Increases the enhanced residential care benefits for the aged, and blind and disabled persons

19 Co-sponsors

• Betty Little
• Kemp Hannon
• Terrence P. Murphy
• George Amedore
• Thomas Croci
• John A. DeFrancisco
• Hugh T. Farley
• Rich Funke
• Patrick M. Gallivan
• Joseph A. Griffo
• Kenneth P. LaValle
• Carl L. Marcellino
• Jack M. Martins
• Robert Ortt
• Michael H. Ranzenhofer
• Patty Ritchie
• Joseph E. Robach
• Diane J. Savino
• David J. Valesky

Title of bill

An act to amend the social services law, in relation to increasing the enhanced residential care benefits for aged, blind and disabled persons

Purpose

To increase the Social Security Income Rate adult care facilities receive in order to ensure that these services continue to be available to low income SSI recipients

Summary of provisions

Section 1 of the bill amends Part 0 of Chapter 54 of the laws of 2016 to increase the rate of SSI payment for eligible individuals receiving enhanced residential care by $2.50 per day beginning January 1, 2017, another $2.50 a day beginning April 1, 2017 and an additional $2.50 per day beginning April 1, 2018. For a total increase of $7.50 in two years

Section 2 of the bill provides an effective date.

Justification

Many low income elderly and disabled individuals in New York live in adult care facilities which are paid through SSI. In the last twenty years adult care facilities have had one rate increase in 2007 which brought them to the current $40.00 per day. There has been no State COLA during this period and costs to these facilities of providing housing, care and services have continued to go up. For example, since 2007 health insurance costs have gone up 42% and worker's compensation costs are up 13%, not to mention real estate taxes.

The stagnant rate, coupled with rising costs has resulted in closures of SSI facilities. For every displaced SSI recipient who ends up in a nursing home, the daily cost of housing and care raises from $40/day to $150-$250/day in Medicaid costs depending upon the area of the state. Over the past 5 years, 20 facilities have closed their doors. In 2014 alone 7 facilities closed. These closures are hard on individuals who lose their homes and owners who lose their businesses, but they are also costly for the state. For example, in December 2014 an adult care facility closed in Onondaga County and 8 of the SSI residents moved into higher levels of care, resulting in the state paying approximately $325,000 more for these 8 low income seniors. One leading upstate provider recently closed three facilities over an 8 month period resulting in 88 low income SSI recipients having to move to other settings.

In 2017 the minimum wage will increase, costs to these facilities will continue to rise and more will be forced to close. By providing incremental increases in the daily rate to these facilities over a two year period, this legislation will help keep adult care facilities operational, low income seniors in the community, and avoid higher Medicaid costs which result when residents are displaced.

Legislative history

New bill.

Fiscal implications

Savings to the state as low income elderly and disabled individuals are maintained in lower cost care settings which do not rely on Medicaid funding.

Effective date

Retroactive to April 1, 2016 with enactment of the budget, provided however that the first increase does not apply until January 1, 2017.