A Message from the Chair
Dear New York State Resident:
As Chair of the New York State Senate Standing Committee on Health, I provide a yearly report on the activity for the prior year by the Committee, including action on the Budget and action on the legislation which has been enacted into law, after having been reviewed, and passed, in the Senate Health Committee, and in both Houses of the Legislature within the current fiscal year. Below is the year in review, the highlights of the New York State Health and Mental Hygiene Budget, special events that were held, and a summary of our recently Chaptered Health Laws for the SFY 2007-2008.
The 2007-2008 Health Budget
This year marked the beginning of a new gubernatorial administration. As a State Legislature, we were presented with the unique challenge of unifying our agendas, and presenting to the public a fair, working, and on time Budget. In his first Executive Budget, the Governor advanced several deep cuts to the health fields, many of which had been seen in prior Executive Budgets. The Senate vehemently objected. Of particular concern to the Senate were the Executive’s drastic reductions, sudden recalculation of reimbursement for services, and rate setting changes that were to be abruptly applied to our health care facilities. These cuts would have destabilized our health system, and would have been advanced without the benefit of public discussions about the policy and impacts that these initiatives would have created.
From the Senate’s perspective, these proposals represented restrictive measures directed at those in the health, and health education, fields. As it stood, the year had already begun in the wake of the findings of the Berger Commission, and under the threat of statewide hospital closures, and restructuring. The message from the community was clear, "Please protect our fragile system!" It became apparent, however, that in the area of health, reductions appeared to be Executive’s proposed answer to precipitate change.
The Senate held their ground, and worked collaboratively with community groups, health organizations, the Assembly, and the Executive to reach an agreement. Together, we passed another on time State Budget. In total, State Adopted Budget for Fiscal Year 2007-2008 included a net restoration of $389.9 million, made by the Legislature, in response to the $1.46 billion in Medicaid reductions, which had been advanced by the Executive. The Legislature also provided additional financial support for investments in our State’s health care infrastructure, to support quality care to all patients.
The Laws of 2007
This year’s enacted health laws tackle a wide variety of topic areas, and address an assortment of the public’s concerns. They are a proud accomplishment for all New Yorkers. News stories regarding weather emergencies, natural disasters, citywide flooding, and the threat of terrorist attack have amplified the need for enhanced disaster preparedness. The public has called for increased reinforcement of our system to prepare for, and respond to, emergency situations. In response, we have turned our attention to legislation geared toward the protection of New York’s 255 public water systems, which serve, in the aggregate, 85% of the State's population; I believe the legislation that we have put forth to protect our potable water systems is more timely than ever.
The Legislature, has worked with several community advocacy, and grass roots organizers, to finally bring legislation with a rich legislative history to the floor, to ensure that cancer survivors are more aptly represented as members of our statewide research board. In the SFY 2007-2008, we allocated more State funding than ever before for heath related science research; however, beyond scientific discovery, we have put forth laws to ensure funding for the ongoing treatment, and continued access to services, for those with chronic conditions who have already been diagnosed.
This year, we were able to make extensive strides in the advancement of palliative, and end of life, care. Recognizing the increasing need, and tremendous value to the community that specialized end of life care provides, we have created laws which will enable medical students to receive grants for medical education in palliative care at home; laws to enable government agencies to enter into contractual arrangements with hospices, to provide end of life and supportive care to Medicare and Medicaid patients in the advanced stages of illnesses; and, laws that will expand upon our State’s successful hospice pilot programs.
Our new laws for health care practitioners and health care financing will increase the public’s access to high quality service providers by opening the market for much needed renal dialysis facilities, by allowing physician’s assistants to prescribe, by creating more fairness within the Medicaid Program, and by protecting consumers and providers from excessively complex, and unfair practices in the area of insurance claims, and denials.
In the past two years, legislators have become more focused on creating increased accountability in quality of care, and quality reporting in the health professions, and within facilities. This year’s legislation delves into assessing, reporting, and treating the pervasive health risks, and putting public health tracking mechanisms into place. The laws summarized below, have been created with attention to fairness for all parties: the patient, provider, and facility. The process of ensuring high quality of care, and reporting, will continue to be a challenge for State and Federal policy makers in the upcoming year. As we attempt to review these reports, and assess the need for change to ensure public safety, we also remain cognizant, as policy makers, that we cannot unfairly judge those of our health care facilities that serve our most aged, frail and chronically ill populations; their outcomes, and reporting will also provide us with much insight into the needs of our community.
In addition to the extensive quality measures, and reporting set forth within the Enacted Health and Mental Hygiene Budget, several quality initiatives were set into the 2007 Public Health Laws through legislation. These laws, listed below, focus on: creating a timeline for hospital acquired infections (HAIs), creating a model safe patient handling practices, providing insight into the rate of skin cancer in our State, and provide for the collection, and use, of the perinatal data, to further ensure the quality of perinatal care in our facilities.
If you have any questions do not hesitate to contact my office for more information.
Sincerely,
Kemp Hannon
6th Senatorial District
The Chaptered Health Laws of 2007
Cancer
Chapter 393, of the Laws of 2007 (Formerly Senate Bill 2339-A HANNON, same as Assembly Bill 4650-A Weisenberg): This act amends the Public Health Law, and the Education Law, in relation to skin cancer prevention, by directing the Department of Health to create an annual report, to be made available to the Governor and Legislature, on the incidence of skin cancer in our State. Signed by the Governor on 08/01/07, this law shall take effect immediately.
