Bill Text: NY S07590 | 2023-2024 | General Assembly | Introduced


Bill Title: Establishes the New York Health program, a comprehensive system of access to health insurance for New York state residents; provides for administrative structure of the plan; provides for powers and duties of the board of trustees, the scope of benefits, payment methodologies and care coordination; establishes the New York Health Trust Fund which would hold monies from a variety of sources to be used solely to finance the plan; enacts provisions relating to financing of New York Health, including a payroll assessment, similar to the Medicare tax; establishes a temporary commission on implementation of the plan; provides for collective negotiations by health care providers with New York Health.

Spectrum: Partisan Bill (Democrat 34-0)

Status: (Introduced) 2024-01-03 - REFERRED TO HEALTH [S07590 Detail]

Download: New_York-2023-S07590-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7590

                               2023-2024 Regular Sessions

                    IN SENATE

                                      July 7, 2023
                                       ___________

        Introduced  by  Sens. RIVERA, RAMOS, ADDABBO, BAILEY, BRESLIN, BRISPORT,
          BROUK,  CLEARE,  COMRIE,  COONEY,   FERNANDEZ,   GIANARIS,   GONZALEZ,
          GOUNARDES, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, JACKSON, KAVANAGH, KENNE-
          DY,  KRUEGER,  LIU,  MAY,  MAYER,  MYRIE,  PARKER,  PERSAUD,  SALAZAR,
          SANDERS, SEPULVEDA, SERRANO, STAVISKY, THOMAS, WEBB -- read twice  and
          ordered  printed, and when printed to be committed to the Committee on
          Rules

        AN ACT to amend the public health law and  the  state  finance  law,  in
          relation  to  enacting  the "New York health act" and establishing New
          York Health

          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 health act".
     3    § 2. Legislative  findings  and  intent.  1.  The  state  constitution
     4  states:  "The  protection and promotion of the health of the inhabitants
     5  of the state are matters of public concern and provision therefor  shall
     6  be made by the state and by such of its subdivisions and in such manner,
     7  and by such means as the legislature shall from time to time determine."
     8  (Article  XVII,  §3.)  The legislature finds and declares that all resi-
     9  dents of the state have the right to health care.    While  the  federal
    10  Affordable  Care Act brought many improvements in health care and health
    11  coverage, it still leaves many New  Yorkers  without  coverage  or  with
    12  inadequate coverage.  Millions of New Yorkers do not get the health care
    13  they  need  or face financial obstacles and hardships to get it. That is
    14  not acceptable.  There is no plan that has been put forward  other  than
    15  the  New  York  health  act that will enable New York state to meet that
    16  need.  New Yorkers - as individuals, employers,  and  taxpayers  -  have
    17  experienced  a  rise  in  the cost of health care and coverage in recent
    18  years, including rising premiums, deductibles  and  co-pays,  restricted
    19  provider  networks and high out-of-network charges.  Many New Yorkers go

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02408-02-3

        S. 7590                             2

     1  without health care because they cannot afford it or suffer  significant
     2  financial  hardship  to  get  it.    Businesses  have  also  experienced
     3  increases in the costs of health care benefits for their employees,  and
     4  many  employers  are  shifting a larger share of the cost of coverage to
     5  their employees or dropping  coverage  entirely.    Including  long-term
     6  services  and supports (LTSS) in New York Health is a major step forward
     7  for older adults, people with disabilities, and  their  families.  Older
     8  adults  and  people  with disabilities often cannot receive the services
     9  necessary to stay in the community or other LTSS. Even when older adults
    10  and people with disabilities receive LTSS, especially  services  in  the
    11  community, it is often at great cost and creates unreasonable demands on
    12  unpaid  family  caregivers,  depleting their own or family resources, or
    13  impoverishing themselves to qualify for public coverage.    Health  care
    14  providers  are  also  affected by inadequate health coverage in New York
    15  state. A large portion of hospitals, health centers and other  providers
    16  now  experience  substantial losses due to the provision of care that is
    17  uncompensated.  Medicaid and Medicare often do not pay  rates  that  are
    18  reasonably  related  to  the  cost  of efficiently providing health care
    19  services and sufficient to assure an adequate and accessible  supply  of
    20  health  care  services,  as  guaranteed  under  the New York Health Act.
    21  Individuals often find that they are deprived  of  affordable  care  and
    22  choice because of decisions by health plans guided by the plan's econom-
    23  ic  interests rather than the individual's health care needs. To address
    24  the fiscal crisis facing the health care system and  the  state  and  to
    25  assure  New  Yorkers can exercise their right to health care, affordable
    26  and comprehensive health coverage must  be  provided.  Pursuant  to  the
    27  state constitution's charge to the legislature to provide for the health
    28  of  New  Yorkers,  this legislation is an enactment of state concern for
    29  the purpose of establishing a comprehensive universal guaranteed  health
    30  care  coverage  program  and  a  health care cost control system for the
    31  benefit of all residents of the state of New York.
    32    2. (a) It is the intent of the Legislature  to  create  the  New  York
    33  Health program to provide a universal single payer health plan for every
    34  resident of the state, funded by broad-based revenue based on ability to
    35  pay.    The  legislature  intends  that federal waivers and approvals be
    36  sought where they will improve the administration of the New York Health
    37  program, but the legislature intends that  the  program  be  implemented
    38  even  in the absence of such waivers or approvals.  The state shall work
    39  to obtain waivers and other approvals relating to Medicaid, Child Health
    40  Plus, Medicare, the Basic Health Plan (Essential Plan),  the  Affordable
    41  Care Act, and any other appropriate federal programs, under which feder-
    42  al  funds  and  other subsidies that would otherwise be paid to New York
    43  State, New Yorkers, and health care providers for health  coverage  that
    44  will  be  equaled  or  exceeded  by  New York Health will be paid by the
    45  federal government to New York State  and  deposited  in  the  New  York
    46  Health  trust  fund, or paid to health care providers and individuals in
    47  combination with New York Health trust  fund  payments,  and  for  other
    48  program  modifications (including elimination of cost sharing and insur-
    49  ance premiums).  Under such waivers and approvals, health coverage under
    50  those programs will, to the maximum extent  possible,  be  replaced  and
    51  merged  into  New York Health, which will operate as a true single-payer
    52  program.
    53    (b) If any necessary waiver or approval is  not  obtained,  the  state
    54  shall  use state plan amendments and seek waivers and approvals to maxi-
    55  mize, and make as seamless as possible, the use of  federally-subsidized
    56  health  programs  and federal health programs in New York Health.  Thus,

        S. 7590                             3

     1  even where other programs such as Medicaid or Medicare may contribute to
     2  paying for care, it is the goal of this legislation  that  the  coverage
     3  will  be  delivered  by  New  York  Health and, as much as possible, the
     4  multiple  sources  of  funding will be pooled with other New York Health
     5  funds and not be apparent to New York Health  members  or  participating
     6  providers.
     7    (c)  This  program  will  promote  movement  away from fee-for-service
     8  payment, which tends to reward quantity and requires excessive  adminis-
     9  trative  expense,  and  towards alternate payment methodologies, such as
    10  global or capitated payments to providers or health care  organizations,
    11  that  promote  quality, efficiency, investment in primary and preventive
    12  care, and innovation and integration in the organizing of health care.
    13    (d) The program shall promote the use of clinical data to improve  the
    14  quality  of health care and public health, consistent with protection of
    15  patient confidentiality. The program shall maximize patient autonomy  in
    16  choice  of  health care providers and health care decision making.  Care
    17  coordination within the program shall ensure management and coordination
    18  among a patient's health care services, consistent with patient autonomy
    19  and person-centered service planning, rather than acting as a gatekeeper
    20  to needed services.
    21    (e) The program shall operate with care, skill,  prudence,  diligence,
    22  and professionalism, and for the best interests primarily of the members
    23  and health care providers.
    24    3.  This  act  does  not create or relate to any employment benefit or
    25  employment benefit plan, nor does it require,  prohibit,  or  limit  the
    26  providing of any employment benefit or employment benefit plan.
    27    4. In order to promote improved quality of, and access to, health care
    28  services and promote improved clinical outcomes, it is the policy of the
    29  state  to  encourage cooperative, collaborative and integrative arrange-
    30  ments among health care providers who might  otherwise  be  competitors,
    31  under  the  active  supervision of the commissioner of health. It is the
    32  intent of the state to supplant competition with such  arrangements  and
    33  regulation  only  to  the extent necessary to accomplish the purposes of
    34  this act, and to provide state  action  immunity  under  the  state  and
    35  federal  antitrust  laws  to  health  care  providers, particularly with
    36  respect to their relations with the single-payer New  York  Health  plan
    37  created by this act.
    38    5.  There  have  been numerous professional economic analyses of state
    39  and national single-payer  health  proposals,  including  the  New  York
    40  Health Act, by noted consulting firms and academic economists. They have
    41  almost  all  come  to  similar conclusions of net savings in the cost of
    42  health coverage and health care. These savings are driven by (a)  elimi-
    43  nating  the  administrative  bureaucracy costs, marketing, and profit of
    44  multiple health plans and replacing that  with  the  dramatically  lower
    45  costs  of  running a single-payer system; (b) substantially reducing the
    46  administrative costs borne by health care providers dealing  with  those
    47  health  plans; and (c) using the negotiating power of 20 million consum-
    48  ers to achieve lower drug prices. These savings will  more  than  offset
    49  costs primarily from (a) relieving patients of deductibles, co-pays, and
    50  out-of-network  charges;  (b)  covering  the  uninsured;  (c) increasing
    51  provider payment rates  above  Medicare  and  Medicaid  rates;  and  (d)
    52  replacing uncompensated home health care with paid care. Unlike premiums
    53  and out-of-pocket spending, the New York Health Act tax will be progres-
    54  sively  graduated  based  on  ability to pay.   The vast majority of New
    55  Yorkers today spend dramatically more in premiums, deductibles and other
    56  out-of-pocket costs than they will in New York Health Act taxes.    They

