Relates to income eligibility for certain medical assistance programs; repealer

1 Co-sponsor

• Catharine Young

BILL NUMBER:S5402

Title of bill

An act to amend the social services law, in relation to income eligibility; to amend chapter 436 of the laws of 1997, constituting the welfare reform act of 1997, in relation to persons who are subject to the photograph identification requirements established by the commissioner of health for the medical assistance program; and to repeal certain provisions of the social services law, relating to income eligibility of certain persons

Purpose

To enhance cost savings and reduce Medicaid fraud by reinstating the use of a resource asset test for Medicaid eligibility. In addition, it reinstates the initial personal interview upon the filing of an application for Medicaid.

Summary of provisions

Amends the social services law to reinstate the resource test for Medicaid eligibility and make changes to conform language to the provisions associated with such reinstatement. Also amends the social services law to reinstate the requirements of a personal interview when possible when applying for Medicaid.

Existing law

Existing law allows individuals to qualify for Medicaid without reporting their resources. They only need to report income. In addition, there are no requirements that a personal interview be conducted by social services during the application process.

Justification

The 2009 State Budget included language that repealed the resource asset test for Medicaid eligibility. This test was part of a social services district's procedures to ensure that people that received Medicaid truly qualified for the service. It prevented people from hiding their resources including houses, cars, and businesses. There have been instances reported in the media in which individuals had million dollar homes, luxury automobiles and successful businesses, but because they were self employed, they were able to hide their income and qualify for Medicaid, providing free health insurance to their entire families. The Daily News reported a sweep by the Manhattan District Attorney of nineteen Medicaid cheats - including some with luxury cars and million-dollar homes that collected Medicaid benefits meant for the poor. The list included a Hamptons homeowner who claimed to get by on $5,000 a year, an artist who cried poverty despite owning two million dollar Manhattan apartments.

Removing this safeguard was a poor policy-making decision at a time when this State needs to be prudent with taxpayers' money. The Medicaid system was designed as a safety net for low-income people who could not afford health coverage, not for people who have the means but simply do not want to pay for it. This legislation will put the provisions of screening for Medicaid eligibility back into place exactly as they existed prior to the 2009

legislation so the system can provide the benefits for those most in need.

Legislative history

New Bill.

Fiscal implications

Cost savings to the State.

Effective date

This law shall take effect immediately.