Relates to a five year elimination of the local share for medicaid

BILL NUMBER:S5740A

Title of bill

An act to amend chapter 58 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, in relation to a five year elimination of the local share for medicaid

Purpose or general idea of bill

This bill would amend chapter 59 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof in relation to a five year elimination of the local share for Medicaid.

Summary of specific provisions

Section 1. Paragraph (iv) of subdivision c of section 1 of part C of chapter 58 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons, is amended and seven new subdivisions (c1) thru (c7) are added.

Notwithstanding the Provisions of section 368a of the social services law, or any other provision of law, commencing with the period January 1, 2014 through December 31, 2014, calendar year social services district medical assistance expenditure amounts for each social services district shall be reduced by 20% from the 2013 expenditures. No less than 75% of the savings from this medical assistance reduction shall be used for property tax levy reductions, or property tax rebates, effective in the local governments 2015 fiscal year.

The five year plan is implemented in increments over the course of five years where the medical expenditure reduction amounts for each social services district is increased 20% a year totaling up to 100% from 20% in 2014 to 100% in 2019.

The minimum amount of annual property tax reductions resulting from savings achieved as defined in subdivisions (e1) thru (c5) shall be determined by the state comptroller and transmitted to each local government one hundred eighty days in advance of the start of the fiscal year for which the property tax reduction is to be effective.

Justification

In 2011 a series of resolutions and statements from a cross section of Western New York local governments along with the New York State Association of Counties brought forward the issue that New York's Medicaid program spends in excess of $52 billion dollars a year, almost 20% of state spending, and that the local share of about 7.3 billion will grow over the next five years by 37%. This figure is unsustainable to local governments and they are desperate in need of relief. Increased costs have precipitated a situation in New York where our population of

19.4 million exceeds the combined Medicaid expenditures of California with a population of 37.1 million and Texas with a population of 25 million. In Erie County for example, Medicaid payments total approximately 20% of the entire Erie County Budget. Increased costs like this illustrate the need for the state to have a greater role in managing Medicaid and reducing this mandates burden on localities.

Prior legislative history

New Bill.

Fiscal implications

None.

Effective date

This act shall take effect immediately.