        S. 7590                             4

     1  will  have  broader  coverage  (including long-term care), no restricted
     2  provider networks or  out-of-network  charges,  and  no  deductibles  or
     3  co-pays.
     4    §  3.  Article 50 and sections 5000, 5001, 5002 and 5003 of the public
     5  health law are renumbered article 80 and sections 8000, 8001,  8002  and
     6  8003, respectively, and a new article 51 is added to read as follows:
     7                                 ARTICLE 51
     8                               NEW YORK HEALTH
     9  Section 5100. Definitions.
    10          5101. Program created.
    11          5102. Board of trustees.
    12          5103. Eligibility and enrollment.
    13          5104. Benefits.
    14          5105. Health  care providers; care coordination; payment method-
    15                  ologies.
    16          5106. Health care organizations.
    17          5107. Program standards.
    18          5108. Regulations.
    19          5109. Provisions relating to federal health programs.
    20          5110. Additional provisions.
    21          5111. Regional advisory councils.
    22    § 5100. Definitions. As used in  this  article,  the  following  terms
    23  shall  have  the following meanings, unless the context clearly requires
    24  otherwise:
    25    1. "Board" means the board of trustees of the New York Health  program
    26  created  by section fifty-one hundred two of this article, and "trustee"
    27  means a trustee of the board.
    28    2. "Care coordination" means, but is not limited to, managing,  refer-
    29  ring to, locating, coordinating, and monitoring health care services for
    30  the  member  to assure that all medically necessary health care services
    31  are made available to and are effectively used by the member in a timely
    32  manner, consistent with patient autonomy.  Care  coordination  does  not
    33  include  a  requirement for prior authorization for health care services
    34  or for referral for a member to receive a health care service.
    35    3. "Care coordinator"  means  an  individual  or  entity  approved  to
    36  provide  care  coordination  under  subdivision two of section fifty-one
    37  hundred five of this article.
    38    4. "Federally-subsidized public  health  program"  means  the  medical
    39  assistance  program  under  title  eleven  of article five of the social
    40  services law, the basic  health  program  under  section  three  hundred
    41  sixty-nine-gg  of  the  social  services  law, and the child health plus
    42  program under title one-A of article twenty-five of this chapter.
    43    5. "Health care organization" means an entity that is approved by  the
    44  commissioner  under  section  fifty-one  hundred  six of this article to
    45  provide health care services to members under the program.
    46    6. "Health care provider"  means  any  individual  or  entity  legally
    47  authorized  to  provide a health care service under Medicaid or Medicare
    48  or this article. "Health care professional" means a health care provider
    49  that is an  individual  licensed,  certified,  registered  or  otherwise
    50  authorized  to  practice under title eight of the education law or under
    51  this chapter to provide such health care service,  acting  within  their
    52  lawful scope of practice.
    53    7. "Health care service" means any health care service, including care
    54  coordination, included as a benefit under the program.
    55    8. "Implementation period" means the period under subdivision three of
    56  section  fifty-one  hundred one of this article during which the program

        S. 7590                             5

     1  will be subject to special eligibility and financing provisions until it
     2  is fully implemented under that section.
     3    9.  "Medicaid"  or  "medical assistance" means title eleven of article
     4  five of the social services law and  the  program  thereunder.    "Child
     5  health  plus"  means  title one-A of article twenty-five of this chapter
     6  and the program thereunder. "Medicare" means title XVIII of the  federal
     7  social  security act and the programs thereunder.  "Affordable care act"
     8  means the federal patient protection and affordable care act, public law
     9  111-148, as amended by the health care and education reconciliation  act
    10  of  2010,  public  law  111-152,  and as otherwise amended and any regu-
    11  lations or guidance issued thereunder.   "Basic  health  program"  means
    12  section  three  hundred sixty-nine-gg of the social services law and the
    13  program thereunder.
    14    10. "Member" or "enrollee" means an individual who is enrolled in  the
    15  program.
    16    11.  "New  York Health", "New York Health program", and "program" mean
    17  the New York Health program created by section fifty-one hundred one  of
    18  this article.
    19    12.  "New York Health trust fund" means the New York Health trust fund
    20  established under section eighty-nine-k of the state finance law.
    21    13. "Out-of-state health care service" means  a  health  care  service
    22  provided  to  a  member:  (a) while the member is temporarily out of the
    23  state and (i) it is medically necessary that the health care service  be
    24  provided  while the member is out of the state, or (ii) it is clinically
    25  appropriate that the health care service be  provided  by  a  particular
    26  health  care provider located out of the state rather than in the state;
    27  or (b) provided to a member deemed to be a  "resident"  under  paragraph
    28  (b)  of  subdivision  seventeen  of  this  section  in  the state of the
    29  member's primary place  of  abode.  However,  any  health  care  service
    30  provided  to a New York Health enrollee by a health care provider quali-
    31  fied under paragraph (a)  of  subdivision  three  of  section  fifty-one
    32  hundred five of this article that is located outside the state shall not
    33  be  considered an out-of-state service and shall be covered as otherwise
    34  provided in this article.
    35    14. "Participating provider" means any individual or entity that is  a
    36  health  care  provider  qualified  under  subdivision  three  of section
    37  fifty-one hundred  five  of  this  article  that  provides  health  care
    38  services to members under the program, or a health care organization.
    39    15.  "Person"  means any individual or natural person, trust, partner-
    40  ship, association,  unincorporated  association,  corporation,  company,
    41  limited  liability  company,  proprietorship, joint venture, firm, joint
    42  stock association, department, agency, authority, or other legal entity,
    43  whether for-profit, not-for-profit or governmental.
    44    16. "Prescription  drugs"  means  prescription  drugs  as  defined  in
    45  section  two  hundred  seventy  of  this chapter, and shall also include
    46  non-prescription smoking cessation products or devices.
    47    17. "Resident" means an individual (a) whose primary place of abode is
    48  in the state; or (b) in the case of an individual whose primary place of
    49  abode is not in the state, who is employed or self-employed full-time in
    50  the state.  Resident status shall be determined without  regard  to  the
    51  individual's  immigration  status,  and  according to regulations of the
    52  commissioner.  Such regulations shall include a  process  for  appealing
    53  denials of residency.
    54    §  5101.  Program  created.  1.  The New York Health program is hereby
    55  created in the department. The commissioner shall establish  and  imple-

        S. 7590                             6

     1  ment  the  program under this article. The program shall provide compre-
     2  hensive health coverage to every resident who enrolls in the program.
     3    2.  The  commissioner shall, to the maximum extent possible, organize,
     4  administer and market the program and services as a single program under
     5  the name "New York Health" or such other name as the commissioner  shall
     6  determine,  regardless  of under which law or source the definition of a
     7  benefit is found including retiree health benefits under  this  article.
     8  In  implementing this article, the commissioner shall avoid jeopardizing
     9  federal financial participation in these programs and shall take care to
    10  promote public understanding and awareness  of  available  benefits  and
    11  programs.
    12    3. The commissioner shall determine when individuals may begin enroll-
    13  ing in the program. There shall be an implementation period, which shall
    14  begin  on  the  date that individuals may begin enrolling in the program
    15  and shall end as determined by the commissioner.   Individuals  may  not
    16  enroll  in the New York Health program until the legislature has enacted
    17  the revenue proposal, as amended, and as the legislature  shall  further
    18  provide.
    19    4.  An  insurer authorized to provide coverage under the insurance law
    20  or a health maintenance organization certified under this  chapter  may,
    21  if  otherwise  authorized,  offer benefits that do not cover any service
    22  for which coverage is offered to individuals under the program, but  may
    23  not  offer benefits that cover any service for which coverage is offered
    24  to individuals under the program. Provided, however, that this  subdivi-
    25  sion shall not prohibit (a) the offering of any benefits to or for indi-
    26  viduals,  including their families, who are employed or self-employed in
    27  the state but who are not residents of the state, or (b) the offering of
    28  benefits during the implementation period to individuals who enrolled or
    29  may enroll as members of the program, or (c)  the  offering  of  retiree
    30  health benefits.
    31    5.  A  college, university or other institution of higher education in
    32  the state may purchase coverage under the program for  any  student,  or
    33  student's dependent, who is not a resident of the state.
    34    6.  To  the  extent any provision of this chapter, the social services
    35  law, the insurance law or the elder law:
    36    (a) is inconsistent with any provision of this article or the legisla-
    37  tive intent of the New York Health Act, this  article  shall  apply  and
    38  prevail,  except where explicitly provided otherwise by this article; or
    39  explicitly required by applicable federal law or regulations; and
    40    (b) is consistent with the provisions of this article and the legisla-
    41  tive intent of the New York Health Act, the provision of that law  shall
    42  apply.
    43    7.    (a) (i) The program shall be deemed to be a health care plan for
    44  purposes of external appeal under article  forty-nine  of  this  chapter
    45  (referred  to  in  this subdivision as "article forty-nine"), subject to
    46  this subdivision and any other applicable provision of this article.
    47    (ii)  An external appeal shall not require utilization  review  or  an
    48  adverse  determination  under  title  one  of article forty-nine of this
    49  chapter.  Any reference in article forty-nine to utilization review or a
    50  universal review agent shall mean the program.  Where the program  makes
    51  an  adverse  determination, an external appeal shall be automatic unless
    52  specifically waived or withdrawn by the member or the member's designee.
    53  Services, including services provided  for  a  chronic  condition,  will
    54  continue  unchanged until the outcome of the external appeal decision is
    55  issued. Where  an  external  appeal  is  initiated  or  pursued  by  the
    56  patient's  health care provider, the provider shall notify the member or

        S. 7590                             7

     1  the member's designee, and it  shall  be  subject  to  the  member's  or
     2  member's  designee's right to waive or withdraw the external appeal.  No
     3  fee shall be required to be paid by any  party  in  connection  with  an
     4  external appeal, including the member's health care provider.
     5    (iii)    Where an external appeal is denied, the external appeal agent
     6  shall notify the member or the member's designee and, where appropriate,
     7  the member's health care provider,  within  two  business  days  of  the
     8  determination.    The  notice shall include a statement that the member,
     9  member's designee or health care provider has the right  to  appeal  the
    10  determination to a fair hearing under this subdivision and seek judicial
    11  review.
    12    (iv)  An enrollee may designate a person or entity, including, but not
    13  limited  to,  the  enrollee's  family member, care coordinator, a health
    14  care organization providing the service under review  or  appeal,  or  a
    15  labor union or an entity affiliated with and designated by a labor union
    16  of  which the enrollee or enrollee's family member is a member, to serve
    17  as the enrollee's designee for purposes of that article, if  the  person
    18  or entity agrees to be the designee.
    19    (b)  (i)  This paragraph applies where an external appeal is denied in
    20  whole or in part; or the program  denies  coverage  for  a  health  care
    21  service  on  any  grounds  other  than  under article forty-nine; or the
    22  program makes any other determination as to a member or individual seek-
    23  ing to become a member, contrary to the interest of the member or  indi-
    24  vidual (including but not limited to a denial of eligibility for lack of
    25  residence).
    26    (ii)  The  program  shall  notify  the  member or individual, member's
    27  designee or health care provider, as appropriate, that  the  person  has
    28  the  right  to  appeal  the  determination  to a fair hearing under this
    29  subdivision or seek judicial review.
    30    (iii)  The commissioner shall establish by regulation  a  process  for
    31  fair  hearings  under this subdivision.   The process shall at a minimum
    32  conform to the standards for fair hearings under section  twenty-two  of
    33  the social services law.
    34    (c)    Article seventy-eight of the civil practice law and rules shall
    35  apply to any matter under this article.
    36    8. (a) No member shall be required to receive any health care  service
    37  through  any  entity  organized, certified or operating under guidelines
    38  under article forty-four of this chapter,  or  specified  under  section
    39  three hundred sixty-four-j of the social services law, the insurance law
    40  or  the  elder law. No such entity shall receive payment for health care
    41  services (other than care coordination) from the program.
    42    (b) However, this subdivision  shall  not  preclude  the  use  of  any
    43  program  or entity where reasonably necessary to maximize federal finan-
    44  cial participation or other federal financial support under any federal-
    45  ly-subsidized public health program, including but not limited to  Medi-
    46  caid,  Medicare,  or the Affordable Care Act, provided that such program
    47  or entity shall not deprive any member or health care  provider  of  any
    48  right   or   benefit under  the program under this article and otherwise
    49  consistent with this article (including but not limited to the scope  of
    50  benefits;  choice  of  health care provider; prohibition of deductibles,
    51  copayments or other co-insurance, or out-of-network charges; and payment
    52  for services) and shall, to the maximum extent feasible, operate in  the
    53  background, without burden on or interference with the member and health
    54  care provider.

