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N Y Senate Health Committee
Report 2006
A Message from the Chair
New York State Senate
Committee on Health
Senator Kemp Hannon
Dear New York Resident:
As Chair of the Senate Committee on Health, I outline the highlights of the 2005-2006 legislative session. This year the Committee passed new laws to curb Medicaid Fraud, to control the health care costs, as well as to ensure quality care for New Yorkers.
Medicaid Fraud is a problem to New York taxpayers of billions of dollars yearly. As Co-Chair of the Senate Medicaid Reform Task Force, we held a series of statewide hearings to address this serious issue. Also continuing to serve as Co-Chair was Senator Raymond Meier, Chair of the Social Services Committee. A diligent and dynamic force on the topic of preventing Medicaid Fraud was Senator Dean Skelos, the Deputy Majority Leader of the Senate, who spearheaded the effort to reform the organization of the State’s fight against Medicaid Fraud. All three of us presided at the hearings in which the Task Force received input and suggestions from people in the health care industry and the law enforcement community on what could be done to strengthen the state's efforts to detect and prevent Medicaid fraud. Executive Members of the Task Force also included Senators Elizabeth Little, Frank Padavan, Mary Lou Rath, and James Wright.
The Senate Medicaid Reform Task Force hearings solicited input on the legislation recently passed by the Senate to combat fraud, including the creation of the Office of the Medicaid Inspector General within the Department of Health (Chapter 442 of 2006 S.8450). This comprehensive plan was designed to control fraud and abuse of the state’s Medicaid system. It will achieve substantial savings for taxpayers and help to preserve the quality of health care for New York’s Medicaid recipients. The Office of the Medicaid Inspector General will serve as the referral point for cases of misuse of Medicaid funds deemed appropriate for criminal prosecution as well as the recovery of misused funds. The law also creates new criminal penalties for Medicaid fraud and directs the development of new technology to detect, control and prosecute these crimes. Signed into law by the Governor in July, 2006, the law has been called the toughest plan to combat Medicaid fraud in the nation.
Due to the serious health risks that influenza and pneumococcal disease pose to public health as well as the growing concerns about the availability of vaccinations, in March, 2006 public hearing was held with my colleague Senator Michael Balboni, Chairman of the Homeland Security Committee, entitled "Surge Capacity and Avian Flu: Can NYS’s Healthcare System Meet the Challenge?" to discuss the threat of influenza outbreak and assess pandemic preparedness. This hearing resulted in several enacted laws this year, including a bill designed to increase the availability of flu vaccination to seniors by requiring hospitals to offer patients over age 65 who are hospitalized between September 1 and April 1 each year vaccinations against these diseases (Chapter 266 of 2006 S.5087-A). Signed into law by the Governor in July, 2006, this law will help to increase the rate of immunization by providing seniors the opportunity to receive vaccinations. I also sponsored a bill which created a Statewide Electronic Immunization Registry for persons under the age of nineteen (Chapter 544 of 2006 S.8227-B). This bill, which became law in July 2006, helps to aid, coordinate, and promote cost-effective disease prevention and control efforts in New York State.
In order to protect and care for New York’s children, I sponsored the Emergency Medical Services for Children Act. Signed into law in August, 2006, this bill establishes a program using funds from a federal grant to provide recognition and treatment for children’s sudden illnesses and injuries (Chapter 614 of 2006 S.8238). I am also proud to announce the enactment of a bill I sponsored to create a pilot program of comprehensive hospice and palliative care services for children with life-limiting illnesses (Chapter 588 of 2006 S.4927-A).
This year, hard work ensured the Health and Mental Hygiene Budget protected and enhanced the high quality, affordable community-based health services New Yorkers depend on. Despite proposed cuts jeopardizing care, the final 2006-2007 Health and Mental Hygiene Budget included $188.5 million to restore and continue prescription drug coverage programs, and increased aid to nursing homes to ensure their reimbursement rates reflected today’s costs.
Funding was secured for several programs designed to improve care for New Yorkers. One such example is the Public Health Management, Leaders of Tomorrow Program. The program received $600,000 in funding in the 2005-2006 budget to develop and implement an academic Public Health Management Program for students and individuals employed at County or State Health departments, to prepare them for public health issues of the 21st Century. Another initiative I was proud to support addresses Racial Disparities in access to health care. This state program will foster the elimination of racial/ethnic disparities in health status and delivery of care.
In order to provide the necessary coordination of health information throughout the State, so funding was also insured for Health e-Links New York within the 2005-2006 budget. This program creates the Office of Health e-Links within the Department of Health. Often a patient’s vital medical information is scattered across numerous sites in a variety of different formats and is often unavailable at the point of care. By adopting this system of electronic health care records and fostering the development of regional health information exchanges, New York can assist physicians in obtaining the information they need to identify the best treatment options.
Another achievement in the 2005-2006 Health and Mental Hygiene Budget was the creation of standardized charity care policies for hospitals. New standards requiring transparent hospital financial aid policies were established to ensure that low income and uninsured patients are able to obtain and pay for medical care. The law also prevents hospitals from adopting collection policies that permit the forced sale or foreclosure of a patient’s primary residence in order to collect upon outstanding bills.
The 2005-2006 legislative session was a successful one for the Senate Committee on Health. There is, of course, substantially more work to be done in meeting our goal to make New York’s healthcare system one which is marked continually by quality, affordability and accessibility. I would like to thank my fellow committee members for all their efforts: Senators Carl Andrews, John DeFrancisco, Thomas Duane, Hugh Farley, Charles Fuschillo, Jeffrey Klein, Thomas Libous, William Larkin, George Maziarz, Velmanette Montgomery, George Onorato, Mary Lou Rath, John Sampson, Malcolm Smith, Nicholas Spano and George Winner.
Health
Legislation, which has been signed into
Law during the 2006 Budget Year:
Children’s
Health
Chapter 178 of
2006 S.3061-A (ALESI)
This establishes an Advisory Council on
Children's Environmental Health and
Safety. This council will ensure
children safe learning and living
environments. The Advisory Council will
investigate the exposure of children to
a broad array of hazards; these will
include: air and drinking water
contaminants, toxic substances in soil
and other media, lead-based paint,
asthma-causing pollutants, pesticides
within and outside of schools, radon and
asbestos in schools and exposure to
hazardous substances during school
renovation and construction. Their
findings will be made public for the
benefit of school districts and the
community at large. This will enable
parents and educators to make informed
choices for their children and
themselves. This chapter was signed into
law on July 26, 2006; it shall take
effect 180 days after enactment.
Chapter 614 of
2006 S.8238 (HANNON) This
chapter amends the Public Health Law by
establishing Emergency Medical Services
for Children Act (EMSC). This provides a
statutory foundation for the State
Emergency Medical Services for Children
Program using funds provided by a
Federal grant. The new Article 30-C of
the Public Health law has been
established and will provide recognition
and treatment of children’s sudden
illness and injury. It will further
enhance the role of the existing State
Emergency Medical Services for Children
Advisory Committee ("EMSC Committee")
within the Bureau of Emergency Medical
Services (in the Department of Health).
The result is a new State EMSC Program,
which will follow the Federal Emergency
Medical Services for Children
initiative. This is based upon Federal
Guidelines which are jointly
administered by the US Department of
Health and Human Services and the
National Highway Traffic Safety
Administration and designed to meet the
specific needs of New York State’s
Children. This law was signed by the
Governor on 08/16/06; it will take
effect immediately.
