as a percentage, for  the
    25  period  commencing  January  1,  through  November 30, of the prior year
    26  respectively, based on such data for such period. This  value  shall  be
    27  called  the  2000,  2001,  2002,  2003,  2004, 2005 [and], 2006 and 2007
    28  statewide target percentage respectively.
    29    § 83. Subparagraph (ii) of paragraph (b) of subdivision 3  of  section
    30  64 of chapter 81 of the laws of 1995, amending the public health law and
    31  other  laws  relating  to  medical  reimbursement and welfare reform, as
    32  amended by section 61 of part C of chapter 58 of the laws  of  2005,  is
    33  amended to read as follows:
    34    (ii)  If  the  1997,  1998,  2000, 2001, 2002, 2003, 2004, 2005, [and]

    35  2006, and 2007 statewide target percentages are not  for  each  year  at
    36  least three percentage points higher than the statewide base percentage,
    37  the  commissioner  of health shall determine the percentage by which the
    38  statewide target percentage for each year is not at least three percent-
    39  age points higher than the statewide  base  percentage.  The  percentage
    40  calculated  pursuant  to  this paragraph shall be called the 1997, 1998,
    41  2000, 2001, 2002, 2003, 2004,  2005,  [and]  2006,  and  2007  statewide
    42  reduction  percentage respectively. If the 1997, 1998, 2000, 2001, 2002,
    43  2003, 2004, 2005, [and] 2006, and 2007 statewide target  percentage  for
    44  the  respective year is at least three percentage points higher than the
    45  statewide base percentage, the statewide reduction  percentage  for  the
    46  respective year shall be zero.

    47    §  84. Subparagraph (iii) of paragraph (b) of subdivision 4 of section
    48  64 of chapter 81 of the laws of 1995, amending the public health law and
    49  other laws relating to medical  reimbursement  and  welfare  reform,  as
    50  amended  by  section  62 of part C of chapter 58 of the laws of 2005, is
    51  amended to read as follows:
    52    (iii) The 1998, 2000, 2001, 2002, 2003, 2004, 2005,  [and]  2006,  and
    53  2007  statewide  reduction percentage shall be multiplied by one hundred
    54  two million dollars respectively to  determine  the  1998,  2000,  2001,
    55  2002,  2003,  2004,  2005,  [and]  2006,  and  2007  statewide aggregate
    56  reduction amount. If the 1998 and the  2000,  2001,  2002,  2003,  2004,

        S. 6457--C                         46                         A. 9557--B
 

     1  2005,  [and] 2006, and 2007 statewide reduction percentage shall be zero
     2  respectively, there shall be no 1998,  2000,  2001,  2002,  2003,  2004,
     3  2005, [and] 2006, and 2007 reduction amount.
     4    §  85.  Paragraph  (b) of subdivision 5 of section 64 of chapter 81 of
     5  the laws of 1995, amending the public health law and other laws relating
     6  to medical reimbursement and welfare reform, as amended by section 63 of
     7  part C of chapter 58 of the laws of 2005, is amended to read as follows:
     8    (b) The 1996, 1997, 1998, 1999, 2000, 2001, 2002,  2003,  2004,  2005,
     9  [and]  2006,  and  2007  statewide aggregate reduction amounts shall for
    10  each year be allocated by the commissioner of health  among  residential
    11  health  care facilities that are eligible to provide services to benefi-

    12  ciaries of title XVIII of the federal social security act (medicare) and
    13  residents eligible for payments pursuant to title 11 of article 5 of the
    14  social services law on the basis of the extent of each facility's  fail-
    15  ure  to  achieve  a  two  percentage  points increase in the 1996 target
    16  percentage, a three percentage point increase in the 1997,  1998,  2000,
    17  2001, 2002, 2003, 2004, 2005, [and] 2006, and 2007 target percentage and
    18  a  two  and  one-quarter  percentage  point  increase in the 1999 target
    19  percentage for each year, compared to the base percentage, calculated on
    20  a facility specific basis for this purpose, compared  to  the  statewide
    21  total of the extent of each facility's failure to achieve a two percent-
    22  age points increase in the 1996 and a three percentage point increase in
    23  the 1997 and a three percentage point increase in the 1998 and a two and

    24  one-quarter  percentage point increase in the 1999 target percentage and
    25  a three percentage point increase in the 2000, 2001, 2002,  2003,  2004,
    26  2005,  [and]  2006,  and  2007  target  percentage  compared to the base
    27  percentage. These amounts shall be called the 1996,  1997,  1998,  1999,
    28  2000,  2001,  2002,  2003,  2004,  2005,  [and]  2006, and 2007 facility
    29  specific reduction amounts respectively.
    30    § 86. Notwithstanding any inconsistent provision of law, rule or regu-
    31  lation, the annual  percentage  reductions  set  forth  in  sections  82
    32  through  85  and section 88 of this act shall be prorated by the commis-
    33  sioner of health for the period April 1, 2006 through March 31, 2007.
    34    § 87. Section 3 of chapter 483 of  the  laws  of  1978,  amending  the

    35  public  health  law  relating  to  rate  of payment for each residential
    36  health care facility to real property costs, as amended by section 75 of
    37  part C of chapter 58 of the laws of 2005, is amended to read as follows:
    38    § 3. This act shall take effect immediately  provided,  however,  that
    39  the  provisions  of subdivision 2-a of section 2808 of the public health
    40  law, as added by section one of this act, shall remain in full force and
    41  effect until December 31, [2006] 2007.
    42    § 87-a. Notwithstanding any inconsistent provision  of  law,  rule  or
    43  regulation to the contrary, the provisions of section 1 of chapter 41 of
    44  the  laws  of  1992,  as  amended, shall remain and be in full force and
    45  effect on and after April 1, 2000 through March  31,  2003  and  on  and
    46  after  April  1,  2003  through March 31, 2005 and on and after April 1,

    47  2005 through March 31, 2006 and on and after April 1, 2006 through March
    48  31, 2007.
    49    § 88. Section 228 of chapter 474 of the laws  of  1996,  amending  the
    50  education  law  and other laws relating to rates for residential health-
    51  care facilities, as amended by section 66 of part C of chapter 58 of the
    52  laws of 2005, is amended to read as follows:
    53    § 228. 1. Definitions. (a) Regions,  for  purposes  of  this  section,
    54  shall  mean  a downstate region to consist of Kings, New York, Richmond,
    55  Queens, Bronx, Nassau and Suffolk counties  and  an  upstate  region  to
    56  consist  of  all  other New York state counties. A certified home health

        S. 6457--C                         47                         A. 9557--B
 
     1  agency or long term home health care program shall  be  located  in  the

     2  same county utilized by the commissioner of health for the establishment
     3  of rates pursuant to article 36 of the public health law.
     4    (b)  Certified  home  health  agency  (CHHA)  shall  mean such term as
     5  defined in section 3602 of the public health law.
     6    (c) Long term home health care program (LTHHCP) shall mean  such  term
     7  as defined in subdivision 8 of section 3602 of the public health law.
     8    (d) Regional group shall mean all those CHHAs and LTHHCPs, respective-
     9  ly, located within a region.
    10    (e)  Medicaid  revenue percentage, for purposes of this section, shall
    11  mean CHHA and LTHHCP  revenues  attributable  to  services  provided  to
    12  persons  eligible  for payments pursuant to title 11 of article 5 of the
    13  social services law divided by such revenues plus CHHA and LTHHCP reven-
    14  ues attributable to services provided to beneficiaries of Title XVIII of

    15  the federal social security act (medicare).
    16    (f) Base period, for purposes of this  section,  shall  mean  calendar
    17  year 1995.
    18    (g) Target period. For purposes of this section, the 1996 target peri-
    19  od  shall  mean  August  1, 1996 through March 31, 1997, the 1997 target
    20  period shall mean January 1, 1997 through November 30,  1997,  the  1998
    21  target  period shall mean January 1, 1998 through November 30, 1998, the
    22  1999 target period shall mean January 1, 1999 through November 30, 1999,
    23  the 2000 target period shall mean January 1, 2000 through  November  30,
    24  2000, the 2001 target period shall mean January 1, 2001 through November
    25  30,  2001,  the  2002  target  period shall mean January 1, 2002 through
    26  November 30, 2002, the 2003 target period shall  mean  January  1,  2003
    27  through  November 30, 2003, the 2004 target period shall mean January 1,

    28  2004 through November 30, 2004, and the 2005 target  period  shall  mean
    29  January 1, 2005 through November 30, [2006] 2005, the 2006 target period
    30  shall  mean  January  1,  2006  through  November 30, 2006, and the 2007
    31  target period shall mean January 1, 2007 through November 30, 2007.
    32    2. (a) Prior to February 1, 1997, for each regional group the  commis-
    33  sioner  of  health shall calculate the 1996 medicaid revenue percentages
    34  for the period commencing August 1, 1996 to the last date for which such
    35  data is available and reasonably accurate.
    36    (b) Prior to February 1, 1998, prior to February  1,  1999,  prior  to
    37  February  1, 2000, prior to February 1, 2001, prior to February 1, 2002,
    38  prior to February 1, 2003, prior to February 1, 2004, prior to  February

    39  1,  2005,  prior  to February 1, 2006, and prior to February 1, 2007 for
    40  each regional group the commissioner of health shall calculate the prior
    41  year's medicaid revenue percentages for the period commencing January  1
    42  through November 30 of such prior year.
    43    3.  By September 15, 1996, for each regional group the commissioner of
    44  health shall calculate the base period medicaid revenue percentage.
    45    4. (a) For each regional  group,  the  1996  target  medicaid  revenue
    46  percentage  shall be calculated by subtracting the 1996 medicaid revenue
    47  reduction percentages from the base period medicaid revenue percentages.
    48  The 1996 medicaid revenue  reduction  percentage,  taking  into  account
    49  regional and program differences in utilization of medicaid and medicare
    50  services, for the following regional groups shall be equal to:

    51    (i)  one  and one-tenth percentage points for CHHAs located within the
    52  downstate region;
    53    (ii) six-tenths of one percentage point for CHHAs located  within  the
    54  upstate region;
    55    (iii) one and eight-tenths percentage points for LTHHCPs located with-
    56  in the downstate region; and

        S. 6457--C                         48                         A. 9557--B
 
     1    (iv) one and seven-tenths percentage points for LTHHCPs located within
     2  the upstate region.
     3    (b)  For  1997,  1998, 2000, 2001, 2002, 2003, 2004, 2005 [and], 2006,
     4  and 2007 for each regional group, the target medicaid revenue percentage
     5  for the respective year shall be calculated by subtracting  the  respec-
     6  tive  year's  medicaid revenue reduction percentage from the base period

     7  medicaid revenue percentage. The medicaid revenue reduction  percentages
     8  for 1997, 1998, 2000, 2001, 2002, 2003, 2004, 2005, [and] 2006, and 2007
     9  taking  into  account regional and program differences in utilization of
    10  medicaid and medicare services, for the following regional groups  shall
    11  be equal to for each such year:
    12    (i)  one  and one-tenth percentage points for CHHAs located within the
    13  downstate region;
    14    (ii) six-tenths of one percentage point for CHHAs located  within  the
    15  upstate region;
    16    (iii) one and eight-tenths percentage points for LTHHCPs located with-
    17  in the downstate region; and
    18    (iv) one and seven-tenths percentage points for LTHHCPs located within
    19  the upstate region.
    20    (c) For each regional group, the 1999 target medicaid revenue percent-
    21  age  shall  be  calculated  by  subtracting  the  1999  medicaid revenue

    22  reduction percentage from the base period medicaid  revenue  percentage.
    23  The  1999  medicaid  revenue  reduction percentages, taking into account
    24  regional and program differences in utilization of medicaid and medicare
    25  services, for the following regional groups shall be equal to:
    26    (i) eight hundred twenty-five thousandths  (.825)  of  one  percentage
    27  point for CHHAs located within the downstate region;
    28    (ii)  forty-five  hundredths  (.45)  of one percentage point for CHHAs
    29  located within the upstate region;
    30    (iii) one and thirty-five  hundredths  percentage  points  (1.35)  for
    31  LTHHCPs located within the downstate region; and
    32    (iv)  one  and  two hundred seventy-five thousandths percentage points
    33  (1.275) for LTHHCPs located within the upstate region.
    34    5. (a) For each regional group, if the 1996 medicaid revenue  percent-

    35  age  is  not  equal  to  or  less  than the 1996 target medicaid revenue
    36  percentage, the commissioner of health shall compare the  1996  medicaid
    37  revenue  percentage  to  the  1996 target medicaid revenue percentage to
    38  determine the amount of the shortfall which, when divided  by  the  1996
    39  medicaid   revenue  reduction  percentage,  shall  be  called  the  1996
    40  reduction factor. These amounts, expressed as a  percentage,  shall  not
    41  exceed  one  hundred percent. If the 1996 medicaid revenue percentage is
    42  equal to or less than the 1996 target medicaid revenue  percentage,  the
    43  1996 reduction factor shall be zero.
    44    (b)  For  1997,  1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005 [and],
    45  2006, and 2007 for each regional group, if the medicaid revenue percent-
    46  age for the respective year is not equal to  or  less  than  the  target

    47  medicaid  revenue  percentage for such respective year, the commissioner
    48  of health shall compare such respective year's medicaid revenue percent-
    49  age to such respective year's  target  medicaid  revenue  percentage  to
    50  determine the amount of the shortfall which, when divided by the respec-
    51  tive  year's  medicaid revenue reduction percentage, shall be called the
    52  reduction factor for such respective year. These amounts, expressed as a
    53  percentage, shall not exceed one hundred percent. If the medicaid reven-
    54  ue percentage for a particular year is equal to or less than the  target
    55  medicaid revenue percentage for that year, the reduction factor for that
    56  year shall be zero.

        S. 6457--C                         49                         A. 9557--B
 
     1    6.  (a)  For  each  regional group, the 1996 reduction factor shall be

     2  multiplied by the following amounts to determine each  regional  group's
     3  applicable 1996 state share reduction amount:
     4    (i) two million three hundred ninety thousand dollars ($2,390,000) for
     5  CHHAs located within the downstate region;
     6    (ii) seven hundred fifty thousand dollars ($750,000) for CHHAs located
     7  within the upstate region;
     8    (iii)  one  million  two hundred seventy thousand dollars ($1,270,000)
     9  for LTHHCPs located within the downstate region; and
    10    (iv) five hundred  ninety  thousand  dollars  ($590,000)  for  LTHHCPs
    11  located within the upstate region.
    12    For  each regional group reduction, if the 1996 reduction factor shall
    13  be zero, there shall be no 1996 state share reduction amount.
    14    (b) For 1997, 1998, 2000, 2001, 2002, 2003, 2004,  2005  [and],  2006,

    15  and  2007  for each regional group, the reduction factor for the respec-
    16  tive year shall be multiplied by the following amounts to determine each
    17  regional group's  applicable  state  share  reduction  amount  for  such
    18  respective year:
    19    (i) two million three hundred ninety thousand dollars ($2,390,000) for
    20  CHHAs located within the downstate region;
    21    (ii) seven hundred fifty thousand dollars ($750,000) for CHHAs located
    22  within the upstate region;
    23    (iii)  one  million  two hundred seventy thousand dollars ($1,270,000)
    24  for LTHHCPs located within the downstate region; and
    25    (iv) five hundred  ninety  thousand  dollars  ($590,000)  for  LTHHCPs
    26  located within the upstate region.
    27    For  each  regional  group  reduction,  if  the reduction factor for a
    28  particular year shall be zero, there shall be no state  share  reduction
    29  amount for such year.

    30    (c) For each regional group, the 1999 reduction factor shall be multi-
    31  plied by the following amounts to determine each regional group's appli-
    32  cable 1999 state share reduction amount:
    33    (i) one million seven hundred ninety-two thousand five hundred dollars
    34  ($1,792,500) for CHHAs located within the downstate region;
    35    (ii)  five  hundred sixty-two thousand five hundred dollars ($562,500)
    36  for CHHAs located within the upstate region;
    37    (iii) nine hundred fifty-two thousand five hundred dollars  ($952,500)
    38  for LTHHCPs located within the downstate region; and
    39    (iv)  four  hundred forty-two thousand five hundred dollars ($442,500)
    40  for LTHHCPs located within the upstate region.
    41    For each regional group reduction, if the 1999 reduction factor  shall
    42  be zero, there shall be no 1999 state share reduction amount.

    43    7.  (a) For each regional group, the 1996 state share reduction amount
    44  shall be allocated by the commissioner of health among CHHAs and LTHHCPs
    45  on the basis of the extent  of  each  CHHA's  and  LTHHCP's  failure  to
    46  achieve  the  1996  target  medicaid revenue percentage, calculated on a
    47  provider specific basis utilizing revenues for this  purpose,  expressed
    48  as  a  proportion  of  the  total of each CHHA's and LTHHCP's failure to
    49  achieve the 1996 target medicaid revenue percentage within the  applica-
    50  ble  regional group. This proportion shall be multiplied by the applica-
    51  ble 1996 state share reduction amount calculation pursuant to  paragraph
    52  (a)  of  subdivision  6 of this section. This amount shall be called the
    53  1996 provider specific state share reduction amount.
    54    (b) For 1997, 1998, 1999, 2000, 2001, 2002, 2003,  2004,  2005  [and],

    55  2006, and 2007 for each regional group, the state share reduction amount
    56  for the respective year shall be allocated by the commissioner of health

        S. 6457--C                         50                         A. 9557--B
 
     1  among  CHHAs  and  LTHHCPs on the basis of the extent of each CHHA's and
     2  LTHHCP's failure to achieve the target medicaid revenue  percentage  for
     3  the  applicable  year, calculated on a provider specific basis utilizing
     4  revenues  for  this  purpose,  expressed as a proportion of the total of
     5  each CHHA's and LTHHCP's failure to achieve the target medicaid  revenue
     6  percentage for the applicable year within the applicable regional group.
     7  This proportion shall be multiplied by the applicable year's state share
     8  reduction  amount calculation pursuant to paragraph (b) or (c) of subdi-

     9  vision 6 of this section. This  amount  shall  be  called  the  provider
    10  specific state share reduction amount for the applicable year.
    11    8.  (a)  The 1996 provider specific state share reduction amount shall
    12  be due to the state from each CHHA and LTHHCP and may be recouped by the
    13  state by March 31, 1997 in a lump sum amount or  amounts  from  payments
    14  due  to  the  CHHA  and  LTHHCP pursuant to title 11 of article 5 of the
    15  social services law.
    16    (b) The provider specific state share reduction amount for 1997, 1998,
    17  1999, 2000, 2001, 2002, 2003, 2004, 2005 [and], 2006, and  2007  respec-
    18  tively,  shall  be  due  to the state from each CHHA and LTHHCP and each
    19  year the amount due for such year may be recouped by the state by  March
    20  31  of  the following year in a lump sum amount or amounts from payments

    21  due to the CHHA and LTHHCP pursuant to title 11  of  article  5  of  the
    22  social services law.
    23    9.  CHHAs  and  LTHHCPs shall submit such data and information at such
    24  times as the commissioner of health may require  for  purposes  of  this
    25  section.  The  commissioner of health may use data available from third-
    26  party payors.
    27    10. On or about June 1, 1997, for each regional group the commissioner
    28  of health shall calculate for the period August 1,  1996  through  March
    29  31,  1997  a  medicaid  revenue  percentage, a reduction factor, a state
    30  share reduction amount, and a provider specific  state  share  reduction
    31  amount  in  accordance with the methodology provided in paragraph (a) of
    32  subdivision 2, paragraph (a) of subdivision 5, paragraph (a) of subdivi-
    33  sion 6 and paragraph (a) of subdivision 7 of this section. The  provider

    34  specific state share reduction amount calculated in accordance with this
    35  subdivision  shall be compared to the 1996 provider specific state share
    36  reduction amount calculated in accordance with paragraph (a) of subdivi-
    37  sion 7 of this section. Any amount in excess of the amount determined in
    38  accordance with paragraph (a) of subdivision 7 of this section shall  be
    39  due  to  the  state  from  each  CHHA  and LTHHCP and may be recouped in
    40  accordance with paragraph (a) of subdivision 8 of this section.  If  the
    41  amount  is  less than the amount determined in accordance with paragraph
    42  (a) of subdivision 7 of this section, the difference shall  be  refunded
    43  to  the  CHHA and LTHHCP by the state no later than July 15, 1997. CHHAs
    44  and LTHHCPs shall submit data for the  period  August  1,  1996  through
    45  March 31, 1997 to the commissioner of health by April 15, 1997.

