Bill Text: NY S00086 | 2009-2010 | General Assembly | Introduced
Bill Title: Enacts the New York state community health care investment fund act; creates two new funds in the state finance law to be known as the New York state community health care investment fund and the New York state health care entrepreneurial stimulus fund; establishes the New York state community health care investment fund council consisting of 13 members to oversee the New York state health care community investment funds, establish the RFP process, award grants and issue an annual report.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO FINANCE [S00086 Detail]
Download: New_York-2009-S00086-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 86 2009-2010 Regular Sessions I N S E N A T E (PREFILED) January 7, 2009 ___________ Introduced by Sen. SAMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the state finance law, the public health law and the labor law, in relation to enacting the "New York state community health care investment fund act" THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "New York state community health care investment fund act". 3 S 2. Legislative intent. The legislature hereby declares that the 4 provision of health care in New York state must be affordable, accessi- 5 ble, and address the multi-faceted needs of its diverse population, from 6 pre-conception planning through the end of life. The legislature also 7 finds that many constituencies play an important role in the state's 8 health care infrastructure: consumers, health care professionals, 9 communities of faith, state and local governments, businesses, insurance 10 companies, community based organizations, home care agencies, school 11 based health clinics, nursing homes, and hospitals. 12 Health care in New York state also faces many challenges. New York 13 state is home to world class medical institutions and research centers. 14 According to the United Health Foundation 2006 America Health Rankings, 15 New York state has the 4th highest per capita spending on public health 16 in the nation, a low rate of motor vehicle deaths and a low rate of 17 cancer deaths. The health care challenges in New York state include a 18 high incidence of infectious disease, limited access to adequate prena- 19 tal care, and a low high school graduation rate. Twenty percent of the 20 state's children under 18 years of age live in poverty. Furthermore, the 21 state's overall rank among the rest of the country decreased between 22 2005 and 2006, from 26th place to 29th place. Despite a high per capita 23 spending on health ($316 per person) almost three million of its resi- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01983-02-9 S. 86 2 1 dents do not have health insurance. Not surprisingly, health disparities 2 persist in low-income cities and neighborhoods and where racial and 3 ethnic minorities comprise a majority of the population. According to a 4 report released in 2004 by the New York city departments of health and 5 mental health, "more than 4,000 deaths would be prevented if the all- 6 cause mortality rate in the poorest neighborhoods were lowered to the 7 rate in the wealthiest neighborhoods." 8 Against this backdrop of high public health spending, significant 9 health care disparities experienced by ethnic and racial minorities and 10 approximately three million uninsured people in New York state, HMO 11 profits in New York state have soared in recent years while costs for 12 members have risen and reimbursement for health care providers has fall- 13 en. Premium increases statewide have increased about 20 percent, and 14 revenues have risen from $14.5 billion in 2001 to $17.4 billion in 2005. 15 In fact, premium rate increases outpaced medical payments from 2001 to 16 2005 by over $1 billion as New York's HMOs' profits climbed 93 percent, 17 from $672 million to $1.3 billion. HMOs' administrative and claims 18 adjustment costs went up by 24 percent from 2001 to 2005, and average 19 revenue per member increased an average of 8.6 percent annually. During 20 the same period, enrollments declined 14 percent, provider reimburse- 21 ments trended downward from 85.3 percent of every dollar to 81.7 22 percent, and out of pocket costs for members increased by 7.7 percent. 23 The legislature additionally finds that HMOs that conduct business in 24 New York state have a responsibility toward improving the health status 25 of the residents of this state and should assist in providing revenue to 26 support critical community health and economic development needs. 27 Definitions. For the purposes of this act, the following terms shall 28 have the following meanings: 29 1. New York state stimulus health care investment fund and New York 30 state health care entrepreneurial stimulus fund refer to the funds 31 established pursuant to section three of this act. 32 2. New York state community health care investment fund council refers 33 to the council established pursuant to section five of this act. 34 3. New York state community health care investment fund grant program 35 refers to the grant program established pursuant to section six of this 36 act. 37 4. New York state entrepreneurial stimulus investment grant program 38 refers to the program established pursuant to section seven of this act. 39 S 3. The state finance law is amended by adding two new sections 99-q 40 and 99-r to read as follows: 41 S 99-Q. NEW YORK STATE COMMUNITY HEALTH CARE INVESTMENT FUND. 1. 42 THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND 43 THE COMMISSIONER OF HEALTH A FUND TO BE KNOWN AS THE NEW YORK STATE 44 COMMUNITY HEALTH CARE INVESTMENT FUND. 45 2. SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE 46 OF SUCH FUND, ALL OTHER MONEYS CREDITED OR TRANSFERRED TO SUCH FUND 47 PURSUANT TO LAW, ALL MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION 48 OR ANY OTHER LAW TO BE PAID INTO OR CREDITED TO SUCH FUND, AND ALL 49 MONEYS RECEIVED BY THE FUND OR DONATED TO IT. 50 3. MONEYS OF SUCH FUND SHALL BE AVAILABLE FOR APPROPRIATION AND ALLO- 51 CATION TO THE DEPARTMENT OF HEALTH FOR PURPOSES OF DISTRIBUTING SUCH 52 MONEYS TO QUALIFIED ENTITIES OF THE NEW YORK STATE COMMUNITY HEALTH CARE 53 INVESTMENT FUND GRANT PROGRAM. FUNDS COLLECTED PURSUANT TO SECTION TWEN- 54 TY-TWO OF THE PUBLIC HEALTH LAW SHALL BE USED FOR ONE OR MORE OF THE 55 FOLLOWING: S. 86 3 1 (A) PROJECTS THAT ADDRESS THE SIX CLINICAL INDICATORS AS ESTABLISHED 2 BY THE FEDERAL CENTER FOR DISEASE CONTROL'S GOAL TO ELIMINATE HEALTH 3 DISPARITIES: INFANT MORTALITY; CANCER SCREENING AND MANAGEMENT; CARDIO- 4 VASCULAR DISEASE; DIABETES; HIV INFECTION/AIDS; AND IMMUNIZATIONS. 5 (B) PROJECTS THAT IMPROVE THE CULTURAL COMPETENCE OF THE HEALTH CARE 6 WORKFORCE. 7 (C) PROJECTS THAT COLLECT DATA REGARDING (I) ETHNIC AND MINORITY 8 REPRESENTATION IN THE NEW YORK STATE HEALTH CARE WORKFORCE AND (II) 9 ETHNIC AND RACIAL MINORITIES SERVED IN HOSPITALS AND NURSING HOMES. 10 (D) PROJECTS THAT CONDUCT SURVEYS ON RACIAL AND ETHNIC HEALTH DISPARI- 11 TIES. 12 (E) SCHOLARSHIPS TO RECRUIT AND TRAIN RACIAL AND ETHNIC MINORITIES IN 13 THE HEALTH CARE PROFESSIONS. 14 (F) PROJECTS THAT ADDRESS UNMET HEALTH CARE NEEDS IN RURAL AREAS. 15 4. MONEYS SHALL BE PAID OUT ON THE AUDIT AND WARRANT OF THE COMP- 16 TROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER OF HEALTH. 17 S 99-R. NEW YORK STATE HEALTH CARE ENTREPRENEURIAL STIMULUS FUND. 1. 18 THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND 19 THE COMMISSIONER OF LABOR A FUND TO BE KNOWN AS THE NEW YORK STATE 20 HEALTH CARE ENTREPRENEURIAL STIMULUS FUND. 21 2. SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE 22 OF SUCH FUND, ALL OTHER MONEYS CREDITED OR TRANSFERRED TO SUCH FUND 23 PURSUANT TO LAW, ALL MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION 24 OR ANY OTHER LAW TO BE PAID INTO OR CREDITED TO SUCH FUND, AND ALL 25 MONEYS RECEIVED BY THE FUND OR DONATED TO IT. 26 3. MONEYS OF SUCH FUND SHALL BE AVAILABLE FOR APPROPRIATION AND ALLO- 27 CATION TO THE DEPARTMENT OF LABOR FOR PURPOSES OF DISTRIBUTING SUCH 28 MONEYS TO QUALIFIED PERSONS OR ENTITIES OF THE NEW YORK STATE ENTREPRE- 29 NEURIAL STIMULUS INVESTMENT GRANT PROGRAM. FUNDS COLLECTED PURSUANT TO 30 SECTION FORTY-FOUR OF THE LABOR LAW SHALL BE USED FOR ONE OR MORE OF THE 31 FOLLOWING: 32 GRANTS TO NEW INDIVIDUAL ENTREPRENEURS IN THE STATE AND TO PERSONS 33 QUALIFYING FOR UNEMPLOYMENT INSURANCE IN THE STATE, TO ASSIST WITH THEIR 34 FIRST-YEAR COSTS OF PURCHASING HEALTH INSURANCE, INCLUDING, BUT NOT 35 LIMITED TO, PARTICIPATION IN THE HEALTHY NEW YORK OR FAMILY HEALTH PLUS 36 PROGRAMS, ESTABLISHED PURSUANT TO SECTIONS FOUR THOUSAND THREE HUNDRED 37 TWENTY-SIX AND FOUR THOUSAND THREE HUNDRED TWENTY-SEVEN OF THE INSURANCE 38 LAW. 39 4. MONEYS SHALL BE PAID OUT ON THE AUDIT AND WARRANT OF THE COMP- 40 TROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER OF LABOR. 41 S 4. Any health maintenance organization, company or corporation, 42 certified under article 44 of the public health law or licensed pursuant 43 to the insurance law shall be subject to the following provisions: 44 1. On or before each April first, the superintendent of insurance 45 shall collect from the entities covered by this section all moneys for 46 deposit into the New York state community health care investment fund 47 and the New York state health care entrepreneurial stimulus fund. 48 2. The total amount paid by all entities covered by this section shall 49 equal: 50 a. in 2011 the sum of $35,000,000 for deposit into the New York state 51 community health care investment fund and the sum of $35,000,000 for 52 deposit into the New York state health care entrepreneurial stimulus 53 fund; 54 b. beginning in 2012, and each year thereafter, the total amount to be 55 collected for deposit into the New York state community health care 56 investment fund shall equal the total of the prior year deposits into S. 86 4 1 the New York state community health care investment fund multiplied by 2 the sum of one plus any positive percent change in the total annual 3 profits of all companies and corporations covered by this section; 4 c. beginning in 2012, and each year thereafter, the total amount to be 5 collected for deposit into the New York state health care entrepreneuri- 6 al stimulus fund shall equal the total of the prior year deposits into 7 the New York state health care entrepreneurial stimulus fund multiplied 8 by the sum of one plus any positive percent change in the total annual 9 profits of all companies and corporations covered by this section; 10 3. The amount paid by each company or corporation covered by this 11 section shall equal their net income divided by the total net income of 12 all companies and corporations covered by this section, rounded to four 13 decimal places, multiplied by the total amount calculated pursuant to 14 paragraphs a, b and c of subdivision two of this section. 15 4. For any company or corporation with a net income of less than zero, 16 their amount shall be calculated based on their net income in the last 17 year that it was greater than zero. The superintendent shall have the 18 authority to grant waivers from this section when deemed necessary to 19 prevent an undue burden, provided that no company or corporation may 20 receive a full or partial waiver in any two successive years. 21 5. Every not-for-profit health maintenance organization shall be 22 excluded from the provisions of this section. 23 S 5. The New York state community health care investment fund council. 24 1. There is hereby established the New York state community health care 25 investment fund council consisting of 13 members. The purpose of such 26 council is to oversee the New York state health care community invest- 27 ment funds, establish the RFP process, award grants and issue an annual 28 report. The members of such council shall consist of representatives 29 from the insurance industry, health care institutions and providers, and 30 consumer and advocacy groups. The members of the council shall be 31 appointed in the following manner: six state agency heads or their 32 representatives: one from the department of health; one from the office 33 for the aging; one from the office of mental health; one from the office 34 of mental retardation and developmental disabilities; one from the 35 office of alcoholism and substance abuse services; one from the office 36 of children and family services; and three members by the governor and 37 one by the speaker of the assembly, one by the temporary president of 38 the senate; one by the minority leader of the assembly; and one by the 39 minority leader of the senate. 40 2. The New York state community health care investment fund council 41 shall issue an annual report to the governor and legislature. Such annu- 42 al report shall include, but not be limited to, the following: the 43 dollar amount of HMO investments; the amount of award money granted; the 44 names of the groups awarded grants; and a description of the projects 45 for which the grants were awarded. 46 3. No member shall receive any compensation for his or her services, 47 but shall be reimbursed for their actual and necessary expenses, includ- 48 ing travel expenses, incurred in the performance of their duties. 49 S 6. The public health law is amended by adding a new section 22 to 50 read as follows: 51 S 22. NEW YORK STATE COMMUNITY HEALTH CARE INVESTMENT FUND GRANT 52 PROGRAM. THE COMMISSIONER SHALL ESTABLISH THE NEW YORK STATE COMMUNITY 53 HEALTH CARE INVESTMENT FUND GRANT PROGRAM WHICH SHALL INCLUDE, BUT NOT 54 BE LIMITED TO THE FOLLOWING: 55 1. PROJECTS THAT ADDRESS THE SIX CLINICAL INDICATORS AS ESTABLISHED BY 56 THE FEDERAL CENTER FOR DISEASE CONTROL'S GOAL TO ELIMINATE HEALTH S. 86 5 1 DISPARITIES: INFANT MORTALITY; CANCER SCREENING AND MANAGEMENT; CARDIO- 2 VASCULAR DISEASE; DIABETES; HIV INFECTION/AIDS; AND IMMUNIZATIONS; 3 2. PROJECTS THAT IMPROVE THE CULTURAL COMPETENCE OF THE HEALTH CARE 4 WORKFORCE; 5 3. PROJECTS THAT COLLECT DATA REGARDING ETHNIC AND MINORITY REPRESEN- 6 TATION IN THE NEW YORK STATE HEALTH CARE WORKFORCE AND ETHNIC AND RACIAL 7 MINORITIES SERVED IN HOSPITALS AND NURSING HOMES; 8 4. PROJECTS THAT CONDUCT SURVEYS ON RACIAL AND ETHNIC HEALTH DISPARI- 9 TIES; 10 5. SCHOLARSHIPS TO RECRUIT AND TRAIN RACIAL AND ETHNIC MINORITIES IN 11 THE HEALTH CARE PROFESSIONS; AND 12 6. PROJECTS THAT ADDRESS UNMET HEALTH CARE NEEDS IN RURAL AREAS. 13 S 7. The labor law is amended by adding a new section 44 to read as 14 follows: 15 S 44. NEW YORK STATE ENTREPRENEURIAL STIMULUS INVESTMENT GRANT 16 PROGRAM. 1. THE COMMISSIONER SHALL ESTABLISH WITHIN THE DEPARTMENT A 17 NEW YORK STATE ENTREPRENEURIAL STIMULUS INVESTMENT GRANT PROGRAM. THE 18 PURPOSE OF THE PROGRAM IS TO ENCOURAGE STATE RESIDENTS TO DIRECTLY 19 PARTICIPATE IN THE ECONOMY OF THE STATE BY ESTABLISHING NEW BUSINESS 20 ENTERPRISES. 21 2. THE COMMISSIONER SHALL ESTABLISH RULES AND REGULATIONS FOR IDENTI- 22 FYING QUALIFYING INDIVIDUALS, PROCEDURES FOR OUTREACH, CERTIFYING 23 PROGRAM PARTICIPATION, AND FOR THE APPLICATION AND AWARDING OF GRANTS 24 FROM THE NEW YORK STATE ENTREPRENEURIAL STIMULUS FUND. 25 S 8. This act shall take effect immediately.