What's happening
This bill creates the "New York's Own combat veterans healthcare choice program," providing state-funded healthcare accounts and tax benefits for eligible combat veterans unable to access timely federal care.
Why it matters
Addresses Gaps in Federal VA Care. The program specifically targets combat veterans who cannot access timely or adequate healthcare through the Veterans Affairs system within 90 days of application—offering a state safety net when federal systems fall short.
Empowers Veterans with Choice and Control. By creating individual, portable healthcare accounts, eligible veterans can seek care from any licensed provider, rather than being restricted to VA facilities—potentially reducing wait times and improving access to specialized or local care.
Financial and Tax Incentives for Veterans. The bill not only provides up to $5,000 annually in state contributions for three years, but also offers state income tax deductions for both state and personal contributions to the accounts—helping offset out-of-pocket healthcare costs and incentivizing saving for medical needs.
Strict Oversight and Eligibility. Benefits are limited to New York organized militia members wounded or disabled during specific combat operations (Operation Enduring Freedom/Iraqi Freedom), with state verification of eligibility, required medical examinations, and clear administrative rules to prevent misuse and ensure funds are used for qualified healthcare expenses.
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Who cares
Eligible New York organized militia combat veterans
Those unable to obtain timely or adequate VA care after 90 days could receive up to $5,000 annually for up to three years in healthcare accounts, subject to qualifying service and injury requirements and adjutant general approval.
State comptroller and Division of Military and Naval Affairs
They would implement the account program, while the adjutant general would review benefit claims and the division would maintain a confidential, voluntary veterans registry.
Healthcare account owners
They could deduct eligible contributions from state taxable income up to $5,000 individually or $10,000 for married joint filers, and account funds would be protected from money judgments.
Local governments and nonprofit organizations
Local governments and 501(c)(3) organizations could open accounts to fund qualified healthcare expenses without identifying beneficiaries until disbursement.
Headline styles
Tax-Free Health Accounts for Veterans
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Print number 8298b
- Amend and recommit to ways and means
- Referred to ways and means
- Print number 8298a
- Amend and recommit to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax-Free Veteran Health Accounts
In Senate Committee · Veterans, Homeland Security And Military Affairs · Sponsor Terrence P. Murphy
Full text
10 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8298--B
2017-2018 Regular Sessions
IN ASSEMBLY
June 6, 2017
Introduced by M. of A. HUNTER -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the military law, the state finance law, the civil practice law and rules, the tax law and the executive law, in relation to establishing the "New York's Own combat veterans healthcare choice program act"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "New York's Own combat veterans healthcare choice program act".
§ 2. The military law is amended by adding a new section 216-a to read as follows:
§ 216-a. Medical care when injured or disabled in combat zone. 1. Any New York resident member of the organized militia who shall, when on active duty in a combat zone, designated by the president of the United States during Operation Enduring Freedom or Operation Iraqi Freedom, for three hundred sixty days or more on orders issued by the governor, the commanding general of the New York army national guard, the commanding officer of the New York air national guard or the commanding officer of the naval militia, receive any wound or injury, or incur or contract any disability or disease, by reason of such duty, or who shall without fault or neglect on his or her part be wounded or disabled while performing any lawfully ordered duty while in such a combat zone, which shall incapacitate him or her, and who is unable to receive timely or adequate healthcare services from the federal Department of Veterans Affairs within ninety days of making application for such services shall receive the payment into such service member's New York combat veterans
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02315-11-8
A. 8298--B 2
healthcare choice account established pursuant to article fourteen of this chapter for care and medical treatment if authority therefor is granted by the adjutant general, expenses for such care and medical attendance as are necessary for the appropriate treatment of the wound, injury, disease or disability may be paid from the New York combat veterans healthcare choice account as provided in article fourteen of this chapter until treatment is provided by the federal Veterans Administration, or the incapacity resulting from such wound, injury, disease or disability cannot be materially improved by further care or treatment. The determination of whether such injury or disease was incurred while performing such lawfully ordered active duty in a combat zone, designated by the president of the United States during Operation Enduring Freedom or Operation Iraqi Freedom, shall be in accordance with this section and such regulations as may be prescribed by the adjutant general.