    46    11.  If  a  CHHA  or  LTHHCP  fails  to submit data and information as
    47  required for purposes of this section:
    48    (a) such CHHA or LTHHCP shall be presumed to have no decrease in medi-
    49  caid revenue percentage between  the  applicable  base  period  and  the
    50  applicable  target  period  for purposes of the calculations pursuant to
    51  this section; and
    52    (b) the commissioner of health shall reduce the current rate  paid  to
    53  such  CHHA  and  such  LTHHCP by state governmental agencies pursuant to
    54  article 36 of the public health law by one percent for a  period  begin-
    55  ning on the first day of the calendar month following the applicable due
    56  date  as  established by the commissioner of health and continuing until

        S. 6457--C                         51                         A. 9557--B
 

     1  the last day of the calendar month in which the required data and infor-
     2  mation are submitted.
     3    12. The commissioner of health shall inform in writing the director of
     4  the  budget  and the chair of the senate finance committee and the chair
     5  of the assembly ways and means committee of the results  of  the  calcu-
     6  lations pursuant to this section.
     7    §  89.  Subdivision  5-a  of  section 246 of chapter 81 of the laws of
     8  1995, amending the public health law and other laws relating to  medical
     9  reimbursement  and welfare reform, as amended by section 64 of part C of
    10  chapter 58 of the laws of 2005, is amended to read as follows:
    11    5-a. Section sixty-four-a of this act shall be deemed to have been  in
    12  full  force and effect on and after April 1, 1995 through March 31, 1999
    13  and on and after July 1, 1999 through March 31, 2000 and  on  and  after

    14  April  1,  2000  through  March  31, 2003 and on and after April 1, 2003
    15  through March 31, [2006] 2007;
    16    § 90. Section 64-b of chapter 81 of the laws  of  1995,  amending  the
    17  public  health  law and other laws relating to medical reimbursement and
    18  welfare reform, as amended by section 65 of part C of chapter 58 of  the
    19  laws of 2005, is amended to read as follows:
    20    §  64-b.  Notwithstanding  any  inconsistent  provision  of  law,  the
    21  provisions of subdivision 7 of section 3614 of the public health law, as
    22  amended, shall remain and be in full force and effect on April  1,  1995
    23  through March 31, 1999 and on July 1, 1999 through March 31, 2000 and on
    24  and after April 1, 2000 through March 31, 2003 and on and after April 1,
    25  2003 through March 31, [2006] 2007.
    26    § 91. Intentionally omitted.

    27    §  92.  Section  10  of  chapter  649 of the laws of 1996 amending the
    28  public health law, the mental hygiene law and the  social  services  law
    29  relating  to  authorizing  the  establishment of special needs plans, as
    30  amended by section 41 of part Z2 of chapter 62 of the laws of  2003,  is
    31  amended to read as follows:
    32    §  10.  This  act shall take effect immediately and shall be deemed to
    33  have been in full force and effect on and after July 1, 1996;  provided,
    34  however,  that  sections one, two and three of this act shall expire and
    35  be deemed repealed on March 31, [2006] 2009 provided, however  that  the
    36  amendments  to  section 364-j of the social services law made by section
    37  four of this act shall not affect the expiration  of  such  section  and
    38  shall  be  deemed  to  expire  therewith and provided, further, that the

    39  provisions of subdivisions 8, 9 and 10 of section  4401  of  the  public
    40  health  law,  as added by section one of this act; section 4403-d of the
    41  public health law as added by section two of this act and the provisions
    42  of section seven of this act, except for the provisions relating to  the
    43  establishment  of  no  more  than twelve comprehensive HIV special needs
    44  plans, shall expire and be deemed repealed on July 1, 2000.
    45    § 93. Section 11 of chapter 710 of the  laws  of  1988,  amending  the
    46  social services law and the education law relating to medical assistance
    47  eligibility  of  certain  persons and providing for managed medical care
    48  demonstration programs, as amended by section 42 of part Z2  of  chapter
    49  62 of the laws of 2003, is amended to read as follows:
    50    §  11.  This  act  shall  take  effect  immediately;  except  that the

    51  provisions of sections one, two, three, four, eight and ten of this  act
    52  shall take effect on the ninetieth day after it shall have become a law;
    53  and  except  that the provisions of sections five, six and seven of this
    54  act shall take effect January 1, 1989; and except that  effective  imme-
    55  diately, the addition, amendment and/or repeal of any rule or regulation
    56  necessary  for  the implementation of this act on its effective date are

        S. 6457--C                         52                         A. 9557--B
 
     1  authorized and directed to be made  and  completed  on  or  before  such
     2  effective  date; provided, however, that the provisions of section 364-j
     3  of the social services law, as added by section one of  this  act  shall
     4  expire  and  be  deemed repealed on and after March 31, [2006] 2009, the

     5  provisions of section 364-k of the social  services  law,  as  added  by
     6  section  two  of  this act, except subdivision 10 of such section, shall
     7  expire and be deemed repealed on and after  January  1,  1994,  and  the
     8  provisions  of  subdivision  10  of section 364-k of the social services
     9  law, as added by section two of this act, shall  expire  and  be  deemed
    10  repealed on January 1, 1995.
    11    §  94.  Subdivision  (c)  of  section 62 of chapter 165 of the laws of
    12  1991, amending the public health law and other laws relating  to  estab-
    13  lishing  payments  for  medical  assistance, as amended by section 43 of
    14  part Z2 of chapter 62 of the  laws  of  2003,  is  amended  to  read  as
    15  follows:
    16    (c)  section  364-j  of the social services law, as amended by section
    17  eight of this act and subdivision 6  of  section  367-a  of  the  social

    18  services  law as added by section twelve of this act shall expire and be
    19  deemed repealed on March 31 [2006], 2009 and provided further, that  the
    20  amendments  to  the provisions of such section 364-j shall only apply to
    21  managed care programs approved on or after the effective  date  of  this
    22  act;
    23    § 95. Intentionally omitted.
    24    § 96. Section 4 of chapter 19 of the laws of 1998, amending the social
    25  services law relating to limiting the method of payment for prescription
    26  drugs  under the medical assistance program, as amended by section 46 of
    27  part Z2 of chapter 62 of the  laws  of  2003,  is  amended  to  read  as
    28  follows:
    29    §  4. This act shall take effect 120 days after it shall have become a
    30  law and shall expire and be deemed repealed March 31, [2006] 2009.

    31    § 96-a. Section 2 of chapter 535 of the laws  of  1983,  amending  the
    32  social  services  law  relating  to eligibility of certain enrollees for
    33  medical assistance, as amended by section 45 of part Z2 of chapter 62 of
    34  the laws of 2003, is amended to read as follows:
    35    § 2. This act shall take effect immediately and shall remain  in  full
    36  force and effect through March 31, [2006] 2009.
    37    § 97. Intentionally omitted.
    38    §  98.  Section  18  of  chapter 904 of the laws of 1984, amending the
    39  public health law and the social services law  relating  to  encouraging
    40  comprehensive  health  services, as amended by chapter 69 of the laws of
    41  2004, is amended to read as follows:
    42    § 18. This act shall take effect  immediately,  except  that  sections
    43  six,  nine, ten and eleven of this act shall take effect on the sixtieth

    44  day after it shall have become a law, sections two, three, four and nine
    45  of this act shall expire and be of no further  force  or  effect  on  or
    46  after  March  31, [2006] 2009, section two of this act shall take effect
    47  on April 1, 1985 or seventy-five days following the  submission  of  the
    48  report  required  by  section  one  of this act, whichever is later, and
    49  sections eleven and thirteen of this act  shall  expire  and  be  of  no
    50  further force or effect on or after March 31, 1988.
    51    §  99. The commissioner of health is authorized to promulgate or adopt
    52  any rules or regulations necessary to implement the provisions  of  this
    53  act and any procedures, forms, or instructions necessary for such imple-
    54  mentation  may  be  adopted and issued on or after the effective date of
    55  this act. Notwithstanding any inconsistent provision of the state admin-

    56  istrative procedure act or any other provision of  law,  rule  or  regu-

        S. 6457--C                         53                         A. 9557--B
 
     1  lation  the  commissioner  of health and the superintendent of insurance
     2  and any appropriate council is authorized to adopt or amend  or  promul-
     3  gate  on  an  emergency  basis  any regulation he or she or such council
     4  determines  necessary  to  implement  any  provision  of this act on its
     5  effective date.
     6    § 100. If any clause, sentence, paragraph, section or part of this act
     7  shall be adjudged by any court of competent jurisdiction to be  invalid,
     8  such  judgment  shall  not  affect,  impair, or invalidate the remainder
     9  thereof, but shall be confined in its operation to the clause, sentence,
    10  paragraph, subdivision, section or part thereof directly involved in the

    11  controversy in which such judgment shall have been rendered. It is here-
    12  by declared to be the intent of the legislature that this act would have
    13  been enacted even if such invalid provisions had not been included ther-
    14  ein.
    15    § 101. This act shall take effect immediately and shall be  deemed  to
    16  have  been in full force and effect on and after April 1, 2006; provided
    17  however, that:
    18    1. Intentionally omitted.
    19    2. Section one of this act shall take effect January 15, 2007;
    20    3. Intentionally omitted.
    21    4. Intentionally omitted.
    22    5. Intentionally omitted.
    23    6. Section forty-three of this act shall take effect October  1,  2006
    24  and shall remain in full force and effect until December 31, 2009;
    25    6-a.  Sections  fifty,  fifty-a, fifty-b and fifty-c of this act shall
    26  take effect July 1, 2006;

    27    7. Section fifty-seven of this act shall take effect July 1, 2006;
    28    7-a. Sections fifty-eight, fifty-eight-a and fifty-eight-b shall  take
    29  effect  January  1, 2007 and shall expire and be deemed repealed January
    30  1, 2009.
    31    8. Section fifty of this act shall not take effect  unless  and  until
    32  the commissioner of health receives all necessary approvals under feder-
    33  al  law  and  regulation  to implement its provisions, and provided that
    34  such provisions do not prevent the receipt of federal financial  partic-
    35  ipation under the medical assistance program. The commissioner of health
    36  shall  submit  such  waiver applications and/or state plan amendments as
    37  may be necessary to obtain such approvals and to ensure continued feder-
    38  al financial participation;
    39    9. No section of this act shall be required to be  implemented  sooner

    40  than sixty days following receipt of all waivers and approvals necessary
    41  under federal law and regulation to implement the provisions of this act
    42  with  federal  financial participation; the commissioner of health shall
    43  submit such waiver applications and/or state plan amendments as  may  be
    44  necessary  to  obtain  such  approvals  and  to ensure continued federal
    45  financial participation;
    46    9-a. Section sixty-eight-c of this act shall take effect  on  the  one
    47  hundred twentieth day after it shall have become a law; provided, howev-
    48  er, that effective immediately, the addition, amendment and/or repeal of
    49  any  rule  or regulation necessary for the implementation of this act on
    50  its effective date are authorized and directed to be made and  completed
    51  on or before such effective date;
    52    10.  Section  sixty-eight-g  of  this act shall take effect October 1,
    53  2006;

    54    11. Intentionally omitted.
    55    12. Intentionally omitted.
    56    13. Intentionally omitted.

        S. 6457--C                         54                         A. 9557--B
 
     1    13-a. The amendments to section 4403-f of the public health  law  made
     2  by  sections  sixty-five-c,  sixty-five-d,  sixty-five-e,  sixty-five-f,
     3  sixty-five-g and sixty-five-h of this act shall not affect the repeal of
     4  such section and shall be deemed repealed therewith.
     5    14.  The  amendments  to  paragraphs  (f)  and (k) of subdivision 4 of
     6  section 2807-c of the public health law made  by  sections  seventy  and
     7  seventy-one  of  this  act shall not affect the expiration of such para-
     8  graphs and shall be deemed to expire therewith;
     9    15. The amendments to subparagraph (vi) of paragraph (b)  of  subdivi-
    10  sion 5 of section 2807-c of the public health law made by section seven-

    11  ty-two  of this act shall not affect the expiration of such subparagraph
    12  and shall be deemed to expire therewith; and
    13    16. The amendments to paragraph (c) of subdivision 5 of section 2807-c
    14  of the public health law made by section seventy-three of this act shall
    15  not affect the expiration of such  paragraph  and  shall  be  deemed  to
    16  expire therewith.
    17    17.  Sections  sixty-eight-d  and  sixty-eight-e  of this act shall be
    18  deemed to have been in full force and effect  on  and  after  March  31,
    19  2006; and
    20    18.  The  amendments to section 364-j of the social services law, made
    21  by sections twenty-three, fifty-seven and sixty-five of this  act  shall
    22  not affect the repeal of such section and shall be deemed repealed ther-
    23  ewith.
 
    24                                   PART B
 
    25    Section  1.  The  commissioner  of  health shall develop statewide and

    26  suburban areas/regional benchmarks regarding  racial/ethnic  disparities
    27  in access to health care by minority populations for certain preventable
    28  hospitalizations including, but not limited to, diabetes, asthma, chron-
    29  ic  obstructive  pulmonary  disease,  hypertension  and congestive heart
    30  failure. Such disparity index benchmarks shall provide information about
    31  the level of disease  disparities  between  population  groups  in  such
    32  suburban   areas/regions.  In  suburban  areas/regions  where  rates  of
    33  preventable hospitalizations by minorities  exceed  statewide  benchmark
    34  indices,  such  regions  shall  be  eligible  to participate in a racial
    35  disparities program designed by one or more organizations broadly repre-
    36  sentative of physicians licensed in this state from funds made available
    37  for this purpose to foster the elimination of racial/ethnic  disparities

    38  in health status and health care delivery.
    39    §  2. Section 2559 of the public health law is amended by adding a new
    40  subdivision 5 to read as follows:
    41    5. Notwithstanding any law to the contrary,  there  is  hereby  estab-
    42  lished  an  early  intervention demonstration project to be conducted in
    43  Albany, Montgomery, Rensselaer, Saratoga and Schenectady Counties.  Such
    44  project shall be for the purposes of facilitating  coverage  eligibility
    45  determinations  and  claims submissions for early intervention services.
    46  The commissioner is hereby authorized and directed  to  facilitate  and,
    47  within  the amounts appropriated, shall award grant funds for the imple-
    48  mentation and operation of such demonstration  project  which  shall  be

    49  conducted  by an association representative of health maintenance organ-
    50  izations licensed under article forty-four of this chapter  and  article
    51  forty-three of the insurance law in conjunction with the counties speci-
    52  fied in this subdivision.
    53    Such  demonstration shall include the development of an integrated web
    54  portal enabling access to health plan data bases to facilitate  coverage

        S. 6457--C                         55                         A. 9557--B
 
     1  eligibility,  benefit  determinations and claims submission and process-
     2  ing. Such access shall be subject to all federal and state laws for  the
     3  confidentiality  of  personal and medical record information. The demon-

     4  stration will develop technology solutions to facilitate coverage deter-
     5  minations and streamline and monitor claims processes and payment.
     6    The  association  conducting  the  demonstration,  with input from the
     7  participating counties, shall submit a report to the  commissioner,  the
     8  temporary  president  of the senate and the speaker of the assembly, not
     9  later than one year following the commencement of the  program's  opera-
    10  tion, describing the experiences, feasibility and advisability of repli-
    11  cation,  and  any additional recommendations for continuation, modifica-
    12  tion or cessation of the program.
    13    § 3. The commissioner of health, in conjunction with the deans of  the
    14  State University at Albany School of Public Health and Nelson A.  Rocke-

    15  feller College of Public Affairs and Policy, shall develop and implement
    16  an  academic  year-long experiential Public Health Management Leaders of
    17  Tomorrow program to provide  ten  matriculated  graduate  students  with
    18  opportunities  to  gain  practical  experience  and  knowledge  of state
    19  governmental  health  care  policy  administration.  The  program  shall
    20  include  at  least  three  rotations  within  the  various divisions and
    21  bureaus of the department of health with  cross-assignments  from  other
    22  bureaus  in  a  curricula  tailored to meet the unique skills, needs and
    23  interest of both students and the department of health. The program  can
    24  include,  at the discretion of the department of health and the schools,
    25  and subject to the availability of funding, a stipend of $25,000 for the
    26  ten selected students.

    27    § 4. Subdivision 2 of section 347 of the public health law is REPEALED
    28  and a new subdivision 2 is added to read as follows:
    29    2. The board of health of a county or part-county health  district  is
    30  hereby  authorized to enter into contracts with one or more counties for
    31  mutual aid in the delivery of health services, including but not limited
    32  to public health emergency responses such as disease surveillance,  mass
    33  immunization  programs,  mass  antibiotic  distribution, and handling of
    34  mass casualties, provided approval of such contracts by the  legislative
    35  body of each county and of the commissioner is obtained.  Each county or
    36  part-county health district shall be liable for acts or omissions of its

    37  employees  or agents when acting pursuant to such a contract in the same
    38  manner and to the same extent as if  such  acts  or  omissions  occurred
    39  within  the county or part-county health district; and such employees or
    40  agents shall have immunities and privileges for their acts or  omissions
    41  when  acting  pursuant  to such a contract in the same manner and to the
    42  same extent as if such acts or omissions occurred within the  county  or
    43  part-county  health  district; except that such a contract may apportion
    44  liability otherwise between or among the county  or  part-county  health
    45  districts.
    46    §  5. Subdivision 1, paragraph (d) of subdivision 2 and subparagraph 2
    47  of paragraph (b) of subdivision 3 of section 602 of  the  public  health

    48  law, as added by chapter 901 of the laws of 1986, are amended to read as
    49  follows:
    50    1.  Every  municipality  shall  [biennially] every four years, on such
    51  dates as may be fixed by the commissioner, submit  to  the  commissioner
    52  for his or her approval a public health services plan.
    53    (d) a projected [two-year] four-year plan of expenditures necessary to
    54  implement the programs;
    55    (2)  disease  control,  which  shall include activities to control and
    56  mitigate the extent of non-infectious diseases, particularly those of  a

        S. 6457--C                         56                         A. 9557--B
 
     1  chronic,  degenerative  nature, and infectious diseases. Such activities
     2  shall include surveillance and epidemiological programs, and programs to

     3  detect diseases in their early stages. Specific activities shall include
     4  immunizations  against  infectious diseases [and], prevention and treat-
     5  ment of sexually  transmissible  diseases,  and  arthropod  vector-borne
     6  disease prevention.
     7    § 6. Subdivision 1 of section 605 of the public health law, as amended
     8  by chapter 474 of the laws of 1996, is amended to read as follows:
     9    1.  A  state  aid base grant shall be reimbursed to municipalities for
    10  the base public health services identified in paragraph (b) of  subdivi-
    11  sion three of section six hundred two of this title, in an amount of the
    12  greater  of [forty-five] fifty-five cents per capita, for each person in
    13  the municipality, or [four] five hundred fifty thousand dollars provided

    14  that the municipality expends at least [four] five hundred  fifty  thou-
    15  sand  dollars  for such base public health services. A municipality must
    16  provide all the basic public health services identified in paragraph (b)
    17  of subdivision three of section six hundred two of this title to qualify
    18  for such base grant unless the municipality  has  the  approval  of  the
    19  commissioner  to  expend the base grant on a portion of such base public
    20  health services. If any services in such paragraph (b) are not  approved
    21  in  the  plan  or if no plan is submitted for such services, the commis-
    22  sioner may limit the municipality's per capita or  base  grant  to  that
    23  proportionate share which will fund those services that are submitted in
    24  a  plan  and subsequently approved. The commissioner may use the propor-
    25  tionate share that is not granted to  contract  with  agencies,  associ-

    26  ations, or organizations to provide such services; or the health depart-
    27  ment  may  use  such  proportionate  share  to provide the services upon
    28  approval of the director of the division of the budget.
    29    § 7. Subdivision 2 of section 605 of the public health law, as amended
    30  by chapter 474 of the laws of 1996, is amended to read as follows:
    31    2. State aid reimbursement for public health services  provided  by  a
    32  municipality under this title, shall be made as follows:
    33    (a)  if  the municipality is providing some or all of the basic public
    34  health services identified in paragraph  (b)  of  subdivision  three  of
    35  section  six hundred two of this title, pursuant to an approved plan, at
    36  a rate of [up to fifty per centum  but]  no  less  than  thirty-six  per
    37  centum  of  the  difference between the amount of moneys expended by the