Chapter 621 (Formerly Senate Bill 643 HANNON, same as Assembly Bill 884 Englebright): This act will amend the Public Health Law to include six new Members, who are breast cancer survivors, to the Health Science Research Board. Previously, those who currently have, or have survived, breast, and other types of cancer, were insufficiently represented within the Board’s composition. Advocacy groups noted a distinct absence of voting participation by the community stakeholders who are most directly affected by the Board’s decisions; those who are cancer survivors. This law corrects this shortfall by creating a revised 19 member board, with fortified voting authority. To ensure statewide participation, the additional members must represent, and hail from, the six following graphic regions of our State: Long Island, New York City, the Hudson Valley, Northern New York, Central New York and Western New York. This law was signed by the Governor on 08/28/07, and shall take effect 180 day after becoming a law.
Chapter 623, of the Laws of 2007 (Formerly Senate Bill 2932-A SEWARD, same as Assembly Bill 2832-A Lifton): This act shall amend the Public Health Law by providing grants, through the Breast Cancer Detection and Education Advisory Council, to community-based organizations, for the provision of counseling, education and outreach programs for people diagnosed with breast cancer. Breast cancer differs from most other cancers, in that it can recur ten, twenty, even thirty years after the original diagnosis. In this sense, it becomes a chronic condition that requires the patient to remain vigilant, informed, and pro-active for the rest of their life. While New York State has committed significant resources to breast cancer research and early detection, there existed a need for additional support for the post-diagnosis concerns of the tens of thousands of New York State residents who are living with the disease. This law will correct this deficit, by providing additional funding for counseling, education, and outreach programs, which allow those reached to share experiences, access objective information about the latest studies and therapies, and provides critical networks and information to help patients make informed decisions, thereby enhancing their chance of survival from the point of diagnosis on. This legislation was signed by the Governor on 08/28/07, and shall take effect immediately.
Disaster Preparedness
Chapter 317, of the Laws of 2007 (Formerly Senate Bill 4021-A HANNON, same as Assembly Bill 8098-A Gottfried - Departmental Bill # 146):
This act will create the following Public Health Laws:
- A new law {PHL § 576 (c)} is created to mandate the electronic reporting of disease, and the submission of clinical specimens by clinical laboratories and blood banks. This law further enables the Department of Health to identify, prepare for, and respond to potential communicable disease outbreaks. The current Public Health Law (§ 2102) requires laboratories report communicable diseases; it does not require that such reports be made electronically; and
- A new law {PHL§ 1125(8)} is created to require the Commissioner keep confidential all vulnerability analysis assessments, and all information determined by a water supplier to pose a security risk to the water system's operation. This information is exempt from disclosure under the Freedom of Information Law as codified by Article 6 of the Public Officers Law. Unauthorized disclosure will result in the issuance of a Class A misdemeanor.
This act will amend the following Public Health Laws:
- The existing law {PHL § 1125(1)(b)} is amended to correct the existing definition of "water suppliers," from a revenue-based criterion, to a population-based criterion, consistent with Federal Environmental Protection Agency (EPA) standards; and
- The existing law {PHL § 1125(5)} is amended to require that water suppliers review, update and submit their water supply emergency plans to the Department, for review, on a more frequent basis. These plans identify and outline the steps necessary to ensure that potable water is available during a supply emergency, and must include a vulnerability analysis assessment. This analysis, which investigates level of vulnerability to terrorist attack, requires consultation with local and state law enforcement agencies.
This legislation was signed into law by the Governor on 07/18/07; it became effective immediately; however, the Commissioner may promulgate regulations as necessary to implement this action.
Chapter 602, of the Laws of 2007 (Formerly Senate Bill 3988-A HANNON, same as Assembly Bill 8099-A Gottfried-Departmental Bill # 143): This legislation will amend the Public Health Law {§ 206(4)} authorizing the Commissioner of Health to assess civil penalties, of up to $25,000, per day, per violation, for a violation of the State Sanitary Code (SCC) by public water systems that serve a population of 5,000 or more, or violations by the water supplier, or event organizer, with respect to mass gatherings {Defined in the Public Health Law § 225(5)(0)}. By allowing the Department to levy more substantial fines against public water systems that do not comply, we ensure less egregious situations involving the provision of unacceptable quality, or quantity, of potable water; sewage on the ground and accessible to the public, or in close proximity to a potable water supply; and inadequate security, emergency or medical services at mass gatherings. It was recently discovered that in many cases, suppliers and organizers have chosen to be fined a smaller amount, rather than incur the cost of assuring safe compliance with the SSC. This law will provide a disincentive for this unacceptable practice. This legislation was signed by the Governor on 08/15/07, and shall become effective upon enactment.
Eating Disorders:
Chapter 676, of the Laws of 2007 (Formerly Senate Bill# 6159-A RULES, same as Assembly Bill # 9191Ortiz): This law amends the Public Health and Mental Hygiene Laws, in relation to Comprehensive Care Centers for Eating Disorders, repeals Section 2799-k of the Public Health Law relating to residential care programs, and makes chapter amendments to Chapter 114 of the Laws of 2004. Chapter 114, of the Laws of 2004 provided statute for the Comprehensive Care Centers for Eating Disorders (CCCEDs). The amended legislation for distinct licensure categories of Community Residences for Individuals with Eating Disorders and Residential Treatment Centers for Children and Adolescents with Eating Disorders and Adults with Eating Disorders within the Mental Hygiene Law. The Office of Mental Healthy (OMH) would be required to develop regulations for these new categories of community residence by July 1, 2008. The Commissioner of Health is authorized to designate a CCCED as such if the residential component is unlicensed but meets certain health and safety requirements and the Center is actively seeking licensure under Article 31 MHL. Such DOH authority would expire on July 1, 2008, in anticipation that the OMH regulations would be in place for a Community Residence for Individuals with Eating Disorders. This legislation was signed by the Governor on 08/16/07; it shall take effect immediately.