Chapter 588 of
2006 S.4927-A (HANNON) This law
authorizes the creation of a pilot
program of comprehensive hospice and
palliative care services for children,
with life-limiting illnesses, and will
address the medical, psychosocial and
spiritual aspects of care, to allow such
children to be cared for at home rather
than in an institutional setting.
Services will be provided by licensed
certified hospice workers, working
collaboratively with a licensed,
certified home health agencies and shall
include, but are not limited to: care
coordination, social work, counseling,
expressive therapies (e.g. child life
specialist, music therapist, or art
therapist), spiritual care, respite and
bereavement services. The law allows
children to receive curative treatment
and comprehensive hospice and palliative
care services at home outside of the
six-month terminal prognosis. It
requires providers of these programs to
create a report on the impact of this
increased capacity, which will be
delivered to the Governor, the Senate
and the Assembly on, or before, December
31, 2008. This chapter was signed by the
Governor on
August 16, 2006; it shall take
effect immediately.
Criminal
Background Checks
Chapter 331 of
2006 S.6630 (HANNON) This law
technically amends and makes corrections
to Chapter 769 of the Laws of 2005,
which requires a review of the State and
Federal criminal histories of employees
and potential employees of nursing homes
home health care agencies in the State.
With this law, the definition now will
include persons employed or used by a
provider (including temporary employees)
who provide direct care or supervision
to patients. It also creates consistency
between State and Federal standards for
obtaining and maintaining criminal
history information. The Governor signed
this legislation into law on July 26,
2006. It is effective immediately;
however, the required implementation
will not go into effect until September
1, 2006 to allow DOH a reasonable amount
of time to implement the program.
Health Care
Financing
Chapter 387 of
2006 S.7717-A (HANNON) This law
provides support for financially
distressed hospitals that have existing
capital indebtedness under the former
"Secured Hospital Revenue Bond Program".
Through this legislation, these
hospitals may now realize a savings by
the refinancing of their existing debt.
Established in 1985, the Secured
Hospital Revenue Bond Program was to
assist certain hospitals, identified by
the Department of Health, that were
providing health care services to
medically under-served communities; a
disproportionate share of the services
were to uninsured or indigent patients
and the facility needed to demonstrate
severe financial distress. The program
expired on March 1, 1998. Outstanding
bonds were not affected by this sunset,
but no new bonds could be issued;
existing bonds could not be refinanced.
This law now allows certain hospitals to
refinance their debt, decrease annual
payments and ultimately become more
competitive in their markets. The
Governor signed this bill into law on
July 26, 2006; it was effective
immediately.
HCRA
Chapter 146 of
2006 S.8067 (HANNON) This bill
extends the Commissioner of Health’s
ability to award grants to certified
home health agencies (CHHAs) so that
they can afford to subsidize care that
is provided to medically indigent
patients. Specifically, it extends from
June 30, 2006 to June 30, 2007, the
provisions of the Public Health Law
authorizing bad debt and charity care
allowances for certified home health
care agencies, when they provide
uncompensated care. The Governor signed
this bill into law on 07/07/06; it
became effective immediately.
Health Care
Practitioners
Chapter 84 of
2006 S.6506 (FARLEY) This
chapter will amend the Public Health Law
and Chapter 337 of the Laws of 2002,
which amended the Public Health Law by
establishing a Health Care Practitioner
Volunteer Pilot Program. This new
legislation continues this program
making the statute permanent.
Legislative findings accompanying
Chapter 337 of the Law of 2002 noted the
need for free basic primary health care
services for the uninsured, and
underinsured. At that time, retired and
active physicians and other medical
professionals in Schenectady were
seeking to volunteer their professional
services to provide such care. Following
adoption of that law, the State
Department of Health approved
establishment of a "free clinic" in
Schenectady. Since its inception, the
Schenectady program has seen over 3,500
patients and has delivered free medical
care, lab tests, and medications valued
at over one million dollars. Most (61%)
of its patients are unemployed and 95%
have no insurance coverage. Volunteers
donated over 6,200 hours of service
(Physicians donated over 2,300 of these
hours, and registered nurses nearly
2,000 hours). The Schenectady program
has been featured in newspaper articles
about successful alternative health care
delivery systems. This act shall take
effect immediately.
Chapter 683 of
the laws of 2006 S.7001-C (ALESI)
This chapter amends the Public Health
Law by requiring that at least one
functional cardiac automated external
defibrillator (AED) be made available in
places of public assembly. It further
requires that at least one employee or
volunteer of such a facility be trained
in its proper operation and use and be
present at each facility function.
Sudden cardiac arrest claims an
estimated 250,000 lives every year; less
than one in twenty victims survive.
However, the chance of survival is
greatly increased by the administration
of an AED. The American Heart
Association estimates that as many as
100,000 deaths could be prevented each
year through the wide spread use of
defibrillator, which are a highly
effective means of saving lives. This
legislation corrects technical flaws
found earlier legislation by adequately
defining what constitutes "place of
public assembly" and it specifies that (AEDs)
should be made available in places of
public assembly. This law will tie the
placement and use of defibrillators to
the statutory standards established by
the Department of Health and ensure that
there is sufficient time for
implementation (one year from
enactment). It was signed into law by
the Governor on 09/13/06.
Chapter 175 of
2006 S.5606-A (HANNON) This law
will repeal and replace the current
Article 35 of the public health law
entitled "Practice of X-ray Technology"
with a new Article 35 entitled "Practice
of Radiologic Technology." This new
article creates updates in language by
acknowledging that new forms of
radiological technology have come into
existence. These include: radiography,
radiation therapy and nuclear medicine
technology, among others. Additional
changes include: standardized
educational requirements for the
practice of radiological technology,
which will be moved from statute to
regulation in accordance with national
accrediting standards, the establishment
of nuclear medicine technologist
licensure, creating language to require
that radiography include the
intravascular administration of contrast
media, it adds two new seats on the
Radiological Advisory Board (nuclear
medicine technologists licensed under
the new Article 35) and it allows the
Department of Health to require
licensees to complete continuing
education credits as a condition of
their registration or certification.
This law was signed by the Governor on
July 26, 2006; it shall take effect one
year after it shall have become law, the
provisions relating to contrast media
shall take effect 180 days after it
shall have become a law.
Chapter 618 of
2006 S.7718-A (HANNON) This law
permits registered physician assistants
and certified nurse practitioners to
supervise the withdrawing of blood by
designated health personnel for the
purpose of conducting a test of blood
for the presence of alcohol or drugs in
a hospital emergency room upon the
request of police officer. Currently,
the Vehicle and Traffic Law allows only
physicians to supervise the conducting a
blood-alcohol test. This law originated
from an accident that took place in
2002, when the vehicle of Olympian Jack
Shea was struck, and Mr. Shea was
subsequently killed, by an alleged drunk
driver in Lake Placid. The driver was
brought to Adirondack Medical Center’s
Emergency Department, where a
physician’s assistant in charge of the
emergency department, ordered an
Advanced Emergency Medical Technician (AEMT)
to withdraw the driver’s blood for the
purpose of an alcohol test. Because the
existing law required that the order to
withdraw blood must be ordered and
supervised by a physician, the driver in
this incident was able to have the
results of the blood alcohol test
suppressed in court. This law was signed
by the Governor on August 16 2006; it
shall take effect immediately.
