What's happening
This bill extends and changes the cost of living adjustment (COLA) calculation for designated human services programs through March 31, 2023.
Why it matters
Changes how COLA is calculated. The bill updates the formula for adjusting payments to human services programs, now using the consumer price index (CPI) that excludes energy and food for non-Medicaid programs, and the medical care services CPI for Medicaid-funded programs. This aims to better match the actual cost pressures these providers face.
Differentiates funding sources. By distinguishing between programs funded with and without federal Medicaid dollars, the bill recognizes that these programs may experience different inflationary pressures and adjusts their COLA calculations accordingly.
Extends support for providers. Extending the COLA provisions through March 31, 2023, helps ensure that service providers receive payment increases that reflect changes in operating costs, which may help them maintain service quality, retain staff, and keep up with rising expenses.
Potential impact on service recipients. By linking provider payments more closely to relevant inflation indices, the bill may help safeguard the stability and availability of critical human services for vulnerable populations, as providers could be less likely to face financial shortfalls.
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Who cares
Human services providers without federal Medicaid funding
Their payment rates, contracts and other reimbursements would use a COLA based on the CPI-U excluding food and energy from April 1, 2017 through March 31, 2023.
Human services providers receiving federal Medicaid funding
Their reimbursements would instead use a COLA based on the consumer price index for medical care services over the same period.
State commissioners overseeing designated human services programs
They would have to apply different inflation measures depending on federal Medicaid funding, with the COLA provisions extended to April 1, 2023.
Headline styles
Adjust Human Services Payment Rates
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 62
No co-sponsors yet.
History
- Referred to social services
- Reported and committed to finance
- Print number 1151a
- Amend and recommit to social services
- Referred to social services
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.
Adjust Human Services Payments
In Assembly Committee · Mental Health · Sponsor Linda Rosenthal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1151--A
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Social Services -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, in relation to extending COLA provisions for the purpose of establishing rates of payments and the effectiveness thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 3-c of section 1 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, as amended by section 1 of part I of chapter 60 of the laws of 2014, is amended to read as follows:
3-c. Notwithstanding any inconsistent provision of law, beginning April 1, 2016 and ending March 31, [2019] 2017, the commissioners shall develop the COLA under this section using the actual U.S. consumer price index for all urban consumers (CPI-U) published by the United States department of labor, bureau of labor statistics for the twelve month period ending in July of the budget year prior to such state fiscal year, for the purpose of establishing rates of payments, contracts or any other form of reimbursement.
§ 2. Section 1 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, is amended by adding a new subdivision 3-e to read as follows:
3-e. Notwithstanding any inconsistent provision of law, beginning April 1, 2017 and ending March 31, 2023, for human services programs not funded with federal medicaid funds, the commissioners shall develop the COLA under this section using the actual U.S. consumer price index for all urban consumers (CPI-U), excluding energy and food, published by the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04626-03-7
S. 1151--A 2
United States department of labor, bureau of labor statistics for the twelve month period ending in July of the budget year prior to such state fiscal year, for the purpose of establishing rates of payments, contracts or any other form of reimbursement and for human services programs funded with federal medicaid funds, the commissioners shall develop the COLA under this section using the actual U.S. consumer price index for medical care services, published by the United States department of labor, bureau of labor statistics for the twelve month period ending in July of the budget year prior to such state fiscal year, for the purpose of establishing rates of payments, contracts or any other form of reimbursement.
§ 3. Section 4 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, as amended by section 1 of part I of chapter 60 of the laws of 2014, is amended to read as follows:
§ 4. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2006; provided section one of this act shall expire and be deemed repealed April 1, [2019] 2023; provided, further, that sections two and three of this act shall expire and be deemed repealed December 31, 2009.
§ 4. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017; provided, however, that the amendments to section 1 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs made by sections one and two of this act shall not affect the repeal of such section and shall be deemed repealed therewith.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, in relation to extending COLA provisions for the purpose of establishing rates of payments and the effectiveness thereof
Purpose or general idea of bill
This bill extends the current Human Services COLA for an additional three years and revises the COLA formula in order to make the annual COLA more predictable
Summary of specific provisions
Section 1 of the bill would limit the current Human Services COLA ending on March 31, 2017.
Section 2 of the bill would extend the Human Services COLA until March 31, 2023. The COLA would be based on the Annual CPI - Urban, excluding food and energy as published by the United States Department of Labor. However for human services programs funded with federal funds the COLA would use the actual U.S. consumer price index for medical care services.
Section 3 is the effective date.
Justification
In 2006 the state created a three year Human Services COLA to provide fiscal relief to providers of state funded services in order to address inflationary cost increases. The Human Services COLA was extended for a second 3 year period in 2009. Unfortunately, due to the serious fiscal difficulties the State faced beginning in 2009, the Human Services COLA was deferred each year until 2016, when it was extended until March 31, 2019. The COLA has been based upon the CPI-Urban (CPI-U) as published by the United State Department of Labor. CPI-U has ranged from 5.6% to minus 2.1% over the last eight years. Fluctuations in the CPI over these years have largely been driven by changes in food and energy prices. Indeed 2016's CPI-U level of .2% is largely the result of a 14.8% reduction in energy costs. Many economists focus on core inflation which is defined as CPI-U excluding food and energy. This year CPI-U, exclud- ing food and energy grew by 1.8%. Using CPI-U, excluding food and energy provides a more stable and predictable Human Services COLA. Over the past 10 years CPI-U, excluding food and energy has increased by 1.9% on an averaged annual basis. Further this bill would see that human services programs funded with federal funds the COLA would use the actual U.S. consumer price index for medical care services. This is an appropriate metric to use as these programs are directly tied to the Medicaid global cap, so making these changes in the COLA would ensure that those providing Medicaid services receive an appropriate COLA based solely on the Medicaid metric.
Prior legislative history
S. 7612/A.10518; Reported and Committed to Finance
Fiscal implications
The current fiscal plan includes an estimated 2.5% Human Services COLA in FY18. This bill has the potential to provide a savings to the fiscal plan over the near term
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.