Prohibits cost recovery of medical assistance paid to retirees and former employees of the New York city off-track betting corporation, and their dependents

1 Co-sponsor

• Joseph P. Addabbo Jr.

BILL NUMBER:S5814A

Title of bill

An act to amend chapter 56 of the laws of 2013, providing medical assistance to certain retirees of the New York city off-track betting corporation, in relation to prohibiting cost recovery of such assistance; and to expand the provision of such medical assistance

Purpose

To make technical amendments to the OTB Retiree Health program

Summary of provisions

Chapter 56 of the Laws of 2013, Part P, is amended by adding in pertinent part, "provided, however, that none of the cost recovery provisions of section three hundred sixty-nine of the social services law, with the exception of subdivision two, paragraph (a), subparagraph (i) of such section, shall apply to the retirees of the New York city off-track betting corporation...".

Justification

This bill provides a critical amendment to Chapter 56 of the laws of 2013, which protects the former New York City Off Track Betting Corporation (NYC OTB) public employees by providing them with health insurance and supplemental benefits through the Department of Health and New York State Medicaid. This technical amendment would exclude this population from provisions of the social services law, which allow the State to seek cost recovery from a Medicaid recipient's estate

Prior to the closure of the NYC OTB on December 7, 2010, retirees of the corporation received health insurance and supplements through their employer and employee organization, respectively. Employees entered NYC OTB service with the assurance that, if they retired from NYC OTB, they and their dependants would continue to receive these benefits. It was indeed a significant condition of their employment.

The State has since provided health benefits to these retirees through Chapter 56 of the laws of 2013, part P, and its appropriation The program, which provides these retirees, vested members and their dependents with Medicaid benefits without the financial eligibility requirements traditionally associated with Medicaid, was intended to provide the retirees and their families with comprehensive health benefits as soon as possible. Providing an existing program's benefits was deemed more efficient than creating a new program for this small, unique population. Unfortunately, the existing Medicaid program includes cost recovery provisions that technically may be applied to these retirees, if not specifically made excludable.

These workers have not become wards of the State through any fault of their own. Many have worked 25 years or more, earning their retirement benefits through hard work and dedication. Applying the cost recovery provisions associated with traditional Medicaid in any situation other than if the recipient were ineligible for the benefit would be grossly unfair.

Legislative history

None.

Fiscal implications

None.

Effective date

This act shall take effect on the same date and in the same manner as chapter 56 of the laws of 2013, relating to providing medical assistance to certain retirees of the New York city off-track betting corporation (Part P), takes effect.