The state fiscal year 2004-05 Adopted Budget restores $485.4 million of the $847.6 million in health care reductions advanced by the Executive. Provides a total of $503.6 million in restorations, offset by select federal programs for a total restoration of $485.4 million. Overall, funding restored to the Medicaid Program, Public Health, and HCRA. Co-Chairs of the Senate Task Force on Medicaid, Sen. Kemp Hannon and Sen. Ray Meier, developed comprehensive recommendations for changes in the Medicaid program (report). The recommendations are reflected in some aspects of the final budget and more fully in the Medicaid reform bill which passed in the Senate (Senate 7617, Medicaid Assistance to Counties). Highlights of the 2004-2005 budget follow

To encourage individuals to consider options for private financing of long term care services, the Legislature doubles the long term care tax credit from ten percent to twenty percent, and provides $20 million in funding for those tax credits. The Department of Health and the State Office for the Aging are to develop an education and outreach program to inform residents of New York State of the options available for financing long term care services and provides $5 million in funding for such activities. The Insurance Department and the Banking Department are to study and develop long term care investment products for insurance policy holders and homeowners. The Insurance Department is authorized to develop affordable insurance products, under the New York State Partnership Plan, for the financing of long term care services.

In recent years, New York State’ Medicaid expenditures have increased at an average annual rate of 10.3 percent. This escalating growth is placing tremendous financial strain on local governments. In December 2003, the New York State Association of Counties recommended, as their highest priority, to the Senate that the Legislature take over the local share of the Family Health Plus Program. To provide fiscal relief to local governments and to reduce increases in local property taxes, the Legislature authorizes the State to assume the entire local share of the Family Health Plus Program. Starting January 1, 2005, the State will assume 50 percent of local expenditures for the Family Health Plus Program, and on January 1, 2006, the state will assume 100 percent of the local share of the program. This will result in estimated local government savings of $49.3 million for SFY 2004-05 and $404.3 million in SFY 2005-06.

Disease Management

The Legislature provides $3 million for  six demonstration programs for disease management  to enhance the quality and cost effectiveness of care rendered to Medicaid persons with chronic health problems. Participation by Medicaid recipients in the program would be voluntary. Services provided to participants may include case management, social work, drug therapy, and tele-health services and other monitoring technologies.

The Legislature provides $2 million for a technology related demonstration program for home care services. Home care providers would be able to apply to the Department of Health to establish a tele-home care or telemedicine program in which patient care could be provided in their home. Funds could be used for equipment, equipment monitoring costs, or other services.

Several reforms to increase consumer protections and improve administration of adult homes. A key addition is the development of a web site with a "Do Not Refer" list of adult home facilities in substantial violation of health and safety standards, lack of valid operating license, or current action against the home. .

2.    Senate Medicaid Reform Task Force (copy of full Report)

In 2003, the Senate Majority established the Senate Medicaid Reform Task Force. Senators Kemp Hannon and Ray Meier  served as co-chairs and proposed the first ever comprehensive overhaul of Medicaid after six months of public hearings, discussions and input from local officials, health care providers, consumers and advocates. With the goal of implementing real systematic change to assure Medicaid is serving the right people, at the correct level of care, in the most effective manner the Task Force established numerous recommendations for reform to the Senate.

The panels’ recommendations include reforms to the long term care system, including stronger estate planning provisions and the promotion of long term care insurance; reforms to the control skyrocketing pharmaceutical costs including the establishment of a preferred drug list; establishment of disease management programs to better coordinate care and improve the efficiency of the Medicaid program; the development of telemedicine programs to provide better care to those who are chronically ill; a state takeover of the cost of the Family Health Plus program to provide local government fiscal relief; and establish comprehensive utilization review to closely monitor patient use of the system and provider billing of the Medicaid system. As indicated above, many of the Task Force recommendations were adopted in the SFY 2004-2005 budget.