Food Preparation and Safety:
Chapter 579, of the Laws of 2007 (Formerly Senate Bill 298-A MALTESE, same as Assembly Bill 4051-A Rivera): Referred to as the "Allergy and Anaphylaxis Management Act of 2007," this law establishes a statewide policy toward reducing the risk of allergy exposure and anaphylaxis in schools, by bringing together state agencies, health professionals, parents, educators and school staff to develop statewide recommendations and emergency plans. This legislation was signed by the Governor on 08/15/07, and shall become effective immediately.
Chapter 628, of the Laws of 2007(Formerly Senate Bill # 3829, same as Assembly Bill # 8618 Weisenberg): This law enacts the food choking prevention act to be known as "J.T.’s Law." Section 201 of the Public Health Law was amended in adding a new subdivision 2a, which requires the Department of Health to establish educational criteria to help prevent choking by children. These materials are to be distributed to schools, day care centers, pediatricians, hospitals and parents to help educate parents about food choking hazards. The materials shall also include life saving procedures and precautions. The Department is to conduct a public awareness campaign and educational program on choking hazards, and life saving procedures, including the availability of infant and child cardiopulmonary resuscitation (CPR) classes. This legislation was signed by the Governor on 08/28/07, and it shall take effect immediately.
Chapter 635, of the Laws of 2007 (Formerly Senate Bill 2328-A RATH, same as Assembly Bill 7865-A Morelle): This act amends Section 1352 of the Public Health Law to maintain that certain food service establishments have an individual on staff who has been trained and certified in a course approved by the Commissioner (of Health under the PHL, Section 1355) or by an organization specializing in safe and proper handling, preparation, cooking, storage, serving, delivery, removal and disposal of food. This legislation was signed by the Governor on 08/28/07, and shall take effect on the three-hundred sixty-fifth day after it shall have become a law.
Health Care Financing and Market
Chapter 95 of the Laws of 2007 (Formerly Senate Bill 6344 HANNON, same as Assembly Bill 5919-B Gottfried-Governor’s Program Bill #39): This act will amend the Social Services Law and the State Finance Law, in relation to Medicaid payment rates and health insurance for personal care services and employer and labor partnerships for Family Health Plus. This law will help employers and "Taft-Hartley Funds" throughout the State offer employees a comprehensive and more affordable health plan by allowing the entities to purchase Family Health Plus coverage for their employees or members as of April 1, 2008. This legislation was signed into law by the Governor on July 1, of 2007, and will be effective on the first of April after it becomes a law. Immediate steps can be taken by the Department to promulgate rules and regulations for implementation.
Chapter 315, of the Laws of 2007 (Formerly Senate Bill 3987-A HANNON, same as Assembly Bill 8100-A Gottfried - Departmental Bill # 85): This act will amend the Public Health Law {PHL § 2801-a(4)(c)}, to authorize corporations with corporate stockholders, or members, to be able to operate diagnostic and treatment centers providing end-stage renal dialysis services (D&TCs). Article 28 of the Public Health Law governs the ownership and operation of such centers, including: freestanding renal dialysis facilities, general hospitals, and nursing homes. Under the prior law, entities could not operate a hospital as a corporation owned by one or more other corporations, nor as a limited liability company with a corporate member, where member's stock was owned by another corporation; thus, precluding dialysis companies owned by other business entities from operating renal dialysis facilities. This law corrects this, and increases statewide access to high quality dialysis care from competent and accountable providers. This law was signed by the Governor on 07/18/07, and shall become effective 180 days after.
Chapter 500, of the Laws of 2007 (Formerly Senate Bill 6168 ROBACH, same as Assembly Bill 9065 John): This Law amends Section 2807-c (1) of the Public Health Law to permit any hospital that filed its institutional cost reports by November 1, 2006 to submit revised and corrected data schedules by June 1, 2007 to the Department of Health, establishing their eligibility for the Medicaid rate adjustment for targeted Medicaid discharge percentages created within the FY 2007-08 Budget. This legislation was signed into Law on 08/01/07; it shall take effect immediately.
Chapter 414 of the Laws of 2007 (Formerly Senate Bill 6163 HANNON, same as Assembly Bill 8759 McEneny): This legislation provides that a residential health care facility with fewer than sixty beds which provides services primarily to neurologically impaired individuals and is located in a county with a population between 290,000 to 310,000 shall receive one Medicaid reimbursement rate, which shall be based solely on the methodology to establish rates for a specialty children's nursing home. Existing law did not address this issue; under prior reimbursement rates, a facility received two different Medicaid rates: one for individuals under 16 and one for individuals 16 and over. This legislation was signed into law on 08/01/07; it became effective on 07/01/07.
Chapter 576, of the Laws of 2007 (Formerly Senate Bill 5521 HANNON, same as Assembly Bill 1462-A Englebright): This legislation will amend the Social Services Law, by clarifying the exemption status of income deposited into certain Medicaid acceptable trusts for disabled individuals, and adding that exemption {new subdivision (ii)} to the exemptions authorized in Section 366(2) (a) (5), of the Social Services Law. This clarification will correct a longstanding misunderstanding between the interpretation of the Federal, versus the State, Social Services Laws and their application within local DSS Districts, regarding the income exemptions made available to disabled Medicaid recipients, and applicants. The revised language will correct this problem, and will lessen the burden of needless lawsuits, which were previously required, to maintain fairness between recipients, and for lawfully gained benefits to be rendered. This legislation was signed by the Governor on 08/15/07, and shall take effect immediately.
Chapter 591, of the Laws of 2007 (Formerly Senate Bill 6415 MORAHAN, same as Assembly Bill 7076-C Rivera): This act shall amend the Public Health Law in relation to adult day health care services provided by residential health care facilities, to continue to establish a schedule for the conversion of Medicaid reimbursement rates for all Adult Day Health Care (ADHC) programs from budget-based rates, to cost-based rates to ensure that rates are more closely aligned with true costs, and to reduce Medicaid growth. This conversion began for some programs in 2007; however, all ADHC programs are to be converted to cost-based rates by 2009. This legislation was signed by the Governor on 08/15/07, and shall be deemed fully effective on and after 04/01/07.
