Enacts into law components of legislation necessary to implement provisions of law relating to the emergency appropriation

Summary of provisions

Part A - Modify coverage requirements in the Elderly Pharmaceutical Insurance Program (EPIC) beginning October 1, 2010, and reform various public health programs beginning April 1, 2010.

This bill would:

* Consolidate several specific cancer programs and authorize the Commis- sioner of Health (Commissioner) to make grants without consulting with the Breast Cancer Detection and Education Program Advisory Council

* Repeal various public health programs, including the Public and Private Umbilical Cord Blood Banking Program, Shaken Baby Syndrome Public Education Campaign, and the Reflex Sympathetic Dystrophy Program.

* Reform various public health program provisions related to the devel- opment of Comprehensive Care Centers for Eating Disorders.

* Modify the Elderly Pharmaceutical Insurance Program (EPIC) to require prescribers to file an intent to appeal a Part D denial of drugs while allowing for up to a 90 day emergency supply during the appeals process.

Enactment of this bill is necessary to generate $15.0 million in savings in the 2010-11 State Fiscal Year: $12.7 million in savings from EPIC, and $2.3 million in savings from various other public health programs.

Part B - Implement cost savings proposals for Medicaid and the Health Care Reform Act (HCRA).

This bill would:

* Discontinue the remaining portion of the Calendar Year 2010 trend factor adjustment - projected at 1.7 percent - for hospitals, nursing homes (excluding pediatric nursing homes, home and personal care provid- ers.) (2010-11 Savings: $99M).

* Modify the distribution of indigent care reimbursement to hospitals. (2010-11 Savings: $72M).

* Eliminate funding for innovations in Graduate Medical Education. (2010-11 Savings: $37M).

* Limit reimbursement for preventable readmissions to hospitals, nursing home rate appeals and drug costs and payments to nursing homes to hold beds vacant. (2010-11 Savings: $36M).

* Change pharmaceutical reimbursement to improve rebate collections. (2010-11 Savings: $2M).

* Allow for a contractor to manage transportation services; establishes prior approval for physical and occupational therapy services; requires all pre-need funeral accounts to be irrevocable for the purposes of establishing Medicaid eligibility, consolidates poison control centers; reduces HCRA funding for anti-tobacco research at Roswell Park Cancer Institute; and discontinues HCRA funding for the infertility grant program, disease management demonstration and long term care education and outreach. (2010-11 Savings: $24M).

Enactment of this bill is necessary to achieve $270 million in savings in the 2010-11 State Fiscal Year.

Part C - Provide the annual authorization for the CHIPS and Marchiselli programs.

This bill would authorize $363,097,000 of funding for the Consolidated Local Street and Highway Improvement Program (CHIPS) and $39,700,000 for the Marchiselli program for state fiscal year 2010-11. Spending is from bond proceeds and is maintained at 2009-10 levels. This bill would also increase the statutory cap for bonds issued by the Thruway Authority in order to support the newly authorized funding for these programs.

This action is necessary to provide reimbursement to local governments for capital project expenditures on local highways and bridges, includ- ing Federal-aid projects.

Part D - Reduce the authorized reimbursement rate paid to governmental entities that voluntarily enforce the provisions of the Navigation Law.

This bill would reduce the authorized reimbursement rate paid to govern- mental entities that voluntarily enforce the provisions of the Naviga- tion Law from 75 percent to 50 percent.

Reducing the reimbursement rate for enforcing provisions of the Naviga- tion Law will generate $1.2 million annual savings.

Part E - Clarify the State's authority to withhold payments to districts for past due youth facility reimbursement.

This bill would clarify the State's authority to withhold payments to local social services districts for past due youth facility reimburse- ment, and authorize the transfer of up to $27 million from the Youth Facility Per Diem account to the General Fund.

The transfer from the Youth Facility Per Diem account to the General Fund will generate $27 million in revenue.

Part F - Authorize a transfer of monies into Fund 053, School Tax Relief (STAR)

This bill would allow the State Comptroller (OSC) to make deposits into the School Tax Relief Fund for State fiscal year 2010-11. This deposit

authorization will allow OSC to make the necessary June 15th STAR payment to New York City.

Statement in support

Enactment of these provisions will maintain continuity in State services and financial management in the absence of an enacted 2010-11 Budget.

Budgetary implications

Enactment of this bill is necessary to ensure the fiscal stability of the State.

Effective date

Immediately.