Chapter 131 of
2006 S.6444 (LITTLE) This law
authorizes certain health care
professionals, licensed to practice in
other jurisdictions, to practice in New
York State, in connection with the
sanctioned event of the Ironman USA
Holdings, Inc. in Lake Placid, New York.
This legislation allows licensed health
care professionals from other states who
volunteer, and are sanctioned by Ironman
USA Holdings, Inc., to perform services
for the athletes. The Governor enacted
this law on July 19, 2006; it shall take
effect immediately.
Chapter 218 of
2006 S.6786 (JOHNSON) This law
amends Chapter 572 of the Laws of 1994,
which amends the Public Health Law, to
requests for Emergency Medical Service
(EMS) in Suffolk County. This law
continues to extend the original
legislation, which was due to expire in
January. The original law was enacted at
a time when municipalities requested the
authority to establish local ordinances
to outlaw for-profit ambulance units
from responding to calls that had been
dispatched to volunteer EMSs. Previous
to this legislation, chaos was created
in response to medical emergencies, in
certain municipalities. The legislation
allowed for the designation of
authority, in deciding which providers
could respond to radio calls. Since
1994, this type of legislation has
permitted the local municipalities to
effectively solve the underlying
obstacles that led to the confusion. The
law was signed by the Governor on
07/26/06 and shall take effect
immediately.
Chapter 119 of
2006 S.6976 (WINNER) This law
extends Chapter 459 of the Laws of 1996,
which amended the Public Health Law
relating to re-certification of persons
providing emergency medical care.
Specifically, it extends a program that
was originally enacted as an alternative
to the written examination required of
EMTs and AEMTs. This program has been
extended to permit the continuation of
an alternative recertification process
which has been successful in rural
areas. The law was signed by the
Governor on 07/05/06; it is effective
immediately and sunsets on July 1, 2011.
Chapter 325 of
2006 S.6365-A (ALESI) This
chapter amends the Public Health Law, in
creating alternative demonstration
programs for non hospital orders to not
resuscitate. In Monroe and Onondaga
counties, a new form known as the
"Medical Orders for Life Sustaining
Treatment (MOLST)" has been introduced
by professional emergency medical (EMS)
personnel, in the non-hospital field, to
use it as an alternative to the Do Not
Resuscitate Form (DNR). The MOLST form
permits an individual to instruct that
they are not to be intubated by EMSs in
these counties. Further, the legislation
permits alternative non-hospital DNR
forms, such as MOLST, to specifically
include "do-not-intubate orders." This
legislation excludes persons with mental
retardation, developmental disabilities,
or mental illnesses; it protects those
who are incapable of making their own
health care decisions from using the
alternative forms within the
non-hospital setting. This law was
signed by the Governor on 07/26/06; it
shall take effect immediately.
Long-term Care
Chapter 412 of
2006 S.8145 (HANNON) This law
increases the aggregate amount of
hospital and nursing home project bonds,
notes and other obligations that the
Medical Care Facilities Finance Agency
("MCFA") may issue to $13.4 billion.
Currently, the Dormitory Authority, as
successor to the Medical Care Facilities
Finance Agency, only has the authority
to issue such project bonds, notes or
other obligations in an aggregate amount
of $12.6 billion. The Dormitory
Authority the Authority is seeking
additional bond authorization at this
time, to ensure that it will be able to
meet the needs of all its private
not-for-profit health-care clients on a
timely basis. They predict that future
projects requiring bond financing could
total approximately $809 million,
exceeding the current remaining capacity
of approximately $371 million available
under the current cap. The Governor
signed this legislation into law on July
26, 2006; it was effective immediately.
Chapter 700 of
2006 S.7494-A (HANNON) This law
will raise the current bed cap on the
number of residential health care
facility beds that are set aside for
Continuing Care Retirement Communities
("CCRCs") from 1,000 to 2,000. In
addition, the bill also provides that a
not-for-profit CCRC operator may receive
approval from the State Department of
Health ("DOH") if they have either the
current requirement of at least 25% of
entrance fees received for at least 60%
of proposed units; or at least 10% of
entrance fees received for at least 70%
of the proposed units. The bill further
requires DOH to conduct a review of
duplicative laws, rules and regulations
pertaining to shared components of a
CCRC and report its findings and
recommendations to the Governor and
Legislature by January 15, 2007. This
bill passed both houses of the
Legislature in June of this year and was
delivered to the Governor on 09/01/06.
If enacted, this bill would take effect
immediately.
Chapter 120
2006 S.6724 (MAZIARZ) This law
amends Chapter 433 of the Laws of 1997,
the Public Health Law and other laws
relating to rates of reimbursement paid
to hospitals and residential health care
facilities, of the Portable X-ray
Demonstration Program to Medicaid
Recipients. The law will continue a
demonstration project that allows
portable x-ray providers to be
reimbursed for their services, which
will be rendered to Medicaid Recipients
in residential and intermediate health
care facilities. This also includes
those with developmental disabilities.
Transporting can be costly and
traumatizing for these individuals. The
law will require the Department of
Health to submit a report on the project
outcomes. The Federal Medicare Program,
and several other States, allows
Medicaid reimbursement for portable
x-ray and diagnostic ultrasound
services. This law shall take effect
immediately; the Department of Health
must submit their report by September 1,
2007.
The Medicaid
Inspector General (MIG)
Chapter 442 of
2006 S.8450 (SKELOS): This law
creates a comprehensive plan to control
fraud and abuse of the New York State
Medicaid system. The Federal General
Accounting Office estimates that 10
percent of Medicaid expenses are
diverted through fraud. This is an
amount equal to billions of dollars
spent by New York State on its program.
This chapter, which was developed
collaboratively by Honorable Senators
Skelos, Hannon, Meier and Volker, amends
the following laws to combat Medicaid
Fraud:
- The Public Health Law, by
establishing the Office of the
Medicaid Inspector General and
provides for its powers and duties;
- The Executive Law, by
designating the Office as a
qualified agency for the purposes of
criminal information;
- The Social Services Law, by
developing and testing new methods
of Medicaid Claims and Utilization
Review to improve Medicaid fraud
control and to create expenditure
accountability and a provider
compliance program;
- The Social Services Law, in
relation to creating advisory
opinions;
- The Insurance Law, in relation
to requiring the Superintendent of
Insurance to annually report on
health insurance fraud; and
- The Penal Law, Criminal
Procedure Law and Labor Law, in
relation health care fraud control.
This
innovative law establishes an Office of
the Medicaid Inspector General (MIG),
within the Department of Health. The law
dramatically reorganizes and reforms New
York State's process of preventing,
detecting, investigating and recovering
improper Medicaid payments. This
independent office will serve as the
State's single agency on Medicaid fraud
and abuse prevention, detection and
investigation. This office will be a
referral point for cases deemed
appropriate for criminal prosecution and
will serve as a recovery center for
improperly expended Medicaid funds
through the collaborative efforts of
administrative and civil mechanisms.