Chapter 607 of the Laws of 2007 (Formerly Senate Bill 6202 HANNON, same as Assembly Bill 8761Young): This proposal would extend the authority of the Dormitory Authority of the State of New York (DASNY), through Chapter 104 of the Laws of 2003, extending provisions of Chapter 303 of the Laws of 1999 relating to the authority of DASNY to issue bonds to refinancing the capital indebtedness of certain health care facilities under the Medical Care Facilities Finance Agency Health Facilities Improvement Program (which would sunset on June 30, 2007). This law was signed by the Governor on 08/15/07; it was effective immediately.
HealthCare Practitioners:
Chapter 360, of the Laws of 2007 (Formerly Senate Bill 5965 LITTLE, same as Assembly Bill 8790 Sayward): This act will authorize certain health care professionals licensed to practice in other jurisdictions to practice in New York State in connection with the Ironman North America Triathlon, Inc. Event. This year, the event shall take place on July 22, 2007 in Lake Placid, New York, thus the legislation also provides for the repeal of such provisions upon its expiration. The legislation was signed by the Governor on 07/18/07; it shall take effect on July 18, 2007 and shall expire and be deemed repealed July 23, 2007.
Chapter 409, of the Laws of 2007 (Formerly Senate Bill 5340 (HANNON), same as Assembly Bill 8081 Gottfried): This act will amend section 2807-n of the Public Health Law, adding home care to the list of settings (such as non-hospital based ambulatory care, hospice care, etc...) where medical schools, in receipt of palliative care education grants, may train medical students in end of life care. As home care and other nontraditional settings continue to be utilized as advanced treatment venues, legislation like this will enable us to provide the infrastructure in training and treatment models for medical professionals who may be working in a variety of nontraditional settings in the future. This act was signed by the Governor on 08/01/07; it will take effect immediately.
Chapter 603, of the Laws of 2007 (Formerly Senate Bill 4793-A HANNON, same as Assembly Bill 8456-A Gottfried): This act amends the Public Health Law (Section 3703), by allowing authorized, registered, physician assistants (PAs) to prescribe controlled substances for patients under their care, when acting within their lawful scope of practice, and are under the supervision of a supervising practitioner. Several other states, including Massachusetts, Connecticut, New Jersey, Pennsylvania and Vermont, have recognized the benefits of allowing their PAs to prescribe Schedule II controlled substances. Such benefits include improved access to pain and behavioral health medications for patients, particularly in rural health clinics, and medically underserved areas, with no change in role between the supervising physician, and the PA. This legislation was signed by the Governor on 08/15/07, and shall take effect one hundred twenty days after becoming a law.
Managed Care:
Chapter 451, of the Laws of 2007 (Formerly Senate Bill 3986-A HANNON, same as Assembly Bill 8128-A Gottfried - Departmental Bill #144): This act amends the Public Health, Social Services, and Insurance Laws, to provide enhanced consumer and provider protections in the following ways: by imposing limitations on when preauthorized services may be denied; enhancing protections when a provider leaves a network; permitting external appeal of out-of-network denials when a health insurance plan is proposing an alternative in-network treatment; requiring the collection and dissemination of preferred provider organization data; and by establishing time frames for submission of claims to managed care providers, and family health insurance plans. This law was signed by the Governor on 08/01/07, and shall become effective on April 1, 2008; however, certain sections will be set forth, and expire, at separate dates to ensure proper the framework for implementation.
Chapter 609, of the Laws of 2007 (Formerly Senate Bill 6036 HANNON, same as Assembly Bill 8912 Zebrowski): This act will amend Chapter 505, of the laws of 1995, by amending the Public Health Law relating to the operation of Department of Health facilities extending the participation in managed care arrangements. Managed care groups, payers, and health care providers are regrouping and restructuring, forming new collaborative networks of care. For this reason, this successful legislation should be extended for twelve more years. This law was signed by the Governor on 08/15/07; it shall take effect immediately.
Office Based Surgery:
Chapter 365, of the Laws of 2007 (Formerly Senate Bill 6052-A HANNON, same as Assembly Bill7948-A Gottfried): This act amends the Education and Public Health Laws in relation to requiring Department of Health oversight of physicians who conduct office-based surgery, or invasive procedures. Increasingly more complicated surgery and invasive procedures are being conducted in private medical practices. Prior to this legislation, surgery done in a hospital or an ambulatory surgery setting was required to meet certain regulatory standards while the same procedure, done in a private office, was not subject to any State oversight. This Law will provide for oversight of office based surgery so that consumers can be assured that the care they receive, regardless of the setting (hospital, ambulatory surgery or office), is subject to State oversight. This law was signed by the Governor on 07/18/07; it shall take effect 180 days after enactment, except for those sections that will take effect 18 months after such effective date for proper implementation.
Palliative and End of Life Care
Chapter 401, of the Laws of 2007 (Formerly Senate Bill 1511-C HANNON, same as Assembly Bill 7351-B Dinowitz): This act will amend the Public Health Law, by adding additional categories of relatives and friends, who were inadvertently omitted from the hierarchy to provide surviving loved ones the right to control the disposition of a deceased person’s remains. Often times the closest person to a deceased individual is overlooked as the primary contact in relation to final arrangements. This has been especially true for inter-generational families, and for adults who have not married, or had children. With this law, the State’s recently enacted Final Disposition Hierarchy will now contain a "catch-all" category for the legal control of disposition, and will thereby avoid confusion and additional hardship for friends and family. This legislation was signed by the Governor on 08/01/07; it became retroactive to August 2, 2006, the date on which the State's Final Disposition Hierarchy was originally established.
