Last week, the New York State Assembly and New York State Senate passed differing budget resolutions for State fiscal year (SFY) 2000-2001, which begins on April 1, 2000. Both Assembly Speaker Sheldon Silver and Senate Majority Leader Joseph Bruno estimate that the State will have more revenue available in the coming fiscal year than Governor George Pataki predicted when he unveiled his budget proposal in January; consequently, both Houses propose spending more in the coming fiscal year than the Governor has proposed, and both Houses, to varying degrees, restore State spending the Governor proposed to cut. GNYHA is very pleased that both the Senate and the Assembly resolutions, like the Governor's proposed budget, implement the Health Care Reform Act 2000 Medicaid agreement, under which no new Medicaid cuts will be proposed for the next three years for hospitals, nursing homes, home health agencies, and clinics. Both Houses also propose that the State take over the local cost of the Family Health Plus program, which is scheduled to begin on January 1, 2001, pending waiver approvals from the U.S. Health Care Financing Administration. In coming weeks, the Legislature and Governor will work to iron out the differences between the resolutions passed last week and the Governor's budget proposal in time for the beginning of the new fiscal year on April 1.
Medicaid: Both the Assembly and the Senate would allocate $5 million in State funds to increase Medicaid reimbursement rates for physicians. Both Houses also expand eligibility for the Prenatal Care Assistance Program (PCAP) from families with an income of 185% of the Federal poverty level (FPL) to 250% of the FPL and provide enhanced reimbursement rates for clinics that primarily serve the developmentally disabled. In addition, the Assembly 1) allots $1.5 million in State funds to alter the administrative and fiscal reimbursement rate cap applicable to former health-related facilities; 2) provides $10 million in State funds to help freestanding clinics make the transition to a mandatory Medicaid managed care environment; 3) expands eligibility for family planning services to 200% of the FPL; and 4) requires the Commissioner of Health to provide an annual report to the Legislature detailing Medicaid provider billing audits.
Medicaid Managed Care: The Assembly rejects the Governor's permanent extension of the Medicaid managed care statute when it expires on June 30, and instead proposes an expiration date of June 30, 2003, as proposed by GNYHA. The Assembly would also extend the pharmacy "carve-out" for the duration of the program. The Senate proposes extending the program through March 31, 2004, and imposes new reporting requirements on the Department of Health. The Senate resolution is silent on the pharmacy "carve-out."
The Uninsured: Both the Assembly and the Senate assume significant expansions of the State's Elderly Pharmaceutical Insurance Coverage (EPIC) program. In addition, the Assembly 1) provides $1.0 million to allow immigrants legally residing in New York State to gain Family Health Plus coverage for outpatient services and 2) proposes $3.2 million to allow certain disabled workers to "buy in" to the Medicaid program under the Federal Ticket to Work and Work Incentives Improvement Act of 1999. GNYHA supports these proposals.
Long Term Care Insurance: The Senate proposes expanding the existing Long Term Care Insurance Tax Credit and provides $500,000 to promote the sale and marketing of long term care insurance policies. GNYHA supports these proposals.
Mental Health: Both the Assembly and the Senate restore the Governor's proposed cuts in shared staffing positions. In addition, the Assembly restores all of the 18 mental health residency positions the Governor proposed eliminating, while the Senate restores 9. GNYHA strongly supports the Assembly provision (see related storyHospital Community Service Plan Implementation Report Due).
Biomedical Research: The Assembly proposes $25 million for biomedical research, while the Senate proposes $7.9 million. GNYHA strongly supports the Assembly provision.
AIDS and HIV: The Assembly rejects the Governor's proposed $4.2 million cut in funding for AIDS programs, and provides an additional $9 million.
Health Care Quality: The Senate proposes $7.5 million to fund initiatives to improve public disclosure of health care provider performance measures, strengthen reporting requirements, and implement programs to reduce the incidence of medical errors.
Provider Assessments: The Assembly accepts the Governor's proposed amnesty for certain providers who are delinquent in paying assessments. The Senate modifies the Governor's proposal by extending the sunset date by one year, to December 31, 2001.