This law features requirements that
explain the detailed powers granted to
the Office of the MIG. It creates a
culture and focus that prioritizes the
fight against fraud and further enables
the propriety of New York State's
Medicaid Program. Prior to this law’s
passage, fraud control activities were
often too intertwined to facilitate the
recovery of Medicaid expenditures, while
prosecuting the criminal acts that were
involved with their loss. This law sets
forth the following:
- Creates new criminal penalties
for regarding Medicaid fraud and
abuse;
- Authorizes and directs the
development of new technology to
detect, control and prosecute these
crimes;
- Promotes accurate Medicaid
billing procedure through provider
compliance and advisory opinion
provisions;
- Encourages active involvement in
fraud prevention and recovery
efforts by local counties; and
- Establishes new information
management protocols and
requirements which further empower
the Attorney General, District
Attorneys and other appropriate
entities who prosecute criminal
fraud;
This
legislation will achieve substantial
savings for taxpayers and it will help
to preserve quality health care for New
York State's Medicaid Recipients. It has
been called the toughest and most
comprehensive plan to combat Medicaid
fraud in the Nation. This law was signed
by the Governor on July 26, 2006; it
shall take effect immediately, with
certain provisions to ensure proper
implementation.
Organ Donation
Chapter 570 of
2006 S.4610-A (HANNON) This
chapter amends the Vehicle and Traffic
Law, in relation to donations made,
under the direction of the Commissioner
of the Department of Motor Vehicles
(DMV), to collect monies to fund the
development of a license application and
renewal form. This will solicit a
voluntary one dollar donation, for the
"Life Pass it on Trust Fund." In 1968,
the New York State Department of Motor
Vehicles began its organ donation
efforts, by putting forth the Uniform
Anatomical Gift Act. That Act allowed
one to consent to organ and tissue
donation on the back of their driver’s
license. Additionally, the DMV has
helped to increase awareness of donation
by creating links to the Organ and
Tissue Registry on application and
renewal forms and various other organ
donation initiatives. This legislation
expands upon the good work accomplished
by the DMV and will further support
education, awareness, and donation
efforts. This bill was signed by the
Governor on August 16, 2006; it takes
effect 18 months after it becomes a law
to leave time for implementation.
Chapter 565 of
2006 S.759 (HANNON): This law
allows for deductions which will reduce
an organ donor’s Federal adjusted gross
income for purposes of the State
personal income tax credit. The law
adjusts the State income tax deduction
up to $10,000, which represents the
maximum estimated amount incurred by a
living organ donor, per donation. The
law was signed by the Governor on August
16, 2006; it shall take effect
immediately and shall apply to taxable
years beginning on, or after, the first
of January next succeeding the date on
which it became law.
Chapter 598 of
2006 S. 8312 (SPANO): This
chapter amends the Public Health Law by
adding organ and tissue donation
information to the list of current items
that the Department of Health must
include in its Health Care and Wellness
Education and Outreach Program. This
will promote public awareness of these
important health issues.
Pharmaceuticals
Chapter 457 of
2006 S.4331-B (HANNON) This law
will conform New York State’s Controlled
Substances Schedules with that of the
Federal Schedule of Controlled
Substances as listed in the Code of
Federal Regulations (CFR), Title 21,
Part 1308. The Federal and New York
State Controlled Substance Acts have
categorized controlled substances into
five groups, called schedules. These
schedules depend upon each substance's
accepted medical use and potential for
abuse and diversion. Differences existed
between the Federal and New York State
scheduling of controlled substances. The
Department of Health (DOH) was not
authorized to enforce Federal Controlled
Substance Law; by making New York State
scheduling consistent with federal
scheduling, DOH’s Bureau of Controlled
Substances and other law enforcement
agencies are authorized to enforce
violations of controlled substance
regulations. The amendments also enable
the DOH to more effectively detect,
prevent and prosecute crime. This law
was signed by the Governor on 08/16/06;
it shall take effect immediately.
Public Health
Chapter 29 of
2006 S.6696 (LAVALLE) This law
will amend the Public Health Law, in
relation to the Breast and Cervical
Cancer Detection and Education Program.
This law increases the number of members
appointed to the Advisory Council from
18 to 21, ensuring adequate
representation among all valued
stakeholders. The law was signed by the
Governor on 04/25/06; it shall take
effect immediately.
Chapter 76 of
2006 S.5917-A (BALBONI) This
chapter amends the Public Health Law, in
relation to creating an orderly process
for the disposition of a decedent's
remains. Previous to this, there was no
law that described who shall carry out
the wishes of a decedent. Disputes over
the right to carry out the wishes of the
deceased ensued. This bill creates a
process that allows an individual,
before he or she dies, to designate a
person who will carry out their wishes,
regarding the disposition the
individual's remains, following their
death. The law creates a rank ordered
list of people to carry out those wishes
in the absence of a written instrument
executed by the decedent. The law was
signed by the Governor on 06/07/06; it
shall take effect 180 days after being
signed into law.
Chapter 346 of
2006 S.6957 (ALESI) This chapter
will amend the Public Health Law, in
relation to increasing certain penalties
related to bodies of deceased persons.
Due to medical breakthroughs in
medical technology with the use of
tissue transplantation and organ
donation, the tissue bank industry has
boomed in recent years. Proper
harvesting of tissue makes medical
miracles possible to achieve, however,
there is a small risk of disease
transmission associated with tissue
transplantation. To mitigate the
probability of disease spread through
tissue transplantation, the New York
State Health Department and the FDA
require firms that collect tissue to
screen and test donors for communicable
diseases; they ensure that human tissue,
and cellular and tissue based products,
are processed in such a way as to
prevent communicable disease
contamination. State and Federal
regulations require an extensive donor
medical history, the testing of the
donor's blood and tissue for infectious
diseases, and the sterilization of
tissue to free it of viruses and
bacteria. However, when human bone, skin
and other tissue material are obtained
illegally, the medical screening process
is circumvented. This creates a very
real medical risk. This legislation
increases the penalties for activities
related to the unlawful and improper
harvesting of human tissue, bone and
other materials in an effort to deter
these types of unlawful activities.
The Governor signed this legislation
into law on 07/26/06; it shall take
effect on November first of the next
succeeding the date on which it shall
have become a law.
Chapter 198 of
2006 S.6359 (MARCELLINO) This
chapter will amend the Public Health
Law, in relation to the number of
at-large members appointed to the New
York State Toxic Mold Task Force.
The law makes a simple technical
correction to Chapter 356 of the Laws of
2005 that will provide for twelve
at-large members of the task force
previously created. Subdivision 4 of
section 1384 of the Public Health Law
listed twelve areas that at-large
members should be appointed from;
however the original chapter enumerates
only eleven. This minor technical error
is now corrected. This law was signed by
the Governor on 07/26/06; it shall take
effect immediately.
Chapter 573 of
2006 S.2602-C (FUSCHILLO)
This chapter will amend the Public
Health Law, in relation to establishing
new restrictions on the use of
ultraviolet radiation devices at tanning
salons. Overexposure to
ultraviolet (UV) rays can cause eye
injury, premature wrinkling of the skin,
and light-induced skin rashes, and can
increase your chances of developing skin
cancer. Studies suggest that children
and adolescents are harmed more by
equivalent amounts of UVB rays than
adults. Often adults are unaware of
these hazards. This law enables parents
to make informed decisions about their
children’s use of indoor tanning by
requiring them to become familiar with
the added susceptibility of children to
potential harm during use. Parents are
now required to give consent to their
child's use of an indoor tanning
facility and those under the age of
fourteen are prohibited from using a
tanning facility. This law was signed by
the Governor on 08/16/06; it shall
become effective in 90 days of becoming
a law.