Chapter 403, of the Laws of 2007 (Formerly Senate Bill 4518 HANNON, same as Assembly Bill 7676 Gottfried): Under the existing law, government agencies were prohibited from paying for palliative care; however, private third-party payors were able to enter into contractual arrangements with hospices to provide end of life and supportive care to patients in the advanced stages of illnesses. Hospices improve patient care, increase patient and family satisfaction ratings, reduce the cost of care. Hospice care provides an improved quality of life, even at the end of life, reducing patient emergency department visits, inpatient hospital days, skilled nursing home days, and physician office visits, and lends additional support, when measured against comparison groups. This legislation will remove the government prohibition, allowing payment for hospice services by repealing subdivision 3 of section 4012-b of the Public Health Law, relating to the reimbursement of, and grants in aid for, services under the hospice palliative care program to those with advanced, and progressive, diseases. Government payors of health care are now able to achieve similar beneficial care results, without the traditional barriers to access previously experienced by Medicaid, and Medicare, patients. This legislation was signed by the Governor on 08/01/07, and shall take effect immediately.
Chapter 409, of the Laws of 2007 (Formerly Senate Bill 5340 (HANNON), same as Assembly Bill 8081 Gottfried): This act will amend section 2807-n of the Public Health Law, adding home care to the list of settings (such as non-hospital based ambulatory care, hospice care, etc...) where medical schools, in receipt of palliative care education grants, may train medical students in end of life care. As home care and other nontraditional settings continue to be utilized as advanced treatment venues, legislation like this will enable us to provide the infrastructure in training and treatment models for medical professionals who may be working in a variety of nontraditional settings in the future. This act was signed by the Governor on 08/01/07; it will take effect immediately.
Chapter 410, of the Laws of 2007 (Formerly Senate Bill S 5017 HANNON, same as Assembly Bill 8082 Gottfried): Amends section 4014 of the Public Health Law, in relation to the hospice residence pilot program, by authorizing the Department of Health (DOH) to expand the hospice residence pilot program. In specific, the bill would authorize an increase in the number of hospice residences from three to ten. The location of each hospice would be determined by DOH and would be able to accept between two and sixteen patients for care to meet the increasing demand for end of life care for those who are nearing death. This act was signed by the Governor on 08/01/07, and shall take effect immediately.
Chapter 471, of the Laws of 2007 (Formerly Senate Bill 4992-A HANNON, same as Assembly Bill A8827 Rosenthal): Amends Section 207 of the Public Health Law, in relation to the health care and wellness education and outreach program, through the Department of Health, regarding health care proxies. People want to have their health care wishes honored; unfortunately, a large majority of New York residents do not have a health care proxy. As a result, one’s health care wishes may remain unknown, which places individuals at risk for receiving a medical treatment that they would not want to be given, or, conversely, a treatment may be withheld that the individual would have wanted to be provided. By enabling the Department of Health to conduct education and outreach programs on defining one’s health care proxy, we increase the number of people who complete this important document before a medical emergency requires it be made available. This legislation was signed by the Governor on 08/01/07, and shall be effective immediately.
Public Health
Chapter 236, of the Laws of 2007 (Formerly Senate Bill 1548-A FUSCHILLO, same as Assembly Bill 1044-A Weisenberg): This law will amend section 3000-b of the Public Health Law to require buildings, and facilities, to indicate the location of their automated external defibrillators (AEDs) at their entrance. By indicating the location of the public access AED, we are increase the likelihood that they will be quickly located, and used, in a cardiac emergency. This legislation was signed by the Governor on 07/18/07, and shall take effect 120 days after becoming a law.
Chapter 290, of the Laws of 2007 (Formerly Senate Bill #2449, same as Assembly Bill# 4148B): This act amends Subdivision four of Section 2004-a of the Public Health Law regarding the Coordinating Council For Services Related to Alzheimer's Disease and Other Dementia, by requiring the council review and report upon the use of clinically recognized, scientifically based, cognitive impairment screening tools, which are used to identify signs of and individuals at-risk for cognitive impairment, including Alzheimer's disease or other dementias, in all settings of the health continuum. The council will review and report on best practices for providers, referral practices, the range of interventions and services available for the cognitively impaired, and shall report its assessment of the need and presence of such tools and practices in each sector of the health continuum. The Department of Health will coordinate with the Council to develop comprehensive coordinated responses of the various State agencies with regard to Alzheimer's disease and related dementia and thus help to assure timely and appropriate responses to issues and problems. The Governor signed this legislation on 07/18/07; it shall take effect on 11/01/07.
Chapter 427, of the Laws of 2007 (Formerly Senate Bill 1265-A DEFRANCISCO, same as Assembly Bill 2915-B Lentol): This act amends the Public Health Law, adding a new article (43-C), toward the promotion of education and raising public awareness of both public, and private, umbilical cord blood banking options. The law will establish a "Public and Private Umbilical Cord Blood Banking Program," within the Department of Health, which will further develop this program, and provide education to health care practitioners on how to inform expectant parents of the benefits of cord blood banking. The act was signed by the Governor on 08/01/07, and shall take effect on the one hundred eightieth day after having become a law.
Chapter 524, of the Laws of 2007 (Formerly Senate Bill 2422 WRIGHT, same as Assembly Bill 7893 Barclay): This legislation amends the Public Health Law (Section 4173), to allow the City of Oswego to increase their charge for the issuance of vital records, such as birth and death certificates. The fee for a certified copy had not increased since 1991, when the fee increased from $5.00, to its present fee of $10.00; however, due to increasing costs in providing services to its residents, and balancing the budget, the Oswego Common Council has requested legislation enabling them to implement a fee increase. This legislation was signed by the Governor on 08/15/07, and shall be effective immediately.