        S. 7590                             8

     1    9. The program shall include provisions for appropriate reserves with-
     2  in  the  New  York  health  trust fund account established under section
     3  eighty-nine-k of the state finance law.
     4    10. (a) This subdivision applies to every person who is a retiree of a
     5  public  employer,  as  defined  in  section two hundred one of the civil
     6  service law, and any person who is a beneficiary of the retiree's public
     7  employee retiree health benefit. Any reference to the retiree shall mean
     8  and include any beneficiary of the retiree. This  subdivision  does  not
     9  create  or  increase  any  eligibility  for  any public employee retiree
    10  health benefit that would not otherwise exist and does not diminish  any
    11  public employee retiree health benefit.
    12    (b)  This  paragraph applies to the retiree while he or she is a resi-
    13  dent of New York state. The retiree shall enroll in the program.  If, by
    14  the end of the implementation period, the retiree has  not  enrolled  in
    15  the  program,  the commissioner shall enroll the retiree in the New York
    16  Health program. If the retiree's public employee retiree health  benefit
    17  includes  any  service  for  which coverage is not offered under the New
    18  York Health program, the retiree shall continue to receive that  benefit
    19  from the appropriate public employee retiree health benefit program.
    20    (c)  For  every retiree, while he or she is not a resident of New York
    21  state, the appropriate public employee retiree  health  benefit  program
    22  shall  maintain  the retiree's public employee retiree health benefit as
    23  if this article had not been enacted.
    24    § 5102. Board of trustees. 1. The New York Health board of trustees is
    25  hereby created in the department. The board of trustees  shall,  at  the
    26  request  of  the  commissioner,  consider  any  matter to effectuate the
    27  provisions and purposes of this article, and may advise the commissioner
    28  thereon; and it may, from time to time, submit to the  commissioner  any
    29  recommendations  to effectuate the provisions and purposes of this arti-
    30  cle. The commissioner may propose regulations  under  this  article  and
    31  amendments thereto for consideration by the board. The board of trustees
    32  shall  have  no executive, administrative or appointive duties except as
    33  otherwise provided by law. The board of trustees  shall  have  power  to
    34  establish,  and  from  time to time, amend regulations to effectuate the
    35  provisions and purposes of this article,  subject  to  approval  by  the
    36  commissioner.
    37    2. The board shall be composed of:
    38    (a)  the  commissioner,  the superintendent of financial services, and
    39  the director of the budget, or their designees, as ex officio members;
    40    (b) thirty-one trustees appointed by the governor;
    41    (i) six of whom shall be representatives of health care consumer advo-
    42  cacy organizations which have a statewide or regional constituency,  who
    43  have  been  involved  in  issues of interest to low- and moderate-income
    44  individuals, older adults, and people with disabilities; at least  three
    45  of whom shall represent organizations led by consumers in those groups;
    46    (ii)  three of whom shall be representatives of professional organiza-
    47  tions representing physicians;
    48    (iii) five of whom shall be representatives of professional  organiza-
    49  tions  representing  licensed  or  registered  health care professionals
    50  other than physicians;
    51    (iv) three of whom shall be representatives of general hospitals,  one
    52  of whom shall be a representative of public general hospitals;
    53    (v) one of whom shall be a representative of community health centers;
    54    (vi)  two  of  whom shall be representatives of rehabilitation or home
    55  care providers;

        S. 7590                             9

     1    (vii) two of whom shall be representatives  of  behavioral  or  mental
     2  health or disability service providers;
     3    (viii)  two  of whom shall be representatives of health care organiza-
     4  tions;
     5    (ix) three of whom shall be representatives of organized labor;
     6    (x) two of whom shall  have  demonstrated  expertise  in  health  care
     7  finance; and
     8    (xi)  two  of  whom shall be employers or representatives of employers
     9  who pay the payroll tax under this article, or, prior to the tax  becom-
    10  ing effective, will pay the tax; and
    11    (c)  fourteen  trustees  appointed by the governor; five of whom to be
    12  appointed on the recommendation of the speaker of the assembly; five  of
    13  whom to be appointed on the recommendation of the temporary president of
    14  the  senate;  two  of  whom to be appointed on the recommendation of the
    15  minority leader of the assembly; and two of whom to be appointed on  the
    16  recommendation of the minority leader of the senate.
    17    3.  (a) After the end of the implementation period, no person shall be
    18  a trustee unless he or she is a member of the program.
    19    (b) Each trustee shall serve at the pleasure of the  appointing  offi-
    20  cer, except the ex officio trustees.
    21    4.  The  chair  of the board shall be appointed, and may be removed as
    22  chair, by the governor from among the trustees. The board shall meet  at
    23  least  four  times  each  calendar year. Meetings shall be held upon the
    24  call of the chair and as provided  by  the  board.  A  majority  of  the
    25  appointed  trustees  shall be a quorum of the board, and the affirmative
    26  vote of a majority of the trustees voting, but  not  less  than  twelve,
    27  shall  be  necessary  for any action to be taken by the board. The board
    28  may establish an executive committee to exercise any powers or duties of
    29  the board as it may provide, and other committees to assist the board or
    30  the executive committee. The chair of the board shall chair  the  execu-
    31  tive  committee  and  shall  appoint  the chair and members of all other
    32  committees. The board of trustees  may  appoint  one  or  more  advisory
    33  committees.  Members  of  advisory committees need not be members of the
    34  board of trustees.
    35    5. Trustees shall serve without compensation but shall  be  reimbursed
    36  for  their  necessary  and actual expenses incurred while engaged in the
    37  business of the board.  However, the board may provide for  compensation
    38  in cases where a lack of compensation would limit the ability of a trus-
    39  tee or represented organization to participate in board business.
    40    6. Notwithstanding any provision of law to the contrary, no officer or
    41  employee of the state or any local government shall forfeit or be deemed
    42  to  have forfeited their office or employment by reason of being a trus-
    43  tee.
    44    7. The board and its committees and advisory  committees  may  request
    45  and  receive  the  assistance  of  the department and any other state or
    46  local governmental entity in exercising its powers and duties.
    47    8. No later than eighteen months after  the  effective  date  of  this
    48  article:
    49    (a)  The  board shall develop proposals for: (i) incorporating retiree
    50  health benefits into New York Health; (ii) accommodating employer  reti-
    51  ree  health benefits for people who have been members of New York Health
    52  but live as retirees out of the state; and (iii) accommodating  employer
    53  retiree  health  benefits for people who earned or accrued such benefits
    54  while residing in the state prior to  the  implementation  of  New  York
    55  Health and live as retirees out of the state.

        S. 7590                            10

     1    (b) The board shall develop a proposal for New York Health coverage of
     2  health  care  services  covered  under  the  workers'  compensation law,
     3  including whether and how to continue funding for those  services  under
     4  that  law  and  whether  and how to incorporate an element of experience
     5  rating.
     6    (c)  The  board shall develop a proposal for New York Health coverage,
     7  for members, of health care services  covered  under  paragraph  one  of
     8  subsection  (a)  of  section  fifty-one hundred two of the insurance law
     9  relating to motor vehicle insurance reparations, including  whether  and
    10  how to continue funding for those services.
    11    (d)  The  board  shall  develop  a proposal for integration of federal
    12  veterans health administration programs with New York Health coverage of
    13  health care services; provided however that enrollment in or eligibility
    14  for federal veterans health administration programs shall not  affect  a
    15  resident's eligibility for New York Health coverage.
    16    (e)  The  board    shall    present all proposals developed under this
    17  subdivision to the governor and the legislature.
    18    § 5103. Eligibility and enrollment. 1. Every  resident  of  the  state
    19  shall be eligible and entitled to enroll as a member under the program.
    20    2.  No individual shall be required to pay any premium or other charge
    21  for enrolling in or being a member under the program.
    22    3. A newborn child shall be enrolled as of the  date  of  the  child's
    23  birth  if  enrollment is done prior to the child's birth or within sixty
    24  days after the child's birth.
    25    § 5104. Benefits. 1. The program shall  provide  comprehensive  health
    26  coverage  to  every member, which shall include all health care services
    27  required to be covered under any of the  following,  without  regard  to
    28  whether  the  member  would  otherwise be eligible for or covered by the
    29  program or source referred to:
    30    (a) child health plus;
    31    (b) Medicaid, including but not limited  to  services  provided  under
    32  Medicaid  waiver  programs,  including  but not limited to those granted
    33  under section 1915 of the federal social security act  to  persons  with
    34  traumatic  brain  injuries  or qualifying for nursing home diversion and
    35  transition services;
    36    (c) Medicare;
    37    (d) article forty-four  of  this  chapter  or  article  thirty-two  or
    38  forty-three of the insurance law;
    39    (e) article eleven of the civil service law, and any employee or reti-
    40  ree health benefit plan of any public employer as defined in section two
    41  hundred one of the civil service law, as of the date one year before the
    42  beginning of the implementation period;
    43    (f) the basic health plan;
    44    (g)  reimbursement  for  any  costs or expenses incurred as defined in
    45  paragraph one of subsection (a) of section fifty-one hundred two of  the
    46  insurance  law,  provided  that this coverage shall not replace coverage
    47  under article fifty-one of the insurance law;
    48    (h) any additional health care service authorized to be added  to  the
    49  program's benefits by the program; and
    50    (i)  provided  that  where  any state law or regulation related to any
    51  federally-subsidized public health program  states  that  a  benefit  is
    52  contingent  on federal financial participation, or words to that effect,
    53  the benefit shall be included under the New York Health program  without
    54  regard to federal financial participation.
    55    2. No member shall be required to pay any premium, deductible, co-pay-
    56  ment or co-insurance under the program.

