Amends chapter 58 of the laws of 2005 in relation to calculating social services district medical assistance expenditure amounts

1 Co-sponsor

• Patty Ritchie

BILL NUMBER:S1955

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 calculating social services district medical assistance expenditure amounts

Purpose of bill

To freeze the municipal share of local Medicaid costs at the current level.

Summary of specific provisions

Section 1 caps the municipal share of Medicaid cost at the 2011 trend factor of 18.75% of the 2005 base rate.

Section 2 contains the effective date.

Justification

By far, New York's largest unfunded mandate on county governments each year is Medicaid spending. The Municipal share of Medicaid spending for the 2010-2011 fiscal year was 7.5 billion. In order to provide counties financial stability the state imposed a cap on county Medicaid expenditures of 3.5% for 2006, 3.25% for 2007, and 3% for the 2008 and every year thereafter. Although this was an improvement over past practice, these mandated costs are still increasing at a rate that is a burden to the local property taxpayer. Although this will result in a shift in costs to the state, the state is in a much better position to deal directly with this issue since it has direct authority over the program and can implement the needed reforms to continue reconstructing the Medicaid Program. By the state taking over the future growth increases, this will provide significant and needed mandate relief to county governments and the City of New York.

Prior legislative history

S.4296, 2014

Fiscal implications

This bill would save municipalities $165 million annually. The state would assume the local cost of future Medicaid growth, providing an incentive to implement cost saving reforms.

Effective date

This bill shall take effect January 1, 2015, provided, however, if this act shall become law after such date it shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2015.