Vaccination and
Immunization
Chapter 266 of
2006 S.5087-A (HANNON): This
chapter amends the Public Health law by
requiring hospitals to offer
immunization against influenza and
pneumococcal disease to all admitted
individuals who are aged 65 and older.
Specifically, the law requires hospitals
to offer influenza vaccinations, between
September 1 and April 1 each year, to
all patients 65 and older who are
admitted to the hospital; the law also
requires hospitals to offer pneumococcal
disease vaccinations to all admitted
patients who are aged 65 and older
throughout the year. Further, the law
will require hospitals to adopt policies
on offering and administering influenza
and pneumococcal disease vaccinations to
patients. Policies may include, but are
not limited to, the following:
- Procedures for identifying
at-risk patients over the age of 65;
- Procedures for ensuring that
high-risk patients are offered
vaccinations and will receive (or
his or her guardian will receive)
information about the risks and
benefits of vaccination; and
- A standing order program for
influenza and pneumococcal
immunization.
This law
allows the Commissioner of the
Department of Health to initiate new
requirements in the event of influenza
and pneumococcal vaccine shortages. This
chapter was signed into law by the
Governor on July 26, 2006; it will take
effect on the ninetieth day after it
shall have become law.
Chapter 189 of
2006 S.8341-A (HANNON): This
chapter amends the Public Health Law by
requiring all children born on, or
after, January 1, 2008 to be vaccinated
for pneumococcal disease prior to their
admission to day care centers and
preschool programs. This law will then
remove pneumococcal immunization from
the list required for elementary school
entry and adding pneumococcal disease to
the list of diseases for which the
Department of Health may engage in
surveillance. This surveillance will
lead, but is not limited to the
following:
- Testing of vaccinations and
methodologies;
- Encouraging municipalities to do
local immunization programs; and
- Engaging in general activities
that will promote childhood
vaccination statewide.
The Governor
signed this chapter into law on July 26,
2006; it was effective immediately.
Chapter 544 of
2006 S.8227-B (HANNON):
This chapter establishes
a Statewide Electronic Immunization
Registry for persons under the age of
nineteen. The Statewide Immunization
Registry will be established within the
Department of Health (DOH) and will be
an automated, electronic repository for
immunization information, which are
administered to all persons under the
age of nineteen. A similar registry
system has been established within the
New York City Department of Health and
Mental Hygiene; the Statewide Registry
will become connected to this system.
All information reported to the registry
shall be kept confidential and released
only to users who are authorized by the
Department of Health; these shall
include: local health departments,
health care providers, and schools.
Recently, following the events of
Hurricanes Katrina and Rita, it was
noticed that the relocation and
enrollment of children into various
school systems was facilitated by the
well maintained immunization registries
of the States of Mississippi, Alabama
and Louisiana. These registries made
this process easier and eliminated the
potential for re-vaccination prior to
enrollment. This chapter was signed by
the Governor on August 16, 2006; it
shall take effect on the first of
December of the year after it shall
become a law, providing for the process
of implementation.
Chapter 506 of
2006 S.7421-B (SKELOS): This
chapter amends the Public Health Law by
requiring the administration of any
booster immunizations for diphtheria,
tetanus toxoids and acellular pertussis
vaccination to children born on or after
January 1, 1994, when entering sixth
grade (or comparable level of special
education program) on or after September
1, 2007. Between 2000 and 2005, over
4500 cases of pertussis were reported in
New York State. In 2003 the number of
reported cases of pertussis increased to
11,647; 39 percent were adolescents age
10-19. The US Centers for Disease
Control and Prevention reports the
average incidence of pertussis in
adolescents aged 10-19 has increased
dramatically in recent years. A full, 25
percent of prolonged cough illness in
adolescents and adults is estimated to
be pertussis disease. Immunity from the
childhood vaccination typically wears
off after five to 10 years. This renders
many teens susceptible to the serious
and highly contagious disease.
Adolescent vaccination has the potential
to reduce the burden of disease in this
targeted age group and possibly also
reduce transmission of pertussis in the
community, providing indirect protection
to infants who have not been immunized.
This act shall take effect September 1,
2007.
Health Budget Highlights
This year in
New York State, the Governor, Senate and
Assembly worked very hard to come to an
agreement on the State Budget. It was
the second on time budget in over twenty
years, however, it was not without some
disagreement. The Governor vetoed a
number of line items within the budget
bills and questioned the
constitutionality of others. Cost
containment measures for localities were
thoroughly investigated to
counterbalance some of the State share
for health insurance programs. The
Legislature attempted to override many
of the vetoes, including new Medicaid
initiatives, many of which were
considered cost containing measures in
and of themselves.
The final
budget agreement between the Legislature
and the Governor restored almost all of
the Executive’s cost containment
measures, but it also includes Medicaid
increases for facilities throughout the
state, aid to counties and New York
City, and health initiatives brought
forth by the Legislature. The final
2006-07 Health and Mental Hygiene Budget
restored more than $490 million to
hospitals, nursing homes and home care.
For more
details on the Budget, please visit the
New York State Division of the Budget’s
Enacted 2006-2007 Budget web page at:
http://www.budget.state.ny.us/pubs/enacted/enacted.html
The Health and Mental
Hygiene Budget
The budget
included $188.5 million to restore and
continue prescription drug coverage
programs, including $120.6 million to
extend the Medicaid Part D wraparound
through January 14, 2007, for
dual-eligible elderly. It also restored
$36.2 million for Medicaid reimbursement
and $31.7 million for EPIC reimbursement
to pharmacies.
Hospitals:
- Restoration of $72.5 million in
the state budget partially restored
the trend factor for hospitals to
adjust aid and help them address
inflationary cost increases. Also,
the budget provides $5.3 million to
increase the Hospital Emergency Room
Medicaid rate. Effective January 1,
2007, the Hospital Emergency Room
rate will be $125 per ER visit, on
January 1, 2008, the rate becomes
$140, going to $150 per visit after
January 1, 2009. An additional $2
million is provided to increase the
Emergency Room physician rate from
$17 to $25.
Nursing Homes:
- To ensure nursing homes will
remain open, the budget provides $20
million to rebase nursing home aid,
which will increase total aid by
$450 million when fully implemented
in four years. Coupled with
rebasing, public nursing homes will
be provided with $5 million
beginning in calendar year 2007,
growing to $100 million over four
years. The Legislature also provides
$1.5 million to begin implementation
of a pay-for-performance program to
enhance quality of care for nursing
home residents. The budget will also
restore $65.4 million to maintain
the trend factor for nursing homes
to adjust aid and help them address
inflationary cost increases.
Mental Health
Treatment Programs
- The budget includes critical
additions and restorations designed
for helping mentally ill consumers
and the people who provide these
consumers with care and treatment.
The budget will add $3.2 million for
community based mental health
services for adults and children,
and add $1 million in new funds to
support programs for the families of
the mentally ill. Also,
Non-comprehensive outpatient
treatment programs will receive $2
million to help begin equalizing the
rate disparity with comprehensive
outpatient treatment programs.
Housing /
Residential Programs for the Mentally
Ill:
- The budget included $850,000 in
new funds in support of housing
programs in Upstate New York, while
also including $810,000 for new
housing for mentally ill adults with
critical needs. A $2 million
restoration for personal needs
allowances for the mentally ill in
residential treatment facilities
will provide each individual $135
per month for purchasing food and
personal care items, a $90 increase
over the Governor’s proposal. Also,
$500,000 for a pilot project for a
transitional living program for
mentally ill children is included.
