Relates to a five year elimination of the local share for medicaid

2 Co-sponsors

• Hugh T. Farley
• Thomas F. O'Mara

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 a five year elimination of the local share for medicaid

Purpose or general idea of bill

This bill would amend chapter 59 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 a five year elimination of the local share for Medicaid.

Summary of specific provisions

Section 1 amends 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 seven new subdivisions (c2) thru (c8) are added. The subsections reduce the medical assistance expenditure amounts for each social services district and implement an incremental five year plan in which the medical expenditure reduction amounts for each social services district is increased 20% per year, from 20% in 2018 to 100% in 2024. This section also provides that the savings from this reduction shall be used for property tax levy reductions or property tax rebates and the minimum amount of annual property tax levy reductions resulting from the savings shall be determined by the state comptroller and transmitted to each local government.

Section 2 provides the effective date.

Justification

In 2011 a series of resolutions and statements from a cross section of municipal governments in New York State, along with the New York State Association of Counties, brought forward the issue of New York's Medicaid spending. They found that New York's Medicaid program spends in excess of $52 billion dollars a year, almost 20% of state spending, and the local share of about $7.3 billion would grow by 37% over the next five years. This figure is unsustainable to local governments and they are desperate in need of relief. Increased costs have precipitated a situation in New York where our population of 19.4 million exceeds the combined Medicaid expenditures of California with a population of 37.1 million and Texas with a population of 25 million. Increased costs illustrate the need for the state to have a greater role in managing Medicaid and reducing this mandates burden on localities thus it is essential that this bill pass.

Prior legislative history

2013-2014: S.1588A

Fiscal implications

None.

Effective date

This act shall take effect immediately.