2. If care for such a service member is approved by the adjutant general and the service member shall have created a New York combat veterans healthcare choice account in accordance with article fourteen of this chapter, the state shall make a payment of five thousand dollars into such service member's combat veterans healthcare choice account. Such payment shall not exceed five thousand dollars in any calendar year and shall be discontinued upon the service member receiving care from the federal Department of Veterans Affairs for the injuries or disabilities sustained while in qualified state service.
3. None of the benefits provided by subdivision one of this section shall be paid or allowed unless a claim therefor has been presented to the adjutant general within three years after the date when such wound, injury, disease or disability was incurred, or from the date of discovery of such wound, injury, disease or disability. None of the benefits provided by subdivision one of this section shall be paid or allowed by the state for any period during which such member of the organized militia is entitled to receive the same as a charge against federal funds.
4. a. Where a claim is made under this section the adjutant general will make a determination as to whether valid application or attempt to schedule an appointment to file an application for care was made to the federal Veterans Administration and whether ninety days shall have passed since such application or attempt was made. The adjutant general may cause examinations of the claimant to be made from time to time by a physician, surgeon or dentist designated for the purpose by the adjutant general, and he or she may direct the removal of a claimant to, and his or her treatment in, a hospital designated by the adjutant general, and if the claimant refuses to permit any such examination or if he or she refuses to go to such hospital or to follow the advice given or treatment prescribed for him or her therein, he or she shall thereby forfeit and be barred from all right to any claim or allowance under this section.
b. The adjutant general may appoint a medical examiner or a board of three officers, at least one of whom shall be a medical officer, to inquire into the merits of any claim presented under this section, and to recommend the amount or amounts, if any, to be paid or allowed under this section, or he or she may, in his or her discretion, determine any claim without appointing a medical examiner or board and fix the amount to be paid or allowed under this section. If no medical officer is available, such medical examiner or medical officer on such board may be a civilian physician, surgeon or dentist.
A. 8298--B 3
c. A medical examiner or board appointed under this section shall have the same power to take evidence, administer oaths, issue subpoenas and compel witnesses to attend and testify and to produce books and papers, and to punish their failure to do so as is possessed by military courts.
d. The findings and recommendations of the medical examiner or board shall be submitted to the adjutant general who may return the proceedings to such examiner or board for reconsideration or for taking further testimony and who shall approve or disapprove the claim and fix the amount, if any, to be paid or allowed under this section. The amount so fixed by the adjutant general shall be a charge against and be paid in the manner provided by this section, by the state.
§ 3. The military law is amended by adding a new article 14 to read as follows:
ARTICLE 14
NEW YORK'S OWN COMBAT VETERANS HEALTHCARE CHOICE PROGRAM Section 400. Program established.
401. Purpose.
402. Definitions.
403. Functions of the comptroller and the division.
404. Program requirements; New York combat veterans healthcare
choice account.
405. Program limitations; New York combat veterans healthcare
choice account.
§ 400. Program established. There is hereby established the New York combat veterans healthcare choice program and such program shall be known and may be cited as the "New York's Own combat veterans healthcare choice program".
§ 401. Purpose. The purposes of the New York combat veterans healthcare choice program are to authorize the establishment of veterans healthcare choice accounts and provide guidelines for the maintenance of such accounts to:
1. Enable resident veteran members of the organized militia of this state who were on active duty in a combat zone, designated by the president of the United States during Operation Enduring Freedom or Operation Iraqi Freedom, to obtain healthcare from the provider of their choice, with funds from a New York combat veterans healthcare choice account funded by the state and the service member in accordance with this article, when after ninety days of making application to or attempting to schedule an appointment with the federal Veterans Administration for such care, the service member is unable to secure timely or adequate healthcare services for injuries and disabilities sustained in the line of active duty in such a combat zone, whenever ordered into such combat zone for three hundred sixty days or more by the governor, the commanding general of the New York army national guard, the commanding officer of the New York air national guard or the commanding officer of the naval militia;
2. Provide funding from the state for New York combat veterans healthcare choice accounts in an amount of up to five thousand dollars per calendar year for a period not to exceed three years, when in accordance with this article, a qualified state resident combat veteran is unable to secure healthcare services within ninety days of making application or scheduling an appointment to make such an application for such services from the federal Veterans Administration; and
3. To create a state personal income tax deduction for amounts contributed by qualified resident combat veterans to a New York combat
A. 8298--B 4
veterans healthcare choice account in an amount not to exceed five thousand dollars per calendar year as provided in this article.
