Relates to the living wage adjustment of personal care services workers

BILL NUMBER:S4776

Title of bill

An act to amend the social services law and chapter 1 of the laws of 2002, amending the public health law, the social services law and the tax law relating to the Health Care Reform Act of 2000, in relation to the living wage adjustment for personal care services workers

Purpose or general idea of the bill

To adjust Medicaid rates to personal care service providers to enable them to meet the cost of paying personal care workers a statutorily-mandated living wage.

Summary of specific provisions

Section one amends the social services law by adding a new section 367-x which directs the Commissioner of Health to adjust Medicaid rates for personal care service providers located in areas where a local government has enacted a local living wage law. The adjustment to the rates shall be based on the difference between the old rate and the rate that is necessary to comply with the living wage law. Adjustments to rates of payment shall be subject to subsequent adjustment in order to maintain compliance with a local living wage law. Any additional money from the adjusted rates must be used only for paying a statutorily mandated living wage to non-supervisory personal care services workers. Each personal care services provider shall submit a written certification attesting that such funds will be used only for payment to non-supervisory personal care services workers. The commissioner of health is authorized to audit each provider to ensure compliance and shall recoup any funds not used for such designated purpose. Adjustments, under this section, shall be made pursuant to a memorandum of understanding entered into between the state of New York and the local social services law.

Section two amends section 4 of part A of chapter 1 of the laws of 2002 which exempts increases in Medicaid costs due to a local living wage bill from the Medicaid savings targets enacted in 1997, by adding the new section 367-x of the social services district.

Section three provides the effective date.

Justification

Many local governments in New York State are passing laws which require that companies that contract with the locality pay their workers a specified living wage. In most counties, this would include personal care service providers. When personal care services are provided to Medicaid recipients, the providers are reimbursed through the Medicaid system.

This bill requires personal care service providers to be reimbursed immediately for the increased costs due to statutorily-mandated living wages.

Prior legislative history

A.756, 2009 reported and referred to ways and means. 2010 referred to health. Same as S.4986 (Foley), 2009 and 2010 referred to health A.1223, 2008 and 2007 reported and referred to ways and means. Same as S.3760 (Trunzo) A.8695, 2005 and 2006 reported and referred to ways and means.

Fiscal implications

To be determined.

Effective date

One hundred and twenty days after it has become law.