    38  municipality for public health services required  by  paragraph  (b)  of
    39  subdivision  three  of  section six hundred two of this title during the
    40  fiscal year and the base grant provided pursuant to subdivision  one  of
    41  this  section.   No such reimbursement shall be provided for services if
    42  they are not approved in a plan or if no  plan  is  submitted  for  such
    43  services.
    44    (b)  if  the  municipality  is  providing other public health services
    45  within limits to be prescribed by  regulation  by  the  commissioner  in
    46  addition  to some or all of the public health services required in para-
    47  graph (b) of subdivision three of section six hundred two of this title,
    48  pursuant to an approved plan, at a rate of [up to fifty per centum  but]
    49  not  less  than [thirty] thirty-six per centum of the moneys expended by

    50  the municipality for such other services. No such reimbursement shall be
    51  provided for services if they are not approved in a plan or if  no  plan
    52  is submitted for such services.
    53    § 8. Section 611 of the public health law is REPEALED.
    54    § 9. Subdivision 1 of section 616 of the public health law, as amended
    55  by chapter 474 of the laws of 1996, is amended to read as follows:

        S. 6457--C                         57                         A. 9557--B
 
     1    1.  The  total  amount  of state aid provided pursuant to this article
     2  shall be limited to the amount of the annual appropriation made  by  the
     3  legislature.  In no event, however, shall such state aid be less than an
     4  amount to provide the full base grant  and,  as  otherwise  provided  by
     5  paragraph  (a)  of  subdivision  two of section six hundred five of this

     6  article, at least thirty-six per centum of the  difference  between  the
     7  amount of moneys expended by the municipality for public health services
     8  required  by  paragraph  (b) of subdivision three of section six hundred
     9  two of this article during the fiscal year and the base  grant  provided
    10  pursuant to subdivision one of section six hundred five of this article.
    11  A  municipality shall also receive [at least thirty] not less than thir-
    12  ty-six per centum  of  the  moneys  expended  for  other  public  health
    13  services  pursuant  to  paragraph  (b) of subdivision two of section six
    14  hundred five of this article,  and,  at  least  the  minimum  amount  so
    15  required  for  the  services  identified  in  title two of this article.
    16  [Moreover, for services provided during calendar year  nineteen  hundred

    17  ninety-six,  no county with a population of fifty thousand or less shall
    18  receive less reimbursement pursuant to subdivision  one  and  paragraphs
    19  (a) and (b) of subdivision two of section six hundred five of this arti-
    20  cle  than  it  would  have had a chapter of the laws of nineteen hundred
    21  ninety-six amending  these  provisions  as  of  August  first,  nineteen
    22  hundred ninety-six not been enacted.]
    23    §  10. The public health law is amended by adding a new section 621 to
    24  read as follows:
    25    § 621. State aid; public health emergencies.  If the state commission-
    26  er or a county health department or part-county department of health  or
    27  municipality,  with  the  approval of the state commissioner, determines

    28  that there is an imminent threat to public health, the department  shall
    29  reimburse counties or municipalities at fifty per centum for the cost of
    30  emergency  measures  as  approved  by  the department and subject to the
    31  approval of the director of the budget. Such funds shall be made  avail-
    32  able  from  funds  appropriated  for  public health emergencies, only to
    33  those counties or municipalities, which have expended  all  other  state
    34  aid  which  may  be  available for related activities and have developed
    35  measures to adequately address the emergency.  Reimbursement  is  condi-
    36  tioned upon availability of appropriated funds.
    37    §  11.  Subdivision  1  of section 241 of the elder law, as amended by
    38  section 3 of chapter 645 of the laws of 2005,  is  amended  to  read  as

    39  follows:
    40    1.  "Covered  drug"  shall  mean a drug dispensed subject to a legally
    41  authorized prescription pursuant to section sixty-eight hundred  ten  of
    42  the  education  law,  and  insulin,  an  insulin  syringe, or an insulin
    43  needle. Such term shall not include: (a)  any  drug  determined  by  the
    44  commissioner  of the federal food and drug administration to be ineffec-
    45  tive or unsafe; (b) any drug dispensed in a package, or form  of  dosage
    46  or administration, as to which the commissioner of health finally deter-
    47  mines  in  accordance with the provisions of section two hundred [fifty]
    48  fifty-two of this title that a less expensive package, or form of dosage
    49  or administration, is available that is pharmaceutically equivalent  and
    50  equivalent  in  its therapeutic effect for the general health character-

    51  istics of the eligible program participant population;  (c)  any  device
    52  for  the  aid or correction of vision; (d) any drug, including vitamins,
    53  which is generally available without a physician's prescription; and (e)
    54  drugs for the treatment of [erectile dysfunction when prescribed for use
    55  by a person who is required to register as a sex  offender  pursuant  to
    56  article  six-C of the correction law, provided that any denial of cover-

        S. 6457--C                         58                         A. 9557--B

     1  age for such drugs shall provide the patient with the means of obtaining
     2  additional information concerning both the denial and the means of chal-
     3  lenging such denial] sexual or erectile dysfunction, unless  such  drugs

     4  are  used  to  treat a condition, other than sexual or erectile dysfunc-
     5  tion, for which the drugs have been approved by  the  federal  food  and
     6  drug  administration.    Any  of  the  drugs enumerated in the preceding
     7  sentence shall be considered a covered drug or a prescription  drug  for
     8  purposes of this article if it is added to the preferred drug list under
     9  article  two-A  of the public health law. For the purpose of this title,
    10  except as otherwise provided in this section, a covered  drug  shall  be
    11  dispensed  in  quantities  no  greater  than  a thirty day supply or one
    12  hundred units, whichever is greater. In the case of a drug dispensed  in
    13  a  form  of  administration  other than a tablet or capsule, the maximum
    14  allowed quantity shall be a thirty day supply; the panel  is  authorized

    15  to  approve  exceptions  to these limits for specific products following
    16  consideration of recommendations from pharmaceutical or medical  experts
    17  regarding commonly packaged quantities, unusual forms of administration,
    18  length  of  treatment  or  cost  effectiveness.  In  the  case of a drug
    19  prescribed pursuant to section thirty-three hundred  thirty-two  of  the
    20  public  health law to treat one of the conditions that have been enumer-
    21  ated by the commissioner of health pursuant to regulation as  warranting
    22  the  prescribing of greater than a thirty day supply, such drug shall be
    23  dispensed in quantities not to exceed a three month supply.
    24    § 12. Subdivision 1 of section 241 of the elder  law,  as  amended  by
    25  section  4  of  chapter  645  of the laws of 2005, is amended to read as
    26  follows:
    27    1. "Covered drug" shall mean a drug dispensed  subject  to  a  legally

    28  authorized  prescription  pursuant to section sixty-eight hundred ten of
    29  the education law, and  insulin,  an  insulin  syringe,  or  an  insulin
    30  needle.  Such  term  shall  not  include: (a) any drug determined by the
    31  commissioner of the federal food and drug administration to be  ineffec-
    32  tive  or  unsafe; (b) any drug dispensed in a package, or form of dosage
    33  or administration, as to which the commissioner of health finally deter-
    34  mines in accordance with the provisions of section two  hundred  [fifty]
    35  fifty-two of this title that a less expensive package, or form of dosage
    36  or  administration, is available that is pharmaceutically equivalent and
    37  equivalent in its therapeutic effect for the general  health  character-
    38  istics  of  the  eligible program participant population; (c) any device
    39  for the aid or correction of vision, or any  drug,  including  vitamins,

    40  which is generally available without a physician's prescription; and (d)
    41  drugs for the treatment of [erectile dysfunction when prescribed for use
    42  by a person who is required to register pursuant to article six-C of the
    43  correction  law,  provided  that  any  denial of coverage for such drugs
    44  shall provide the patient with the means of obtaining additional  infor-
    45  mation  concerning  both  the  denial  and the means of challenging such
    46  denial] sexual or erectile dysfunction, unless such drugs  are  used  to
    47  treat  a condition, other than sexual or erectile dysfunction, for which
    48  the  drugs  have  been  approved  by   the   federal   food   and   drug
    49  administration.    For  the  purpose  of this title, except as otherwise

    50  provided in this section, a covered drug shall be dispensed  in  quanti-
    51  ties no greater than a thirty day supply or one hundred units, whichever
    52  is  greater. In the case of a drug dispensed in a form of administration
    53  other than a tablet or capsule, the maximum allowed quantity shall be  a
    54  thirty  day  supply;  the  panel  is authorized to approve exceptions to
    55  these limits for specific products following consideration of  recommen-
    56  dations  from pharmaceutical or medical experts regarding commonly pack-

        S. 6457--C                         59                         A. 9557--B
 
     1  aged quantities, unusual forms of administration, length of treatment or
     2  cost effectiveness. In the case of a drug prescribed pursuant to section
     3  thirty-three hundred thirty-two of the public health law to treat one of

     4  the  conditions  that have been enumerated by the commissioner of health
     5  pursuant to regulation as warranting the prescribing of greater  than  a
     6  thirty  day  supply,  such  drug shall be dispensed in quantities not to
     7  exceed a three month supply.
     8    § 13. Subdivision 2 of section 241 of the elder law is amended to read
     9  as follows:
    10    2. "Provider pharmacy" shall mean a pharmacy registered in  the  state
    11  of  New York pursuant to section sixty-eight hundred eight of the educa-
    12  tion law or a pharmacy registered in a state bordering the state of  New
    13  York  when  certified as necessary by the executive director pursuant to
    14  section two hundred [fifty] fifty-three of  this  title,  for  which  an
    15  agreement  to  provide  pharmacy  services  for purposes of this program
    16  pursuant to section two hundred forty-nine of this title is in effect.

    17    § 14. Paragraph (b) of subdivision 1, paragraphs (a) and (b) of subdi-
    18  vision 2 and paragraph (d) of subdivision 3 of section 242 of the  elder
    19  law,  paragraph  (d) of subdivision 3 as added by section 2 of part A of
    20  chapter 49 of the laws of 2004, are amended to read as follows:
    21    (b) any married resident who is at least sixty-five years of  age  and
    22  whose  income  for the calendar year immediately preceding the effective
    23  date of the annual coverage period when combined with the income in  the
    24  same calendar year of such married person's spouse beginning on or after
    25  January  first,  two thousand [five] one, is less than or equal to twen-
    26  ty-six thousand dollars. After the initial determination of eligibility,
    27  each eligible individual must be redetermined eligible  at  least  every
    28  twenty-four months.

    29    (a) any unmarried resident who is at least sixty-five years of age and
    30  whose  income  for the calendar year immediately preceding the effective
    31  date of the annual coverage period beginning on or after January  first,
    32  two  thousand  [five] one, is more than twenty thousand and less than or
    33  equal to thirty-five thousand dollars. After the  initial  determination
    34  of  eligibility,  each eligible individual must be redetermined eligible
    35  at least every twenty-four months; and
    36    (b) any married resident who is at least sixty-five years of  age  and
    37  whose  income  for the calendar year immediately preceding the effective
    38  date of the annual coverage period when combined with the income in  the
    39  same calendar year of such married person's spouse beginning on or after
    40  January first, two thousand [five] one, is more than twenty-six thousand

    41  dollars  and  less  than  or  equal to fifty thousand dollars. After the
    42  initial determination of eligibility, each eligible individual  must  be
    43  redetermined eligible at least every twenty-four months.
    44    (d)  The  elderly pharmaceutical insurance coverage program is author-
    45  ized to apply for transitional assistance under the  [medical]  medicare
    46  prescription  drug  discount  program with a specific drug discount card
    47  under title XVIII of the federal social security act on behalf of appli-
    48  cants and eligible program participants under this [article] title.  The
    49  elderly pharmaceutical insurance coverage program shall  provide  appli-
    50  cants  and  eligible  program participants with prior written notice of,
    51  and the opportunity to decline, such automatic enrollment.

    52    § 15. Paragraphs (h), (i) and (j) of subdivision 5 of section  244  of
    53  the elder law are amended to read as follows:
    54    (h)  prepare an evaluation report on the experience of the program for
    55  the governor and the legislature no  later  than  November  first,  [two
    56  thousand five] nineteen hundred ninety-five.  Such report should include

        S. 6457--C                         60                         A. 9557--B
 
     1  the  recommendations  of  the  panel  concerning the continuation of the
     2  program beyond its expiration;
     3    (i) establish policies and procedures to allow individuals who partic-
     4  ipate  in the catastrophic deductible plan on December thirty-first, two
     5  thousand [five] to continue to receive benefits under the provisions  of

     6  section  two  hundred  forty-eight  of  this title in effect on December
     7  thirty-first, two thousand [five], if and for as long as the enrollee so
     8  chooses; and
     9    (j) facilitate implementation of an  expanded  elderly  pharmaceutical
    10  insurance  coverage program on January first, two thousand [six] one, by
    11  commencing no later than October first, two  thousand  [five],  outreach
    12  activities,  including  but not limited to the dissemination of informa-
    13  tion to local governments and senior citizen  provider  advocacy  groups
    14  regarding  such  expanded  program.  The  panel  shall make applications
    15  available for the expanded  elderly  pharmaceutical  insurance  coverage
    16  program on October first, two thousand [five].
    17    § 16. Subdivision 4 of section 245 of the elder law is amended to read
    18  as follows:

    19    4.  Establish  procedures to prorate registration fees for any partic-
    20  ipant's annual coverage period which  began  after  January  first,  two
    21  thousand  [five]  and before January first, two thousand [six] one. Such
    22  proration shall be calculated on a daily basis and ensure  that  program
    23  participants  are  afforded  an  equitable  transition  from the program
    24  established pursuant to this title to the revised  program  to  go  into
    25  effect on January first, two thousand [six] one.
    26    §  17.  Paragraphs  (c)  and (d) of subdivision 2 and paragraph (c) of
    27  subdivision 4 of section 247 of the elder law are  amended  to  read  as
    28  follows:
    29    (c)  In  the event that the state expenditures per participant meeting
    30  the registration fee requirements  of  this  subdivision,  exclusive  of

    31  expenditures  for program administration, in the program year commencing
    32  October first, [two thousand five] nineteen hundred eighty-eight, and in
    33  each program year thereafter, exceed such expenditures in  the  previous
    34  program  year  by a minimum of ten percent, the annual registration fees
    35  set forth in this subdivision may, unless otherwise provided by law,  be
    36  increased, pro-rata, for the subsequent program year, provided that such
    37  increase  shall  not  exceed  7.5 percent of the prior year registration
    38  fees as may have been adjusted in accordance with this paragraph.
    39    (d) In the event that the state  expenditures  per  such  participant,
    40  incurred  pursuant  to  this  subdivision, exclusive of expenditures for
    41  program administration, in the program year  commencing  October  first,

    42  [two  thousand  five] nineteen hundred eighty-eight, and in each program
    43  year thereafter, are less than such expenditures in the previous program
    44  year by a minimum of ten percent, the annual registration fees set forth
    45  in this subdivision may, unless otherwise provided by law, be decreased,
    46  pro-rata, for the subsequent program year, provided that  such  decrease
    47  shall  not exceed 7.5 percent of the prior year registration fees as may
    48  have been adjusted in accordance with this paragraph.
    49    (c) Effective October first,  [two  thousand  five]  nineteen  hundred
    50  eighty-eight,  the  limits  on point of sale co-payments as set forth in
    51  this subdivision may be adjusted by the panel on the anniversary date of
    52  each program participant's annual coverage period, and  such  adjustment

    53  shall  be in effect for the duration of that annual coverage period. Any
    54  such annual adjustment shall  be  made  using  a  percentage  adjustment
    55  factor  which  shall  not  exceed one-half of the difference between the
    56  year-to-year percentage increase in the consumer  price  index  for  all

        S. 6457--C                         61                         A. 9557--B
 
     1  urban  consumers, as published by the United States Department of Labor,
     2  and, if larger, the year-to-year percentage increase  in  the  aggregate
     3  average cost of covered drugs purchased under this title, which year-to-
     4  year  percentage increase in such cost shall be determined by comparison
     5  of such cost in the same month of each  of  the  appropriate  successive
     6  years;  provided,  however, that for any such adjustment based wholly on

     7  experience in the program year commencing October first,  [two  thousand
     8  five]   nineteen   hundred  eighty-seven,  the  year-to-year  percentage
     9  increase in such cost shall be determined by comparison of such cost  in
    10  each  of  two  months  no  less  than  five months apart and within such
    11  program year, which comparison  shall  be  annualized.  Such  percentage
    12  adjustment  factor shall be the same as that used to determine any simi-
    13  lar annual adjustment for the same annual coverage periods  pursuant  to
    14  the  provisions  of subdivision [two] four of section two hundred forty-
    15  eight of this title.
    16    § 18. Paragraphs (c) and (d) of subdivision 2  and  paragraph  (c)  of
    17  subdivision  4  of  section  248 of the elder law are amended to read as
    18  follows:

    19    (c) In the event that the state expenditures per participant  electing
    20  to  meet  the  deductible requirements of this subdivision, exclusive of
    21  expenditures for program administration, in the program year  commencing
    22  October first, [two thousand five] nineteen hundred eighty-eight, and in
    23  each  program  year thereafter, exceed such expenditures in the previous
    24  program year by a minimum of ten percent, the  annual  personal  covered
    25  drug  expenditures  set  forth in this subdivision may, unless otherwise
    26  provided by law, be increased,  pro-rata,  for  the  subsequent  program
    27  year,  provided that such increase shall not exceed eight percent of the
    28  prior year personal covered drug expenditures as may have been  adjusted
    29  in accordance with this paragraph.
    30    (d)  In  the  event  that the state expenditures per such participant,

    31  incurred pursuant to this subdivision,  exclusive  of  expenditures  for
    32  program  administration,  in  the program year commencing October first,
    33  [two thousand five] nineteen hundred eighty-eight, and in  each  program
    34  year thereafter, are less than such expenditures in the previous program
    35  year  by  a  minimum  of  ten  percent, the annual personal covered drug
    36  expenditures  set  forth  in  this  subdivision  may,  unless  otherwise
    37  provided  by  law,  be  decreased,  pro-rata, for the subsequent program
    38  year, provided that such decrease shall not exceed eight percent of  the
    39  prior  year personal covered drug expenditures as may have been adjusted
    40  in accordance with this paragraph.
    41    (c) Effective October first,  [two  thousand  five]  nineteen  hundred

    42  eighty-eight,  the  limits  on point of sale co-payments as set forth in
    43  this subdivision may be adjusted by the panel on the anniversary date of
    44  each program participant's annual coverage period, and  such  adjustment
    45  shall  be in effect for the duration of that annual coverage period. Any
    46  such annual adjustment shall  be  made  using  a  percentage  adjustment
    47  factor  which  shall  not  exceed one-half of the difference between the
    48  year-to-year percentage increase in the consumer  price  index  for  all
    49  urban  consumers, as published by the United States Department of Labor,
    50  and, if larger, the year-to-year percentage increase  in  the  aggregate
    51  average cost of covered drugs purchased under this title, which year-to-
    52  year  percentage increase in such cost shall be determined by comparison
    53  of such cost in the same month of each  of  the  appropriate  successive

    54  years;  provided,  however, that for any such adjustment based wholly on
    55  experience in the program year commencing October first,  [two  thousand
    56  five]   nineteen   hundred  eighty-seven,  the  year-to-year  percentage

        S. 6457--C                         62                         A. 9557--B
 
     1  increase in such cost shall be determined by comparison of such cost  in
     2  each  of  two  months  no  less  than  five months apart and within such
     3  program year, which comparison  shall  be  annualized.  Such  percentage
     4  adjustment  factor shall be the same as that used to determine any simi-
     5  lar annual adjustment for the same annual coverage periods  pursuant  to
     6  the provisions of subdivision four of section two hundred forty-seven of
     7  this  title.  Such annual adjustments shall be calculated by multiplying

     8  the percentage adjustment factor by (1) ten  percent  and  applying  the
     9  resulting percentage to the upper income limitation of each income level
    10  for  unmarried  individuals  contained  in  this subdivision, and by (2)
    11  seven and one-half percent and applying the resulting percentage to  the
    12  upper  income  limitation  of  each income level for married individuals
    13  contained in this subdivision; each result of such  calculations,  minus
    14  any  applicable deductible increases made pursuant to subdivision two of
    15  this section and plus the result of applying the  percentage  adjustment
    16  factor  to the sum of any such annual adjustments applicable thereto for
    17  any prior annual coverage period, shall be the amount by which the limit
    18  on co-payments for each such income level  may  be  adjusted,  and  such
    19  amount  shall be in addition to any such amount or amounts applicable to

