BILL NUMBER: S.5889B (Gallivan) / A.8644 (Paulin)
SPONSOR: GALLIVAN
TITLE OF BILL:
An act to amend chapter 58 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, in relation to calculating social services district
medical assistance expenditure amounts
PURPOSE:
This bill provides for an immediate freeze of local contributions to the cost of Medicaid followed by the gradual state assumption of all non- federal Medicaid costs over an 8-year period.
SUMMARY OF PROVISIONS:
Sections 1 and 2 of Part C of Chapter 58 of the Laws of 2005 are amended to provide a phased takeover of the local share of Medicaid costs.
JUSTIFICATION:
Since the enactment of the Medicaid program in 1965, local social service districts (counties and the City of New York) have been required to share in both the cost and administrative operation of the program. Over the years, the cost of the program has grown exponentially while responsibility for program design and administration has been gradually shifted to the state. By 2016, all administrative responsibility for Medicaid will be assumed by the state.
Despite this shift of responsibility, county and New York City governments continue to be required to contribute a significant share of the total program cost. Currently, counties and New York City pay approximately $7.3 billion per year and under existing law, these costs will continue to increase by 3% each year. With the recently enacted 2% cap on property taxes, counties simply cannot continue to meet this state mandate without slashing other essential local services such as senior services, veteran's services, law enforcement, parks, and road maintenance.
This legislation provides for the gradual assumption of the current local shares starting with an immediate freeze on local contributions effective January 1, 2012. On October 1, 2012, local contributions will be reduced by 5%. Additional reductions will be made in the subsequent years ending the with the full assumption of local Medicaid costs in 2019.
The timing of this legislation is designed to take advantage of changes that may be required by the federal Affordable Care Act as well as state actions being implemented or planned by the Governor's Medicaid Redesign Team. Given the phased nature of the takeover, there is ample time for the Governor and Legislature to develop and consider changes to the program that may be required to maintain program compliance with federal law as well as affordability to the state.
LEGISLATIVE HISTORY:
New Bill.
EFFECTIVE DATE:
This act shall take effect immediately.
Sponsors by County of S.5889B/A.8644 as of 1/19/12
Senate
GALLIVAN, MCDONALD, RANZENHOFER, AVELLA, BONACIC, CARLUCCI, FARLEY, GOLDEN, GRIFFO, GRISANTI, LARKIN, LIBOUS, MAZIARZ, NOZZOLIO, O'MARA, OPPENHEIMER, RITCHIE, SEWARD, VALESKY, YOUNG
Assembly
Co-Prime Sponsors: Paulin, Sweeney, Lupardo, Lifton, Magnarelli, Schimminger, Abinanti, Galef, Latimer, Lavine, Roberts, Thiele, Spano, Gunther, Jaffee, Brindisi, Molinaro, Giglio, Montgomery
Multi Sponsors: Magee, Boyle, Johns, Tedisco, Palmesano, Burling, Ceretto, Kolb, Smardz, Tenney, Barclay, McDonough, Hawley, Castelli, Corwin, Montessano, Russell, Crouch, Friend, Conte, Losquardo, Duprey, Graf, Rabbitt, Sayward, Blankenbush, D. Miller, Katz, Amedore, Goodell, Saladino, Raia