        S. 7590                            11

     1    3. The program shall provide for payment under the program for:
     2    (a)  emergency and temporary health care services provided to a member
     3  or individual entitled to become a member who has not had  a  reasonable
     4  opportunity to become a member or to enroll with a care coordinator; and
     5    (b) health care services provided in an emergency to an individual who
     6  is  entitled  to  become  a  member or enrolled with a care coordinator,
     7  regardless of having had an opportunity to do so.
     8    § 5105. Health care providers; care  coordination;  payment  methodol-
     9  ogies.   1. Choice of health care provider. (a) Any health care provider
    10  qualified to participate under this  section  may  provide  health  care
    11  services  under  the  program, provided that the health care provider is
    12  otherwise legally authorized to perform the health care service for  the
    13  individual and under the circumstances involved.
    14    (b)  A  member  may  choose  to receive health care services under the
    15  program from any participating provider, consistent with  provisions  of
    16  this  article  relating  to  care coordination and health care organiza-
    17  tions, the willingness or  availability  of  the  provider  (subject  to
    18  provisions  of  this article relating to discrimination), and the appro-
    19  priate clinically-relevant circumstances.
    20    2. Care coordination. (a) A care coordinator may be an  individual  or
    21  entity that is approved by the program that is:
    22    (i)  a  health care practitioner who is: (A) the member's primary care
    23  practitioner; (B) at the option of a female member, the member's provid-
    24  er of primary gynecological care; or (C) at the option of a  member  who
    25  has  a  chronic  condition  that  requires  specialty care, a specialist
    26  health care practitioner who regularly and continually  provides  treat-
    27  ment for that condition to the member;
    28    (ii)  an entity licensed under article twenty-eight of this chapter or
    29  certified under article thirty-six of this chapter, or, with respect  to
    30  a  member  who  receives  chronic mental health care services, an entity
    31  licensed under article thirty-one of the mental  hygiene  law  or  other
    32  entity approved by the commissioner in consultation with the commission-
    33  er of mental health;
    34    (iii) a health care organization;
    35    (iv)  a  labor  union or an entity affiliated with and designated by a
    36  labor union of which the enrollee  or  enrollee's  family  member  is  a
    37  member,  with  respect to its members and their family members; provided
    38  that this provision shall not preclude such an entity  from  becoming  a
    39  care  coordinator  under  subparagraph (v) of this paragraph or a health
    40  care organization under section fifty-one hundred six of  this  article;
    41  or
    42    (v) any not-for-profit or governmental entity approved by the program.
    43    (b)(i)  Every  member shall enroll with a care coordinator that agrees
    44  to provide care coordination to the member  prior  to  receiving  health
    45  care  services  to  be paid for under the program.  Health care services
    46  provided to a member shall not be subject to payment under  the  program
    47  unless  the  member  is enrolled with a care coordinator at the time the
    48  health care service is provided.
    49    (ii) This paragraph shall not apply to health care  services  provided
    50  under  subdivision three of section fifty-one hundred four of this arti-
    51  cle (certain emergency or temporary services).
    52    (iii) The member shall remain  enrolled  with  that  care  coordinator
    53  until  the  member becomes enrolled with a different care coordinator or
    54  ceases to be a member. Members have the right to change their care coor-
    55  dinator on terms at least as permissive as  the  provisions  of  section
    56  three  hundred  sixty-four-j  of  the social services law relating to an

        S. 7590                            12

     1  individual changing their primary care provider or managed care  provid-
     2  er.
     3    (c)  Care coordination shall be provided to the member by the member's
     4  care coordinator.  A care coordinator may employ or utilize the services
     5  of other individuals or entities to assist  in  providing  care  coordi-
     6  nation for the member, consistent with regulations of the commissioner.
     7    (d)  A  health  care organization may establish rules relating to care
     8  coordination for members in the health care organization, different from
     9  this subdivision but otherwise consistent with this  article  and  other
    10  applicable laws.
    11    (e) The commissioner shall develop and implement procedures and stand-
    12  ards for an individual or entity to be approved to be a care coordinator
    13  in  the  program,  including but not limited to procedures and standards
    14  relating to the revocation,  suspension,  limitation,  or  annulment  of
    15  approval  on a determination that the individual or entity is not quali-
    16  fied or competent to be a care coordinator or has exhibited a course  of
    17  conduct  which  is  either inconsistent with program standards and regu-
    18  lations or which exhibits an unwillingness to meet  such  standards  and
    19  regulations,  or  is  a potential threat to the public health or safety.
    20  Such procedures and standards shall not limit  approval  to  be  a  care
    21  coordinator  in  the  program  for  criteria other than those under this
    22  section and shall be consistent  with  good  professional  practice.  In
    23  developing  the  procedures  and  standards, the commissioner shall: (i)
    24  consider  existing  standards  developed  by  national  accrediting  and
    25  professional  organizations;  and  (ii)  consult with national and local
    26  organizations working on care coordination or similar models,  including
    27  health  care practitioners, hospitals, clinics, birth centers, long-term
    28  supports and service providers, consumers and their representatives, and
    29  labor organizations representing health care  workers.  When  developing
    30  and implementing standards of approval of care coordinators for individ-
    31  uals  receiving  chronic  mental  health care services, the commissioner
    32  shall consult with the commissioner of mental health. An  individual  or
    33  entity  may  not  be  a care coordinator unless the services included in
    34  care coordination are within  the  individual's  professional  scope  of
    35  practice or the entity's legal authority.
    36    (f)  To  maintain approval under the program, a care coordinator must:
    37  (i) renew its status at a frequency determined by the commissioner;  and
    38  (ii)  provide  data to the department as required by the commissioner to
    39  enable the commissioner to evaluate the impact of care  coordinators  on
    40  quality, outcomes, cost, and patient and provider satisfaction.
    41    (g)  Nothing  in  this  subdivision  shall authorize any individual or
    42  entity to engage in any act in violation of title eight of the education
    43  law.
    44    3. Health care providers. (a) The  commissioner  shall  establish  and
    45  maintain procedures and standards for health care providers to be quali-
    46  fied  to participate in the program, including but not limited to proce-
    47  dures and standards relating to the revocation, suspension,  limitation,
    48  or annulment of qualification to participate on a determination that the
    49  health  care  provider is not qualified or competent to be a provider of
    50  specific health care services or has exhibited a course of conduct which
    51  is either inconsistent with program standards and regulations  or  which
    52  exhibits  an unwillingness to meet such standards and regulations, or is
    53  a potential threat to the public health or safety. Such  procedures  and
    54  standards  shall  not  limit  health  care provider participation in the
    55  program for criteria other than those under this section  and  shall  be
    56  consistent  with good professional practice.  Such procedures and stand-

        S. 7590                            13

     1  ards may be different for different types of health care  providers  and
     2  health  care  professionals.    The commissioner may require that health
     3  care providers and health care professionals  participate  in  Medicaid,
     4  child health plus, or Medicare to qualify to participate in the program.
     5  Any  health  care  provider that is qualified to participate under Medi-
     6  caid, child health plus or Medicare shall be deemed to be  qualified  to
     7  participate  in  the program, and any health care provider's revocation,
     8  suspension, limitation, or annulment of qualification to participate  in
     9  any  of  those programs shall apply to the health care provider's quali-
    10  fication to participate in the program;  provided  that  a  health  care
    11  provider  qualified  under  this sentence shall follow the procedures to
    12  become qualified under the program by  the  end  of  the  implementation
    13  period.
    14    (b) The commissioner shall establish and maintain procedures and stan-
    15  dards for recognizing health care providers located out of the state for
    16  purposes of providing coverage under the program for out-of-state health
    17  care services.
    18    (c)  Procedures  and  standards  under  this subdivision shall include
    19  provisions for expedited temporary qualification to participate  in  the
    20  program for health care professionals who are (i) temporarily authorized
    21  to  practice  in  the state or (ii) are recently arrived in the state or
    22  recently authorized to practice in the state.
    23    4. Payment for health care services.  (a)  (i)  The  commissioner  may
    24  establish  by  regulation payment methodologies for health care services
    25  and care coordination provided to members under the program  by  partic-
    26  ipating  providers,  care  coordinators,  and health care organizations.
    27  There may be a variety of  different  payment  methodologies,  including
    28  those established on a demonstration basis.
    29    (ii)  All  payment  methodologies and rates under the program shall be
    30  reasonable and reasonably related to the cost of  efficiently  providing
    31  the  health  care service and assuring an adequate and accessible supply
    32  of the health care service.
    33    (iii) In determining such payment methodologies and rates, the commis-
    34  sioner shall consider factors including usual and customary rates  imme-
    35  diately prior to the implementation of the program, reported in a bench-
    36  marking database maintained by a nonprofit organization specified by the
    37  superintendent of financial services, under section six hundred three of
    38  the  financial services law; the level of training, education, and expe-
    39  rience of the health care provider or providers involved; and the  scope
    40  of  services, complexity, and circumstances of care including geographic
    41  factors. Until and unless other  applicable  payment  methodologies  are
    42  established,  health care services provided to members under the program
    43  shall be paid for on a fee-for-service basis, except  for  care  coordi-
    44  nation.
    45    (b)  The  program  shall engage in good faith negotiations with health
    46  care providers' representatives under title III of article forty-nine of
    47  this chapter, including, but not limited to, in  relation  to  rates  of
    48  payment and payment methodologies.
    49    (c) (i) Prescription drugs eligible for reimbursement under this arti-
    50  cle and dispensed by a pharmacy shall be provided and paid for under the
    51  preferred  drug program and the clinical drug review program under title
    52  one of article two-A of this chapter, except as  otherwise  provided  in
    53  this paragraph.
    54    (ii)  Where  prescription  drugs are not dispensed through a pharmacy,
    55  payment shall be made as otherwise provided in this  article,  including
    56  use of the 340B program as appropriate.

        S. 7590                            14

     1    (d)  Payment  for  health care services established under this article
     2  shall be considered payment in full. A participating provider shall  not
     3  charge  any rate in excess of the payment established under this article
     4  for any health care service provided under the  program  and  shall  not
     5  solicit  or  accept  payment from any member or third party for any such
     6  service except as provided under section fifty-one hundred nine of  this
     7  article.    However,  this paragraph shall not preclude the program from
     8  acting as a primary or  secondary  payer  in  conjunction  with  another
     9  third-party  payer  where permitted under section fifty-one hundred nine
    10  of this article.
    11    (e) The program may provide in payment methodologies for  payment  for
    12  capital  related  expenses  for specifically identified capital expendi-
    13  tures.
    14    (f) Payment methodologies and rates shall include a distinct component
    15  of reimbursement for direct and indirect graduate medical  education  as
    16  defined,  calculated  and implemented under section twenty-eight hundred
    17  seven-c of this chapter.
    18    (g) The commissioner shall provide by  regulation for payment  method-
    19  ologies and procedures for paying for out-of-state health care services.
    20    5.  Prior  authorization. The program shall not require prior authori-
    21  zation for any health care service in any  manner  more  restrictive  of
    22  access  to  or  payment  for  the service than would be required for the
    23  service under Medicare  Part  A  or  Part  B.  Prior  authorization  for
    24  prescription  drugs  provided  by  pharmacies under the program shall be
    25  under title one of article two-A of this chapter.
    26    § 5106. Health care organizations. 1. A member may  choose  to  enroll
    27  with  and  receive  health care services under the program from a health
    28  care organization.
    29    2. A health care organization shall be  a  not-for-profit  or  govern-
    30  mental entity that is approved by the commissioner that is:
    31    (a)  an  accountable  care organization under article twenty-nine-E of
    32  this chapter; or
    33    (b) a labor union or an entity affiliated with  and  designated  by  a
    34  labor  union  of  which  the  enrollee  or enrollee's family member is a
    35  member (i) with respect to its members and  their  family  members,  and
    36  (ii)  if allowed by applicable law and approved by the commissioner, for
    37  other members of the program.
    38    3. A health care organization may be responsible for providing all  or
    39  part of the health care services to which its members are entitled under
    40  the  program,  consistent  with the terms of its approval by the commis-
    41  sioner.
    42    4. (a) The commissioner shall develop  and  implement  procedures  and
    43  standards  for an entity to be approved to be a health care organization
    44  in the program, including but not limited to  procedures  and  standards
    45  relating  to  the  revocation,  suspension,  limitation, or annulment of
    46  approval on a determination that the entity is not  competent  to  be  a
    47  health  care  organization or has exhibited a course of conduct which is
    48  either inconsistent with program  standards  and  regulations  or  which
    49  exhibits  an unwillingness to meet such standards and regulations, or is
    50  a potential threat to the public health or safety. Such  procedures  and
    51  standards  shall  not limit approval to be a health care organization in
    52  the program for criteria other than those under this section  and  shall
    53  be  consistent with good professional practice. In developing the proce-
    54  dures and standards, the commissioner shall: (i) consider existing stan-
    55  dards developed by national accrediting and professional  organizations;
    56  and  (ii)  consult  with national and local organizations working in the