The bipartisan panel worked with a 43 member Advisory Panel, held five public roundtable discussions with 53 participants, received more than 70 document submissions totaling more than 1,000 pages, held 10 public working group meetings, listened to health care providers, consumers, local government officials, academics, advocates and representatives of every sector of society impacted by our health care system regarding the role Medicaid plays in this system. These recommendations and many insights into the Medicaid program will continue to inform the Senate in further strengthening the Medicaid program.

The Assisted Living Reform Act establishes a uniform definition of assisted living, requires all assisted living facilities to be licensed with the Department of Health, and standardizes the consumer protections guaranteed to each resident in an assisted living facility.

*S.7748 (Maziarz, Golden, Hannon)/A.11820 (Englebright) - Passed both houses

While Continuing Care Retirement Communities (CCRCs) have existed in New York since the late 1980s,  the few which were established in NY indicated many seniors did not feel they were a long term care option, especially due to the significant economic commitment to join and stay there. This legislation will expand the number of CCRCs in New York, offering more affordable service packages. The law changes many of the statutory and regulatory requirements which limit the development of such programs and makes this option more available to aging New Yorkers.

*S.6656C (Hannon)/A.10834(Tokasz) - Passed both houses

To increase the immunization levels of the people of the state of New York, the vaccination for pertussis and tetanus were added to the list of immunizations required for school entry because of the incidence of pertussis in New York increasing four-fold in 2003 above the annual average.

*S.6484 (Hannon)/A.11306 (Gottfried) - Passed both houses

To increase organ donors in New York,  Senator Hannon established the NYS Organ and Tissue Donor Registry formally in law. There are already over 860,000 New Yorkers on the list declaring their intent to donate. By formalizing the registry in statute, New York will continue to partner with the United Network of Organ Sharing which maintains the national organ donor waiting list ensuring available organs are matched with those in need. There are currently 82,000 people nationwide waiting for live saving organs, 8,200 of whom are from New York.

*S.7058 (Hannon)/A.11301 (Schimminger) - Passed both houses

Office of Professional Medical Conduct Reform (OPMC)

The reform measures outlined in this bill seek to review and amend the proceedings of the office of professional medical conduct to ensure a more equitable discipline process for physicians, physician's assistants, and specialist's assistants. The proceedings of the Office of Professional Medical Conduct have been the subject of criticism by patients, physicians, attorneys and consumer interest groups. This legislation addresses due process concerns expressed in testimony at public hearings.

*S.4148 (Hannon)/A4274 (Gottfried) - Passed both houses

This bill prohibits those engaged in manufacturing, selling or otherwise distributing tobacco products, herbal cigarettes, cigarette wrapping papers, or wrapping leaves or tubes from selling or distributing cigarette packages of less than 20, roll-your-own tobacco in amounts less than 6/10ths of an ounce, or any package or other container of cigarette wrapping papers, wrapping leaves or tubes used or suitable for use to wrap tobacco for smoking with less than 20 sheets, leaves or tubes.

*S.5014 (Hannon) / A.7854 (Grannis) - Passed both houses

To maintain the stability of New York's unique theater, music and entertainment industry. Offers entertainment industry workers, who experience interruptions in employment, the ability to maintain affordable health insurance. Additionally, this bill recognizes the declining manufacturing base of New York State and allows displaced workers the option of remaining in a community by, at the very least, assisting them to make COBRA payments, thereby helping to maintain the community's workforce.

S7054 (Hannon) / A.10127 (Brodsky) - Passed both houses

To facilitate the development of comprehensive care centers, or "centers of excellence," for eating disorders in order to provide individualized, comprehensive and integrated plans of care.

*S5646 (Rules) / A.11396 (Ortiz) - Chapter 114 of the Laws of 2004

Every year, a growing number of infants are subjected to violent shaking by those who are trusted in their care. Tragically, in many of these cases the child suffers from significant brain injury or even death. This bill seeks to educate maternity patients and fathers on how to prevent Shaken Baby Syndrome by requiring hospitals to offer a prevention education video for new parents.

*S.6230 (Spano) / A.10889 (Magnarelli) - Passed both houses