Bill Text: NY S06914 | 2023-2024 | General Assembly | Amended


Bill Title: Provides for updates to rates for residential health care facilities.

Spectrum: Slight Partisan Bill (Republican 12-4)

Status: (Introduced) 2024-05-06 - PRINT NUMBER 6914A [S06914 Detail]

Download: New_York-2023-S06914-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         6914--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                      May 15, 2023
                                       ___________

        Introduced  by Sens. RIVERA, ASHBY, GALLIVAN, HELMING, KENNEDY, MANNION,
          MARTINEZ, MARTINS, MATTERA, MURRAY,  PALUMBO,  RHOADS,  STEC  --  read
          twice  and  ordered  printed,  and when printed to be committed to the
          Committee on Health -- recommitted  to  the  Committee  on  Health  in
          accordance  with Senate Rule 6, sec. 8 -- 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

        AN ACT to amend the public health law, in relation to residential health
          care facility rates

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1.  Paragraphs (a), (b), (c) and (d)  of  subdivision  2-c  of
     2  section  2808  of  the public health law, paragraphs (a), (b) and (c) as
     3  added by section 95 of part H of chapter 59 of the laws of  2011,  para-
     4  graph (d) as amended by section 2 of part M of chapter 57 of the laws of
     5  2022, are amended and a new paragraph (b-1) is added to read as follows:
     6    (a)  Notwithstanding any inconsistent provision of this section or any
     7  other contrary provision of law  and  subject  to  the  availability  of
     8  federal  financial  participation, the non-capital component of rates of
     9  payment by governmental agencies  for  inpatient  services  provided  by
    10  residential  health care facilities on or after October first, two thou-
    11  sand eleven, but no later than January first, two thousand twelve, shall
    12  reflect a direct statewide price component, and indirect statewide price
    13  component, and a facility specific non-comparable  component,  utilizing
    14  allowable  operating  costs for a base year as determined by the commis-
    15  sioner by regulation. Such rate components shall be periodically updated
    16  to reflect changes in operating costs, provided however that  such  rate
    17  components  shall  be  updated  no  later than April first, two thousand
    18  twenty-five and at least every five years  thereafter,  using  the  most
    19  currently  available  cost  report data, which updates shall include but

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10005-08-4

        S. 6914--A                          2

     1  not be limited to an update of rate components to  reflect  actual  base
     2  year costs.
     3    (b)  The  direct  and  indirect  statewide  price  components shall be
     4  adjusted by a wage equalization factor and such other factors as  deter-
     5  mined  to  be appropriate to recognize legitimate cost differentials and
     6  the direct statewide price component shall be  subject  to  a  case  mix
     7  adjustment  utilizing the patients that are eligible for medical assist-
     8  ance pursuant to title eleven of article five  of  the  social  services
     9  law.  Such  wage  equalization factor and other factors shall be period-
    10  ically updated to reflect current labor  market  and  other  conditions,
    11  provided  however  that  such updates shall be implemented no later than
    12  April first, two thousand twenty-five, and at  least  every  five  years
    13  thereafter, based on the most currently available cost report data.
    14    (b-1)  For  purposes of the updates required by paragraphs (a) and (b)
    15  of this subdivision and associated changes in the rate-setting methodol-
    16  ogy, the department shall establish and consult with a technical assist-
    17  ance workgroup that includes external experts with  professional  exper-
    18  tise in nursing home rate setting.
    19    (c) The non-capital component of the rates for: (i) AIDS facilities or
    20  discrete AIDS units within facilities; (ii) discrete units for residents
    21  receiving care in a long-term inpatient rehabilitation program for trau-
    22  matic  brain injured persons; (iii) discrete units providing specialized
    23  programs for residents requiring behavioral interventions; (iv) discrete
    24  units for long-term ventilator dependent residents; and  (v)  facilities
    25  or  discrete  units  within  facilities  that provide extensive nursing,
    26  medical, psychological and counseling support services solely  to  chil-
    27  dren  shall  reflect  the rates in effect for such facilities on January
    28  first, two thousand nine, as adjusted for inflation and rate appeals  in
    29  accordance  with applicable statutes, provided, however, that such rates
    30  for facilities described in subparagraph (i)  of  this  paragraph  shall
    31  reflect the application of the provisions of section twelve of part D of
    32  chapter  fifty-eight  of  the  laws  of  two thousand nine, and provided
    33  further, however, that insofar as such rates reflect  trend  adjustments
    34  for  trend  factors attributable to the two thousand eight and two thou-
    35  sand nine calendar years the  aggregate  amount  of  such  trend  factor
    36  adjustments  shall be subject to the provisions of section two of part D
    37  of chapter fifty-eight of the laws of two  thousand  nine,  as  amended.
    38  Notwithstanding  the elimination of a trend factor from rates of payment
    39  paid to other residential health care facilities or any other inconsist-
    40  ent provision of law, commencing on and after April first, two  thousand
    41  twenty-five,  the non-capital component of rates established pursuant to
    42  this paragraph shall be adjusted for inflation.
    43    (d) The commissioner shall promulgate regulations, and may  promulgate
    44  emergency  regulations, to implement the provisions of this subdivision,
    45  including regulations to implement the updates to  the  rate  components
    46  and associated changes in the methodology as set forth in paragraphs (a)
    47  and  (b)  of  this subdivision.   Such regulations shall be developed in
    48  consultation with the nursing home industry and advocates  for  residen-
    49  tial health care facility residents and, further, the commissioner shall
    50  provide  notification  concerning  such regulations to the chairs of the
    51  senate and assembly health committees, the chair of the  senate  finance
    52  committee  and  the chair of the assembly ways and means committee. Such
    53  regulations shall include provisions for  rate  adjustments  or  payment
    54  enhancements  to facilitate a minimum four-year transition of facilities
    55  to the rate-setting methodology established by this subdivision and  may
    56  also include, but not be limited to, provisions for facilitating quality

        S. 6914--A                          3

     1  improvements  in  residential  health  care facilities, provided however
     2  that regulations governing the updates set forth in paragraphs  (a)  and
     3  (b)  of  this  subdivision and associated changes in the methodology may
     4  include a transition period as determined by the commissioner in consul-
     5  tation  with  the stakeholders described in this paragraph and the work-
     6  group set forth in paragraph (b-1) of this subdivision. For purposes  of
     7  facilitating quality improvements through the establishment of a nursing
     8  home  quality pool to be funded at the discretion of the commissioner by
     9  (i) adjustments in medical assistance rates, (ii) funds  made  available
    10  through  state  appropriations,  or  (iii)  a combination thereof, those
    11  facilities that contribute to the quality pool, but are deemed  ineligi-
    12  ble  for  quality  pool  payments  due exclusively to a specific case of
    13  employee misconduct, shall nevertheless be eligible for a  quality  pool
    14  payment  if the facility properly reported the incident, did not receive
    15  a survey citation from the commissioner or the Centers for Medicare  and
    16  Medicaid Services establishing the facility's culpability with regard to
    17  such  misconduct  and, but for the specific case of employee misconduct,
    18  the facility would have otherwise received a quality pool payment. Regu-
    19  lations pertaining to the facilitation of  quality  improvement  may  be
    20  made  effective  for  periods  on  and after January first, two thousand
    21  thirteen.
    22    § 2. This act shall take effect immediately.
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