    20  prior annual coverage periods.
    21    § 19. Subparagraph 1 of paragraph (a) of subdivision 3 and subdivision
    22  5 of section 250 of the elder law are amended to read as follows:
    23    (1) any agreement between the program and a manufacturer entered  into
    24  before  August  first,  [two thousand five] nineteen hundred ninety-one,
    25  shall be deemed to have been entered into on April first, [two  thousand
    26  five]  nineteen  hundred  ninety-one;  and  provided  further, that if a
    27  manufacturer has not entered  into  an  agreement  with  the  department
    28  before  August  first,  [two thousand five] nineteen hundred ninety-one,
    29  such agreement shall not be effective until April first,  [two  thousand
    30  five]  nineteen  hundred ninety-two, unless such agreement provides that

    31  rebates will be retroactively calculated as if the agreement had been in
    32  effect on April first, [two thousand five] nineteen hundred  ninety-one;
    33  and
    34    5.  Notwithstanding  any  other provision of law, the [commissioner of
    35  the office of children and family services]  panel  shall  maximize  the
    36  coordination  of  benefits for persons enrolled under Title XVIII of the
    37  federal social security act (medicare) and enrolled under this title  in
    38  order to facilitate medicare payment of claims. The [commissioner of the
    39  office  of children and family services] panel may select an independent
    40  contractor, through  a  request-for-proposal  process,  to  implement  a
    41  centralized  coordination  of benefits system under this subdivision for

    42  individuals qualified in both the [medical assistance]  elderly  pharma-
    43  ceutical  insurance  coverage  (EPIC)  program and medicare programs who
    44  receive[,  including  but  not  limited  to,]   medications[,   sickroom
    45  supplies]  or  other covered products from a pharmacy provider currently
    46  enrolled in the [medical assistance]  elderly  pharmaceutical  insurance
    47  coverage (EPIC) program.
    48    §  20. Paragraph (e) of subdivision 3 of section 242 of the elder law,
    49  as added by section 5 of part A of chapter 58 of the laws  of  2005,  is
    50  amended to read as follows:
    51    (e)  As  a  condition of continued eligibility for benefits under this
    52  title, if a program participant's income indicates that the  participant

    53  could  be  eligible for a full premium subsidy under section 1860D-14 of
    54  the federal social security act, a program participant  is  required  to
    55  provide,  and to authorize the elderly pharmaceutical insurance coverage
    56  program to obtain, any information or documentation required  to  estab-

        S. 6457--C                         63                         A. 9557--B
 
     1  lish  the participant's eligibility for such subsidy.  The elderly phar-
     2  maceutical insurance coverage program shall make a reasonable effort  to
     3  notify  the program participant of his or her need to provide any of the
     4  above  required  information. After a reasonable effort has been made to
     5  contact the participant, a participant shall be notified in writing that

     6  he or she has sixty days to provide such required information.  If  such
     7  information  is  not  provided  within the sixty day period, the partic-
     8  ipant's coverage may be terminated. The elderly pharmaceutical insurance
     9  coverage program is authorized and directed  to  conduct  an  enrollment
    10  program  to identify, encourage and facilitate, in as prompt and stream-
    11  lined a fashion as possible, the enrollment of program participants  who
    12  are  found  eligible for such subsidy for enrollment into part D of such
    13  act, unless such enrollment will result in significant additional finan-
    14  cial liability on behalf of the participant or in the loss of any health
    15  coverage through a union or  employer  plan  for  the  participant,  the

    16  participant's  spouse  or  other  dependent.  Provided, however, that an
    17  eligible program participant's decision to disenroll from a prescription
    18  drug plan or MA-PD plan shall not impact their continued eligibility for
    19  benefits under this title.   Provided further,  however,  a  participant
    20  shall  not  be  prevented from receiving his or her drugs immediately at
    21  the pharmacy under the elderly pharmaceutical insurance coverage program
    22  as a result of such participant's enrollment  in  Medicare  part  D.  In
    23  order to maximize prescription drug coverage under Part D of title XVIII
    24  of the federal social security act, the elderly pharmaceutical insurance
    25  coverage  program  is authorized to represent program participants under
    26  this title in the pursuit of such coverage.   Such representation  shall

    27  not  result  in  any  additional  financial  liability on behalf of such
    28  program participants and shall include,  but  not  be  limited  to,  the
    29  following actions:
    30    (i)  application  for the premium and cost-sharing subsidies on behalf
    31  of eligible program participants;
    32    (ii) enrollment in a prescription drug plan or MA-PD plan; the elderly
    33  pharmaceutical insurance coverage program shall provide program  partic-
    34  ipants  with  prior  written  notice of, and the opportunity to decline,
    35  such enrollment;
    36    (iii) pursuit of appeals, grievances, or coverage determinations.
    37    § 21.  Section 4 of part X2 of chapter 62 of the laws of 2003,  amend-
    38  ing  the  public health law relating to allowing for the use of funds of
    39  the office of professional medical conduct for activities of the patient
    40  health information and quality improvement act of 2000,  as  amended  by

    41  section  8  of  part  A of chapter 58 of the laws of 2005, is amended to
    42  read as follows:
    43    § 4. This  act  shall  take  effect  immediately;  provided  that  the
    44  provisions  of  section  one of this act shall be deemed to have been in
    45  full force and effect on and after April 1, 2003, and shall expire March
    46  31, [2006] 2007 when upon such date the provisions of such section shall
    47  be deemed repealed.
    48    § 22. This act shall take effect immediately and shall  be  deemed  to
    49  have  been in full force and effect on or after April 1, 2006; provided,
    50  however, that sections six through ten of this act, relating to  article
    51  VI  of  the  public health law, shall take effect on January 1, 2007 and
    52  section twenty of this act shall take effect  July  1,  2006;  provided,
    53  further,  that  the  amendments  to  subdivision 1 of section 241 of the

    54  elder law made by section eleven of this act shall  be  subject  to  the
    55  expiration  and  reversion of such subdivision pursuant to section 79 of

        S. 6457--C                         64                         A. 9557--B
 
     1  part C of chapter 58 of the laws of 2005, as  amended,  when  upon  such
     2  date the provisions of section twelve of this act shall take effect.
 
     3                                   PART C
 
     4    Section  1.  1. Subject to available appropriations, the commissioners
     5  of the office of mental health, office of mental retardation and  devel-
     6  opmental   disabilities,   office  of  alcoholism  and  substance  abuse
     7  services, department of health, office of children and  family  services
     8  and  the  state  office  for the aging shall establish an annual cost of
     9  living adjustment (COLA), subject to the approval of the director of the

    10  budget, effective April first  of  each  state  fiscal  year,  provided,
    11  however,  that  in state fiscal year 2006-07, the cost of living adjust-
    12  ment will be effective October first, to  project  for  the  effects  of
    13  inflation,  for  rates  of  payments,  contracts  or  any  other form of
    14  reimbursement for the programs listed in paragraphs  (i),  (ii),  (iii),
    15  (iv),  (v)  and (vi) of subdivision four of this section. The COLA shall
    16  be applied to the appropriate portion of reimbursable costs or  contract
    17  amounts.
    18    Subdivision  1-a.  The  commissioners of the offices of mental health,
    19  mental retardation and developmental  disabilities  and  alcoholism  and
    20  substance  abuse  services  shall  develop guidelines, including but not
    21  limited to, requiring that a local government unit  or  provider  agency
    22  develop  a  plan  of  implementation  to ensure that such cost of living

    23  adjustment when used for recruitment and retention  of  staff  shall  be
    24  directed at support and direct care staff.
    25    2.  In  developing  cost of living adjustments under this subdivision,
    26  the commissioners shall use the most recent congressional budget  office
    27  estimate  of  the budget year's U. S. consumer price index for all urban
    28  consumers published in the  congressional  budget  office  economic  and
    29  budget outlook after June first of the budget year prior to the year for
    30  which  rates  of  payments, contracts or any other form of reimbursement
    31  are being developed.
    32    3. After final U. S. consumer price index (CPI) for all urban  consum-
    33  ers  published by the United States department of labor, bureau of labor
    34  statistics, for a particular budget year, the commissioners shall recon-
    35  cile such final CPI with the estimate used in subdivision  two  of  this

    36  section and any difference will be included in the next prospective cost
    37  of living adjustment.
    38    4.  Programs  eligible.  (i)  Programs eligible for the cost of living
    39  adjustments under the auspice of  the  office  of  mental  health  (OMH)
    40  include: comprehensive outpatient program (COPS), non-COPS and community
    41  support  program components of the reimbursement for OMH licensed outpa-
    42  tient programs, pursuant to part 592, part 588.13 (g)  and  part  588.14
    43  respectively  of  the  office  of  mental health regulations; dispropor-
    44  tionate share payments made under chapter 119 of the  laws  of  1997  as
    45  amended;  partial  hospitalization; intensive psychiatric rehabilitation
    46  treatment; outreach; crisis residence; crisis/respite  beds;  comprehen-
    47  sive   psychiatric  emergency  program  crisis  outreach;  comprehensive

    48  psychiatric emergency program crisis  beds;  crisis  intervention;  home
    49  based  crisis  intervention; comprehensive psychiatric emergency program
    50  crisis intervention; family  care;  family  based  treatment;  supported
    51  single  room  occupancy;  supported housing; supported housing community
    52  services; treatment congregate; supported  congregate;  community  resi-
    53  dence  -  children  &  youth;  treatment/apartment; supported apartment;
    54  community residence single room occupancy; on-site rehabilitation; shel-

        S. 6457--C                         65                         A. 9557--B
 
     1  tered workshop/satellite sheltered  workshop;  transitional  employment;
     2  recreation;  respite  care; transportation; psychosocial club; assertive
     3  community treatment; case management;  blended  case  management;  local

     4  government  unit administration; monitoring and evaluation; children and
     5  youth vocational services; enclave in industry; single point of  access;
     6  assisted  competitive  employment; school program without clinic; family
     7  support children and youth; advocacy/support services; drop in  centers;
     8  intensive case management; transition management services; bridger; home
     9  and community based waiver services pursuant to subdivision 9 of section
    10  366  of  the social services law; affirmative business industries; self-
    11  help   programs;    consumer    service    dollars;    intensive    case
    12  management/supportive  case management/blended case management emergency
    13  and non-emergency service dollars; conference of  local  mental  hygiene
    14  directors;  client  worker; multicultural initiative; ongoing integrated
    15  supported  employment  services;  supported  education;  MICA   network;

    16  personalized  recovery  oriented service except for clinic treatment fee
    17  component; supportive case  management;  assertive  community  treatment
    18  team service dollars; and state aid funding provided pursuant to article
    19  41  of the mental hygiene law for residential treatment facility transi-
    20  tion coordinator, inpatient psychiatric unit of a general hospital,  day
    21  treatment, clinic and continuing day treatment.
    22    (ii)  Programs  eligible  for the cost of living adjustments under the
    23  auspice of the office of mental retardation and developmental  disabili-
    24  ties  include:  local/unified  services;  chapter  620; direct sheltered
    25  workshop; long term sheltered employment; voluntary  operated  community
    26  residences;  article 16 clinics; day treatment; family support services;
    27  100% day training; epilepsy services; and individual support services.

    28    (iii) Programs eligible for the cost of living adjustments  under  the
    29  auspice  of  the  office  of  alcoholism  and  substance  abuse services
    30  include:  chemical dependence crisis services; inpatient  rehabilitation
    31  services;   residential   services;  outpatient  services;  chemotherapy
    32  substance abuse programs; residential rehabilitation services for youth;
    33  compulsive gambling programs; chemical dependence school and  community-
    34  based  prevention  and  education  programs; managed addiction treatment
    35  services; case management; vocational and job placement services; recov-
    36  ery services; and program support services, provided that such  programs
    37  receive  state  aid  funding  support  from the office of alcoholism and
    38  substance abuse services. State aid funding  support,  for  purposes  of
    39  cost  of  living adjustment eligibility, is limited to the local assist-

    40  ance account of the general fund, federal substance abuse prevention and
    41  treatment block grant funds, and federal safe and drug-free schools  and
    42  communities  grant  funds appropriated to and administered by the office
    43  of alcoholism and substance abuse services.
    44    (iv) Programs eligible for the cost of living  adjustments  under  the
    45  auspice  of  the  department  of  health  include:  HIV/AIDS  adolescent
    46  services/ACT for youth; HIV/AIDS  adolescent  service/general;  HIV/AIDS
    47  adolescent services/schools; HIV/AIDS clinical education; HIV/AIDS clin-
    48  ical  guidelines development; HIV/AIDS clinical scholars; HIV/AIDS clin-
    49  ical  trials  experimental  treatment;  HIV/AIDS  community  development
    50  initiative; HIV/AIDS community HIV prevention and primary care; HIV/AIDS
    51  community  services programs; HIV/AIDS criminal justice; HIV/AIDS educa-

    52  tion and training; HIV/AIDS evaluation and research;  HIV/AIDS  expanded
    53  syringe access program; HIV/AIDS families in transition; HIV/AIDS family
    54  centered   care;   HIV/AIDS   harm   reduction/general;   HIV/AIDS  harm
    55  reduction/syringe  exchange;  HIV/AIDS  HIV  health  care  and   support
    56  services   for   women   and   kids;   HIV/AIDS  HIV  prevention/primary

        S. 6457--C                         66                         A. 9557--B
 
     1  care/support services for substance abusers; HIV/AIDS homeless shelters;
     2  HIV/AIDS legal services and advocacy; HIV/AIDS lesbian,  gay,  bisexual,
     3  transgender/adolescent;  HIV/AIDS  lesbian,  gay, bisexual, transgender/
     4  general;  HIV/AIDS  lesbian,  gay,  bisexual, transgender/substance use;
     5  HIV/AIDS  multiple  service  agency;  HIV/AIDS   nutritional   services;

     6  HIV/AIDS  pediatric centers of excellence; HIV/AIDS permanency planning;
     7  HIV/AIDS racial and ethnic minority; HIV/AIDS social day care;  HIV/AIDS
     8  specialized   care  centers  for  youth;  HIV/AIDS  specialty;  HIV/AIDS
     9  supportive  housing;  HIV/AIDS  treatment  adherence;  HIV/AIDS  women's
    10  services/general;   HIV/AIDS  women's  services/peer;  HIV/AIDS  women's
    11  services/supportive services; HIV/AIDS youth access program,  office  of
    12  minority health; center for community health program; red cross emergen-
    13  cy  preparedness;  nutrition outreach and education; obesity prevention;
    14  women, infants, and children; hunger prevention  and  nutrition  assist-
    15  ance;  Indian  health;  asthma;  prenatal  care assistance program; rape
    16  crisis; early intervention; health and human services sexuality related;
    17  maternity/early childhood foundation; abstinence education; family plan-

    18  ning; school  health;  sudden  infant  death  syndrome;  childhood  lead
    19  poisoning  prevention;  enhanced services for kids; act for youth; chil-
    20  dren with special health care needs; regional  perinatal  data  centers;
    21  migrant  health; dental services; osteoporosis prevention; eating disor-
    22  ders; cancer  services;  cancer  registry;  healthy  heart;  alzheimer's
    23  disease  assistance  centers;  alzheimer's disease - research and educa-
    24  tion; diabetes screening, education  and  prevention;  tobacco  control;
    25  rabies; tick-borne; immunization; public health campaign; sexually tran-
    26  smitted disease; and tuberculosis control.
    27    (v)  Programs  eligible  for  the cost of living adjustments under the
    28  auspice of the state office for the aging  include:  community  services
    29  for  the elderly; expanded in-home services for the elderly; and supple-
    30  mental nutrition assistance program.

    31    (vi) Programs eligible  for  cost  of  living  adjustments  under  the
    32  auspice  of the office of children and family services include: programs
    33  for which the office of children and family services establishes maximum
    34  state aid rates pursuant to section 398-a of the social services law and
    35  sections 4003 and 4405 of the education law,  foster  parents,  adoptive
    36  parents, and home and community based waiver services pursuant to subdi-
    37  vision  9  of  section  366  of the social services law for which social
    38  services districts have chosen  to  use  preventive  services  funds  to
    39  support a portion of the costs.
    40    5. Furthermore, each local government unit or direct contract provider
    41  receiving  such  funding  shall  submit a written certification, in such
    42  form and at such time as each commissioner  shall  prescribe,  attesting

    43  how  such  funding  will  be  or was used to promote the recruitment and
    44  retention of staff or respond to  other  critical  non-personal  service
    45  costs  during  the State fiscal year in which the cost of living adjust-
    46  ment was applied.
    47    § 2. Paragraph (g) of subdivision 2  of  section  209  of  the  social
    48  services  law, as amended by chapter 713 of the laws of 2005, is amended
    49  to read as follows:
    50    (g) (i) The amounts set forth in paragraphs (a) through  (d)  of  this
    51  subdivision  and the amounts set forth in subparagraph (ii) of paragraph
    52  (e) and subparagraph (ii) of paragraph (f) of this subdivision as  added
    53  by section forty-six of part C of chapter fifty-eight of the laws of two
    54  thousand  five  shall  be  increased to reflect any increases in federal
    55  supplemental security income benefits for individuals or  couples  which

    56  become  effective  on or after January first, two thousand six but prior

        S. 6457--C                         67                         A. 9557--B
 
     1  to June thirtieth, two thousand six; provided, however, that the amounts
     2  set forth in paragraphs (c),  (d)  and  (f)  of  this  subdivision  with
     3  respect  to  eligible couples shall be increased by an amount sufficient
     4  to  establish standards for couples that are equal to twice the increase
     5  hereunder for eligible individuals.
     6    (ii) In addition to the amounts set forth in subparagraph (i) of  this
     7  paragraph,  on  and after January first, two thousand seven, the amounts
     8  set forth in subparagraph (iii) of paragraph (e) and subparagraph  (iii)
     9  of  paragraph  (f)  of  this  subdivision shall be annually increased to

    10  reflect an increase in the state supplementation  equal  to  the  annual
    11  consumer price index for the previous calendar year.
    12    §  3.  Paragraph  (e)  of subdivision 1 of section 131-o of the social
    13  services law, as added by section 45 of part C of chapter 58 of the laws
    14  of 2005, is amended to read as follows:
    15    (e) in the case of  each  individual  receiving  enhanced  residential
    16  care,  (i)  an amount equal to at least $144.00 for each month beginning
    17  on or after January first, two thousand six, and (ii) an amount equal to
    18  $159.00 for each month beginning on or after January first, two thousand
    19  seven.  On and after January first, two thousand seven, the  amount  set
    20  forth in subparagraph (ii) of this paragraph shall be annually increased

    21  by an amount equal to the consumer price index for the previous calendar
    22  year,  provided that there has been an increase in state supplementation
    23  pursuant to subparagraph (ii) of paragraph (g) of  section  two  hundred
    24  nine of this chapter.
    25    §  4.  This  act  shall take effect immediately and shall be deemed to
    26  have been in full force and effect on and after April 1, 2006,  provided
    27  section  one  of  this  act shall expire and be deemed repealed April 1,
    28  2009 provided, further, that sections two and three of  this  act  shall
    29  expire and be deemed repealed December 31, 2009.
 