Quality and Safety in Facilities
Chapter 81, of the Laws of 2007 (Formerly Senate Bill 3982-A HANNON, same as Assembly Bill A8097-A Gottfried -Departmental Bill # 147): This act will amend Public Health Law, Chapter 521, of the Laws of 1994 (§ 12), extending the expiration date of the voluntary immunization registry from July 1, 2007 to December 31, 2007. Further, it will add a new paragraph to provide authority for hospitals to share clinical information, regarding specific patients, who have hospital acquired infections (HAIs), and who have been served at more than one facility {§ 2819(2) (e)}, further clarifying the acquired HAI timeline. The frequency of reporting HAI data is changed from no more than once every six months, to once a month, with reporting to be accomplished within sixty days after the close of each month. The law will repeal § 71, of Chapter 731, of the Laws of 1993, creating a new law (PHL §2500-f-1) to enhance the grant funding support for the provision of HIV services to women subsequent to pregnancy, and for the ongoing provision of HIV services to children beyond infancy, through childhood and adolescent years. Appropriations sufficient for the expansion of the HIV grants proposed herein were included in the Enacted 2006-07 Budget. This Law was signed by the Governor on 06/29/07, and shall be effective immediately; however, Sections 2-4 shall take effect on January 1, 2008, to provide time for proper implementation.
Chapter 131, of the Laws of 2007 (Formerly Senate Bill 5116 HANNON, same as Assembly Bill 7836 Gottfried): This act will amend Chapter 738, of the laws of 2005, which established the Safe Patient Handling Demonstration Program. This law will extend, for two years, this highly successful program, and continue an in-depth review of patient handling methods in facilities throughout our State, to build upon the collected evidence-based data. The ultimate goal of this legislation is to use these data to design a best practices model for safe patient handling, and the training thereof, in all New York State health care facilities, and perhaps nationally. This legislation was signed by the Governor on 07/03/07; it became effective immediately.
Chapter 314, of the Laws of 2007 (Formerly Senate Bill 3985-A HANNON, same as Assembly Bill A8702-A Gunther- Departmental Bill # 145): This act amends the Public Health Law, to promote regional perinatal data systems. The law will provide statutory authority for the existing Statewide Perinatal Data System (SPDS), while establishing provisions for the use of the perinatal data collected by Regional Perinatal Centers (RPCs), and affiliate hospitals, further ensuring the quality of perinatal care in facilities. This legislation was signed into law by the Governor on 07/18/07, and is effective upon enactment.
The Health and Mental Hygiene Budget Highlights 2007-2008
Commission on Quality of Care and Advocacy for Persons with Disabilities
The Legislature concurred with the Executive’s All Funds recommendation of $15.8 million to investigate, and improve, the oversight, nutrition, and care management, of people with disabilities.
Developmental Disabilities Planning Council
The Legislature accepted the Executive’s All Funds recommendation of $4.5 million, which reflected no change from SFY 2006-07 levels.
Emergency Transportation
The Executive put forth measures to Medicaid, to lower costs. This included the elimination of the supplemental emergency transportation rate. However, the Legislature restored $3 million for the supplemental emergency transportation rate in the Enacted Budget, to ensure necessary transportation to emergency services, especially in rural communities.
Health Care Facilities
Hospital Facilities
In his Executive Budget, the Governor proposed $261.6 million (State share) in reimbursement reductions to hospitals. These reductions included the following cuts:
- The limiting of reimbursement for Graduate Medical Education (GME) to a hospital's actual cost, and reallocating an additional $24 million in GME funding to those hospitals that have 35 percent Medicaid discharges;
Eliminating the 2.5 percent trend factor for hospitals and requiring hospitals to absorb inflationary costs;
Imposing a 0.35 percent tax on hospitals’ gross receipts; and reducing hospital worker recruitment and retention funding and the hospital worker retraining program; and
Limiting the continued $64 million in funding for hospital payments allocated to facilities to assist them with labor costs by basing these funds and redistributing them based on the number of Medicaid patients served.
In response to this proposal, the Legislature provided $209.1 million in restorations and increased funding for hospitals within the Enacted Budget, to include $68.5 million State share; a restoration of 75 percent of the proposed trend factor reduction. The Legislature authorized enhanced rates to hospitals including: the provision of $2.5 million in State funds to general hospitals located in Nassau and Suffolk counties, with funds distributed based on each facility's Medicaid discharges; the provision of $24 million in State funds to hospitals located in Upstate New York with Medicaid discharges between 17 and 35 percent; the provision of $25 million in State funds to hospitals in New York City with funds distributed based on each facility’s Medicaid discharges.
The Legislature accepted the Executive’s proposed reductions for hospital worker recruitment and retention funding, but amends the proposal to redistribute funding among hospitals. The new methodology for fund distribution to hospitals is being developed utilizing 50 percent of a hospital’s labor costs and 50 percent of a hospital’s total Medicaid revenue. The Legislature rejects the 0.35 percent tax on hospitals gross receipts and restores $136.9 million in State funds. The Legislature eliminates $60.5 million of the $64 million in payments for hospitals to address labor costs. The remaining $3.5 million would be used to assist rural hospitals with their labor costs. The Legislature accepted the Executive’s proposal to eliminate the hold harmless provision, which guarantees payments to hospitals under Graduate Medical Education (GME). Hospitals will now be reimbursed for their actual costs under GME. The Legislature authorizes hospitals to adjust their cost reports to accurately reflect the true costs under GME; the Legislature includes $16.2 million for this action.
