Establishes a quality incentive program for managed care providers that is distributed based on managed care providers' performance in meeting quality objectives.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8922
SPONSOR: Paulin
 
TITLE OF BILL:
An act to amend the social services law and the public health law, in
relation to establishing a quality incentive program for managed care
providers
 
PURPOSE:
The purpose of this bill is to direct the Commissioner of Health to
establish a quality incentive program and to consult with managed care
plans and other relevant stakeholders in establishing the criteria for
distribution of funds under the Medicaid managed care quality incentive
program.
 
SUMMARY OF PROVISIONS:
Section - 1 of this bill would amend the Social Services Law to require
the Commissioner of Health to codify a quality incentive program for
Medicaid managed care (MMC) plans.
Section 2 of this bill would amend the Public Health Law to set payment
rates for the managed long-term care plans.
Section 3 of this bill provides that the effective date shall take
effect immediately;
 
JUSTIFICATION:
The State's quality incentive program is a powerful tool for improving
and maintaining high-quality and high-value care in the Medicaid program
by funding programs that aim to address social determinants of health
and health disparities and improve health outcomes.. Currently, the
State authorizes a quality incentive program through allocation of fund-
ing in the enacted state budget, however, this-legislation would codify
such program in law.
The Medicaid managed care quality incentive program is a crucial tool to
leverage federal dollars to advance the State's Medicaid Policy goals of
improving access to higher-quality care. It is imperative that the Medi-
caid managed care quality incentive program be adequately and consist-
ently funded.
 
LEGISLATIVE HISTORY:
2022-2023: A.6021a- vetoed (Veto No. 126)
2022: A.10031 - referred to Health
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately;
STATE OF NEW YORK
________________________________________________________________________
8922
IN ASSEMBLY
January 26, 2024
___________
Introduced by M. of A. PAULIN -- read once and referred to the Committee
on Health
AN ACT to amend the social services law and the public health law, in
relation to establishing a quality incentive program for managed care
providers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 18 of section 364-j of the social services law
2 is amended by adding a new paragraph (c-1) to read as follows:
3 (c-1) In setting such reimbursement, the commissioner of health shall
4 establish a quality incentive program for managed care providers that is
5 distributed based on managed care providers' performance in meeting
6 quality objectives, which shall be set by the commissioner in advance of
7 the period during which quality is measured. Such quality incentive
8 program shall be funded at a level of at least one percent of the total
9 annual premium paid to managed care providers, or three hundred million
10 dollars, whichever is greater. In establishing the manner in which to
11 measure quality and distribute quality incentive program funds, the
12 commissioner of health shall establish a methodology that provides the
13 greatest level of funding to managed care providers receiving the high-
14 est quality scores and shall consult with representatives of managed
15 care providers and other key stakeholders.
16 § 2. Subdivision 8 of section 4403-f of the public health law, as
17 amended by section 21 of part B of chapter 59 of the laws of 2016, is
18 amended to read as follows:
19 8. Payment rates for managed long term care plan enrollees eligible
20 for medical assistance. The commissioner shall establish payment rates
21 for services provided to enrollees eligible under title XIX of the
22 federal social security act. Such payment rates shall be subject to
23 approval by the director of the division of the budget and shall reflect
24 savings to both state and local governments when compared to costs which
25 would be incurred by such program if enrollees were to receive compara-
26 ble health and long term care services on a fee-for-service basis in the
27 geographic region in which such services are proposed to be provided.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05012-01-3
A. 8922 2
1 Payment rates shall be risk-adjusted to take into account the character-
2 istics of enrollees, or proposed enrollees, including, but not limited
3 to: frailty, disability level, health and functional status, age,
4 gender, the nature of services provided to such enrollees, and other
5 factors as determined by the commissioner. The risk adjusted premiums
6 may also be combined with disincentives or requirements designed to
7 mitigate any incentives to obtain higher payment categories. In setting
8 such payment rates, the commissioner shall consider costs borne by the
9 managed care program to ensure actuarially sound and adequate rates of
10 payment to ensure quality of care shall comply with all applicable laws
11 and regulations, state and federal, including regulations as to actuari-
12 al soundness for medicaid managed care. In setting such reimbursement,
13 the commissioner shall establish a quality incentive program for managed
14 long term care plans that shall be distributed based on such plans'
15 performance in meeting quality objectives, which shall be set by the
16 commissioner in advance of the period during which quality is measured.
17 Such quality incentive program shall be funded at a level of at least
18 one percent of the total annual premium paid to managed long term care
19 plans. In establishing the manner in which to measure quality and
20 distribute quality incentive program funds, the commissioner shall
21 establish a methodology that provides the greatest level of funding to
22 managed long term care plans receiving the highest quality scores and
23 shall consult with representatives of managed long term care plans and
24 other key stakeholders.
25 § 3. This act shall take effect immediately; provided, however, that
26 the amendments to section 364-j of the social services law and section
27 4403-f of the public health law made by sections one and two of this act
28 shall not affect the repeal of such sections and shall be deemed
29 repealed therewith.