        S. 7590                            15

     1  field of health care organizations, including health care practitioners,
     2  hospitals,  clinics,  birth  centers,  long-term  supports  and  service
     3  providers,  consumers  and their representatives and labor organizations
     4  representing health care workers. When developing and implementing stan-
     5  dards  of  approval of health care organizations, the commissioner shall
     6  consult with the commissioner of  mental  health,  the  commissioner  of
     7  developmental  disabilities,  the  director  of the state office for the
     8  aging,  the  commissioner  of  the  office  of  addiction  services  and
     9  supports, and the commissioner of the division of human rights.
    10    (b) To maintain approval under the program, a health care organization
    11  must:  (i) renew its status at a frequency determined by the commission-
    12  er; and (ii) provide data to the department as required by  the  commis-
    13  sioner  to enable the commissioner to evaluate the health care organiza-
    14  tion in relation  to  quality  of  health  care  services,  health  care
    15  outcomes, cost, and patient and provider satisfaction.
    16    5.  The  commissioner  shall  make regulations relating to health care
    17  organizations consistent with and to ensure compliance with  this  arti-
    18  cle.
    19    6.  The  provision of health care services directly or indirectly by a
    20  health care organization through health  care  providers  shall  not  be
    21  considered  the practice of a profession under title eight of the educa-
    22  tion law by the health care organization.
    23    §  5107.  Program  standards.  1.  The  commissioner  shall  establish
    24  requirements and standards for the program and for health care organiza-
    25  tions,  care  coordinators,  and  health care providers, consistent with
    26  this article, including requirements and standards for, as applicable:
    27    (a) the scope, quality and accessibility of health care services;
    28    (b) relations between health care organizations or health care provid-
    29  ers and members; and
    30    (c) relations  between  health  care  organizations  and  health  care
    31  providers,  including  (i) credentialing and participation in the health
    32  care organization; and (ii) terms, methods and rates of payment.
    33    2. Requirements and standards under the program shall include, but not
    34  be limited to, provisions to promote the following:
    35    (a) simplification, transparency, uniformity, and fairness  in  health
    36  care  provider  credentialing and participation in health care organiza-
    37  tion networks, referrals, payment procedures and rates, claims  process-
    38  ing, and approval of health care services, as applicable;
    39    (b)  primary  and  preventive  care,  care coordination, efficient and
    40  effective health care  services,  quality  assurance,  coordination  and
    41  integration  of health care services, including use of appropriate tech-
    42  nology, and promotion of public, environmental and occupational health;
    43    (c) elimination of health care disparities;
    44    (d) non-discrimination with respect to members and health care provid-
    45  ers on the basis of race, ethnicity, national origin, religion, disabil-
    46  ity, age, sex, sexual orientation, gender  identity  or  expression,  or
    47  economic  circumstances;  provided  that  health  care services provided
    48  under the program shall be appropriate to the patient's clinically-rele-
    49  vant circumstances;
    50    (e) accessibility  of  care  coordination,  health  care  organization
    51  services  and  health  care services, including accessibility for people
    52  with disabilities and people with limited ability to speak or understand
    53  English, and the providing of care coordination, health  care  organiza-
    54  tion services and health care services in a culturally competent manner;
    55  and

        S. 7590                            16

     1    (f)  especially  in  relation  to long-term supports and services, the
     2  maximization and prioritization of the most  integrated  community-based
     3  supports and services.
     4    3. Any participating provider or care coordinator that is organized as
     5  a  for-profit  entity (other than a professional practice of one or more
     6  health care professionals) shall be required to meet the  same  require-
     7  ments  and  standards  as entities organized as not-for-profit entities,
     8  and payments under the program paid to such entities shall not be calcu-
     9  lated to accommodate the generation of profit or revenue  for  dividends
    10  or  other return on investment or the payment of taxes that would not be
    11  paid by a not-for-profit entity.
    12    4. Every participating provider shall  furnish  to  the  program  such
    13  information  to,  and permit examination of its records by, the program,
    14  as may be reasonably required for purposes  of  reviewing  accessibility
    15  and  utilization  of  health care services, quality assurance, promoting
    16  improved patient outcomes and cost containment, the making of  payments,
    17  and  statistical or other studies of the operation of the program or for
    18  protection and  promotion  of  public,  environmental  and  occupational
    19  health.
    20    5.  In  developing  requirements and standards and making other policy
    21  determinations under this article, the commissioner shall  consult  with
    22  the  commissioner  of  mental  health, the commissioner of developmental
    23  disabilities, the director of  the  state  office  for  the  aging,  the
    24  commissioner  of  the  office  of  addiction  services and supports, the
    25  commissioner  of  the  division  of  human  rights,  representatives  of
    26  members, health care providers, care coordinators, health care organiza-
    27  tions    employers,  organized labor including representatives of health
    28  care workers, and other interested parties.
    29    6. The program shall maintain the security and confidentiality of  all
    30  data  and  other  information collected under the program when such data
    31  would be normally considered confidential patient data.  Aggregate  data
    32  of  the  program  which  is  derived from confidential data but does not
    33  violate patient confidentiality shall be  public  information  including
    34  for purposes of article six of the public officers law.
    35    §  5108.  Regulations.  The  commissioner shall make regulations under
    36  this article by approving  regulations  and  amendments  thereto,  under
    37  subdivision  one  of  section fifty-one hundred two of this article. The
    38  commissioner may make regulations or amendments thereto under this arti-
    39  cle on an emergency basis under section two hundred  two  of  the  state
    40  administrative  procedure  act, provided that such regulations or amend-
    41  ments shall not become permanent unless adopted under subdivision one of
    42  section fifty-one hundred two of this article.
    43    § 5109. Provisions relating to federal health programs. 1. The commis-
    44  sioner shall seek all federal waivers and other  federal  approvals  and
    45  arrangements and submit state plan amendments appropriate to operate the
    46  program consistent with this article to the maximum extent possible.  No
    47  provision of this article and no action under the program shall diminish
    48  any  right or benefit the member or health care provider would otherwise
    49  have under any federally-subsidized public health program or Medicare.
    50    2. (a) The commissioner shall apply to the  secretary  of  health  and
    51  human  services or other appropriate federal official for all waivers of
    52  requirements, and make other arrangements, under Medicare, any  federal-
    53  ly-subsidized  public  health  program, the affordable care act, and any
    54  other federal programs that provide federal funds for payment for health
    55  care services, that are  appropriate  to  enable  all  New  York  Health
    56  members to receive all benefits under the program through the program to

        S. 7590                            17

     1  enable  the  state  to implement this article and to receive and deposit
     2  all federal payments under those programs (including funds that  may  be
     3  provided  in  lieu  of  premium tax credits, cost-sharing subsidies, and
     4  small  business  tax credits) in the state treasury to the credit of the
     5  New York Health trust fund and to use  those  funds  for  the  New  York
     6  Health  program  and  other provisions under this article. To the extent
     7  possible, the commissioner shall negotiate arrangements with the federal
     8  government in which bulk or lump-sum federal payments are  paid  to  New
     9  York  Health in place of federal spending or tax benefits for federally-
    10  subsidized public health programs  or  federal  health  programs.    The
    11  commissioner shall take actions under paragraph (b) of subdivision eight
    12  of  section  fifty-one  hundred one of this article as reasonably neces-
    13  sary.
    14    (b) The commissioner may require members or applicants to  be  members
    15  to  provide  information  necessary  for  the program to comply with any
    16  waiver or arrangement under this subdivision.
    17    3. (a) The commissioner may take actions consistent with this  article
    18  to  enable  New  York  Health  to administer Medicare in New York state,
    19  including but not limited to actions necessary to be a provider of  drug
    20  coverage under Medicare part D for eligible members of New York Health.
    21    (b)  The  commissioner  may  waive  or  modify  the  applicability  of
    22  provisions of this section relating to any  federally-subsidized  public
    23  health  program  or  Medicare  as  necessary  to implement any waiver or
    24  arrangement under this section or to maximize the  benefit  to  the  New
    25  York  Health program under this section, provided that the commissioner,
    26  in consultation with the director of the budget,  shall  determine  that
    27  such  waiver  or  modification  is  in the best interests of the members
    28  affected by the action and the state.
    29    (c) The commissioner may apply for coverage under any federally-subsi-
    30  dized public health program on behalf  of  any  member  and  enroll  the
    31  member  in the federally-subsidized public health program or Medicare if
    32  the member is eligible for it.   Enrollment  in  a  federally-subsidized
    33  public health program or Medicare shall not cause any member to lose any
    34  health  care  service  provided  by the program or diminish any right or
    35  benefit the member would otherwise have.
    36    (d) The commissioner shall by regulation increase the income eligibil-
    37  ity level, increase or eliminate  the  resource  test  for  eligibility,
    38  simplify any procedural or documentation requirement for enrollment, and
    39  increase   the  benefits  for  any  federally-subsidized  public  health
    40  program, and for any program to  reduce  or  eliminate  an  individual's
    41  coinsurance, cost-sharing or premium obligations or increase an individ-
    42  ual's  eligibility for any federal financial support related to Medicare
    43  or the affordable care act notwithstanding any law or regulation to  the
    44  contrary.  The commissioner may act under this paragraph upon a finding,
    45  approved by the director of the budget, that the action (i) will help to
    46  increase the number of members who are  eligible  for  and  enrolled  in
    47  federally-subsidized  public  health  programs,  or  for  any program to
    48  reduce or eliminate an individual's coinsurance, cost-sharing or premium
    49  obligations or increase an  individual's  eligibility  for  any  federal
    50  financial  support  related to Medicare or the affordable care act; (ii)
    51  will not diminish any individual's access to any  health  care  service,
    52  benefit  or  right  the individual would otherwise have; (iii) is in the
    53  interest of the program; and (iv) does not require or has  received  any
    54  necessary  federal  waivers  or  approvals  to  ensure federal financial
    55  participation.