    30                                   PART D
 
    31    Section  1.  Subparagraphs (vii) and (viii) of paragraph (j) of subdi-
    32  vision 1 of section 2807-v of the public health law, subparagraph  (vii)

    33  as  added  and  subparagraph (viii) as amended by section 3 of part B of
    34  chapter 58 of the laws of 2005, are amended to read as follows:
    35    (vii) up to [forty] eighty-one million  [six]  nine  hundred  thousand
    36  dollars  for the period January first, two thousand six through December
    37  thirty-first, two thousand six, provided, however, that  within  amounts
    38  appropriated,  a portion of such funds may be transferred to the Roswell
    39  Park Cancer Institute  Corporation  to  support  costs  associated  with
    40  cancer research; and
    41    (viii)  up to [twenty] forty-seven million [three] eight hundred thou-
    42  sand dollars for the period January first, two  thousand  seven  through

    43  June  thirtieth,  two  thousand  seven,  provided,  however, that within
    44  amounts appropriated, a portion of such funds may be transferred to  the
    45  Roswell  Park  Cancer  Institute Corporation to support costs associated
    46  with cancer research.
    47    § 2. Intentionally omitted.
    48    § 3. Subparagraphs (vii) and (viii) of paragraph (k) of subdivision  1
    49  of  section 2807-v of the public health law, subparagraph (vii) as added
    50  and subparagraph (viii) as amended by section 3 of part B of chapter  58
    51  of the laws of 2005, are amended to read as follows:
    52    (vii)  one  hundred  [forty-one] fifty-six million [eight] six hundred
    53  thousand dollars, plus an additional five hundred thousand dollars,  for


        S. 6457--C                         68                         A. 9557--B
 
     1  the  period  January  first,  two  thousand six through December thirty-
     2  first, two thousand six; and
     3    (viii)  [seventy]  seventy-five  million  [six] seven hundred thousand
     4  dollars, plus an additional two hundred fifty thousand dollars, for  the
     5  period  January  first,  two  thousand seven through June thirtieth, two
     6  thousand seven.
     7    § 4. Subparagraphs (vii) and (viii) of paragraph (n) of subdivision  1
     8  of  section 2807-v of the public health law, subparagraph (vii) as added
     9  and subparagraph (viii) as amended by section 3 of part B of chapter  58
    10  of the laws of 2005, are amended to read as follows:
    11    (vii)  six  hundred  [twenty] three million one hundred fifty thousand

    12  dollars for the period January first, two thousand six through  December
    13  thirty-first, two thousand six; and
    14    (viii) three hundred [thirty-six] thirty million four hundred thousand
    15  dollars  for  the  period January first, two thousand seven through June
    16  thirtieth, two thousand seven.
    17    § 5. Subparagraph (vii) of paragraph (o) of subdivision 1  of  section
    18  2807-v  of  the  public  health  law, as added by section 3 of part B of
    19  chapter 58 of the laws of 2005, is amended to read as follows:
    20    (vii) [seventy-eight] ninety-one million dollars for the period  Janu-
    21  ary  first, two thousand six through December thirty-first, two thousand
    22  six; and
    23    § 5-a. Subparagraphs (iii) and (iv) of paragraph (u) of subdivision  1
    24  of  section  2807-v of the public health law, as amended by section 3 of

    25  part B of chapter 58 of the  laws  of  2005,  are  amended  to  read  as
    26  follows:
    27    (iii)  up  to [twelve] fifty-six million five hundred thousand dollars
    28  for the period January first, two thousand six through December  thirty-
    29  first, two thousand six; and
    30    (iv)  up  to  [six]  twenty-eight  million  two hundred fifty thousand
    31  dollars for the period January first, two thousand  seven  through  June
    32  thirtieth, two thousand seven.
    33    §  5-b. Subdivisions 1, 4 and 6 of section 2808-d of the public health
    34  law, subdivision 1 as added by section 5 of part A of chapter 1  of  the
    35  laws  of  2002,  subdivision  4 as amended by chapter 161 of the laws of
    36  2005, and subdivision 6 as added by section 14 of part B of  chapter  58
    37  of the laws of 2005, are amended to read as follows:

    38    1.    Notwithstanding any law, rule or regulation to the contrary, the
    39  commissioner shall, within  amounts  appropriated  and  subject  to  the
    40  availability  of  federal  financial  participation,  establish a demon-
    41  stration program to improve the quality of care for nursing  home  resi-
    42  dents  through the increase or improvement of direct care staff at nurs-
    43  ing homes. In furtherance of such demonstration program the commissioner
    44  shall adjust the Medicaid rates of payment to  nursing  homes,  selected
    45  pursuant to a competitive process, provided, however, that payments made
    46  pursuant  to  this  section to public residential health care facilities
    47  shall be made as grants and  shall  not  be  deemed  medical  assistance
    48  payments.  Requests  for proposals for eligible projects shall be issued
    49  by the commissioner, provided however that the  commissioner  shall  not

    50  issue  any  new  requests for proposals after December thirty-first, two
    51  thousand four and all awards for  subsequent  annual  periods  shall  be
    52  distributed  on the same proportional basis as the most recent available
    53  distribution. After December thirty-first, two thousand  four,  awardees
    54  may use funds received for any of the purposes listed in subdivision two
    55  of this section, without restriction.

        S. 6457--C                         69                         A. 9557--B
 
     1    4.  Grants  and adjustments to Medicaid rates of payment made pursuant
     2  to this section shall not, in aggregate, exceed sixty-two  million  five
     3  hundred thousand dollars for the period beginning April first, two thou-
     4  sand  two and ending December thirty-first, two thousand two, and, on an

     5  annualized  basis,  for  each annual period thereafter beginning January
     6  first, two thousand three and ending December thirty-first, two thousand
     7  four, and shall  not,  in  aggregate,  exceed  forty-six  million  eight
     8  hundred  seventy-five  thousand  dollars  for the period July first, two
     9  thousand five through December thirty-first, two thousand five and shall
    10  not, in aggregate, on an annualized basis, exceed [thirty-one]  seventy-
    11  eight  million  one  hundred twenty-five thousand dollars for the period
    12  January first, two thousand six through December thirty-first, two thou-
    13  sand six and sixty-two  million  [two]  five  hundred  [fifty]  thousand
    14  dollars  for  the period January first, two thousand [six] seven through
    15  June thirtieth, two thousand seven.

    16    6. Notwithstanding any other provisions of this section or  any  other
    17  contrary  provision  of  law, the commissioner may, from funds allocated
    18  pursuant to subparagraph (ii) or (iii)  or  (iv)  of  paragraph  (u)  of
    19  subdivision one of section twenty-eight hundred seven-v of this article,
    20  in  calendar  year two thousand five, make grants in an aggregate amount
    21  not to exceed twelve million five hundred thousand dollars, to  residen-
    22  tial  health care facilities in support of projects or programs designed
    23  to improve specific areas of quality  of  care,  as  determined  by  the
    24  commissioner  using  established  measures  of such quality of care, and
    25  provided further the commissioner may, from funds allocated pursuant  to
    26  paragraph (u) of subdivision one of section twenty-eight hundred seven-v

    27  of  this article, for the period January first, two thousand six through
    28  June thirtieth two thousand seven, make grants in  an  aggregate  amount
    29  not  to  exceed  thirty-five  million dollars on an annualized basis, to
    30  residential health care facilities that have  an  arbitrator's  decision
    31  rendered  before  April  first,  two  thousand  six,  requiring payments
    32  related to the recruitment and retention of direct care staff, including
    33  salary and benefits. Each eligible  facility  shall  receive  a  payment
    34  amount  proportional  to  the amount each such facility owes pursuant to
    35  the arbitrator's decision compared to such amounts owed by all  eligible
    36  facilities.
    37    §  6.  Subparagraphs (v) and (vi) of paragraph (v) of subdivision 1 of

    38  section 2807-v of the public health law, subparagraph (v) as  added  and
    39  subparagraph (vi) as amended by section 3 of part B of chapter 58 of the
    40  laws of 2005, are amended to read as follows:
    41    (v)  up  to  [sixty-five]  one  hundred thirteen million eight hundred
    42  thousand dollars for the period January first, two thousand six  through
    43  December thirty-first, two thousand six; and
    44    (vi) up to [thirty-two] forty-eight million [five] eight hundred thou-
    45  sand  dollars  for  the period January first, two thousand seven through
    46  June thirtieth, two thousand seven.
    47    § 7. The opening paragraph of  paragraph  (hh)  of  subdivision  1  of
    48  section 2807-v of the public health law, as amended by section 3 of part
    49  B of chapter 58 of the laws of 2005, is amended to read as follows:

    50    Funds shall be deposited by the commissioner, within amounts appropri-
    51  ated,  and  the  state  comptroller is hereby authorized and directed to
    52  receive for deposit to the credit of the special revenue fund  -  other,
    53  HCRA  transfer  fund,  [health care services] medical assistance account
    54  for purposes of providing financial  assistance  to  residential  health
    55  care  facilities  pursuant  to  subdivisions  nineteen and twenty-one of
    56  section twenty-eight hundred eight of this  article,  from  the  tobacco

        S. 6457--C                         70                         A. 9557--B
 
     1  control  and  insurance  initiatives  pool established for the following
     2  periods in the following amounts:
     3    §  8. Subparagraphs (v) and (vi) of paragraph (kk) of subdivision 1 of

     4  section 2807-v of the public health law, subparagraph (v) as  added  and
     5  subparagraph (vi) as amended by section 3 of part B of chapter 58 of the
     6  laws of 2005, are amended to read as follows:
     7    (v)  up  to  [five]  eight  hundred  [seventy] sixty-six million three
     8  hundred thousand dollars for the period January first, two thousand  six
     9  through December thirty-first, two thousand six; and
    10    (vi)  up  to  [one]  two  hundred  [thirty] twenty-eight million eight
    11  hundred thousand dollars for the  period  January  first,  two  thousand
    12  seven through June thirtieth, two thousand seven.
    13    §  9. Subparagraphs (iv) and (v) of paragraph (mm) of subdivision 1 of
    14  section 2807-v of the public health law, subparagraph (iv) as added  and

    15  subparagraph  (v) as amended by section 3 of part B of chapter 58 of the
    16  laws of 2005, are amended to read as follows:
    17    (iv) three hundred [three] eighteen million seven hundred seventy-five
    18  thousand dollars for the period January first, two thousand six  through
    19  December thirty-first, two thousand six; and
    20    (v)  one  hundred  [fifty-seven] sixty-two million two hundred twenty-
    21  five thousand dollars for the period January first, two  thousand  seven
    22  through June thirtieth, two thousand seven.
    23    §  10. Subparagraphs (ii) and (iii) of paragraph (zz) of subdivision 1
    24  of section 2807-v of the public health law, as added by chapter  161  of
    25  the laws of 2005, are amended to read as follows:

    26    (ii)  [sixteen  million  two  hundred fifty] one hundred eight million
    27  three hundred thousand dollars for the period January first,  two  thou-
    28  sand  six  through  December  thirty-first,  two thousand six, provided,
    29  however, that within  amounts  appropriated  in  the  two  thousand  six
    30  through  two  thousand  seven state fiscal year, a portion of such funds
    31  may be transferred to the Roswell Park Cancer Institute  Corporation  to
    32  fund capital costs; and
    33    (iii) [sixteen million two hundred fifty] eighty million eight hundred
    34  thousand  dollars  for  the  period  January  first,  two thousand seven
    35  through June thirtieth, two  thousand  seven,  provided,  however,  that

    36  within amounts appropriated in the two thousand six through two thousand
    37  seven  state  fiscal year, a portion of such funds may be transferred to
    38  the Roswell Park Cancer Institute Corporation to fund capital costs.
    39    § 10-a. Clause (A) of subparagraph (i) of paragraph (b) of subdivision
    40  1 of section 2807-l of the public health law, as amended by  section  19
    41  of  part  B  of  chapter  58  of the laws of 2005, is amended to read as
    42  follows:
    43    (A) an amount not to exceed six million dollars on an annualized basis
    44  for the periods January first,  nineteen  hundred  ninety-seven  through
    45  December  thirty-first,  nineteen hundred ninety-nine; up to six million
    46  dollars for the period January  first,  two  thousand  through  December
    47  thirty-first,  two  thousand;  up to five million dollars for the period

    48  January first, two thousand one through December thirty-first, two thou-
    49  sand one; up to four million dollars for the period January  first,  two
    50  thousand  two through December thirty-first, two thousand two; up to two
    51  million six hundred thousand dollars for the period January  first,  two
    52  thousand  three through December thirty-first, two thousand three; up to
    53  one million three hundred thousand dollars for the period January first,
    54  two thousand four through  December  thirty-first,  two  thousand  four;
    55  [and]  up to six hundred seventy thousand dollars for the period January
    56  first, two thousand five through June thirtieth, two thousand five;  and

        S. 6457--C                         71                         A. 9557--B
 
     1  up  to  one  million three hundred thousand dollars for the period April

     2  first, two thousand six through March thirty-first, two  thousand  seven
     3  shall be allocated to individual subsidy programs; and
     4    §  10-b.  Paragraph  (jj)  of  subdivision  1 of section 2807-v of the
     5  public health law, as amended by section 3 of part B of  chapter  58  of
     6  the laws of 2005, is amended to read as follows:
     7    (jj)  Funds  shall  be  reserved and accumulated from year to year and
     8  shall be available,  including  income  from  invested  funds,  for  the
     9  purposes  of  a grant program to improve access to infertility services,
    10  treatments and procedures, from the tobacco control and insurance initi-
    11  atives pool established for the period January first, two  thousand  two
    12  through  December  thirty-first,  two thousand two in the amount of nine
    13  million one hundred seventy-five thousand dollars  and  for  the  period

    14  April  first,  two thousand six through March thirty-first, two thousand
    15  seven in the amount of five million dollars.
    16    § 10-c. Subdivision 1 of section 2807-v of the public  health  law  is
    17  amended by adding two new paragraphs (aaa) and (bbb) to read as follows:
    18    (aaa)  Funds  shall  be reserved and accumulated from year to year and
    19  shall be available, including income from invested funds,  for  services
    20  and  expenses related to school based health centers, in an amount up to
    21  three million five hundred thousand dollars for the period April  first,
    22  two  thousand  six  through March thirty-first, two thousand seven.  The
    23  total amount of funds provided herein shall  be  distributed  as  grants
    24  based  on the ratio of each provider's total enrollment for all sites to

    25  the total enrollment of all providers. This formula shall be applied  to
    26  the total amount provided herein.
    27    (bbb)  Funds  shall  be reserved and accumulated from year to year and
    28  shall be available, including income from invested funds,  for  purposes
    29  of  awarding  grants  to  operators  of  adult  homes,  enriched housing
    30  programs and residences through the enhancing abilities and life experi-
    31  ence (EnAbLe) program to provide for  the  installation,  operation  and
    32  maintenance of air conditioning in resident rooms in an amount up to two
    33  million  dollars  for  the  period April first, two thousand six through
    34  March thirty-first, two thousand seven.
    35    § 10-c-1. Section 2807-p of the public health law is amended by adding

    36  a new subdivision 4-c to read as follows:
    37    4-c Notwithstanding any provision of law to the contrary, the  commis-
    38  sioner  shall  make additional payments for uncompensated care to volun-
    39  tary non-profit diagnostic and treatment centers that are  eligible  for
    40  distributions  under  subdivision  four of this section in the following
    41  amounts: for the period January first, two thousand six through December
    42  thirty-first, two thousand six, in the  amount  of  seven  million  five
    43  hundred thousand dollars, and for the period January first, two thousand
    44  seven  through  June  thirtieth, two thousand seven, three million seven
    45  hundred fifty thousand dollars. In  the  event  that  federal  financial
    46  participation  is  available  for  rate  adjustments  pursuant  to  this

    47  section, the commissioner shall shall make such payments  as  additional
    48  adjustments  to rates of payment for voluntary non-profit diagnostic and
    49  treatment centers that are eligible for distributions under  subdivision
    50  four-a  of this section in the following amounts: for the period January
    51  first, two thousand six thorough  December  thirty-first,  two  thousand
    52  six,  fifteen million dollars in the aggregate, and for the period Janu-
    53  ary first, two thousand  seven  through  June  thirtieth,  two  thousand
    54  seven, seven million five hundred thousand dollars in the aggregate. The
    55  amounts  allocated  pursuant  to this paragraph shall be aggregated with
    56  and distributed pursuant to  the  same  methodology  applicable  to  the


        S. 6457--C                         72                         A. 9557--B
 
     1  amounts  allocated  to  such  diagnostic  and treatment centers for such
     2  periods pursuant to subdivision four of this section if  federal  finan-
     3  cial  participation  is not available, or pursuant to subdivision four-a
     4  of  this  section  if  federal  financial  participation  is  available.
     5  Notwithstanding  section  three  hundred  sixty-eight-a  of  the  social
     6  services  law,  there  shall  be  no local share in a medical assistance
     7  payment adjustment under this subdivision.
     8    § 10-c-2. Subparagraph (v)  of  paragraph  (k)  of  subdivision  1  of
     9  section  2807-1  of  the  public health law, as amended by section 19 of
    10  part B of chapter 58 of the laws of 2005, is amended to read as follows:

    11    (v) (A) from the pool for the period July first,  two  thousand  three
    12  through  December  thirty-first,  two  thousand three, up to six million
    13  dollars, for the period January first, two thousand four through  Decem-
    14  ber thirty-first, two thousand six, up to twelve million dollars annual-
    15  ly,  and  for  the period January first, two thousand seven through June
    16  thirtieth, two thousand seven, up to six million dollars; provided  that
    17  if federal financial participation is not available for rate adjustments
    18  made  pursuant  to  section twenty-eight hundred seven-p of this article
    19  then the foregoing amounts shall be increased to the following: for  the
    20  period July first, two thousand three through December thirty-first, two
    21  thousand  three,  twenty-four  million  dollars,  for the period January
    22  first, two thousand four through  December  thirty-first,  two  thousand

    23  six,  forty-eight  million  dollars annually, and for the period January
    24  first, two thousand seven through June thirtieth,  two  thousand  seven,
    25  twenty-four million dollars;
    26    (B)  from  the  pool  for  the  period January first, two thousand six
    27  through December thirty-first, two thousand  six,  an  additional  seven
    28  million  five hundred thousand dollars and for the period January first,
    29  two thousand seven through June thirtieth, two thousand seven, an  addi-
    30  tional  three million seven hundred fifty thousand dollars for voluntary
    31  non-profit diagnostic and treatment center uncompensated care in accord-
    32  ance with subdivision four-c of section twenty-eight hundred seven-p  of
    33  this article;
    34    §  10-d.  Subdivision  1 of section 2807-v of the public health law is

    35  amended by adding a new paragraph (ccc) to read as follows:
    36    (ccc) Funds shall be deposited by  the  commissioner,  within  amounts
    37  appropriated,  and  the  state  comptroller  is  hereby  authorized  and
    38  directed to receive for the deposit to the credit of the  state  special
    39  revenue  funds  - other, HCRA transfer fund, medical assistance account,
    40  or any successor fund or account, for  purposes  of  funding  the  state
    41  share of increases in the rates for certified home health agencies, long
    42  term  home  health  care  programs,  AIDS  home  care  programs, hospice
    43  programs and  managed  long  term  care  programs  for  recruitment  and
    44  retention  of  health care workers pursuant to subdivisions nine and ten

    45  of section thirty-six hundred fourteen of this chapter from the  tobacco
    46  control  and  insurance  initiatives  pool established for the following
    47  periods in the following amounts:
    48    (i) twenty-five million dollars for the period April first, two  thou-
    49  sand six through December thirty-first, two thousand six; and
    50    (ii)  twenty-five  million  dollars  for the period January first, two
    51  thousand seven through June thirtieth, two thousand seven.
    52    § 10-e. Subdivision 1 of section 2807-v of the public  health  law  is
    53  amended by adding a new paragraph (ddd) to read as follows:
    54    (ddd)  Funds  shall  be  deposited by the commissioner, within amounts
    55  appropriated,  and  the  state  comptroller  is  hereby  authorized  and

    56  directed  to  receive for the deposit to the credit of the state special

        S. 6457--C                         73                         A. 9557--B
 
     1  revenue funds - other, HCRA transfer fund, medical  assistance  account,
     2  or  any  successor  fund  or  account, for purposes of funding the state
     3  share of increases in the medical assistance  rates  for  providers  for
     4  purposes  of  enhancing the provision, quality and/or efficiency of home
     5  care services pursuant  to  subdivision  eleven  of  section  thirty-six
     6  hundred  fourteen of this chapter from the tobacco control and insurance
     7  initiatives pool established for the following periods in the  following
     8  amounts:

     9    (i) eight million dollars for the period April first, two thousand six
    10  through December thirty-first, two thousand six; and
    11    (ii)  four  million dollars for the period January first, two thousand
    12  seven through June thirtieth, two thousand seven.
    13    § 10-f. Section 3614 of the public health law  is  amended  by  adding
    14  three new subdivisions 9, 10, and 11 to read as follows:
    15    9.  Notwithstanding  any  law to the contrary, the commissioner shall,
    16  subject to the availability of federal financial  participation,  adjust
    17  medical  assistance rates of payment for certified home health agencies,
    18  long term home health care programs, AIDS home care programs established
    19  pursuant to this article, hospice  programs  established  under  article

    20  forty of this chapter and for managed long term care programs authorized
    21  pursuant  to  article forty-four of this chapter. Such adjustments shall
    22  be for purposes of improving recruitment, training and retention of home
    23  health aides or other personnel with direct patient care  responsibility
    24  in the following aggregate amounts for the following periods:
    25    (a)  for  the  period  April  first, two thousand six through December
    26  thirty-first, two thousand six, fifty million dollars;
    27    (b) for the period January first,  two  thousand  seven  through  June
    28  thirtieth, two thousand seven, fifty million dollars;
    29    10.  (a)  Such  adjustments  to  rates  of payments shall be allocated
    30  proportionally based on each certified home health agency's,  long  term

    31  home  health  care  program,  AIDS  home care and hospice program's home
    32  health aide or other direct care services total annual hours of  service
    33  provided,  as reported in each such agency's cost report as submitted to
    34  the department prior to November first, two thousand  five  or  for  the
    35  purpose of the managed long term care program a suitable proxy developed
    36  by  the department in consultation with the interested parties. Payments
    37  made pursuant to this section shall not be subject to subsequent adjust-
    38  ment or reconciliation.
    39    (b) Programs which have their rates adjusted pursuant to this subdivi-
    40  sion shall use such funds solely for the purposes of recruitment, train-
    41  ing and retention of non-supervisory home care services workers or other

    42  personnel with direct patient care responsibility.  Such  purpose  shall
    43  include  the recruitment, training and retention of non-supervisory home
    44  care services workers or any worker with direct patient  care  responsi-
    45  bility  employed  in licensed home care services agencies under contract
    46  with such agencies. Such agencies are prohibited from  using  such  fund
    47  for  any  other  purpose. For purposes of the long term home health care
    48  program, such payment shall be treated as supplemental payments and  not
    49  effect  any current cost cap requirement. Each such agency shall submit,
    50  at a time and in a manner determined  by  the  commissioner,  a  written
    51  certification  attesting  that  such  funds  will be used solely for the

    52  purpose of recruitment, training and retention of  non-supervisory  home
    53  health  aides  or any personnel with direct patient care responsibility.
    54  The commissioner is authorized to audit each such agency or  program  to
    55  ensure compliance with the written certification required by this subdi-
    56  vision  and  shall  recoup  any  funds  determined to have been used for

        S. 6457--C                         74                         A. 9557--B
 
     1  purposes other than recruitment and retention  of  non-supervisory  home
     2  health  aids or other personnel with direct patient care responsibility.
     3  Such recoupment shall be in addition to any other penalties provided  by
     4  law.