Outpatient /
Substance Abuse Treatment Programs:
- State substance abuse prevention
and treatment programs will receive
$650,000, while $300,000 will be
designated for eating disorder
initiatives. Substance abuse
treatment and prevention care
providers will be provided with $1
million to combat rising operating
costs.
Public Health
Initiatives:
- Public Health Management,
Leaders of Tomorrow Program
This year
Senator Hannon championed corrections to
the Public Health Management, Leaders of
Tomorrow Program. With $600,000 in
funding, from the Senate Majority, the
Dean of the State University of Albany
School of Public Health, in Conjunction
with the New York State Department of
Health, shall Develop and implement an
academic Public Health Management
Program for students and/or individuals
employed at County or State Health
departments, to prepare them for public
health issues of the 21st Century.
- Healthy e-Links New York Act
This year, Senator Hannon championed
the Health e-Links New York Act,
which establishes the Office of
Health e-Links within the Department
of Health, to be headed by a State
Coordinator, with the purpose of
enhancing the adoption of an
interoperable regional health
information exchange and technology
infrastructure. This system will act
to improve quality of care and
reduce the cost of health care, as
well as ensure patient privacy and
security, enhance public health
reporting (including bio terrorism
surveillance and facilitate health
care research in the State of New
York).
- Racial Disparities
This year, Senator Hannon worked to
create a plan, to be developed upon
and implemented through the
Commissioner of Health, toward
gaining statewide and suburban
areas/regional benchmark research
index on racial/ethnic disparities
in access to health care services by
minority populations. It has
recently been discovered, that in
some suburban areas and regions the
rate of preventable hospitalizations
of minorities is exceeding the
statewide benchmark indices. Certain
of this information run contrary to
previously held beliefs about
suburban access. These regions shall
now become eligible, under this
initiative, to participate in a
racial disparities program, to be
designed through State funding, to
foster the elimination of
racial/ethnic disparities in health
status and delivery of care. Program
design will focus on preventable
hospitalizations; these shall
include, but are not limited to:
diabetes, asthma, chronic
obstructive pulmonary disease,
hypertension and congestive heart
failure. These disparity indices
will provide new insight into the
level of disease disparity between
population groups in these suburban
regions.
Appropriations
Bill
Provides a
net restoration of $490.3 million in
additional General Fund support for the
Medicaid program.
Health Care
Facilities
Provides
$172.6 million for hospitals as follows:
- Rejects the proposal to limit
payments made to Graduate Medical
Education (GME)
hospitals
to actual cost, and restore $36.2
million;
- Provides $72.5 million and
authorizes a calendar year 2.25
percent trend factor;
- Includes $23.3 million and
rejects the proposal to modify the
volume adjustment
calculation to case payments;
- Rejects the proposal to reduce
rates paid for inpatient services
provided for
non-complicated detoxification
services, and restores $23.2
million;
- Includes $10 million for the
Hospital Restructuring Incentive
program;
- Includes $5.3 million to
increase the rate paid to hospitals
for emergency room services;
- Effective January 1, 2007, the
rate paid to hospitals would
increase from $95 per
emergency
room visit to $125. On January 1,
2008, the rate would increase to
$140, and on January 1, 2009, the
rate would increase to $150;
- Includes $2 million to increase
the rate paid to physicians for
emergency room services; and
- On October 1, 2006, the rate
paid to physicians for emergency
room services would
increase
from $17 per visit to $25 per visit.
Nursing Homes
Includes $137.9 million for
nursing homes;
- Includes $20 million and amends
the nursing home rebasing proposal;
- Updates the methodology used to
determine the reimbursement rates
using the
2002 cost
reports;
- Includes a hold harmless
provision for those facilities that
would be negatively
impacted
by using cost reports from a
different year;
- Includes language which
indicates that facilities must use
between 65 percent and
75 percent
of the increased funds for various
quality initiatives, such as
improved
staffing
ratios and staff training;
- Includes a full-phase in over a
four year period and provides $20
million in increased State funding
for SFY 2006-07;
- $65 million in increased State
funding for SFY 2007-08; $90 million
in increased State funding for SFY
2008-09 and $230 million in
increased State funding for SFY
2009-10;
- Includes $5 million in
additional funding for public
nursing homes, which would be
increased
over a four year period to $100
million. The phase in schedule is as
follows:
SFY
2006-07: $5 million; SFY 2007-08:
$15 million; SFY 2008-09: $35
million and SFY 2009-10: $100
million;
- Rejects the proposal to limit
reimbursement paid to nursing homes
for Adult Day Health Care programs
to their actual costs, and restores
$13 million;
- Includes $1.5 million and
establishes a nursing home Pay for
Performance Program;
- Rejects the proposal to
eliminate the 300 plus bed and
hospital based add-on paid to
nursing
homes, and also to exclude Medicare
and private pay patients from the
case mix when calculating the
Medicaid rate for reimbursing
nursing homes. Includes $33 million
for this action;
- Provides $65.4 million and
authorizes a calendar year 2.25
percent trend factor; and
- Extends the six percent Gross
Receipts Tax (GRT) on nursing homes
until March 31, 2009.
Long Term Care
Services
The Executive
Budget included several changes to long
term care eligibility including: an
increase in the look back period for
asset transfers, from 36 months to 60
months, for both institutional and
non-institutional care, a change in the
penalty period from the date of transfer
of assets was made to the date that an
individual needs services, an
elimination of a spouse's ability to
refuse to pay for services. However,
this law:
- Rejects the proposal to increase
the look back period for
non-institutional care;
- Rejects the proposal to
eliminate a spouse's ability to
refuse to pay for services.
- Restores $34.2 million for these
long term care changes; and
- Allows individuals to exempt the
value of their home up to $750,000
(the maximum amount allowed under
Federal law), when making a
determination of eligibility for
long term care services.
Pharmaceuticals
This law
includes $120.6 million and extends the
transition period to the Medicare Part D
Drug
Program until
January 1, 2007 for dual eligible
individuals. Provides $67.9 million to
partially restore Medicaid and the
Elderly Pharmaceutical Insurance
Coverage (EPIC) program's pharmacy
reimbursement for prescription drugs as
follows:
- Brand name drugs = Average
Wholesale Price (AWP) minus
13.25 percent; and
- Generic drugs = Average
Wholesale Price (AWP) minus 20
percent.
- There are no changes to the
reimbursement amount for
pharmacies providing specialized
services for individuals with
HIV/AIDS.
The Executive
proposed several changes to the
Preferred Drug List (PDL) and Prior
Authorization Program (PA), including:
- Eliminating a physician's
ability to make the final
determination when prescribing a
prescription drug not on the PDL;
- Using cost as a factor when
determining if a prescription drug
should be placed on the PDL or prior
authorized; and
- Reducing from 30 to 10 days the
notice requirements for putting a
drug in the PDL/PA program.
These changes
to the PDL/PA programs were rejected;
$55.7 million in Medicaid spending was
restored.
Other Medicaid
Budget Proposals
Includes $4.4 million and
rejects the proposal to modify
transportation services under the
Medicaid program;
- Includes $3 million to provide a
supplemental transportation rate for
emergency
transportation;
- Includes $1.4 million to provide
an increase in the Medicaid rate for
AIDS Adult Day
Care
programs;
- Provides $2 million for personal
care services in rural areas of New
York State;
- Provides $1 million for
crossover payments for psychiatric
services for individuals
eligible
for both Medicaid and Medicare;
- Provides $112,000 for Academic
Dental Clinics; and
- The Executive proposed to
eliminate the special rates paid to
hospitals for mental health
outpatient services. This proposal
was rejected; $3.7 million in
additional Medicaid spending is
being provided.