The SFY 2007-08 Executive Budget proposed to re-weight the hospital Diagnosis Related Group (DRG) system, which is the method used to establish rates paid to hospitals for inpatient services. The Legislature requires the new methodology, which would be implemented on January 1, 2008, must be revenue neutral to both the hospital industry and the State. In addition, the Legislature requires the Commissioner of Health to obtain the input of various stakeholders and to provide all relevant data and information to the hospital industry on or before June 1, 2007, or the methodology will not go into effect until April 1, 2008. The Executive also proposed to establish a new methodology for providing funds to hospitals and clinics for bad debt and charity care. The Legislature requires the Commissioner of Health and the two legislative health committee chairs to convene a technical advisory committee. The Commissioner of Health and the two chairs must hold hearings and obtain input from relevant stakeholders. A report must be provided to the Legislature by December 15, 2007, detailing all of the findings as well as including recommendations.
Long Term Care and /Nursing Home Facilities
This year’s Adopted Budget includes $163.5 million in restorations for nursing homes to ensure that nursing homes are adequately reimbursed for services provided to the State's most vulnerable population. Last year, in the SFY 2006-07 Enacted Budget, the methodology used to calculate the rates of payment to nursing homes was changed, or "rebased;" thus, at this point, the Executive's proposed deductions to nursing homes, within the Executive Budget for the SFY 2007-08, would have negatively impacted the nursing home industry. Instead, our Adopted Budget includes $83.5 million in State funds and allows Medicare, and private pay patients, to be considered when calculating the Medicaid rates, thereby increasing funds for patient care. The Legislature went on to restore 75 percent of the proposed 2.5 percent trend factor reduction to nursing homes, which had been advanced by the Executive, and instead included $54.5 million in funding to assist nursing homes with inflationary pressures. To ensure that nursing homes have sufficient resources to provide quality care to their residents, the Adopted Budget restores $17.5 million in State funds for the Nursing Home Quality Improvement Program. Finally, to improve access to home care services, the Adopted Budget expanded the Telehealth Demonstration Program, and required the Commissioner of Health to establish Medicaid rates for individuals receiving services under the program, and $8 million in funding for the Rural Home Care Program.
Health Care Reform Act (HCRA)
The Legislature amended the Executive’s HCRA proposal as follows:
Rejected $3 million in funding for an Executive discretionary pool;
Rejected $2.8 million in funding for increased provider audits and the accompanying language which gives DOH audits the presumption of being correct;
Rejected $1 million in funding for long term care insurance demonstration projects; and
The Legislature amended the Executive's proposal on health insurance company conversions, and provides that ten percent of conversion proceeds must go to a charitable trust (The New York State Foundation), with the remaining ninety percent allocated to a public asset (HCRA) for health care purposes.
Health Insurance Coverage Expansion Plans
The Legislature amended the Executive’s health insurance proposals as follows:
Rejects the proposal to move the rate setting process for Child Health Plus from the Department of Insurance (DOI) to the Department of Health (DOH);
- Expand Healthy New York to 250 percent of the federal poverty level (FPL);
- Eligibility expansion for children from 250 percent of the federal poverty level (FPL) to 400 percent of the FPL;
- Strengthens the Executive’s proposal to streamline the recertification and eligibility determination process for public health insurance programs by requiring that the Commissioner of Health verify income and residence data;
Allows insurance companies to offer policies that continue health insurance coverage on the policies of parents or legal guardians of unmarried children until they turn 25.
State Offices, Agencies, and Health Programs
The Department of Health
The Enacted Budget restored $396.4 million to the $1.46 billion in Medicaid, HCRA and health care cuts advanced by the Executive. Included in this restoration, the Legislature provided an additional $52 million for New York State Public Health Programs.
Childhood Obesity Assessment and Prevention
The Executive Budget included a $2 million initiative to require school districts to report the Body Mass Index (BMI) of all elementary school students, and to list BMI results on school health certificates. The Legislature accepted this proposal, which will help us identify those who are at risk, and underweight, but further required the Commissioner of Health to create a report, to the Legislature, on the findings, as well as the effectiveness of all child wellness programs in schools, including childhood obesity prevention programs.
Fees
The SFY 2007-08 Executive Budget proposed a mandate on third party insurers for services under the Early Intervention (EI) program. The Legislature rejected this proposal, along with the Executive’s proposed fees to allow providers to participate in the EI program. The fees ($125 for individual providers, and $225 for agency providers), were to offset administrative costs associated with approving EI provider applications. The Executive Budget also increased the physician's biennial registration fee from $600, to $1,000. The increase would have been used to support the activities of the Office of Professional Medical Conduct, including physician profiling activities. However, the Legislature rejected physician's biennial registration fee increases.
Managed Care
The SFY 2007-08 Executive Budget froze premium payments made to health plans that provide health insurance coverage for eligible individuals receiving State funded healthcare under Medicaid Managed Care, Family Health Plus, and Child Health Plus. The Legislature accepts this proposal and realizes $101.7 million in State savings.
Medicaid
The Executive proposed $32.1 billion in All Funds support for the Medicaid program, but also included $1.46 billion in cost savings measures to Medicaid programs. The Legislature rejected the more drastic measures, and provided a net restoration of $349.5 million for the Medicaid program, while delivering $144.6 million in savings, as a result of a re-estimation of Medicaid spending for SFY 2007-08.
Office of Medicaid Inspector General
This year, the Legislature continued to build upon its commitment to support Medicaid fraud detection and response activities. These initiatives were set forth by the Senate Majority in the 2005-2006 State Budget Year, with the creation of the Office of the Medicaid Inspector General, and the definition of its duties therein. This year, the Legislature accepted the Executive’s proposed inclusion of $98 million, in All Funds support, for this Office, including $2.6 million to support 157 additional staff positions, and $2.2 million for new technology investments. The Legislature further established a New York State False Claims Act for Health Care, but rejected increasing any penalties for health care fraud activities such as drug diversion, and whistle blower protections for health care, that were advanced by the Executive. The Houses agreed to assign the venue for future Medicaid court actions to Albany, New York.