     5    (c)  In  the  case  of  services provided by such agencies or programs
     6  through contracts  with  licensed  home  care  services  agencies,  rate
     7  increases  received by such agencies or programs pursuant to this subdi-
     8  vision shall be reflected, consistent with the purposes of this subdivi-
     9  sion, in either the fees paid or benefits or other  supports,  including
    10  training,  provided  to  non-supervisory  home health aides or any other
    11  personnel with direct patient care  responsibility  of  such  contracted
    12  licensed  home  care  services agencies and such fees, benefits or other
    13  supports shall be proportionate to the  contracted  volume  of  services
    14  attributable to each contracted agency.  Such agencies or programs shall

    15  submit  to  providers  with  which  they contract written certifications
    16  attesting that such funds will  be  used  solely  for  the  purposes  of
    17  recruitment, training and retention of non-supervisory home health aides
    18  or  other  personnel  with  direct patient care responsibility and shall
    19  maintain in their files expenditure plans specifying how such funds will
    20  be used for such purposes. The commissioner is authorized to audit  such
    21  agencies  or  programs to ensure compliance with such certifications and
    22  expenditure plans and shall recoup any funds  determined  to  have  been
    23  used  for  purposes other than those set forth in this subdivision. Such
    24  recoupment shall be in addition to any other penalties provided by law.

    25    (d) Funds under this subdivision are not intended to supplant  support
    26  provided by local government.
    27    11.  (a)  Notwithstanding  any  inconsistent provision of law, rule or
    28  regulation and subject to the availability of federal financial  partic-
    29  ipation,  the  commissioner  is  authorized  and directed to implement a
    30  program whereby he or she  shall  adjust  medical  assistance  rates  of
    31  payment  for  services  provided by certified home health agencies, long
    32  term home health care programs, AIDS home care programs and providers of
    33  personal care services and/or providers of private duty nursing services
    34  under the social services law in accordance with  this  subdivision  for

    35  purposes of enhancing the provision, accessibility, quality and/or effi-
    36  ciency  of  home  care  services. Such rate adjustments shall be for the
    37  purposes  of  assisting  such  providers,  located  in  social  services
    38  districts  which  do  not  include  a city with a population of over one
    39  million persons, in meeting the cost of:
    40    (i) Increased use of technology in the delivery of services, including
    41  telehealth  and  clinical  and  administrative  management   information
    42  system;
    43    (ii)  Specialty training of direct service personnel in dementia care,
    44  pediatric care and/or the care of other conditions or  populations  with
    45  complex needs;
    46    (iii)  Increased  auto and travel expenses associated with rising fuel

    47  prices, including the increased cost of  providing  services  in  remote
    48  areas; and/or
    49    (v) Providing enhanced access to care for high need populations;
    50    (vi) Such other purposes related to the provision of quality, accessi-
    51  ble home care services as the commissioner may deem appropriate.
    52    (b)  The  commissioner  shall increase the medical assistance rates of
    53  payment pursuant to this subdivision in an amount up to an aggregate  of
    54  sixteen  million  dollars  for  the period April first, two thousand six
    55  through March thirty-first, two thousand seven, provided however that if
    56  federal financial participation is not available  for  rate  adjustments

        S. 6457--C                         75                         A. 9557--B
 

     1  pursuant  to  this  subdivision  such  aggregate amount shall not exceed
     2  eight million dollars, and provided, further, however, that for purposes
     3  of long term home health care programs, such payments provided  pursuant
     4  to  this subdivision shall be treated as supplemental payments and shall
     5  not effect any current cost cap requirement.
     6    § 10-g. Paragraph (e) of subdivision 1 of section 367-q of the  social
     7  services law, as added by section 12 of part B of chapter 58 of the laws
     8  of 2005, is amended to read as follows:
     9    (e)  for  the  period January first, two thousand six through December
    10  thirty-first,  two  thousand  six,  [twenty-seven]  thirty-one   million
    11  dollars; and
    12    §  10-g-1. Subdivision 1 of section 2807-v of the public health law is

    13  amended by adding a new paragraph (eee) to read as follows:
    14    (eee) Funds shall be reserved and accumulated from year  to  year  and
    15  shall  be available, including income from invested funds, to the Center
    16  for Functional Genomics at the State University of New York  at  Albany,
    17  for  the  purposes  of  the  Adirondack network for cancer education and
    18  research in rural communities grant program to improve access to  health
    19  care  and shall be made available from the tobacco control and insurance
    20  initiatives pool established for the following periods in the  following
    21  amounts:
    22    (i) up to five million dollars for the period January first, two thou-
    23  sand six through December thirty-first, two thousand six;

    24    (ii)  up  to  two million five hundred thousand dollars for the period
    25  January first, two thousand seven through June thirtieth,  two  thousand
    26  seven.
    27    §  10-h.    Subparagraph  (iii)  of paragraph (a) of subdivision 30 of
    28  section 2807-c of the public health law, as amended by section 3 of part
    29  E of chapter 63 of the laws of 2005, is amended to read as follows:
    30    (iii) The commissioner shall establish, subject to the approval of the
    31  director of the budget, discrete rates of payment for non-public general
    32  hospitals for payments under the medical assistance program pursuant  to
    33  titles  eleven  and  eleven-D of article five of the social services law
    34  for persons eligible for medical assistance and family health  plus  who
    35  are  enrolled  in health maintenance organizations based upon the calcu-

    36  lation set forth in subparagraph (ii) of this paragraph  for  such  non-
    37  public  general  hospitals.  If  discrete  rates  of  payment under this
    38  subparagraph are not established,  the  commissioner  shall  adjust  the
    39  calculation  established pursuant to subparagraph (ii) of this paragraph
    40  to account for  medical  assistance  utilization  described  under  this
    41  subparagraph for such non-public general hospital.
    42    §  10-i.  Subparagraphs (iii) and (iv) of paragraph (e) of subdivision
    43  30 of section 2807-c of the public health law, as added by section 3  of
    44  part  E  of  chapter  63  of  the  laws  of 2005, are amended to read as
    45  follows:
    46    (iii) The commissioner shall establish, subject to the approval of the
    47  director of the budget, discrete rates of payment for general  hospitals

    48  for  payments  under  the  medical assistance program pursuant to titles
    49  eleven and eleven-D of article five  of  the  social  services  law  for
    50  persons  eligible  for medical assistance and family health plus who are
    51  enrolled in health maintenance organizations based  on  the  calculation
    52  set forth in subparagraph (ii) of this paragraph for such general hospi-
    53  tals.    If  discrete  rates  of payment under this subparagraph are not
    54  established, the commissioner shall adjust the  calculation  established
    55  pursuant  to  subparagraph (ii) of this paragraph to account for medical

        S. 6457--C                         76                         A. 9557--B
 
     1  assistance utilization described under this subparagraph for  such  non-
     2  public general hospital.

     3    (iv)  Payment  of  the  non-federal  share  of  the medical assistance
     4  payments made pursuant to this paragraph shall be the responsibility  of
     5  the state and shall not include a local share. Payments made pursuant to
     6  this  paragraph  or pursuant to paragraph (a) of this subdivision may be
     7  added to rates of payment or made  as  aggregate  payments  to  eligible
     8  general hospitals.
     9    §  10-j.  Subdivision 30 of section 2807-c of the public health law is
    10  amended by adding a new paragraph (f) to read as follows:
    11    (f) In the event that a hospital entitled to an adjustment pursuant to
    12  paragraph (a) or (e) of this subdivision closes or otherwise experiences
    13  a change in status that eliminates its ability to  continue  to  receive
    14  such  adjustments, the commissioner shall allocate the amount determined

    15  under subparagraph (ii) of paragraph (a) and subparagraph (ii) of  para-
    16  graph  (e)  of  this  subdivision  for such hospital to hospitals in the
    17  immediate region of the closing hospital based upon the remaining hospi-
    18  tals' reported gross salary and fringe  benefit  costs  as  reported  on
    19  exhibit  eleven  of  the  two  thousand  four  institutional cost report
    20  submitted as of November first, two thousand five to the total  of  such
    21  reported costs for all general hospitals in the region. The commissioner
    22  shall define the immediate region as the county or counties within which
    23  workers  displaced  from  the closing hospital are likely to seek re-em-
    24  ployment.
    25    § 11. Section 2807-b of the public health law is REPEALED  and  a  new

    26  section 2807-b is added to read as follows:
    27    §  2807-b.    Outstanding  payments  and reports due under subdivision
    28  eighteen of section twenty-eight hundred seven-c, sections  twenty-eight
    29  hundred  seven-d,  twenty-eight  hundred  seven-j,  twenty-eight hundred
    30  seven-s and twenty-eight hundred seven-t of this article.   1. If  there
    31  is  a  basis  for  estimating  the amount of outstanding payments due in
    32  accordance with subdivision eighteen  of  section  twenty-eight  hundred
    33  seven-c  of  this  article,  and  sections twenty-eight hundred seven-d,
    34  twenty-eight hundred seven-j, twenty-eight hundred seven-s  and  twenty-
    35  eight  hundred  seven-t  of  this  article,  the commissioner shall bill

    36  applicable providers and payors for such payments, including any  inter-
    37  est  and  penalties set forth in this article, no later than ninety days
    38  after each calendar quarter following enactment of this section.
    39    2. If there is no basis  for  estimating  the  amount  of  outstanding
    40  payments  due in accordance with subdivision eighteen of section twenty-
    41  eight hundred seven-c of this article, and sections twenty-eight hundred
    42  seven-d, twenty-eight hundred seven-j, twenty-eight hundred seven-s  and
    43  twenty-eight  hundred  seven-t  of  this article, the commissioner shall
    44  notify applicable  providers  and  payors  of  outstanding  reports  and
    45  payments no later than ninety days after each calendar quarter following

    46  the  effective date of this section.  Such notice shall include informa-
    47  tion regarding any interest, penalties or other sanctions which  may  be
    48  implemented in accordance with this article.
    49    §  12. Paragraph (d) of subdivision 18 of section 2807-c of the public
    50  health law, as amended by chapter 1 of the laws of 1999, is  amended  to
    51  read as follows:
    52    (d)  Gross  revenue  received shall mean all moneys received for or on
    53  account of inpatient hospital service, provided, however,  that  subject
    54  to  the  provisions  of  paragraph (e) of this subdivision gross revenue
    55  received shall not include distributions from bad debt and charity  care
    56  regional  pools,  health  care services pools, bad debt and charity care

        S. 6457--C                         77                         A. 9557--B
 

     1  for financially distressed hospitals statewide pools and  bad  debt  and
     2  charity care and capital statewide pools created in accordance with this
     3  section or distributions from funds allocated in accordance with section
     4  twenty-eight hundred seven-l, twenty-eight hundred seven-k, twenty-eight
     5  hundred  seven-v  or  twenty-eight  hundred  seven-w of this article and
     6  shall not include the components of rates of payment or charges  related
     7  to  the  allowances  provided  in accordance with subdivisions fourteen,
     8  fourteen-b and fourteen-c of this section, the  adjustment  provided  in
     9  accordance  with  subdivision fourteen-a of this section, the adjustment
    10  provided in accordance with subdivision fourteen-d of this section,  the
    11  adjustment  for  health  maintenance  organization  reimbursement  rates
    12  provided in accordance with former subdivision two-a  of  this  section,

    13  or, if effective, the adjustment provided in accordance with subdivision
    14  fifteen  of this section [or] the adjustment provided in accordance with
    15  section eighteen of chapter two hundred sixty-six of the laws  of  nine-
    16  teen  hundred  eighty-six  as  amended,  revenue received from physician
    17  practice or faculty practice plan discrete billings for private practic-
    18  ing physician services, revenue from affiliation agreements or contracts
    19  with public hospitals for the delivery of health care services  at  such
    20  public  hospitals,  revenue  received as disproportionate share hospital
    21  payments in accordance with title nineteen of the federal social securi-
    22  ty act, or revenue from government deficit financing.
    23    § 13. Paragraph (a) of subdivision 3 of section 2807-d of  the  public

    24  health law, as amended by chapter 161 of the laws of 2005, is amended to
    25  read as follows:
    26    (a)  for  general  hospitals, all monies received for or on account of
    27  inpatient  hospital  service,  outpatient  service,  emergency  service,
    28  referred  ambulatory  service  and ambulatory surgical service, or other
    29  hospital  or  health-related  services,  excluding,   subject   to   the
    30  provisions of subdivision twelve of this section: distributions from bad
    31  debt  and  charity  care  regional  pools,  primary health care services
    32  regional pools, bad debt and charity  care  for  financially  distressed
    33  hospitals  statewide  pools  and  bad  debt and charity care and capital
    34  statewide pools created in accordance with section twenty-eight  hundred
    35  seven-c of this article and the components of rates of payment or charg-

    36  es  related  to  the allowances provided in accordance with subdivisions
    37  fourteen, fourteen-b and fourteen-c, the adjustment provided in  accord-
    38  ance  with subdivision fourteen-a, the adjustment provided in accordance
    39  with subdivision  fourteen-d,  the  adjustment  for  health  maintenance
    40  organization  reimbursement  rates  provided  in accordance with section
    41  twenty-eight hundred seven-f of this article, the adjustment for commer-
    42  cial insurer reimbursement rates provided in accordance  with  paragraph
    43  (i)  of  subdivision  eleven  of section twenty-eight hundred seven-c of
    44  this article or, if effective, the  adjustment  provided  in  accordance
    45  with subdivision fifteen of section twenty-eight hundred seven-c of this
    46  article  or  the adjustment provided in accordance with section eighteen
    47  of chapter two hundred sixty-six of the laws of nineteen hundred  eight-

    48  y-six as amended and physician practice or faculty practice plan revenue
    49  received  by  a  general hospital based on discrete billings for private
    50  practicing physician services, revenue received by  a  general  hospital
    51  from a public hospital pursuant to an affiliation agreement contract for
    52  the  delivery  of  health care services to such public hospital, revenue
    53  received pursuant to section twenty-eight hundred seven-w of this  arti-
    54  cle,  all  revenue received as disproportionate share hospital payments,
    55  in accordance with title nineteen of the federal  Social  Security  Act,
    56  revenue received pursuant to sections eleven, twelve, thirteen and four-

        S. 6457--C                         78                         A. 9557--B
 
     1  teen  of  part  A  of chapter one of the laws of two thousand two, [and]

     2  revenue received pursuant to sections thirteen and fourteen of part B of
     3  chapter one of the laws  of  two  thousand  two,  revenue  from  patient
     4  personal  fund  allowances, revenue from income earned on patient funds,
     5  investment income from externally restricted funds, revenue from invest-
     6  ment sinking funds, revenue from investment operating  escrow  accounts,
     7  investment income from funded depreciation, investment income from mort-
     8  gage  repayment  escrow  accounts, revenue derived from the operation of
     9  schools leading to licensure, and revenue from the collection  of  sales
    10  and excise taxes;
    11    §  14.  Subdivision  12  of section 2807-k of the public health law is
    12  amended by adding a new paragraph (c) to read as follows:

    13    (c) Such reports shall comply with the reporting  requirements  estab-
    14  lished  for  receipt  of  bad  debt  and  charity  care pool payments as
    15  provided in accordance with section twenty-eight hundred seven-c of this
    16  article and regulations promulgated  thereunder  for  periods  prior  to
    17  January first, nineteen hundred ninety-seven.
    18    §  15. Paragraph (f) of subdivision 18 of section 2807-c of the public
    19  health law, as added by section 42 of part B of chapter 58 of  the  laws
    20  of 2005, is amended to read as follows:
    21    (f) Payments of assessments and allowances required to be submitted by
    22  general hospitals pursuant to this subdivision and subdivisions fourteen
    23  and  fourteen-b  of this section and paragraph (a) of subdivision two of

    24  section twenty-eight hundred seven-d of this article shall be subject to
    25  audit by the commissioner for a period of six years following the  close
    26  of  the  calendar  year in which such payments are due, after which such
    27  payments shall be deemed final and not subject to further adjustment  or
    28  reconciliation,   provided,   however,  that  nothing  herein  shall  be
    29  construed as precluding the commissioner from pursuing collection of any
    30  such assessments and allowances which are identified as delinquent with-
    31  in such six year period, or which are  identified  as  delinquent  as  a
    32  result  of an audit commenced within such six year audit period, or from
    33  conducting an audit of any adjustment or reconciliation made by a gener-

    34  al hospital within such six year period.   General hospitals  which,  in
    35  the  course  of  such  an  audit,  fail to produce data or documentation
    36  requested in furtherance of such an audit, within thirty  days  of  such
    37  request  may  be  assessed a civil penalty of up to ten thousand dollars
    38  for each such failure, provided, however, that such civil penalty  shall
    39  not be imposed if the hospital demonstrates good cause for such failure.
    40  The  imposition  of  such  civil  penalties  shall  be  subject  to  the
    41  provisions of section twelve-a of this chapter.
    42    § 16. Paragraph (a) of subdivision 8-a of section 2807-j of the public
    43  health law, as added by section 43 of part B of chapter 58 of  the  laws
    44  of 2005, is amended to read as follows:
    45    (a)  Payments and reports submitted or required to be submitted to the

    46  commissioner or to the commissioner's designee pursuant to this  section
    47  and  section  twenty-eight hundred seven-s of this article by designated
    48  providers of services and by third-party payors which  have  elected  to
    49  make  payments  directly  to  the  commissioner or to the commissioner's
    50  designee in accordance with subdivision five-a of this section, shall be
    51  subject to audit by the commissioner for a period of six years following
    52  the close of the calendar year in which such payments  and  reports  are
    53  due,  after which such payments shall be deemed final and not subject to
    54  further adjustment or reconciliation, provided,  however,  that  nothing
    55  herein  shall  be construed as precluding the commissioner from pursuing
    56  collection of any such payments which are identified as delinquent with-


        S. 6457--C                         79                         A. 9557--B
 
     1  in such six year period, or which are  identified  as  delinquent  as  a
     2  result  of  an  audit  commenced  within  such  six year period, or from
     3  conducting an audit of any adjustment or reconciliation made by a desig-
     4  nated  provider  of services or by a third party payor which has elected
     5  to make such payments directly to the commissioner or the commissioner's
     6  designee.
     7    § 17. Paragraph (a) of subdivision 10 of section 2807-t of the  public
     8  health  law,  as added by section 45 of part B of chapter 58 of the laws
     9  of 2005, is amended to read as follows:
    10    (a) Payments and reports submitted or required to be submitted to  the
    11  commissioner  or to the commissioner's designee pursuant to this section

    12  by specified third-party payors shall be subject to audit by the commis-
    13  sioner for a period of six years following the  close  of  the  calendar
    14  year  in  which  such  payments  and  reports  are due, after which such
    15  payments shall be deemed final and not subject to further adjustment  or
    16  reconciliation,   provided,   however,  that  nothing  herein  shall  be
    17  construed as precluding the commissioner from pursuing collection of any
    18  such payments which are identified as delinquent within  such  six  year
    19  period,  or  which  are identified as delinquent as a result of an audit
    20  commenced within such six year period, or from conducting  an  audit  of
    21  any adjustments and reconciliation made by a specified third party payor
    22  within such six year period.