        S. 7590                            18

     1    (e) To enable the commissioner to  apply  for  coverage  or  financial
     2  support  under  any  federally-subsidized  public  health  program,  the
     3  Affordable Care Act, or Medicare on behalf of any member and enroll  the
     4  member  in  any such program, including an entity under paragraph (b) of
     5  subdivision  eight  of  section fifty-one hundred one of this article if
     6  the member is eligible for it, the commissioner may require  that  every
     7  member  or  applicant to be a member shall provide information to enable
     8  the commissioner to determine whether the applicant is eligible for such
     9  program.  The program shall make a reasonable effort to  notify  members
    10  of their obligations under this paragraph. After a reasonable effort has
    11  been made to contact the member, the member shall be notified in writing
    12  that  he  or she has sixty days to provide such required information. If
    13  such information is not  provided  within  the  sixty  day  period,  the
    14  member's coverage under the program may be terminated. Upon the member's
    15  satisfactory  provision  of the information, the member's coverage under
    16  the program shall be reinstated retroactive to the date upon  which  the
    17  coverage was terminated.
    18    (f)  To the extent necessary for purposes of this section, as a condi-
    19  tion of  continued  eligibility  for  health  care  services  under  the
    20  program,  a  member  who  is  eligible for benefits under Medicare shall
    21  enroll in Medicare, including parts A, B and D.
    22    (g) The program shall  provide  premium  assistance  for  all  members
    23  enrolling  in  a  Medicare  part  D drug coverage under section 1860D of
    24  Title XVIII of the federal social security act limited to the low-income
    25  benchmark premium amount established by the federal centers for Medicare
    26  and Medicaid services and any other amount which such agency establishes
    27  under its de minimis premium  policy,  except  that  such  payments  may
    28  exceed  the low-income benchmark premium amount if determined to be cost
    29  effective to the program.
    30    (h) If the commissioner has  reasonable  grounds  to  believe  that  a
    31  member  could  be  eligible  for an income-related subsidy under section
    32  1860D-14 of Title XVIII of the federal social security act,  the  member
    33  shall  provide,  and authorize the program to obtain, any information or
    34  documentation required to establish the member's  eligibility  for  such
    35  subsidy,  provided that the commissioner shall attempt to obtain as much
    36  of the information and documentation as possible from records  that  are
    37  available to him or her.
    38    (i)  The  program  shall make a reasonable effort to notify members of
    39  their obligations under this subdivision. After a reasonable effort  has
    40  been made to contact the member, the member shall be notified in writing
    41  that  he  or she has sixty days to provide such required information. If
    42  such information is not  provided  within  the  sixty  day  period,  the
    43  member's  coverage  under  the  program  may  be  terminated.   Upon the
    44  member's satisfactory provision of the information, the member's  cover-
    45  age  under  the program shall be reinstated retroactive to the date upon
    46  which the coverage was terminated.
    47    4.  No action under this section shall deprive any  member  or  health
    48  care provider of any right or benefit under the program and shall other-
    49  wise  be  consistent  with  this article (including, but not limited to,
    50  complying with provisions  of  this  article  relating  to  health  care
    51  provider  payment  levels;  barring  premiums,  deductibles, copayments,
    52  other coinsurance and restricted provider networks;  and  providing  for
    53  choice of provider and prescription drug coverage).
    54    §  5110.  Additional  provisions.   1. The commissioner shall contract
    55  with not-for-profit organizations to provide:

        S. 7590                            19

     1    (a) consumer assistance to individuals with respect to  selection  and
     2  changing  selection  of  a care coordinator or health care organization,
     3  enrolling, obtaining health care services, and other matters relating to
     4  the program;
     5    (b) health care provider assistance to health care providers providing
     6  and  seeking  or  considering  whether  to provide, health care services
     7  under the program, with respect to participating in a health care organ-
     8  ization and dealing with a health care organization; and
     9    (c) care coordinator assistance to individuals and entities  providing
    10  and  seeking  or  considering  whether  to provide, care coordination to
    11  members.
    12    2. The commissioner shall provide grants from funds in  the  New  York
    13  Health  trust fund or otherwise appropriated for this purpose, to health
    14  systems agencies under section twenty-nine hundred four-b of this  chap-
    15  ter to support the operation of such health systems agencies.
    16    3.  Retraining and re-employment of impacted employees. (a) As used in
    17  this subdivision:
    18    (i) "Third party payer" has its  ordinary  meaning  and  includes  any
    19  entity  that  provides or arranges reimbursement in whole or in part for
    20  the purchase of health care services.
    21    (ii) "Health care provider administrative employee" means an  employee
    22  of  a  health  care  provider primarily engaged in relations or dealings
    23  with third party payers or seeking payment or reimbursement  for  health
    24  care services from third party payers.
    25    (iii)  "Impacted  employee"  means an individual who, at any time from
    26  the date this section becomes a law until two years after the end of the
    27  implementation period, is employed by a third party payer or is a health
    28  care provider administrative employee, and whose employment ends  or  is
    29  reasonably  anticipated  to end as a result of the implementation of the
    30  New York Health program.
    31    (b) Within ninety days after this section  shall  become  a  law,  the
    32  commissioner  of labor shall convene a retraining and re-employment task
    33  force  including  but  not  limited  to:  representatives  of  potential
    34  impacted employees, human resource departments of third party payers and
    35  health  care  providers,  individuals  with  experience and expertise in
    36  retraining and re-employment programs relevant to the  circumstances  of
    37  impacted  employees,  and  representatives of the commissioner of labor.
    38  The commissioner of labor and the task force shall review and provide:
    39    (i)  analysis  of  potential  impacted  employees  by  job  title  and
    40  geography;
    41    (ii) competency mapping and labor market analysis of impacted employee
    42  occupations with job openings; and
    43    (iii)  establishment of regional retraining and re-employment systems,
    44  including but not limited to  job  boards,  outplacement  services,  job
    45  search  services, career advisement services, and retraining advisement,
    46  to be coordinated with the regional advisory councils established  under
    47  section fifty-one hundred eleven of this article.
    48    (c)  (i) Three or more impacted employees, a recognized union of work-
    49  ers including impacted employees, or an employer of  impacted  employees
    50  may  file  a  petition  with  the  commissioner of labor to certify such
    51  employees as being impacted employees.
    52    (ii) Impacted employees shall be eligible for:
    53    (A) up to two years of retraining at any training provider approved by
    54  the commissioner of labor; and
    55    (B) up to two  years  of  unemployment  benefits,  provided  that  the
    56  impacted employee is enrolled in a department of labor approved training

        S. 7590                            20

     1  program,  is  actively seeking employment, and is not currently employed
     2  full time; provided, however, that such impacted employee  may  maintain
     3  unemployment  benefits  for  up  to two years even if he or she does not
     4  meet  the  criteria set forth in this clause but is sixty-three years of
     5  age or older at the time of loss of employment as an impacted employee.
     6    (d) The commissioner shall provide funds  from  the  New  York  Health
     7  trust fund or otherwise appropriated for this purpose to the commission-
     8  er  of  labor  for  retraining  and  re-employment programs for impacted
     9  employees under this subdivision.
    10    (e) The commissioner of labor shall make regulations  and  take  other
    11  actions  reasonably necessary to implement this subdivision. This subdi-
    12  vision shall be implemented consistent with  applicable  law  and  regu-
    13  lations.
    14    4. The commissioner shall, directly and through grants to not-for-pro-
    15  fit entities, conduct programs using data collected through the New York
    16  Health  program,  to  promote  and  protect  the  quality of health care
    17  services, patient outcomes, and public, environmental  and  occupational
    18  health,  including  cooperation  with other data collection and research
    19  programs of the department, consistent with this article, the protection
    20  of the security and confidentiality of individually identifiable patient
    21  information, and otherwise applicable law.
    22    5. Settlements and  judgments.  This  subdivision  applies  where  any
    23  settlement,  judgment  or  order  in  the  course  of litigation, or any
    24  contract or agreement made as an  alternative  to  litigation,  provides
    25  that  one party shall pay for health care coverage for another party who
    26  is entitled to enroll in the program. Any party to the settlement, judg-
    27  ment, order, contract or agreement may apply to an appropriate court for
    28  modification of the judgment, order, contract or agreement. The  modifi-
    29  cation  may  provide that the paying party, instead of paying for health
    30  care coverage, shall pay all or part of the New York Health tax that  is
    31  owed  by  the  other party, and may include other or further provisions.
    32  The modifications shall be appropriate, consistent with the program, and
    33  in the interest of justice. As  used  in  this  subdivision,  "New  York
    34  Health tax" means the tax or taxes enacted by the legislature as part of
    35  the revenue proposal, as amended, to fund the program.
    36    §  5111.  Regional advisory councils.  1. The New York Health regional
    37  advisory councils (each referred to in this article as a "regional advi-
    38  sory council") are hereby created in the department.
    39    2. There shall be a regional advisory council established in  each  of
    40  the following regions:
    41    (a) Long Island, consisting of Nassau and Suffolk counties;
    42    (b) New York City;
    43    (c)  Hudson  Valley, consisting of Delaware, Dutchess, Orange, Putnam,
    44  Rockland, Sullivan, Ulster, Westchester counties;
    45    (d) Northern, consisting of Albany, Clinton, Columbia,  Essex,  Frank-
    46  lin,  Fulton,  Greene, Hamilton, Herkimer, Jefferson, Lewis, Montgomery,
    47  Otsego, Rensselaer,  Saratoga,  Schenectady,  Schoharie,  St.  Lawrence,
    48  Warren, Washington counties;
    49    (e)  Central,  consisting  of Broome, Cayuga, Chemung, Chenango, Cort-
    50  land, Livingston, Madison, Monroe, Oneida,  Onondaga,  Ontario,  Oswego,
    51  Schuyler, Seneca, Steuben, Tioga, Tompkins, Wayne, Yates counties; and
    52    (f)  Western,  consisting  of Allegany, Cattaraugus, Chautauqua, Erie,
    53  Genesee, Niagara, Orleans, Wyoming counties.
    54    3. Each regional advisory council shall be composed of not fewer  than
    55  twenty-seven  members,  as determined by the commissioner and the board,
    56  as necessary to appropriately represent the diverse needs  and  concerns

        S. 7590                            21

     1  of the region. Members of a regional advisory council shall be residents
     2  of or have their principal place of business in the region served by the
     3  regional advisory council.
     4    4. Appointment of members of the regional advisory councils.
     5    (a) The twenty-seven members shall be appointed as follows:
     6    (i) nine members shall be appointed by the governor;
     7    (ii) six members shall be appointed by the governor on the recommenda-
     8  tion of the speaker of the assembly;
     9    (iii)  six members shall be appointed by the governor on the recommen-
    10  dation of the temporary president of the senate;
    11    (iv) three members shall be appointed by the governor on the recommen-
    12  dation of the minority leader of the assembly; and
    13    (v) three members shall be appointed by the governor on the  recommen-
    14  dation of the minority leader of the senate.
    15    Where  a regional advisory council has more than twenty-seven members,
    16  additional members shall be appointed and recommended by these officials
    17  in the same proportion as the twenty-seven members.
    18    (b) Regional advisory council membership  shall  include  but  not  be
    19  limited to:
    20    (i) representatives of organizations with a regional constituency that
    21  advocate  for health care consumers, older adults, and people with disa-
    22  bilities including organizations led by members  of  those  groups,  who
    23  shall  constitute  at least one-third of the membership of each regional
    24  council;
    25    (ii) representatives of professional organizations representing physi-
    26  cians;
    27    (iii)  representatives  of  professional  organizations   representing
    28  health care professionals other than physicians;
    29    (iv) representatives of general hospitals, including public hospitals;
    30    (v) representatives of community health centers;
    31    (vi)  representatives  of  mental health, behavioral health (including
    32  substance use), physical disability, developmental disability, rehabili-
    33  tation, home care and other service providers;
    34    (vii) representatives of women's health service providers;
    35    (viii) representatives of health service  providers  serving  lesbian,
    36  gay,   bisexual,   transgender,  gender  non-conforming,  and  nonbinary
    37  patients;
    38    (ix) representatives of health care organizations;
    39    (x) representatives of organized labor  including  representatives  of
    40  health care workers;
    41    (xi) representatives of employers; and
    42    (xii) representatives of municipal and county government.
    43    5. Members of a regional advisory council shall be appointed for terms
    44  of  three  years provided, however, that of the members first appointed,
    45  one-third shall be appointed for one year terms and one-third  shall  be
    46  appointed  for  two  year  terms.  Vacancies shall be filled in the same
    47  manner as original appointments for the remainder of any unexpired term.
    48  No person shall be a member of a regional advisory council for more than
    49  six years in any period of twelve consecutive years.
    50    6. Members of the  regional  advisory  councils  shall  serve  without
    51  compensation  but  shall  be  reimbursed  for their necessary and actual
    52  expenses incurred while engaged in the business of  the  advisory  coun-
    53  cils.  The program shall provide financial support for such expenses and
    54  other expenses of the regional advisory councils. However, the board may
    55  provide for compensation in cases where a  lack  of  compensation  would

