Relates to the Medicaid reimbursement rate for counties in calendar year 2012 and each succeeding calendar year

BILL NUMBER:S5882

Title of bill

An act to amend chapter 58 of the laws of 2005, 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 the Medicaid reimbursement growth rate

Purpose of the bill

This bill will reduce the current cap on local county share of Medicaid expenditure growth from three percent to two percent or 120 percent of the consumer price index whichever is less.

Summary of provisions

Section 1 of the bill amends part C of chapter 58 of the laws of 2005 by extending the current provisions until December 31, 2011 and starting in January 2012 changing the Medicaid expenditure local share cap at two percent or 2 percent of the consumer price index, whichever is less.

Justification

In 2005, the State capped the Growth of local Medicaid expenditures at 3% per year; relieving local social services districts of the rising costs. This cap provides local social services districts with stability in their budgeting of administrating Medicaid. The proposed property tax cap legislation would cap local tax levies at 2% per year and would require local municipalities to keep costs below that cap. This legislation would assist local county government in controlling Medicaid costs by aligning the tax cap and the local Medicaid Cap at 2% per year or an inflation factor. It would provide needed relief to property taxpayers and mandate relief to local municipalities.

Prior legislative history

New Bill.

Fiscal implications for state

This proposal could save counties an additional $65 million on top of the current cap.

Effective date

This act shall take effect immediately.