    23    §  18.  Section 2807-w of the public health law is amended by adding a
    24  new subdivision 4 to read as follows:
    25    4. In order for a general hospital to be eligible  to  participate  in
    26  the  distribution of funds pursuant to this section, such general hospi-
    27  tal must be in compliance with the provisions of subdivisions nine,  ten
    28  and twelve of section twenty-eight hundred seven-k of this article.
    29    §  19.    Paragraph (a) of subdivision 2 of section 2816 of the public
    30  health law, as amended by chapter 225 of the laws of 2001  and  subpara-
    31  graph  (iii) as amended and subparagraph (iv) as added by chapter 440 of
    32  the laws of 2005, is amended to read as follows:
    33    (a) Specification of patient and other data elements and format to  be
    34  reported including data related to:

    35    (i) inpatient hospitalization data from general hospitals;
    36    (ii)  ambulatory  surgery  data from hospital-based ambulatory surgery
    37  services and all other ambulatory surgery facilities licensed under this
    38  article;
    39    (iii) emergency department data from general hospitals; [and]
    40    (iv) outpatient clinic data from general hospitals and diagnostic  and
    41  treatment  centers  licensed under this article, provided, however, that
    42  notwithstanding subdivision one of this  section  the  commissioner,  in
    43  consultation  with the health care industry, is authorized to promulgate
    44  or adopt any rules or regulations necessary to implement the  collection
    45  of data pursuant to this subparagraph; and
    46    (v) the data specified in this paragraph shall include the identifica-

    47  tion  of  patients  transferred,  admitted  or  treated  subsequent to a
    48  medical, surgical or diagnostic procedure  by  a  licensed  health  care
    49  professional at a site or facility other than those specified in subpar-
    50  agraph (i), (ii), [or] (iii) or (iv) of this paragraph.
    51    §  20.  Subdivision  (c) of section 92-dd of the state finance law, as
    52  amended by chapter 161 of the laws  of  2005,  is  amended  to  read  as
    53  follows:
    54    (c)  The pool administrator shall, from appropriated funds transferred
    55  to the  pool  administrator  from  the  comptroller,  continue  to  make
    56  payments  as required pursuant to sections twenty-eight hundred seven-k,

        S. 6457--C                         80                         A. 9557--B
 
     1  twenty-eight hundred seven-m (not including payments  made  pursuant  to

     2  subdivision  seven of section twenty-eight hundred seven-m), and twenty-
     3  eight hundred seven-w of the public health law, paragraph (e) of  subdi-
     4  vision twenty-five of section twenty-eight hundred seven-c of the public
     5  health  law,  paragraphs  (b)  and  (c) of subdivision thirty of section
     6  twenty-eight hundred seven-c of the public health law, paragraph (b)  of
     7  subdivision eighteen of section twenty-eight hundred eight of the public
     8  health  law,  subdivision  seven of section twenty-five hundred-d of the
     9  public health law and section eighty-eight of chapter one of the laws of
    10  nineteen hundred ninety-nine.
    11    § 21. Intentionally omitted.
    12    § 22. Subdivision 18 of section 2807-c of the  public  health  law  is
    13  amended by adding a new paragraph (g) to read as follows:
    14    (g)  If  a  general  hospital  fails  to produce data or documentation

    15  requested in furtherance of an audit for a month to which an  assessment
    16  applies, the commissioner may estimate, based on available financial and
    17  statistical  data  as determined by the commissioner, the amount due for
    18  such month. If the impact of exemptions permitted pursuant to  paragraph
    19  (d)  of this subdivision cannot be determined from such available finan-
    20  cial and statistical data the estimated amount due may be calculated  on
    21  the  basis  of  the general hospital's aggregate gross inpatient revenue
    22  amount, as determined from such available financial and statistical data
    23  for the year subject to audit. Estimated amounts due  pursuant  to  this
    24  paragraph shall be paid by a general hospital within sixty days or with-

    25  in  such  other  time  period  as  agreed to by the commissioner and the
    26  facility. Thereafter the commissioner shall take all necessary steps  to
    27  collect  amounts  owed  pursuant to this paragraph, including by offset-
    28  ting, or by directing the state comptroller to offset, such amounts  due
    29  from  any  other  payments  made  by  state governmental agencies to the
    30  general hospital pursuant to this article. Interest and penalties  shall
    31  be  applied  to  such  amounts  due in accordance with the provisions of
    32  paragraph (c) of subdivision twenty of this section.
    33    § 23. Paragraph (c) of subdivision 6 of section 2807-j of  the  public
    34  health  law,  as added by chapter 639 of the laws of 1996, is amended to
    35  read as follows:

    36    (c) Upon receipt of notification from the commissioner of a designated
    37  provider of services' deficiency under this section, the comptroller  or
    38  a  fiscal  intermediary designated by the director of the budget, or the
    39  commissioner of [social services] the office of temporary and disability
    40  assistance, or a corporation organized and operating in accordance  with
    41  article  forty-three  of the insurance law, or an organization operating
    42  in accordance with article forty-four of  this  chapter  shall  withhold
    43  from  the amount of any payment to be made by the state or by such arti-
    44  cle forty-three corporation or article forty-four  organization  to  the
    45  designated  provider of services the amount of the deficiency determined
    46  under paragraph (a), (b) or (e) of this subdivision or paragraph (d)  of

    47  subdivision  eight-a  of this section. Upon withholding such amount, the
    48  comptroller or a designated fiscal intermediary, or the commissioner  of
    49  [social  services] the office of temporary and disability assistance, or
    50  corporation organized and operating in accordance  with  article  forty-
    51  three  of the insurance law or organization operating in accordance with
    52  article forty-four of this chapter shall pay the  commissioner,  or  the
    53  commissioner's  designee,  such  amount withheld on behalf of the desig-
    54  nated provider of services. Such amount shall represent, in whole or  in
    55  part, the amounts due from the designated provider of services.

        S. 6457--C                         81                         A. 9557--B
 
     1    §  24.  Paragraph (d) of subdivision 6 of section 2807-j of the public

     2  health law, as added by chapter 639 of the laws of 1996, is  amended  to
     3  read as follows:
     4    (d)  The  commissioner shall provide a designated provider of services
     5  with notice of any estimate of an amount due for an  allowance  pursuant
     6  to paragraph (a) or (b) of this subdivision or paragraph (d) of subdivi-
     7  sion  eight-a of this section at least three days prior to collection of
     8  such amount by the commissioner. Such notice shall contain the financial
     9  basis for the commissioner's estimate.
    10    § 25. Paragraph (e) of subdivision 6 of section 2807-j of  the  public
    11  health  law,  as added by chapter 639 of the laws of 1996, is amended to
    12  read as follows:
    13    (e) In the event a designated provider of services objects to an esti-
    14  mate by the commissioner pursuant to paragraph (a) or (b) of this subdi-

    15  vision or paragraph (d) of subdivision eight-a of this  section  of  the
    16  amount due for an allowance, the designated provider of services, within
    17  sixty  days of notice of an amount due, may request a public hearing. If
    18  a hearing is requested, the commissioner shall  provide  the  designated
    19  provider  of services an opportunity to be heard and to present evidence
    20  bearing on the amount due for an  allowance  within  thirty  days  after
    21  collection  of  an  amount  due  or  receipt of a request for a hearing,
    22  whichever is later. An administrative hearing is not a  prerequisite  to
    23  seeking judicial relief.
    24    §  26.  Subdivision  8-a of section 2807-j of the public health law is
    25  amended by adding a new paragraph (d) to read as follows:
    26    (d) If a designated provider of services or a third party payor  fails

    27  to  produce  data  or documentation requested in furtherance of an audit
    28  pursuant to this section or pursuant  to  section  twenty-eight  hundred
    29  seven-s  of this article, for a month to which an allowance applies, the
    30  commissioner may estimate, based on available financial and  statistical
    31  data  as  determined by the commissioner, the amount due for such month.
    32  If the impact of  the  patient  services  revenue  exemptions  specified
    33  pursuant  to  this  section, or pursuant to section twenty-eight hundred
    34  seven-s of this article, cannot be determined from such available finan-
    35  cial and statistical data, the amount due may be calculated on the basis
    36  of the aggregate total of patient services  revenue  derived  from  such

    37  data  for  the  year  subject  to audit. The commissioner shall take all
    38  necessary steps to collect amounts due as determined  pursuant  to  this
    39  paragraph,  including  directing  the  state  comptroller to offset such
    40  amounts due from any payments made by the state pursuant to this article
    41  to a designated provider of services or a third  party  payor.  Interest
    42  and  penalties  shall  be applied to such amounts due in accordance with
    43  the provisions of subdivision eight of this section.
    44    § 27. Subdivision 10 of section 2807-t of the  public  health  law  is
    45  amended by adding a new paragraph (d) to read as follows:
    46    (d) If a specified third-party payor fails to produce data or documen-
    47  tation requested in furtherance of an audit pursuant to this section for

    48  a  month  to which an assessment applies, the commissioner may estimate,
    49  based on available financial and statistical data as determined  by  the
    50  commissioner,  the  amount  due  for  such  month.  If the impact of the
    51  enrollment exemptions permitted  pursuant  to  this  section  cannot  be
    52  determined from such available financial and statistical data, the esti-
    53  mated  amount  due  may  be  calculated  on  the basis of aggregate data
    54  derived from such available data for the  year  subject  to  audit.  The
    55  commissioner  shall  take  all necessary steps to collect amounts due as
    56  determined pursuant to this paragraph,  including  directing  the  state

        S. 6457--C                         82                         A. 9557--B
 

     1  comptroller  to  offset  such  amounts due from any payments made by the
     2  state to the third party payor pursuant to this  article.  Interest  and
     3  penalties  shall  be  applied to such amounts due in accordance with the
     4  provisions  of subdivision eight of section twenty-eight hundred seven-j
     5  of this article.
     6    § 28. Intentionally omitted
     7    § 29. Intentionally omitted
     8    § 30. Subdivision 3 of section 1680-j of the public  authorities  law,
     9  as  added  by section 54 of part B of chapter 58 of the laws of 2005, is
    10  amended to read as follows:
    11    3. Notwithstanding any law in the contrary,  and  in  accordance  with
    12  section four of the state finance law, the comptroller is hereby author-
    13  ized  and  directed  to  transfer from the health care reform act (HCRA)

    14  resources fund [(F04)] (061) to the general fund, upon  the  request  of
    15  the  director  of  the  budget,  up to $6,500,000 on or before March 31,
    16  2006, and the comptroller is further hereby authorized and  directed  to
    17  transfer  from the healthcare reform act (HCRA); Resources fund (061) to
    18  the Capital Projects Fund, upon the request of the director  of  budget,
    19  up  to  [$16,250,000]  $139,000,000 for the period April 1, 2006 through
    20  March 31, 2007 [and], up to [$32,500,000] $170,976,000  for  the  period
    21  April  1,  2007  through  March 31, 2008, and up to $198,408,000 for the
    22  period April 1, 2008 through March 31, 2009.
    23    § 30-a. The five undesignated paragraphs of section 2818 of the public

    24  health law, are designated subdivision 1 and  a  new  subdivision  2  is
    25  added to read as follows:
    26    2.  Notwithstanding the provisions of subdivision one of this section,
    27  the commissioner and the director of the dormitory authority may  award,
    28  in an amount not to exceed twenty-five percent of the health care system
    29  improvement  capital  grant program allocation in any given fiscal year,
    30  grants to eligible applicants without the process set forth in  subdivi-
    31  sion  one of this section.  With respect to the process for the awarding
    32  of such funds without the process set forth in subdivision one  of  this
    33  section,  the  commissioner  and the director of the dormitory authority
    34  shall determine eligible awardees based solely on an applicant's ability

    35  to meet the following criteria:
    36    (i) Have a loss from operations for  each  of  the  three  consecutive
    37  preceding years as evidenced by audited financial statements; and
    38    (ii)  Have a negative fund balance or negative equity position in each
    39  of the three preceding years as evidenced by  audited  financial  state-
    40  ments; and
    41    (iii)  Have a current ratio of less than 1:1 for each of three consec-
    42  utive preceding years; or
    43    (iv) Be deemed to the satisfaction of the commissioner to be a provid-
    44  er that fulfills an unmet health care need for the community  as  deter-
    45  mined  by the department through consideration of the volume of Medicaid
    46  and medically indigent patients served;  the  service  volume  and  mix,

    47  including  but  not limited to maternity, pediatrics, trauma, behavioral
    48  and neurobehavioral, ventilator, and emergency  room  volume;  and,  the
    49  significance  of the institution in ensuring health care services access
    50  as measured by market share within the region.
    51    (c) Prior to an award being granted to an eligible applicant without a
    52  competitive bid or request for proposal process,  the  commissioner  and
    53  the  director  of  the dormitory authority shall notify the chair of the
    54  senate finance committee, the chair  of  the  assembly  ways  and  means
    55  committee  and  the  director of the division of budget of the intent to
    56  grant such an award. Such notice shall include information regarding how


        S. 6457--C                         83                         A. 9557--B
 
     1  the eligible applicant  meets  criteria  established  pursuant  to  this
     2  section.
     3    § 31. Notwithstanding any inconsistent provision of law, rule or regu-
     4  lation,  for  the  purposes of implementing the provisions of the public
     5  health law, tax law, state finance law, insurance  law  and  the  social
     6  services  law,  references  to  titles XIX and XXI of the federal social
     7  security act in the public health law and the social services law  shall
     8  be deemed to include and also to mean any successor titles thereto under
     9  the federal social security act.
    10    § 32. Notwithstanding any inconsistent provision of law, rule or regu-
    11  lation,  the  effectiveness of subdivisions 4, 7, 7-a and 7-b of section
    12  2807 of the public health law and section 18 of chapter 2 of the laws of

    13  1988, as they relate to time frames  for  notice,  approval  or  certif-
    14  ication  of  rates  of  payment,  are  hereby  suspended  and shall, for
    15  purposes of implementing the provisions of this act, be deemed  to  have
    16  been  without  any  force  or effect from and after November 1, 2005 for
    17  such rates effective for the period January 1, 2006 through December 31,
    18  2006.
    19    § 33. Severability clause. If any clause, sentence, paragraph,  subdi-
    20  vision,  section  or  part of this act shall be adjudged by any court of
    21  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    22  impair or invalidate the remainder thereof, but shall be confined in its
    23  operation  to  the  clause, sentence, paragraph, subdivision, section or
    24  part thereof directly involved in the controversy in which such judgment
    25  shall have been rendered. It is hereby declared to be the intent of  the

    26  legislature  that  this act would have been enacted even if such invalid
    27  provisions had not been included herein.
    28    § 34. This act shall take effect immediately provided, however, that:
    29    1. Intentionally omitted.
    30    2. The amendments to paragraph (d) of subdivision 18 of section 2807-c
    31  of the public health law made by section twelve of this  act  shall  not
    32  affect  the  expiration  of such paragraph and shall be deemed to expire
    33  therewith;
    34    3. The amendments to section 2807-j of the public health law  made  by
    35  sections  sixteen, twenty-three, twenty-four, twenty-five and twenty-six
    36  of this act shall not affect the expiration of such section and shall be
    37  deemed to expire therewith;
    38    4. The amendments to section 2807-t of the public health law  made  by
    39  sections  seventeen  and  twenty-seven  of this act shall not affect the

    40  expiration of such section and shall be deemed to expire therewith;
    41    5. Any rules or regulations necessary to implement the  provisions  of
    42  this  act  may be promulgated and any procedures, forms, or instructions
    43  necessary for such implementation may be adopted and issued on or  after
    44  the date this act shall have become a law;
    45    6. This act shall not be construed to alter, change, affect, impair or
    46  defeat  any rights, obligations, duties or interest accrued, incurred or
    47  conferred prior to the enactment of this act;
    48    7. The commissioner of health and superintendent of insurance and  any
    49  appropriate council may take any steps necessary to implement provisions
    50  of this act prior to its effective date;
    51    8. Notwithstanding any inconsistent provision of the state administra-
    52  tive  procedure  act  or any other provision of law, rule or regulation,

    53  the commissioner of health and the superintendent of insurance  and  any
    54  appropriate  council is authorized to adopt or amend or promulgate on an
    55  emergency basis any regulation he or  she  or  such  council  determines

        S. 6457--C                         84                         A. 9557--B
 
     1  necessary  to implement any provision of this act on its effective date;
     2  and
     3    9.  The  provisions of this act shall become effective notwithstanding
     4  the failure of the commissioner  of  health  or  the  superintendent  of
     5  insurance  or  any  council  to adopt or amend or promulgate regulations
     6  implementing this act.
 
     7                                   PART E
 
     8    Intentionally omitted.
 
     9                                   PART F
 
    10    Intentionally omitted.
 
    11                                   PART G
 

    12    Section 1.  There shall be established the office  of  Health  e-Links
    13  New  York within the New York state department of health, which shall be
    14  headed by a state coordinator to enhance the adoption of an  interopera-
    15  ble  regional  health information exchange and technology infrastructure
    16  that will improve quality,  reduce  the  cost  of  health  care,  ensure
    17  patient  privacy and security, enhance public health reporting including
    18  bioterrorism surveillance and facilitate health  care  research  in  the
    19  state of New York.
    20    § 2. This act shall take effect immediately.
 
    21                                   PART H
 
    22    Section  1.  Section  3 of chapter 119 of the laws of 1997 relating to
    23  authorizing the department of health to establish  certain  payments  to
    24  general  hospitals,  as amended by section 1 of part S2 of chapter 62 of

    25  the laws of 2003, is amended to read as follows:
    26    § 3. This act shall take effect immediately and  shall  be  deemed  to
    27  have been in full force and effect on and after April 1, 1997.  This act
    28  shall expire [March 31, 2006] April 1, 2009.
    29    §  2.  This  act  shall take effect immediately and shall be deemed to
    30  have been in full force and effect on and after April 1, 2006.
 