        S. 7590                            22

     1  limit  the  ability  of a trustee or represented organization to partic-
     2  ipate in council business.
     3    7.  Each regional advisory council shall meet at least quarterly. Each
     4  regional advisory council may form committees to assist it in its  work.
     5  Members  of  a  committee  need  not be members of the regional advisory
     6  council.   The New York City regional  advisory  council  shall  form  a
     7  committee  for  each  borough  of  New York City, to assist the regional
     8  advisory council in its work as it relates particularly to that borough.
     9    8. Each regional advisory council shall advise the  commissioner,  the
    10  board,  the  governor and the legislature on all matters relating to the
    11  development and implementation of the New York Health program.
    12    9. Each regional advisory council shall adopt, and from time  to  time
    13  revise,  a  community  health  improvement  plan  for its region for the
    14  purpose of:
    15    (a) promoting the delivery of health  care  services  in  the  region,
    16  improving  the  quality  and  accessibility  of care, including cultural
    17  competency, clinical  integration  of  care  between  service  providers
    18  including  but  not  limited to physical, mental, and behavioral health,
    19  physical and developmental disability services, and  long-term  supports
    20  and services;
    21    (b) facility and health services planning in the region;
    22    (c) identifying gaps in regional health care services;
    23    (d)  promoting increased public knowledge and responsibility regarding
    24  the availability and appropriate utilization of  health  care  services.
    25  Each community health improvement plan shall be submitted to the commis-
    26  sioner and the board and shall be posted on the department's website;
    27    (e)  identifying  needs in professional and service personnel required
    28  to deliver health care services; and
    29    (f) coordinating regional implementation of retraining and  re-employ-
    30  ment  programs for impacted employees under subdivision three of section
    31  fifty-one hundred ten of this article.
    32    10. Each regional advisory council shall hold  at  least  four  public
    33  hearings annually on matters relating to the New York Health program and
    34  the  development  and implementation of the community health improvement
    35  plan.
    36    11. Each regional advisory council shall publish an annual  report  to
    37  the  commissioner  and the board on the progress of the community health
    38  improvement plan. These reports shall  be  posted  on  the  department's
    39  website.
    40    12.  All  meetings  of  the  regional advisory councils and committees
    41  shall be subject to article six of the public officers law.
    42    § 4. Financing of New York Health. 1. (a) As  used  in  this  section,
    43  unless the context clearly requires otherwise:
    44    (i)  "New  York  Health  program"  and the "program" mean the New York
    45  Health program, as created by article 51 of the public  health  law  and
    46  all provisions of that article.
    47    (ii)  "Revenue proposal" means the revenue plan and legislative bills,
    48  as proposed and enacted under  this  section,  to  provide  the  revenue
    49  necessary to finance the New York Health program.
    50    (iii)  "Tax"  means  the  payroll tax or non-payroll tax to be enacted
    51  under the revenue proposal. "Payroll  tax"  means  the  tax  on  payroll
    52  income  and  self-employed  income  subject  to the Medicare Part A tax,
    53  provided for in subdivision two of this section. "Non-payroll tax" means
    54  the tax on taxable income (such  as  interest,  dividends,  and  capital
    55  gains)  not  subject to the payroll tax, provided for in subdivision two
    56  of this section.

        S. 7590                            23

     1    (b) The governor shall submit to the legislature a  revenue  proposal.
     2  The  revenue  proposal  shall be submitted to the legislature as part of
     3  the executive budget under article VII of the  state  constitution,  for
     4  the  fiscal  year  commencing  on the first day of April in the calendar
     5  year  after  this  act  shall  become  a  law. In developing the revenue
     6  proposal, the governor shall consult with appropriate officials  of  the
     7  executive  branch; the temporary president of the senate; the speaker of
     8  the assembly; the chairs of the fiscal  and  health  committees  of  the
     9  senate  and  assembly; and representatives of business, labor, consumers
    10  and local government.
    11    2. (a) Basic structure. The basic structure of  the  revenue  proposal
    12  shall  be as follows: Revenue for the program shall come from two taxes.
    13  First, there shall be a progressively graduated tax on all  payroll  and
    14  self-employed  income,  paid  by  employers, employees and self-employed
    15  individuals.  Second, there shall be a progressively  graduated  tax  on
    16  taxable  income  (such  as  interest,  dividends, and capital gains) not
    17  subject to the payroll tax.   Income in the  bracket  below  twenty-five
    18  thousand  dollars per year shall be exempt from the taxes; provided that
    19  for individuals enrolled in Medicare as defined in the  program,  income
    20  in  the  bracket  below  fifty thousand dollars per year shall be exempt
    21  from the taxes.  Higher brackets of income subject to the taxes shall be
    22  assessed at a higher marginal rate than lower brackets.  The taxes shall
    23  be set at levels anticipated to produce sufficient  revenue  to  finance
    24  the  program, to be scaled up as enrollment grows, taking into consider-
    25  ation anticipated federal revenue available for the  program.  Provision
    26  shall  be  made  for  state residents who are employed out-of-state, and
    27  non-residents who are employed in the state  (including  those  employed
    28  less than full-time).
    29    (b) Payroll tax. (i) The income to be subject to the payroll tax shall
    30  be  all income subject to the Medicare Part A tax. The payroll tax shall
    31  be set at a percentage of that  income,  which  shall  be  progressively
    32  graduated, so the percentage is higher on higher brackets of income. For
    33  employed  individuals,  the  employer  shall  pay  eighty percent of the
    34  payroll tax and the employee shall pay twenty percent of the tax, except
    35  that an employer may agree to pay all or part of the  employee's  share.
    36  A self-employed individual shall pay the full tax.
    37    (ii)  Each  public  employer,  as  defined in section 201 of the civil
    38  service law, shall pay a percentage of the payroll tax for each  of  its
    39  employees that is equal to at least the greater of (A) the percentage of
    40  the  cost  of the employee's health benefit that is paid by the employer
    41  as of January 1 immediately preceding the date  on  which  this  section
    42  becomes  a  law,  or  (B)  a  greater  percentage provided by collective
    43  bargaining, or (C) eighty percent.
    44    (c) Non-payroll income tax. There shall be a tax  on  income  that  is
    45  subject  to  the personal income tax under article 22 of the tax law and
    46  is not subject to the payroll tax. It shall be set at  a  percentage  of
    47  that  income,  which shall be progressively graduated, so the percentage
    48  is higher on higher brackets of income.
    49    (d) Phased-in rates. Early in the program, when enrollment is growing,
    50  the amount of the taxes shall be at an appropriate level, and  shall  be
    51  changed as anticipated enrollment grows, to cover the actual cost of the
    52  program.  The revenue proposal shall include a mechanism for determining
    53  the rates of the taxes.
    54    (e) Cross-border employees. (i) State residents employed out-of-state.
    55  If an individual is employed out-of-state by an employer that is subject
    56  to New York state law, the employer and employee shall  be  required  to

        S. 7590                            24

     1  pay the payroll tax as to that employee as if the employment were in the
     2  state.  If an individual is employed out-of-state by an employer that is
     3  not subject to New York state law, either (A) the employer and  employee
     4  shall  voluntarily comply with the tax or (B) the employee shall pay the
     5  tax as if he or she were self-employed.
     6    (ii) Out-of-state residents employed in the state.   The  payroll  tax
     7  shall  apply  to  any  out-of-state resident who is employed or self-em-
     8  ployed in the state.  Such individual and individual's employer shall be
     9  able to take a credit against the payroll taxes each would otherwise pay
    10  as to that individual for amounts  they  spend  respectively  on  health
    11  benefits (A) for the individual, if the individual is not eligible to be
    12  a  member  of  the  program,  and (B) for any member of the individual's
    13  immediate family.   For the employer,  the  credit  shall  be  available
    14  regardless  of the form of the health benefit (e.g., health insurance, a
    15  self-insured plan, direct services, or reimbursement for  services),  to
    16  make  sure that the revenue proposal does not relate to employment bene-
    17  fits in violation of any federal law. For non-employment-based  spending
    18  by  the  individual,  the  credit  shall be available for and limited to
    19  spending for health coverage (not out-of-pocket  health  spending).  The
    20  credit  shall  be available without regard to how little is spent or how
    21  sparse the benefit. The credit may only be  taken  against  the  payroll
    22  tax.  Any  excess  amount may not be applied to other tax liability. The
    23  credit shall be distributed between the employer  and  employee  in  the
    24  same  proportion  as  the  spending  by  each for the benefit and may be
    25  applied to their respective portion of the tax. If any provision of this
    26  subparagraph or any application of it shall be ruled to violate  federal
    27  law,  the  provision or the application of it shall be null and void and
    28  the ruling shall not affect any other provision or application  of  this
    29  section or the act that enacted it.
    30    3.  (a)  The  revenue  proposal  shall  include a plan and legislative
    31  provisions  for  ending  the  requirement  for  local  social   services
    32  districts  to  pay  part  of  the  cost  of Medicaid and replacing those
    33  payments with revenue from the taxes under the revenue proposal.
    34    (b) The taxes under this section shall not supplant  the  spending  of
    35  other  state  revenue to pay for the Medicaid program as it exists as of
    36  the enactment of the revenue proposal as  amended,  unless  the  revenue
    37  proposal as amended provides otherwise.
    38    4.  To  the extent that the revenue proposal differs from the terms of
    39  subdivision two or paragraph (b) of subdivision three of  this  section,
    40  the  revenue  proposal  shall  state how it differs from those terms and
    41  reasons for and the effects of the differences.
    42    5. All revenue from the taxes shall  be  deposited  in  the  New  York
    43  Health trust fund account under section 89-k of the state finance law.
    44    §  5.  Article  49 of the public health law is amended by adding a new
    45  title 3 to read as follows:
    46                                  TITLE III
    47            COLLECTIVE NEGOTIATIONS BY HEALTH CARE PROVIDERS WITH
    48                               NEW YORK HEALTH
    49  Section 4920. Definitions.
    50          4921. Collective negotiation authorized.
    51          4922. Collective negotiation requirements.
    52          4923. Requirements for health care providers' representative.
    53          4924. Mediation.
    54          4925. Certain collective action prohibited.
    55          4926. Fees.
    56          4927. Confidentiality.

