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Speaker Carl E. Heastie
 
     
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A07473 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)




 
BILL NUMBER: A7473
 
SPONSOR: Simon

 
TITLE OF BILL:
 
An act to amend the public health law, in relation to payments for home
and community based long term care services
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
Use contractual mechanisms to assure that Medicaid managed care plans
pass through in whole the money provided by the state to finance the
incremental advancements in minimum wage.
 
 
SUMMARY OF SPECIFIC PROVISIONS:
 
The bill would add a new section 3614-f to the Public Health Law to
require Medicaid managed care plans to amend contracts with home care
providers (including consumer-directed personal assistance) 90 days
prior to the effective date of minimum wage mandates, and prohibit the
use of such funds to offset other debts owed to providers.
 
 
JUSTIFICATION:
 
The 2018-19 enacted budget included $703 million to support the direct-
care cost of minimum wage increases for Medicaid funded home care
services. The state adds the minimum wage payments onto the capitated
rates paid to managed care plans that are expected to pass the payment
on to the home care providers with whom they contract.
 
The direct care workers are employed by home care providers under
contract with the managed care plans, and so the statutory wage obli-
gation rests with the home care providers - irrespective of a plan's
diligence in distributing the funds as instructed by the Department of
Health. Providers complain of being abused by plans who claim their
payments are sufficient at current levels and should not have to
increase.

Ensuring that all the funds appropriated by the State to support the
direct care cost of minimum wage are distributed in a timely manner and
in their entirety allows home care workers to receive their deserved
increase in wages, while also protecting the viability of the home care
industry.
 
 
PRIOR LEGISLATIVE HISTORY:
 
2021-2022: A.161 Gottfried - referred to Health
 
2019-2020: A.2788-A - reported to Ways and Means Committee
 
2017-2018: A.11200 - referred to Health committee
 
 
FISCAL IMPLICATIONS:
 
none to the state
 
 
EFFECTIVE DATE:
Immediately
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