2006 Public
Hearings on Health:
Hearings on
Medicaid Fraud and Abuse
In June of
2003, The Senate Medicaid Reform Task
Force was created. It served to conduct
the first comprehensive review of New
York's Medicaid Program, to develop a
long term vision for Medicaid efficiency
and effectiveness, and to provide
quality affordable health care. After an
extensive statewide review and inclusive
hearing process, the Task Force issued
comprehensive recommendations to ensure
that Medicaid would continue to
efficiently provide quality care to
those in need. Several of the Task
Force's initial recommendations have
become law.
In 2005,
Senate Majority Leader Joseph L. Bruno
announced that the Senate Medicaid
Reform Task Force, chaired by Senator
Kemp Hannon, Chairman of the Senate
Health Committee, and Senator Raymond
Meier, Chairman of the Senate Social
Services Committee, would hold a series
of statewide hearings on Medicaid fraud,
to build support for State action on a
problem that is estimated to cost New
York taxpayers billions of dollars.
In addition to
Senators Hannon and Meier, the Executive
Committee of the Senate Task Force on
Medicaid Reform included: Senators James
Wright, Elizabeth Little, Mary Lou Rath
and Frank Padavan. Every member of the
Senate Majority Conference participated
as a member of the Task Force. For more
information on Medicaid Task Force
reporting, please visit Senator Hannon’s
website area regarding these issues at:
http://www.senatorhannon.com/topics2_1_3_2_ReportSenateMedicaidReform.htm
Medicaid fraud
causes property taxes to increase; local
governments become financially stressed
as a result. Medicaid fraud also causes
services to be diverted away from the
people who most need care. These
statewide hearings have solicited the
input of experts in the field of
Medicaid, the health care industry and
law enforcement agencies. Since its 2003
inception, the Task Force has
investigated initiatives being used, in
other states and at the Federal level,
to combat fraud, waste and abuse of the
system. The Legislature called upon
Federal auditors to further investigate
what measures New York State can take to
combat Medicaid fraud.
Wednesday,
September 21, 2005
The New York
State Senate held a public hearing on
Wednesday, September 21, 2005 at 10:00
a.m., in Hearing Room A of the
Legislative Office Building, to receive
comment on legislation, which was passed
by the Senate last spring, to combat the
problem of Medicaid fraud. The hearing
was conducted jointly by the Senate
Committees on Health and Social
Services, Children and Families along
with the Senate Medicaid Reform Task
Force, co-chaired by Senator Kemp Hannon
and Senator Raymond Meier. The Albany
hearing was the first of several public
hearings that were held throughout the
State to receive input on comprehensive
Medicaid fraud legislation, sponsored by
Senator Dean Skelos (R, Rockville
Centre), that was passed by the Senate
in May.
The Senate
introduced and passed legislation during
the 2005 legislative session (S.3685-B)
to establish an Independent Office of
Medicaid Inspector General. The purpose
of the Office of Medicaid Inspector
General would be to integrate,
consolidate and coordinate the
investigation of Medicaid fraud related
activities of state and local
governments within the state and, where
necessary, to coordinate or contribute
to the prosecution of fraud. The
Assembly did not act on the Senate
legislation. On August 5, 2005, Governor
Pataki signed an Executive Order to
establish such an office.
"Through
public discourse, I am certain the
Medicaid Reform Task Force will again
produce solid recommendations for an
improved system for Medicaid fraud
prevention," Senator Hannon said. "New
Yorkers deserve better accountability in
their Medicaid program. Containing
fraud, waste and abuse can only enhance
the effectiveness of the Medicaid
program and result in both excellent
medical care for beneficiaries, and the
wise expenditure of scarce taxpayer’s
dollars."
"With
estimates that Medicaid fraud could cost
taxpayers billions of dollars each year,
we have to bring the program under
control, better coordinate our
fraud-fighting effort and employ the
latest technology to return those
savings back to taxpayers," said Senator
Skelos. "The information and
recommendations we will receive through
the hearings will enable us to build on
our efforts to dramatically reorganize
and reform New York's process of
detecting and combating Medicaid fraud
and ultimately save State and local
taxpayers hundreds of millions of
dollars."
In 2005, New York State's Medicaid
expenditures were projected to exceed
$44.5 billion. The General Accounting
Office estimates that fraud accounts for
approximately ten percent of all
Medicaid spending. That said, other
studies suggest that fraud could consume
up to 25 percent of certain segments of
New York State's Medicaid budget.
Based upon
these projections, fraud, waste and
abuse within New York State's Medicaid
program could cost New York State
taxpayers $4.5 billion during the
current state fiscal year.
According to a
United States Department of Health and
Human Services (HHS) report, New York
State's Medicaid Fraud Control Unit
(MFCU) received $30.6 million in federal
grants to fight fraud during federal
fiscal year 2003. When coupled with the
25 percent State match, the State MFCU
had 295 employees and recovered $24.4
million. In comparison, Florida
recovered $21 million, with $8.6 million
in federal grants and 127 employees,
Texas recovered $31 million, with $2.8
million in federal grants and 43
employees, the District of Columbia
recovered $13 million, with $1.2 million
in federal grants and 16 employees, New
Jersey recovered $42.6 million, with
$2.2 million in federal grants and 36
employees, and California recovered
$39.4 million, with $16.2 million in
federal grants and 189 employees.
During the
three-year period federal fiscal year
2001-2003, New York State's MFCU
recovered an average of 72 cents for
every $1 in federal grant funding
received. As compared with the
three-year averages for California
($1.98), Florida ($3.14), Texas ($4.96)
and New Jersey ($5.76), New York State
could have realized hundreds of millions
of dollars in additional recoveries by
achieving a similar rate of return.
The Creation
of the Office of the Medicaid Inspector
General
"The Senate
has led the way in identifying
efficiencies to control the growth of
Medicaid and to improve the quality of
the health care delivered. Fraud
devalues both of those goals by wasting
tax dollars and also straining the
system to the point where quality is
compromised," said Senate Health
Committee Chairman Kemp Hannon (R,
Garden City), co-chair of the Senate
Medicaid Reform Task Force. "Our
hearings on the Medicaid Inspector
General have demonstrated the need for
such an office, the methodologies which
could be utilized and the potential for
significant savings for New York's
taxpayers."
The Medicaid
Inspector General (MIG)
Chapter 442 of 2006 S.8450 (SKELOS)
The Senate’s Comprehensive
Medicaid Fraud Legislation Includes the
Following Provisions:
Office of Medicaid
Inspector General: The
legislation consolidates the
Administration's Medicaid
program integrity
responsibilities and over
600 staff from each of the
six involved Executive-level
state agencies into a new
Office of Medicaid Inspector
General within the
Department of Health. While
the Office must remain
within the Department of
Health to receive federal
matching funds and maintain
access to the necessary
claims information, its
operations will be
completely independent. The
Inspector General will be
required to meet stringent
qualifications and serve at
the pleasure of the
Governor. To help focus the
Office's efforts and promote
the necessary organizational
culture, the legislation
requires all Office staff to
be co-located, except for
regional office personnel.
