Relates to medicaid expenditure reporting

Summary of provisions

Section one of this bill adds new Article 3-A, entitled "Medicaid Expenditure Reporting," to the State Finance Law.

New State Finance Law section 30 defines the terms used in new Article 3-A.

New State Finance Law section 31 requires that the Governor submit to the Legislature within 30 days of the budget submission a Medicaid Expenditure Report containing the following:

A. Current and Prior Years: (a) an enumeration of all Medicaid expenditures; (b) the provisions of law authorizing the expenditures, their effective dates, and if applicable, the dates on which they expire or are reduced; (c) estimates prepared by the appropriate State agency, in conjunction with the Director of the Budget, of the cost of such expenditures for the (i) current fiscal year and (ii) the five preceding fiscal years; (d) any recommendations to the governor regarding continuing, modifying, or repealing such Medicaid expenditures, and such other information regarding expenditures as the governor deems appropriate; (e) for proposed Medicaid budget changes recommended by the Governor, an analysis of the number and types of persons and entities expected to benefit from such expenditures, an estimate of the costs of such expenditures for the coming fiscal year, and an explanation of the reasons for the proposals; (f) any comment, if any, on the effectiveness and efficiency of other expenditures.

B. Three Year Projection: This part of the report is to include a three- year financial projection which shall show anticipated Medicaid expenditures for the ensuing fiscal year and for the two years following the ensuing fiscal year by fund type and revenue source. The projection must also include an explanation of any proposed changes to the financial plans, and include explanations of the economic, statutory and other assumptions used to estimate the disbursements, expenditures, receipts and revenues which are presented.

New section 32 provides that all information furnished in the Report shall be subject to the applicable provisions of law regarding confidentiality.

New section 33 requires the Governor to submit a Medicaid expenditure budget bill. The bill is to consist of three sections: (a) The first section contains all appropriations and reappropriations required for Medicaid expenditures during the next succeeding fiscal year. (b) The

second section contains appropriations and reappropriations required for Medicaid expenditures during the second succeeding fiscal year. These appropriations have as an effective date the first day of the second succeeding fiscal year, and are otherwise treated as if they had been passed by the legislature on the first day of that fiscal year. (c) The third section contains prospective appropriations and prospective reappropriations required for Medicaid during the third succeeding fiscal year. Because the State constitution limits the life of an appropriation to two years, these appropriations will have no effective date, but will provide an accurate listing of appropriations that will be required in the third fiscal year. The budget bill will also include, or the Governor may submit an additional bill which includes, statutory changes required to implement appropriations during each of the fiscal years covered in the Medicaid expenditure appropriation bill.

Section two of the bill provides that this act shall take effect immediately.

Existing law

Currently, the Governor is not required to either furnish a report, as outlined in this bill, concerning Medicaid expenditures or submit a separate budget bill for Medicaid expenditures.

Justification

The intent of this bill is to provide more information to the Legislature, the Governor, and the public concerning one of New York's major expenditure areas, Medicaid. Too often judgments are based on what may or may not happen within the 12-month cycle of the State fiscal year. By requiring the provision of information over a longer time-span, and three-year budgeting, policy-makers will have the opportunity to make long-range decisions.

Legislative history

2011-12: S.1077 - Referred to Finance 2009-10: S.1093 - Referred to Finance 2007-8: S.206 - Passed Senate both years 2005-6: S.3497 - Passed Senate both years

Fiscal implications

Although no expenditure of state monies would be incurred, this bill would provide for an improved accounting of state Medicaid dollars, thereby permitting the Legislature and Public with the ability to attack waste fraud and unnecessary expenditures.

Effective date

This act shall take effect immediately.