    31                                   PART I
 
    32    Intentionally omitted.
 
    33                                   PART J
 
    34    Section 1. Paragraph (j) of subdivision 4 of section 214 of the  elder
    35  law,  as  amended  by  section  3 of part E of chapter 58 of the laws of
    36  2005, is amended to read as follows:
    37    (j) Within the amounts appropriated therefor, counties  authorized  to
    38  provide expanded non-medical in-home services, non-institutional respite

    39  services,  case  management services, and ancillary services pursuant to
    40  paragraph (i) of this subdivision shall be eligible for reimbursement by
    41  the state of up to seventy-five percent of  allowable  expenditures  for
    42  approved services pursuant to this section up to the level authorized by
    43  the  director.  The  director  shall  not  authorize  a  level  of state
    44  reimbursement pursuant to this paragraph which exceeds the sum of  nine-

        S. 6457--C                         85                         A. 9557--B
 
     1  ty-one  thousand two hundred fifty dollars or seven dollars thirty cents
     2  for each elderly person residing in the county,  whichever  is  greater,
     3  and  shall  proportionately reduce such sum for each county in any years
     4  for  which  appropriations  are  not  sufficient  to fully fund approved

     5  expanded  non-medical  in-home   services,   non-institutional   respite
     6  services,  case  management  services,  and ancillary services for func-
     7  tionally impaired elderly in all counties with approved home care plans;
     8  provided however that in state fiscal years beginning on  or  after  the
     9  first  day  of April, two thousand five, the director, with the approval
    10  of the director of the budget,  may  authorize  state  reimbursement  in
    11  excess of these levels to the extent appropriations are available there-
    12  for,  and further provided that within the amounts appropriated for such
    13  expanded in-home, case management and ancillary community  services  for
    14  the elderly (EISEP) in the 2005-2006 fiscal year, any contrary provision
    15  of this section notwithstanding, the sum of ten million dollars shall be
    16  available  for  reimbursement to counties at ninety percent of allowable

    17  expenditures for liabilities heretofore  or  hereafter  to  accrue,  and
    18  further  provided that within the amounts appropriated for such expanded
    19  in-home, case management and ancillary community services for the elder-
    20  ly (EISEP) in the 2006-2007 fiscal year, any contrary provision of  this
    21  section notwithstanding, the sum of twenty-five million dollars shall be
    22  available  for  reimbursement to counties at ninety percent of allowable
    23  expenditures for liabilities heretofore or hereafter to accrue.
    24    § 2. Paragraph (j) of subdivision 4 of section 214 of the elder law is
    25  amended to read as follows:
    26    (j) Within the amounts appropriated therefor, counties  authorized  to
    27  provide expanded non-medical in-home services, non-institutional respite

    28  services,  case  management services, and ancillary services pursuant to
    29  paragraph (i) of this subdivision shall be eligible for reimbursement by
    30  the state of up to seventy-five percent of  allowable  expenditures  for
    31  approved services pursuant to this section up to the level authorized by
    32  the  director.  The  director  shall  not  authorize  a  level  of state
    33  reimbursement pursuant to this paragraph which exceeds the sum of  nine-
    34  ty-one  thousand two hundred fifty dollars or seven dollars thirty cents
    35  for each elderly person residing in the county,  whichever  is  greater,
    36  and  shall  proportionately reduce such sum for each county in any years
    37  for which appropriations are  not  sufficient  to  fully  fund  approved
    38  expanded   non-medical   in-home   services,  non-institutional  respite
    39  services, case management services, and  ancillary  services  for  func-

    40  tionally impaired elderly in all counties with approved home care plans;
    41  provided  however  that  in state fiscal years beginning on or after the
    42  first day of April, two thousand five, the director, with  the  approval
    43  of  the  director  of  the  budget, may authorize state reimbursement in
    44  excess of these levels to the extent appropriations are available there-
    45  for, and further provided that within the amounts appropriated for  such
    46  expanded  in-home,  case management and ancillary community services for
    47  the elderly (EISEP) in the 2006-2007 fiscal year, any contrary provision
    48  of this section notwithstanding, the sum of twenty-five million  dollars
    49  shall  be  available  for reimbursement to counties at ninety percent of
    50  allowable  expenditures  for  liabilities  heretofore  or  hereafter  to

    51  accrue.
    52    §  3.  The elder law is amended by adding a new section 223 to read as
    53  follows:
    54    § 223. Economically sustainable transportation demonstration  program.
    55  1. Definitions.  As used in this section:

        S. 6457--C                         86                         A. 9557--B
 
     1    (a)  "Economically  sustainable  transportation provider" shall mean a
     2  non-profit provider of  transportation  services  that  submits  to  the
     3  director  and obtains approval of a plan demonstrating that the provider
     4  is  capable  of  providing   economically   sustainable   transportation
     5  services.
     6    (b)  "Economically  sustainable  transportation  services"  shall mean

     7  demand-responsive transportation services that are provided:
     8    (1) by automobile;
     9    (2) to qualified individuals;
    10    (3) twenty-four hours a day, seven days a week; and
    11    (4) by volunteer or paid drivers.
    12    (c) "Qualified individual" shall mean an individual who is:
    13    (1) an older individual, as defined in section 102 of the Older Ameri-
    14  cans Act of 1965 (42 U.S.C. 3002); or
    15    (2) an individual who is blind, within the meaning  of  the  Rehabili-
    16  tation  Act  of  1973  (29  U.S.C.  701  et seq.), an individual who has
    17  significant visual impairment described in section 751 of the  Rehabili-
    18  tation  Act  of  1973 (29 U.S.C. 796j), or an individual who is eligible

    19  for benefits under title II or XVI of the Social Security Act (42 U.S.C.
    20  401 et seq., 1381 et seq.) on the basis of blindness.
    21    (d) "Qualified transportation account" shall mean  an  account  estab-
    22  lished for a qualified individual for the purpose of acquiring transpor-
    23  tation  services from an economically sustainable transportation provid-
    24  er.
    25    (e) "Director" shall mean the director of the New  York  state  office
    26  for the aging.
    27    (f)  "Eligible  entity"  shall  mean a private non-profit organization
    28  with experience in establishing and replicating the  independent  trans-
    29  portation  network  to  provide  economically sustainable transportation
    30  services for qualified individuals.

    31    2. The director shall establish the economically sustainable transpor-
    32  tation demonstration program for the  purpose  of  enabling  seniors  to
    33  remain  independent  and  mobile in their community.   The program would
    34  provide an on demand transit service for seniors that would use  automo-
    35  biles driven by volunteer and paid drivers to transport seniors to where
    36  they  need  and  want to go.   After a period of five years, the program
    37  would no longer be eligible for state funding and  would  be  completely
    38  self-sustaining,  relying  on  consumer  fares  and  voluntary community
    39  support to remain operational.
    40    3. Before carrying out  the  economically  sustainable  transportation

    41  demonstration  program,  the  director  shall enter into a contract or a
    42  cooperative agreement with an eligible entity to provide recommendations
    43  and support to the director  regarding  the  administration  of  such  a
    44  program.
    45    (a) The eligible entity that enters into a contract or agreement under
    46  subdivision three of this section shall:
    47    (1)  Provide  initial  and ongoing technical assistance and support to
    48  the director for the administration of  the  sustainable  transportation
    49  demonstration program.
    50    (2)  Provide  initial and ongoing technical assistance to economically
    51  sustainable transportation providers.
    52    (3) Provide recommendation to the director about the establishment of,

    53  and requirements concerning locations where the economically sustainable
    54  transportation services will be provided in the state.

        S. 6457--C                         87                         A. 9557--B
 
     1    (4) Provide recommendations to the director for the creation  and  use
     2  of  qualified  transportation  accounts for the transportation services,
     3  including the provisions that such an account:
     4    (i)  may be funded with credits or funds equal to the value of a vehi-
     5  cle traded to an economically sustainable transportation provider by, or
     6  on behalf of, a qualified individual, or by other means;
     7    (ii) shall be used only to  provide  transportation  services  to  the
     8  qualified individual;

     9    (iii) shall have a designated beneficiary; and
    10    (iv)  shall  be transferable to an individual other than the qualified
    11  individual.
    12    (5) Provide recommendations to the director regarding participation in
    13  any federal grant program for an economically sustainable transportation
    14  program.
    15    4. After receiving the recommendations and support described in subdi-
    16  vision three of this section, the director shall develop a  request  for
    17  proposal   to  carry  out  the  economically  sustainable  demonstration
    18  program.
    19    5. Copyrights and trademarks. Nothing in this section shall affect the
    20  rights of the eligible entity under the copyright or trademark  laws  of

    21  the  United States. Nothing in this section shall require the disclosure
    22  of information to which Federal law relating to trade secrets (including
    23  section 552(b)(4) of title 5, United States Code) applies.  In  entering
    24  into  a contract or cooperative agreement under this section, the direc-
    25  tor shall not establish  any  conditions  that  affect  such  rights  or
    26  require such disclosure.
    27    6.  Within amounts appropriated, the director shall make grants avail-
    28  able to qualified economically sustainable transportation  providers  of
    29  no  less  than fifty-five thousand dollars per grantee in the first year
    30  of the operation of the program. Such providers  shall  be  eligible  to
    31  receive  funding under this section annually for up to five years. After

    32  such time, providers must be able to  provide  economically  sustainable
    33  transportation  services  without  receiving  further  public  financial
    34  assistance for operating or capital expenses.
    35    7. To be eligible to receive a grant under this  section,  an  econom-
    36  ically  sustainable  transportation  provider  shall  commit  to raising
    37  matching funds from non-state sources equal  to  fifty  percent  of  the
    38  state  grant.  Up  to  ten percent of the provider match may be provided
    39  in-kind.
    40    8. The office may use up to twelve percent of the total of any funding
    41  appropriated pursuant to this section for administration.
    42    § 4. This act shall take effect immediately and  shall  be  deemed  to

    43  have  been in full force and effect on and after April 1, 2006, provided
    44  that section two of this act shall take effect upon the  expiration  and
    45  reversion  of paragraph (j) of subdivision 4 of section 214 of the elder
    46  law, as amended by section one of this act and as provided  pursuant  to
    47  section  4 of part E of chapter 58 of the laws of 2005; provided, howev-
    48  er, that the amendments made  to  paragraph  (j)  of  subdivision  4  of
    49  section  214  of  the elder law made by sections one and two of this act
    50  shall apply only to funds appropriated in  the  2006-2007  state  fiscal
    51  year; provided, that the amendments to paragraph (j) of subdivision 4 of
    52  section  214  of  the  elder  law  made by section two of this act shall
    53  expire and be deemed repealed on September 15, 2007.
 
    54                                   PART K


        S. 6457--C                         88                         A. 9557--B
 
     1    Section 1. Notwithstanding any other provision of law, alcohol primary
     2  care detoxification providers licensed and certified by  the  office  of
     3  alcoholism  and  substance  abuse services under part 381.2 of the NYCRR
     4  who have converted to  the  inpatient  medically  supervised  withdrawal
     5  service  model  regulations  on  or before January 1, 2006 shall receive
     6  Medicaid rate or fee reimbursements at an amount equal to the previously
     7  established Medicaid rate or fee for alcohol primary care detoxification
     8  providers as of April 1, 2005. Retention of such rate or  fee  shall  be
     9  conditioned upon approval of an amended provider-specific fee transition
    10  plan  submitted  to  the  commissioner  of  the office of alcoholism and
    11  substance abuse services no later than six months from  April  1,  2006.

    12  Such  Medicaid  reimbursement  shall  expire on April 1, 2007, and a new
    13  rate implemented as outlined in the transition plan.
    14    § 2. This act shall take effect immediately and  shall  be  deemed  to
    15  have been in full force and effect on and after April 1, 2006.
 
    16                                   PART L
 
    17    Section  1.  Notwithstanding  the  provisions  of any other law to the
    18  contrary, the dormitory authority of the state of New York is authorized
    19  to sell and convey to the Indian Cultural and Community Center, Inc. two
    20  parcels of land situated in the City of New  York,  Borough  of  Queens,
    21  State  of  New York, constituting a portion of the Creedmoor Psychiatric
    22  Center, specifically described as follows:
    23    (a) All that certain tract, piece or parcel of land situate, lying and
    24  being in the City of New York, Borough of Queens,  State  of  New  York,

    25  lying  generally  Southerly  of  Union Turnpike and being shown on a map
    26  entitled "Two Lot subdivision Creedmoor Psychiatric Center," prepared by
    27  C.T. Male Associates, P.C., dated August 8, 2002 and last revised  March
    28  7, 2006, bearing Drawing No. 02-482, and being more particularly bounded
    29  and described as follows: Beginning at the point on the Easterly line of
    30  Creedmoor  Psychiatric  Center,  said  point being situate the following
    31  three (3) courses from the point of intersection of the Southerly margin
    32  of Union Turnpike with the Southwesterly  margin  of  243rd  Street:  1)
    33  along the Southwesterly margin of 243rd Street, South 49 deg. 30 min. 38
    34  sec.  West  44.26  feet:  2)  along the common line between the lands of
    35  Creedmoor Psychiatric Center heading Northwest and Lot 93 on the  South-
    36  east  as  shown on the above described map South 64 deg. 19 min. 30 sec.

    37  West 69.27 feet; and 3) along the Easterly line of Creedmoor Psychiatric
    38  Center, South 13 deg. 27 min. 42 sec. East 82.45 feet  and  runs  thence
    39  from  said point of point of beginning along said Easterly line South 13
    40  deg. 27 min. 42 sec. East, a distance of 506.34 feet to a point;  thence
    41  along  the Southerly line of Creedmoor Psychiatric Center, South 81 deg.
    42  59 min.  26 sec. West, a distance of  81.01  feet  to  a  point;  thence
    43  through  the  lands  of Creedmoor Psychiatric center the following seven
    44  (7) courses:  1) South 62 deg. 54 min. 51 sec. West a distance of  75.04
    45  feet  to  a  point; 2) North 16 deg. 08 min. 06 sec. East, a distance of
    46  79.37 feet to a point; 3) North 03 deg. 34 min. 47 sec. West, a distance
    47  of 98.67 feet to a point of curve; 4) thence Northwesterly along a curve
    48  to the left radius of 26.64 feet, an arc distance of  31.65  feet  to  a

    49  point of tangency, the chord to the above described curve being North 37
    50  deg.  14  min. 53 sec. West 29.83 feet; 5) North 73 deg. 29 min. 00 sec.
    51  West, a distance of 177.88 feet to a point; 6) North 16 deg. 19 min.  30
    52  sec.    East, a distance of 287.20 feet to a point; and 7) North 83 deg.
    53  46 min.  08 sec. East, a distance of 121.85 feet to the point  or  place
    54  of beginning, containing 1.93± acres of lands.

        S. 6457--C                         89                         A. 9557--B
 
     1    (b) All that certain tract, piece or parcel of land situate, lying and
     2  being  in  the  City  of New York, Borough of Queens, State of New York,
     3  lying generally Southerly of Union Turnpike and being  shown  on  a  map
     4  entitled "Two Lot subdivision Creedmoor Psychiatric Center," prepared by
     5  C.T.  Male Associates, P.C., dated August 8, 2002 and last revised March

     6  7, 2006, bearing Drawing No. 02-482, and being more particularly bounded
     7  and described as follows: Beginning at the point of  intersection  of  a
     8  Southerly  line  and  the Easterly line of Creedmoor Psychiatric Center,
     9  said point being situate the following four (4) courses from  the  point
    10  of  intersection  of  the  Southerly  margin  of Union Turnpike with the
    11  Southwesterly margin of 243rd Street: 1) along the Southwesterly  margin
    12  of 243rd Street, South 49 deg. 30 min. 38 sec. East 44.26 feet; 2) along
    13  the  common  line  between Creedmoor Psychiatric Center on the Northwest
    14  and Lot 93 on the Southeast as shown on the above described map South 64
    15  deg. 19 min. 30 sec. West 69.27 feet; 3)  along  the  Easterly  line  of
    16  Creedmoor  Psychiatric Center, South 13 deg. 27 min. 42 sec. East 588.79
    17  feet; and 4) along a Southerly line  of  Creedmoor  Psychiatric  Center,

    18  South 81 deg.  59 min. 26 sec. West 81.01 feet and runs thence from said
    19  point  of  beginning  along  the  Easterly line of Creedmoor Psychiatric
    20  Center, South 17 deg. 30 min. 53 sec. East, a distance of 403.41 feet to
    21  a point; thence through the lands of Creedmoor  Psychiatric  Center  the
    22  following  ten  (10)  courses:  1) North 87 deg. 20 min. 28 sec. West, a
    23  distance of 461.17 feet to a point; 2) North 40 deg.  24  min.  14  sec.
    24  East,  a  distance of 17.24 feet to a point; 3) North 40 deg. 55 min. 57
    25  sec.  East, a distance of 50.29 feet to a point; 4)  North  34  deg.  29
    26  min. 28 sec. East, a distance of 15.43 feet to a point; 5) North 15 deg.
    27  35  min.    53 sec. East, a distance of 95.44 feet to a point; 6) thence
    28  Northerly along a curve to  the  left  of  radius  66.19  feet,  an  arc
    29  distance  of  30.79  feet  to a point, the chord for the above described

    30  curve being North 01 deg. 29 min. 41 sec. West 30.52 feet; 7)  North  16
    31  deg.  55  min.  29  sec.   West, a distance of 50.91 feet to a point; 8)
    32  North 49 deg. 24 min. 48 sec. East, a distance of 76.41 feet to a point;
    33  9) North 73 deg. 38 min.  43 sec. East, a distance of 157.92 feet  to  a
    34  point;  and  10) North 62 deg. 54 min. 51 sec. East, a distance of 75.04
    35  feet to the point or place of beginning, containing 2.56± acres of land.
    36    § 2. The dormitory authority of the state of New York is authorized to
    37  fix and determine the terms and conditions of each conveyance, provided,
    38  however, that each sales price shall be not less than  the  fair  market
    39  value  of  each  parcel,  as  determined  by  two  or  more  independent
    40  appraisals. Each conveyance shall take place within one  year  from  the
    41  effective  date  of  this  act;  and  the proceeds of each sale shall be

    42  deposited in the  mental  hygiene  facilities  improvement  fund  income
    43  account  established pursuant to section 9 of the facilities development
    44  corporation act, as  added by chapter 359 of the laws of 1968.
    45    § 3. This act shall take effect immediately.
 
    46                                   PART M
 
    47    Section 1. Paragraph 5 of subdivision (a)  of  section  31.27  of  the
    48  mental  hygiene  law,  as amended by chapter 306 of the laws of 1995, is
    49  amended to read as follows:
    50    (5) "Extended observation bed" means an inpatient bed which is  in  or
    51  adjacent  to  an  emergency  room  located  within  a  general hospital,
    52  designed to provide a safe environment for an  individual  who,  in  the
    53  opinion  of  the  examining  physician,  requires  extensive evaluation,
    54  assessment, or stabilization of the person's acute psychiatric symptoms,


        S. 6457--C                         90                         A. 9557--B
 
     1  except that, if the commissioner determines that the program can provide
     2  for the privacy and safety of  all  patients  receiving  services  in  a
     3  hospital,  he  or  she may approve the location of one or more such beds
     4  within  another  unit of the hospital [and, in a suburban/rural program,
     5  he may approve a location in any unit of that hospital or another gener-
     6  al hospital].
     7    § 2. Paragraph 1 of subdivision (b) of section  31.27  of  the  mental
     8  hygiene  law,  as amended by chapter 598 of the laws of 1994, is amended
     9  to read as follows:
    10    (1) The commissioner [of mental health] may license the  operation  of
    11  comprehensive  psychiatric emergency programs by general hospitals which

    12  are operated by state  or  local  governments  or  voluntary  agencies[,
    13  provided that the commissioner may license suburban/rural programs oper-
    14  ated by local governmental units or voluntary agencies and not by gener-
    15  al hospitals, if such local governmental unit or voluntary agency has an
    16  affiliation  or  agreement  with  one  or more general hospitals for the
    17  provision of extended observation beds and other  necessary  psychiatric
    18  emergency services as determined by the commissioner. For suburban/rural
    19  programs,  the]. The provision of such services in general hospitals may
    20  be located either within the state or, with the approval of the  commis-
    21  sioner  and the director of the budget and to the extent consistent with

    22  state and federal law,  in  a  contiguous  state.  The  commissioner  is
    23  further  authorized  to enter into interstate agreements for the purpose
    24  of facilitating  the  development  of  [suburban/rural]  programs  which
    25  provide services in another state. A comprehensive psychiatric emergency
    26  program  shall serve as a primary psychiatric emergency service provider
    27  within a defined catchment area for persons in need of psychiatric emer-
    28  gency services including persons who require immediate observation, care
    29  and treatment in accordance with section  9.40  of  this  chapter.  Each
    30  comprehensive psychiatric emergency program shall provide or contract to
    31  provide  psychiatric emergency services twenty-four hours per day, seven
    32  days per  week,  including  but  not  limited  to:  crisis  intervention
    33  services,  crisis outreach services, crisis residence services, extended

    34  observation beds, and triage and referral services.
    35    § 3. Paragraph 7 of subdivision (a) of section  31.27  of  the  mental
    36  hygiene law is REPEALED.
    37    § 4. Notwithstanding the provisions of this act or any other provision
    38  of  law,  any suburban/rural comprehensive psychiatric emergency program
    39  licensed and operating on the effective date of this act shall  continue
    40  in existence and shall be deemed to be licensed and operated as an urban
    41  comprehensive psychiatric emergency program.
    42    §  5. This act shall take effect immediately; provided that the amend-
    43  ments to section 31.27 of the mental hygiene law made  by  sections  one
    44  and  two  of  this  act  shall not affect the repeal of such section and
    45  shall be deemed repealed therewith.
    46    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-

    47  sion, section or part of this act shall be  adjudged  by  any  court  of
    48  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    49  impair, or invalidate the remainder thereof, but shall  be  confined  in
    50  its  operation  to the clause, sentence, paragraph, subdivision, section
    51  or part thereof directly involved in the controversy in which such judg-
    52  ment shall have been rendered. It is hereby declared to be the intent of
    53  the legislature that this act would  have  been  enacted  even  if  such
    54  invalid provisions had not been included herein.

        S. 6457--C                         91                         A. 9557--B
 
     1    §  3.  This  act shall take effect immediately provided, however, that
     2  the applicable effective date of Parts A through M of this act shall  be
     3  as specifically set forth in the last section of such Parts.
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