Relates to reimbursement by Medicaid for services required by state law

1 Co-sponsor

• Joseph Giglio

2 Multi-sponsors

• Marcus Molinaro
• Dierdre Scozzafava

BILL NUMBER:A10348

Title of bill

An act to amend the social services law, in relation to reimbursement for medicaid services required by state law

Purpose

This bill would require that the state will pay one hundred percent of the non-federal share of costs for Medicaid services that are not required to be provided under federal law.

Summary of provisions

Section 1: Adds a new paragraph (z) to subdivi- sion 1 of section 368-a of the Social Services Law to provide that notwithstanding any inconsistent law to the contrary, the Department of Health shall pay one hundred percent of the non-federal share for medical services (Medicaid) required by state law but not required to be provided by Federal Law.

Section 2: States the effective date.

Justification

New York is among a small minority of states that pass on its share of Medicaid costs not paid by the federal government to county governments. Escalating Medicaid costs are placing a great burden on the financial resources of all counties in New York State and causing many to raise taxes and cut other services.

The primary funding mechanisms for county governments, sales taxes and real property taxes, were never designed or expected to fund both local services and a federal and state mandated medical services program.

At the Medicaid program has grown, with the active. assistance of the state in mandating almost every optional service that may be available under the Federal Medicaid program, real property values and economic activity have remained stagnant throughout the state, and particularly throughout the upstate region.

Westchester's property owners face the highest real property tax rates in the country, with tax rates going higher every year. At the same time, wages and job opportunities continue to disappear.

The burden of federally mandated services is difficult enough for coun- ties to bear, and it is important to note that New York is one of only a handful of states that requires local government pay any portion of Medicaid costs.

If the state wishes to provide an optional service, it is time for the state to pay for that service.

Prior legislative history

New bill.

Fiscal implications

Unclear. The State will now be forced to act in a responsible manner with respect to escalating Medicaid costs.

Effective date

This act shall take effect immediately.