What's happening
This bill establishes the "New York's Own combat veterans healthcare choice program," creating state-funded healthcare accounts for certain combat veterans unable to access timely federal VA care.
Why it matters
Creates a state-funded healthcare safety net for certain combat veterans. The program targets New York residents who served in the organized militia (such as the National Guard) and were deployed to combat zones for at least 360 days but cannot get timely or adequate care from the federal VA. This addresses gaps in federal veterans' healthcare access and supports those who may otherwise fall through the cracks.
Provides direct financial assistance for healthcare needs. Approved veterans can receive up to $5,000 per year (for up to three years) in a dedicated, state-managed healthcare savings account. This money can be used to pay for qualified medical expenses from any licensed provider, giving veterans flexibility and choice in their care.
Offers new tax benefits and legal protections. Veterans contributing their own money to these accounts may claim a state income tax deduction (up to $5,000/year; $10,000 for joint filers), making it more affordable to save for medical expenses. Funds in the accounts are protected from creditors and exempt from money judgments, ensuring that the money is available for healthcare.
Establishes oversight, transparency, and eligibility rules. The program is administered by the state comptroller and the Division of Military and Naval Affairs, with clear rules for eligibility, application, and use of funds. There are limits on annual payments, requirements for documentation, and mechanisms for resolving disputes or denials, providing structure and accountability to the program.
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Who cares
Headline styles
Tax-Free Veteran Health Accounts
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 40
History
- Print number 2096d
- Amend and recommit to veterans, homeland security and military affairs
- Referred to veterans, homeland security and military affairs
- Print number 2096c
- Amend and recommit to finance
- Print number 2096b
- Amend (t) and recommit to finance
- Print number 2096a
- Amend and recommit to finance
- Reported and committed to finance
- Referred to veterans, homeland security and military affairs
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 Health Accounts for Veterans
In Assembly Committee · Ways And Means · Sponsor Pamela J. Hunter
Full text
10 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2096--D
2017-2018 Regular Sessions
IN SENATE
January 12, 2017
Introduced by Sens. MURPHY, CROCI, LARKIN, ORTT, CARLUCCI, GALLIVAN, GOLDEN, MARCHIONE, O'MARA, RANZENHOFER, SERINO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Security and Military… Show allHide
Introduced by Sens. MURPHY, CROCI, LARKIN, ORTT, CARLUCCI, GALLIVAN, GOLDEN, MARCHIONE, O'MARA, RANZENHOFER, SERINO, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Security and Military Affairs -- reported favorably from said committee and committed to the Committee on Finance -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Veterans, Homeland Security and Military Affairs in accordance with Senate Rule 6, sec. 8 -- 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02315-10-8
S. 2096--D 2
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 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
S. 2096--D 3
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.
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
S. 2096--D 4
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 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
S. 2096--D 5
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.
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.
Sponsor's memo
Title of bill
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"
Purpose
This bill would authorize the creation of healthcare savings accounts for New York resident combat veterans of the organized militia of the State, who while on State Orders in a combat zone during the period September 2011 to date, suffered injuries or disability, and who, upon 90 days of making application to the US Veterans Administration for healthcare services related to those injuries or disability, have still not received primary care or an appointment for primary care, for those injuries or disability.
Summary of provisions
The health care savings accounts will be funded: 1) for a period of up to three years by New York State in the amount of $5,000 per year; and, 2) by State tax deductible contributions from the combat veteran not to exceed $5,000 per year. The State's contributions to the soldier's health care savings accounts will terminate upon the earlier of: a) the combat veteran securing services from the VA for the injuries or disa- bility sustained in a combat zone; or, b) three years after establish- ment of the account.
Read the full memo (903 words)
All "Qualified Expenditures" from the account for healthcare would like- wise be New York State tax deductible and would specifically include drug and alcohol rehabilitation as well as PTSD. The combat veteran has complete authority to choose the healthcare provider so long as they are licensed by New York State. Much like the College Savers program, the accounts would be administered by the State Comptroller and unexpended funds would earn interest while on account
Justification
The healthcare savings account program is patterned on the very success- ful "New York 529 College Savers" program and will provide New York resident members of the organized militia who deployed with a New York unit to a combat zone, a bridge to much needed healthcare when, through no fault of the service member, they have been unable to secure primary care, or an appointment with a US Veterans Administration primary care physician on a timely basis.
The recently released report of the General Accounting Office noted that the Veterans Choice Program created by Congress in 2014 has failed to reduce the number of veterans waiting more than 30 days to get an appointment for primary care at either a VA facility or with one of the Veterans Choice providers as the law requires. In fact, according to the GAO report there are 71,000 more veterans waiting more than the 30 days than there was in May of 2015.
Among the hundreds of thousands of veterans waiting longer than 30 days are hundreds of New York resident Air and Army National Guard combat veterans who sustained injuries or disabilities in a combat zone on orders from The Governor and Adjutant General; and who, despite efforts to secure primary care from the US Veterans Administration, have been unable to schedule appointments. This program will ensure they have healthcare until picked up by the Veterans Administration.
The Governor and Adjutant General have issued over 14,300 Orders to members of the Organized Militia of New York to serve in certified combat zones since September 11, 2001. An undetermined number of these orders were issued to service members who had previously deployed to a combat zone.
While the Division of Military and Naval Affairs does not certify disa- bility ratings nor does it have any mechanism for tracking the applica- tions of personnel returning from a combat zone who have made applica- tion to US Veterans Administration for healthcare services, this bill would create a mechanism for New York State to take of its own combat veterans for injuries or disability suffered while on State Orders in a Combat Zone if the US Veterans Administration has failed to provide the service member with an appointment with a primary care physician within 90 days of requesting one.
Legislative history
2017-2018: S.2096 2016: S.8148
Fiscal implications
It is not possible to determine the total annual cost of this bill since the number of effected New York resident combat veterans who would qual- ify cannot be estimated. However, the total number of combat deployments is 14,353 and among this universe is a number of service members with multiple deployments and still others who are not residents of New York State. Available records indicate that the percentage of all civilian veterans with a VA disability is just 16,6% and the number of combat veterans applying for VA disability has ranged from 8 % for Operation Enduring Freedom to a high of 30 % for Operation Iraqi Freedom. Since it is likely that a number of New York's combat injured or disabled soldiers and airmen have succeeded in securing appointments with a VA primary care physicians, the number qualified applicants is projected to be not more than 1,500.
Thus, the maximum fiscal impact would not exceed $7,500,000 per year over the first three years. Since the benefit terminates after the earlier of three years; or the VA's assumption of responsibility for primary care, it is highly unlikely that fiscal impact will ever reach this sum.
Effective date
This act shall take effect immediately and shall apply to taxable years beginning after December 31, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.