        S. 7590                            25

     1          4928. Severability and construction.
     2    § 4920. Definitions. For purposes of this title:
     3    1. "New York Health" means the program under article fifty-one of this
     4  chapter.
     5    2.  "Person"  means  an  individual,  association, corporation, or any
     6  other legal entity.
     7    3. "Health care providers' representative" means a third party that is
     8  authorized by health care providers to negotiate on  their  behalf  with
     9  New  York  Health  over terms and conditions affecting those health care
    10  providers.
    11    4. "Strike" means a work stoppage in part or in whole, direct or indi-
    12  rect, by a body of workers to gain compliance with demands  made  on  an
    13  employer.
    14    5.  "Health  care provider" means a health care provider under article
    15  fifty-one of this chapter.
    16    § 4921. Collective negotiation authorized. 1.  Health  care  providers
    17  may  meet  and  communicate  for the purpose of collectively negotiating
    18  with New York Health on any matter relating to New York Health,  includ-
    19  ing but not limited to rates of payment and payment methodologies.
    20    2. Nothing in this section shall be construed to allow or authorize an
    21  alteration  of  the terms of the internal and external review procedures
    22  set forth in law.
    23    3. Nothing in this section shall be construed to allow a strike of New
    24  York Health by health care providers.
    25    4. Nothing in this section shall be construed to  allow  or  authorize
    26  terms or conditions which would impede the ability of New York Health to
    27  obtain  or  retain  accreditation  by the national committee for quality
    28  assurance or a similar body or to comply with applicable state or feder-
    29  al law.
    30    § 4922. Collective negotiation requirements. 1. Collective negotiation
    31  rights granted by this title must conform to the following requirements:
    32    (a) health care providers  may  communicate  with  other  health  care
    33  providers  regarding  the terms and conditions to be negotiated with New
    34  York Health;
    35    (b) health care providers may communicate with health care  providers'
    36  representatives;
    37    (c)  a health care providers' representative is the only party author-
    38  ized to negotiate with New York Health on  behalf  of  the  health  care
    39  providers as a group;
    40    (d)  a  health  care provider can be bound by the terms and conditions
    41  negotiated by the health care providers' representatives; and
    42    (e) in communicating or negotiating with the  health  care  providers'
    43  representative, New York Health is entitled to offer and provide differ-
    44  ent terms and conditions to individual competing health care providers.
    45    2.  Nothing  in this title shall affect or limit the right of a health
    46  care provider or group of health care providers to collectively petition
    47  a government entity for a change in a law, rule, or regulation.
    48    3. Nothing in this title shall affect or limit  collective  action  or
    49  collective  bargaining  on the part of any health care provider with his
    50  or her employer or any other  lawful  collective  action  or  collective
    51  bargaining.
    52    § 4923. Requirements for health care providers' representative. Before
    53  engaging  in  collective  negotiations with New York Health on behalf of
    54  health care providers, a health  care  providers'  representative  shall
    55  file  with the commissioner, in the manner prescribed by the commission-
    56  er, information identifying  the  representative,  the  representative's

        S. 7590                            26

     1  plan of operation, and the representative's procedures to ensure compli-
     2  ance with this title.
     3    §  4924. Mediation. 1. In the event the commissioner, or a health care
     4  providers' representative that is party to the  negotiation,  determines
     5  that  an  impasse  exists  in  the  negotiations, the commissioner shall
     6  render assistance as follows:
     7    (a) to assist the parties to effect  a  voluntary  resolution  of  the
     8  negotiations,  the commissioner shall appoint a mediator who is mutually
     9  acceptable to both the health care  providers'  representative  and  the
    10  representative  of  New  York  Health.  If the mediator is successful in
    11  resolving the impasse, then the health  care  providers'  representative
    12  shall proceed as set forth in this article;
    13    (b)  if  an  impasse continues, the commissioner shall appoint a fact-
    14  finding board of not more than three members, who are mutually  accepta-
    15  ble  to both the health care providers' representative and the represen-
    16  tative of New  York  Health.  The  fact-finding  board  shall  have,  in
    17  addition  to  the powers delegated to it by the board, the power to make
    18  recommendations for the resolution of the dispute;
    19    (c) the fact-finding board, acting by a majority of its members, shall
    20  transmit its findings of fact and recommendations for resolution of  the
    21  dispute  to  the  commissioner, and may thereafter assist the parties to
    22  effect a voluntary resolution of the  dispute.  The  fact-finding  board
    23  shall  also  share  its  findings  of  fact and recommendations with the
    24  health care providers' representative and the representative of New York
    25  Health. If within twenty days after the submission of  the  findings  of
    26  fact  and recommendations, the impasse continues, the commissioner shall
    27  order a resolution to the negotiations based upon the findings  of  fact
    28  and recommendations submitted by the fact-finding board.
    29    §  4925.  Certain  collective  action prohibited. 1. This title is not
    30  intended to authorize competing health care providers to act in  concert
    31  in  response to a health care providers' representative's discussions or
    32  negotiations with New York Health except as authorized by other law.
    33    2. No health care providers' representative shall negotiate any agree-
    34  ment that excludes, limits the participation  or  reimbursement  of,  or
    35  otherwise limits the scope of services to be provided by any health care
    36  provider  or group of health care providers with respect to the perform-
    37  ance of services that are within the health care provider's lawful scope
    38  or terms of practice, license, registration, or certificate.
    39    § 4926. Fees. Each person who acts as the representative of  negotiat-
    40  ing parties under this title shall pay to the department a fee to act as
    41  a  representative.  The  commissioner,  by regulation, shall set fees in
    42  amounts deemed reasonable and necessary to cover the costs  incurred  by
    43  the department in administering this title.
    44    § 4927. Confidentiality. All reports and other information required to
    45  be  reported  to the department under this title shall not be subject to
    46  disclosure under article six of the public officers law.
    47    § 4928. Severability and construction. If any provision or application
    48  of this title shall be held to be invalid, or to violate  or  be  incon-
    49  sistent  with  any  applicable federal law or regulation, that shall not
    50  affect other provisions or applications of this title which can be given
    51  effect without that provision or  application;  and  to  that  end,  the
    52  provisions  and applications of this title are severable. The provisions
    53  of this title shall  be  liberally  construed  to  give  effect  to  the
    54  purposes thereof.

        S. 7590                            27

     1    §  6.  Subdivision  11  of  section  270  of the public health law, as
     2  amended by section 2-a of part C of chapter 58 of the laws of  2008,  is
     3  amended to read as follows:
     4    11.  "State  public  health plan" means the medical assistance program
     5  established by title eleven of article five of the social  services  law
     6  (referred  to in this article as "Medicaid"), the elderly pharmaceutical
     7  insurance coverage program established by title three of article two  of
     8  the  elder  law (referred to in this article as "EPIC"), and the [family
     9  health plus program established by section three  hundred  sixty-nine-ee
    10  of  the social services law to the extent that section provides that the
    11  program shall be subject to this article] New York Health program estab-
    12  lished by article fifty-one of this chapter.
    13    § 7. The state finance law is amended by adding a new section 89-k  to
    14  read as follows:
    15    §  89-k. New York Health trust fund. 1. There is hereby established in
    16  the joint custody of the state comptroller and the commissioner of taxa-
    17  tion and finance a special revenue fund to be known  as  the  "New  York
    18  Health trust fund", referred to in this section as "the fund". The defi-
    19  nitions  in  section  fifty-one  hundred  of the public health law shall
    20  apply to this section.
    21    2. The fund shall consist of:
    22    (a) all monies  obtained  from  taxes  under  legislation  enacted  as
    23  proposed under section three of the New York Health act;
    24    (b)  federal  payments  received  as  a  result of any waiver or other
    25  arrangements agreed to by the United  States  secretary  of  health  and
    26  human  services  or  other appropriate federal officials for health care
    27  programs established under  Medicare,  any  federally-subsidized  public
    28  health program, or the affordable care act;
    29    (c)  the  amounts paid by the department of health that are equivalent
    30  to those amounts that are paid on behalf  of  residents  of  this  state
    31  under  Medicare,  any federally-subsidized public health program, or the
    32  affordable care act for health benefits which are equivalent  to  health
    33  benefits covered under New York Health;
    34    (d)  federal and state funds for purposes of the provision of services
    35  authorized under title XX of the federal social security act that  would
    36  otherwise  be  covered under article fifty-one of the public health law;
    37  and
    38    (e) state monies that would otherwise be appropriated to  any  govern-
    39  mental  agency,  office,  program,  instrumentality or institution which
    40  provides health services, for services and benefits  covered  under  New
    41  York  Health.  Payments  to the fund under this paragraph shall be in an
    42  amount equal to the money appropriated for such purposes in  the  fiscal
    43  year  beginning immediately preceding the effective date of the New York
    44  Health act.
    45    3. Monies in the fund shall only  be  used  for  purposes  established
    46  under article fifty-one of the public health law.
    47    § 8. Temporary commission on implementation. 1. There is hereby estab-
    48  lished  a  temporary commission on implementation of the New York Health
    49  program, referred to in this section as the  commission,  consisting  of
    50  fifteen  members:  five members, including the chair, shall be appointed
    51  by the governor; four members shall be appointed by the temporary presi-
    52  dent of the senate, one member shall be appointed by the senate minority
    53  leader; four members shall be appointed by the speaker of the  assembly,
    54  and  one  member shall be appointed by the assembly minority leader. The
    55  commissioner of health, the superintendent of  financial  services,  the
    56  commissioner of taxation and finance, and the director of the budget, or

        S. 7590                            28

     1  their  designees  shall  serve  as  non-voting ex officio members of the
     2  commission.
     3    2.  Members  of the commission shall receive such assistance as may be
     4  necessary from other state agencies  and  entities,  and  shall  receive
     5  reasonable  and  necessary expenses incurred in the performance of their
     6  duties. The commission may  employ  staff  as  needed,  prescribe  their
     7  duties,  and  fix their compensation within amounts appropriated for the
     8  commission.
     9    3. The commission shall examine the laws and regulations of the  state
    10  and  consult with health care providers, consumers, and other stakehold-
    11  ers and make such recommendations as are necessary to conform  the  laws
    12  and  regulations  of  the  state and article 51 of the public health law
    13  establishing the New York Health program and  other  provisions  of  law
    14  relating  to  the  New York Health program, and to improve and implement
    15  the program. The commission shall  report  its  recommendations  to  the
    16  governor  and  the legislature.   The commission shall immediately begin
    17  development of proposals consistent with the principles of article 51 of
    18  the public health law for provision  of  health  care  services  covered
    19  under the workers' compensation law; and incorporation of retiree health
    20  benefits,  as  described in paragraphs (a), (b) and (c) of subdivision 8
    21  of section 5102 of the public health law.  The commission shall  provide
    22  its  work  product and assistance to the board established under section
    23  5102 of the public health law upon completion of the appointment of  the
    24  board.
    25    §  9.  Severability. If any provision or application of this act shall
    26  be held to be invalid, or to violate or be inconsistent with any  appli-
    27  cable  federal law or regulation, that shall not affect other provisions
    28  or applications of this act which  can  be  given  effect  without  that
    29  provision  or  application; and to that end, the provisions and applica-
    30  tions of this act are severable.
    31    § 10. This act shall take effect immediately.
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