Pharmaceutical Programs
Dispensing
The Executive Budget included $6.9 million in State funds, and increased the dispensing fees paid to pharmacists for dispensing generic brand drugs (a fee increase from $4.50 to $5.50); the Legislature rejected that proposal and realized $6.9 million in State savings
Medicaid and the Elderly Pharmaceutical Insurance Coverage (EPIC) Program
The Executive Budget would have reduced reimbursement for prescription drugs to pharmacies participating in the Medicaid, and Elderly Pharmaceutical Insurance Coverage (EPIC) programs. Under the Executive proposal, reimbursement for brand name drugs would have been reduced from the Average Wholesale Price (AWP) minus 13.25 percent, to AWP minus 15 percent. Reimbursement for generic drugs would have been reduced from AWP minus 16 percent, to AWP minus 30 percent. The Executive Budget included reductions to pharmacy reimbursement as a result of changes established on the Federal level. Combined, the Executive Budget proposals for Pharmaceuticals would have lowered the reimbursement rates to pharmacies by $101.7 million (State share). The Legislature instead included $26.2 million (State share), to partially restore pharmacy AWP reimbursement rates as follows: Average Wholesale Price (AWP) minus 14 percent for brand name drugs, and AWP minus 25 percent for generic drugs.
Medicare Part-D, and the Elderly Pharmaceutical Drug Program (EPIC)
The Executive Budget required all seniors to enroll into a Medicare Part D Drug plan in order to remain eligible for the Elderly Pharmaceutical Insurance Coverage (EPIC) program, and included $63 million in State savings. Under this proposal, the EPIC Program would provide wrap around coverage for all individuals in a Medicare Part D Drug plan. Therefore, seniors enrolled in Medicare Part D and EPIC would have the same, if not better, prescription drug coverage than by only enrolling in EPIC. Thus, the Legislature accepted this proposal, which provides improved prescription drug coverage to seniors.
Preferred Drug and Clinical Drug Review Programs
In his proposed Budget, the Executive amended portions of the Preferred Drug Program (PDP), and the Clinical Drug Review Program (CDRP). The changes were as follows:
To allow cost to be considered as one of the criteria when placing a prescription drug on the CDRP;
To require physicians to provide documentation when requesting an exemption from the prior authorization process;
To include antidepressants in the PDP/CDRP program; and
To shorten the administrative process for including drugs on the Preferred Drug List (PDL) from 30 days to 10 days.
The implementation of the Preferred Drug Program and Clinical Drug Review Program for the Elderly Pharmaceutical Insurance Coverage (EPIC) program is accelerated to July 1, 2007 instead of January 1, 2008, resulting in State savings of $9 million.
The Legislature rejected these changes to the PDP/CDRP programs, and restored $23.3 million (State share) to these programs.
The Legislature also provided an additional $37 million for various initiatives in public health, as follows:
Wellness Works Program $2 million;
Health Information Technology $3 million;
Academic Health Center Consortium $500,000;
Alyce Hyde Medical Center $250,000;
Arnot Ogden Medical Center $250,000;
Arthritis Foundation $100,000;
Auburn Memorial Hospital $500,000;
Benedictine Hospital- Kingston $175,000;
Brain Trauma Foundation $400,000;
Catskill Area Hospice and Palliative Care $250,000;
Community Hospital Network of Central New York;
Educational and Research Fund $250,000;
Community-General Hospital of Greater Syracuse $200,000;
Cortland Regional Medical Center $200,000;
Ellenville Hospital $150,000;
Program for All Inclusive Care for Kids $350,000;
Kingston Hospital - Kingston $175,000;
Long Island Health Network Educational and Research Fund $250,000;
North Country Children’s Clinic $200,000;
North Country Health Care Providers Educational and Research Fund $150,000;
Our Lady of Lourdes Memorial Hospital $1 million;
Ovarian Cancer Hotline $160,000;
Canton-Potsdam Hospital $200,000;
St. Elizabeth Medical Center $100,000;
St. Camillus Health and Rehabilitation Center $200,000;
Palliative Care Education $4.6 million;
Infertility Services $1 million;
Study on Comprehensive Health Care Coverage $200,000;
Quality Incentive Payment Program $2.75 million;
EnAble Program $1.8 million;
Transitional Funding for Health Centers Informational Technology $4.9 million;
Finger Lakes Health Systems Agency $900,000;
Chernobyl Cancer Screening Project $540,000;
Perinatal Care Networks $125,000;
AIDS Special Contracts $1.1 million;
Family Planning Services $675,000;
School Based Health Clinics $675,000;
Health Care Based Literacy $100,000;
Huntington's Disease Centers $50,000;
New York State Breast Cancer Network $50,000;
American Red Cross $475,000;
New York AIDS Coalition $25,000;
Study on the Adequacy of the SSI Payments for Adult Homes $200,000;
Health and Human Sexuality Related Services $675,000; and
Amyotrophic Lateral Sclerosis Program $100,000.
Stem Cell Research and Scientific Research and Innovation
The Legislature created the Empire State Stem Cell Board, within the Department of Health, and provided $600 million in funding, which will be disbursed over 11 years. These amounts included $100 million from the General Fund for SFY 2007-08, and $500 million from the anticipated proceeds created by health insurance company conversions in SFY 2008-2009. The Board will fund grants for research and development activities, in fields relating to stem cell biology. The legislation prohibits the use of the grants for research in human reproductive cloning. The Board will be comprised of two Committees. The Funding Committee will award grants based on the recommendations of an independent scientific peer review committee, and will evaluate grant applications based upon criteria adopted through its bylaws. The Ethics Committee will make recommendations to the Funding Committee, regarding ethical matters pertaining to proposed research, and oversight of compliance with the established ethical standards. No grants will be awarded until the Board adopts bylaws to include a merit based peer review process for awarding grants.
For more information, and analysis, of the 2007-2008 State Fiscal Year Budget, please visit the following public sites:
New York State Division of Budget: