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.