§ 402. Definitions. As used in this article, the following terms shall have the following meanings:
1. "Account" or "New York combat veterans healthcare choice account" shall mean an individual savings account established in accordance with the provisions of this article.
2. "Account owner" shall mean a person who enters into a New York combat veterans healthcare choice account agreement pursuant to the provisions of this article, including a person who enters into such an agreement as a fiduciary or agent on behalf of a trust, estate, partnership, association, company or corporation. The account owner may also be the designated beneficiary of the account.
3. "Designated beneficiary" shall mean, with respect to an account or accounts, the individual designated as the individual whose healthcare expenses are expected to be paid from the account or accounts.
4. "Financial organization" shall mean an organization authorized to do business in the state of New York and (a) is an authorized fiduciary to act as a trustee pursuant to the provisions of an Act of Congress entitled "Employee Retirement Income Security Act of 1974" as such provisions may be amended from time to time, or an insurance company; and (b)(i) is licensed or chartered by the department of financial services, (ii) is chartered by an agency of the federal government, (iii) is subject to the jurisdiction and regulation of the securities and exchange commission of the federal government, or (iv) is any other entity otherwise authorized to act in this state as a trustee of a health savings account pursuant to the provisions of an act of congress entitled the "Medicare Prescription Drug, Improvement, and Modernization Act", as such provisions may be amended from time to time.
5. "Eligible healthcare institution" shall mean any institution licensed, certified or authorized by the state to provide healthcare services.
6. "Member of family" shall mean a family member as defined in section 529 of the Internal Revenue Code of 1986, as amended.
7. "Program" shall mean the New York combat veterans healthcare choice account program established pursuant to this article.
8. "Qualified healthcare expenses" shall mean any medical expense deductible on federal income taxes.
9. "Qualified state service" shall mean active duty service rendered while being ordered into a combat zone, designated by the president of the United States during Operation Enduring Freedom or Operation Iraqi Freedom, for three hundred sixty days or more by the governor, the commanding general of the New York army national guard, the commanding officer of the New York air national guard or the commanding officer of the naval militia.
10. "Qualified withdrawal" shall mean a withdrawal from an account to pay the qualified healthcare expenses of a service member or designated beneficiary of an account at an eligible healthcare institution.
11. "Nonqualified withdrawal" shall mean a withdrawal from an account which is not:
a. a qualified withdrawal; or
b. a withdrawal made as the result of the death or disability of the designated beneficiary of the account.
12. "Division" shall mean the division of military and naval affairs.
13. "Comptroller" shall mean the state comptroller.
A. 8298--B 5
14. "Management contract" shall mean the contract executed by the comptroller and a financial organization selected to act as a depository and manager of the program.
15. "New York combat veterans healthcare choice account agreement" shall mean an agreement between the comptroller or a financial organization and an account owner.
16. "Program manager" shall mean a financial organization selected by the comptroller to act as depository and manager of the program.
§ 403. Functions of the comptroller and the division. 1. The comptroller and the division shall implement the program under the terms and conditions established by this article and a memorandum of understanding relating to any terms or conditions not otherwise expressly provided for in this article.
2. In furtherance of such implementation the memorandum of understanding shall address the authority and responsibility of the comptroller and the division to:
a. develop and implement the program in a manner consistent with the provisions of this article through rules and regulations established in accordance with the state administrative procedure act;
b. engage the services of consultants on a contract basis for rendering professional and technical assistance and advice;
c. seek rulings and other guidance from the United States Department of Treasury and the Internal Revenue Service relating to the program;
d. make changes to the program required for the participants in the program to obtain the federal income tax benefits or treatment provided for health savings accounts;
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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