The Office will focus on
three main functions:
compliance, investigation
and recoupment/sanctions. To
this end, it will review all
Medicaid expenditures and
investigate those identified
as suspected fraud or abuse.
It will have the power to
withhold payment until the
claim is determined to be
appropriate (up to 30 days
under federal law), impose
administrative sanctions and
pursue civil recoveries and
third-party recoveries,
i.e., coordination of
benefits with health
insurers. The Office may
also bring civil recovery
actions.
For those fraudulent claims
determined to be criminal,
the Office will serve as the
investigative entity for
provider fraud cases
prosecuted by the Attorney
General's Medicaid Fraud
Control Unit ("MFCU") and
local district attorneys.
Along with the state Welfare
Inspector General, district
attorneys also prosecute
recipient fraud.
Improved Technology:
The Senate bill authorizes
and directs the Department
of Health to contract with
vendors for upgraded
information technology
necessary to detect Medicaid
fraud, conduct utilization
review and coordinate
third-party benefits (health
plans). Improved technology
would improve accountability
in Medicaid expenditures
throughout the process and
coordinate benefits with
health plans to ensure
Medicaid is the payer of
last resort.
New Medicaid Fraud
Offenses and Penalties:
The Senate bill creates new
Health Care Fraud offenses
to facilitate the criminal
prosecution of Medicaid
fraud.
Local Share for Certain
Medicaid Recoveries: The
bill would enable local
social services districts
(i.e., counties and the City
of New York) to receive up
to 15 percent of the gross
amount collected from a
fraud investigation if the
district participates in the
identification,
investigation or development
of a Medicaid fraud case. A
local social services
district could also receive
up to 15 percent of the
gross amount collected for
participating in criminal
fraud cases referred to the
Attorney General.
Health Insurance Fraud
Report: The Senate bill
requires the State Insurance
Department to annually
submit a report detailing
its investigation of health
insurance fraud cases
submitted by health plans.
Currently, SID is
investigating 2.9 percent of
all such cases, far below
levels for other types of
suspected insurance fraud.
Corporate Compliance
Program: As a
prerequisite for Medicaid
eligibility, the Senate bill
requires larger Medicaid
providers to implement
Sarbanes-Oxley style
corporate compliance and
internal controls programs
designed to prevent improper
and inaccurate billings and
fraud. The Senate bill also
creates an Advisory Opinion
process to encourage proper
billing.
The legislation builds on
Senate Medicaid fraud
initiatives that were
included in the 2006-07
State budget including:
- A $500,000 budget appropriation
for the New York Prosecutors
Training Institute (NYPTI) to
conduct an educational program
relating to Medicaid fraud for local
district attorneys and to prepare
form materials and perform research;
and
- The establishment of a local
Medicaid fraud demonstration project
in Chemung County, which is
developing a fraud detection system
that uses the latest technology to
review inappropriate utilization of
services.
February 2nd,
2006 Public Hearing
On February
2nd, 2006, a Joint Hearing of the New
York State Senate Standing Committees on
Social Services, Children and Family
Services and the Medicaid Reform Task
Force, was Co-Chaired by Senator Hannon,
Chairman of the New York State Standing
Committee on Health, and Senator Raymond
R. Meier, Chairman of the New York State
Standing Committee on Social Services,
Children and Families. The hearing was
held at Hofstra University's Leo Guthart
Cultural Center Theater, Axinn Library,
located in Hempstead, New York.
The purpose of
this hearing was to further examine the
State and Federal laws, regulations and
practices, as they relate to Medicaid
Fraud detection processes, and to
determine the best means by which the
system can be improved within New York
State.
During the hearing, officials from other
states, health care and insurance
industry representatives, and Federal,
State and Local government officials
were requested to testify. The result of
the hearing was an improved sense of how
to achieve greater accountability in the
expenditure of public funds on the
Medicaid Program.
Expert testimony was gathered from Brian
Flood, Inspector General of the Texas
Health and Human Services Commission.
Mr. Flood presented compelling
information on the topic of the Texas
Medicaid Reform and the changes that
have come about in his State as a result
of the reform. This has enabled our
State to comprehend the vast differences
between the Medicaid fraud recovery
monies being realized by Texas and other
States, in comparison to our’s.
According to the Department of Health
and Human Services (HHS), New York
State's Medicaid Fraud Control Unit
(MFCU) received $30.6 million in federal
grants, for the 2003 Federal Fiscal
Year, specifically earmarked to fight
fraud and abuse. There was also a 25
percent share in State matching funds.
The New York State MFCU, with its 295
employees, recovered $24.4 million.
Florida recovered $21 million from $8.6
million in federal grants with 127
employees. Texas recovered $31 million
with only $2.8 million in federal grants
and 43 employees. The District of
Columbia recovered $13 million with $1.2
million in federal grants and 16
employees. New Jersey recovered $42.6
million with $2.2 million in federal
grants and 36 employees. California
recovered $39.4 million with $16.2
million in federal grants and 189
employees.
When comparing fraud recovery cents on
the federal dollar spent during Federal
Fiscal Years 2001-2003, New York's MFCU
only recovered $.72 for every $1.00 of
federal grant funding. However, in
comparison, California recovered $1.98,
Florida recovered 3.14, Texas $4.96 and
New Jersey $5.76. This hearing was
instrumental in the creation of the 2006
legislation on
the Medicaid Inspector General. It has
enabled the Senate Majority to set up an
appropriate guideline for controlling
fraud. The hearing allowed the
legislature to review this framework of
comparison regarding Medicaid fraud
management tactics, to those that have
been successfully employed in other
States. This will further allow New York
State to realize these needed savings.
Avian
Influenza and Pandemic Preparedness
Hearings
In October of
2004, Senator Kemp Hannon held a public
hearing to discuss and investigate
issues involving vaccine production and
distribution and flu vaccine shortage,
in the wake of media and research on
pandemic flu. The hearing, which was
entitled: "Does Our Vaccination System
Need a "Shot in the Arm"?, successfully
answered many of the questions that
concerned citizens and legislators had
regarding the necessary improvements to
the system of ordering, pricing,
production and distribution of vaccines
to the public at large. A series of
recommendation resulted from this
review.
Shortages in
vaccine supply were disrupting the
public health message of disease
prevention and wellness. The 2004 flu
season had marked the second consecutive
year in which flu vaccines were not
readily available to the public. This
created a tremendous barrier for those
who were seeking to become immunized and
threatened the health and safety of
those who did not have access the
vaccine. At that time, routine
recommendations for vaccines were being
altered and adjusted in response to
shortages, which became disruptive of an
entire health care system. Children not
properly immunized could not enter
school and were susceptible to deadly
childhood diseases. There was also
strong concern for the welfare of older
adults and those with compromised
health, who are extremely vulnerable to
the flu; their systems cannot
effectively combat viruses.
Experts in the
fields of health care, local and State
government, the business community and
medicine and research were asked to
focus on the following questions:
- Why are vaccines in
short supply? Production
clearly does not meet
demand, as have we have
experienced not only
shortages in the flu
vaccine, but in childhood
immunizations.
- Why do manufacturers
leave the vaccination
market? All states and
government itself, have a
public purpose to protect
the health and safety of
their populations. The
National Immunization
Program of the Center for
Disease Control supports
these efforts through its
vaccination programs,
thereby creating sufficient
demand for the vaccine
products. Why is t
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