Limits the annual growth in medical assistance expenditures to 1% for the period April 1, 2013 through December 31, 2013

BILL NUMBER:S4314

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 administrative cap on such program

Purpose of the bill

This bill will accelerate the state takeover of the growth in the local share of Medicaid

Summary of provisions

Section 1 of the bill amends part C of chapter 58 of the laws of 2005 by requiring the state to accelerate the assumption of the growth in the local share of Medicaid during the period April 1, 2013 through December 31, 2013.

Justification

In 2005, the state capped the growth of local Medicaid expenditures at 3% per year. The cap has provided local social sex-vices districts with stability in their budgeting of administrating Medicaid.

As costs have increased, however, the state has introduced mandate relief initiatives to relieve counties of additional costs. In the FY 2012-2013 budget, the Legislature enacted a package that would take over the growth in the local share of Medicaid through a phase-out of the costs over the course of three years. This legislation will accelerate that assumption of costs by requiring the state to take over the cost of an increased percentage growth rate for the period April 1, 2013 through December 31,2013, resulting in a total assumption effective January 1, 2014.

The legislation will provide much needed relief to property taxpayers and mandate relief to local municipalities.

Prior legislative history

S.5882 of 2011/2012

Fiscal implications for state

It is estimated that counties would save an additional $93 million in calendar year 2013.

Effective date

This act shall take effect on the same date and in the same manner as section 1 of part F of chapter 56 of the laws of 2012 takes effect.