NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10224
SPONSOR: Brindisi TITLE OF BILL: An act to amend the social services law, in relation
to increasing the enhanced residential care benefits for aged, blind and
disabled persons
PURPOSE:
To increase the Social Security Income Rate adult care facilities
receive in order to ensure that these services continue to be available
to low income SSI recipients
SUMMARY OF PROVISIONS:
Section 1 of the bill amends Part 0 of Chapter 54 of the laws of 2016 to
increase the rate of SSI payment for eligible individuals receiving
enhanced residential care by $2.50 per day beginning January 1, 2017,
another $2.50 a day beginning April 1, 2017 and an additional $2.50 per
day beginning April 1, 2018. For a total increase of $7.50 in two years
Section 2 of the bill provides an effective date.
JUSTIFICATION:
Many low income elderly and disabled individuals in New York live in
adult care facilities which are paid through SSI. In the last twenty
years adult care facilities have had one rate increase in 2007 which
brought them to the current $40.00 per day. There has been no State COLA
during this period and costs to these facilities of providing housing,
care and services have continued to go up. For example, since 2007
health insurance costs have gone up 42% and worker's compensation costs
are up 13%, not to mention real estate taxes.
The stagnant rate, coupled with rising costs has resulted in closures of
SSI facilities. For every displaced SSI recipient who ends up in a nurs-
ing home, the daily cost of housing and care raises from $40/day to
$150-$250/day in Medicaid costs depending upon the area of the state.
Over the past 5 years, 20 facilities have closed their doors. In 2014
alone 7 facilities closed. These closures are hard on individuals who
lose their homes and owners who lose their businesses, but they are also
costly for the state. For example, in December 2014 an adult care facil-
ity closed in Onondaga County and 8 of the SSI residents moved into
higher levels of care, resulting in the state paying approximately
$325,000 more for these 8 low income seniors. One leading upstate
provider recently closed three facilities over an 8 month period result-
ing in 88 low income SSI recipients having to move to other settings.
In 2017 the minimum wage will increase, costs to these facilities will
continue to rise and more will be forced to close. By providing incre-
mental increases in the daily rate to these facilities over a two year
period, this legislation will help keep adult care facilities opera-
tional, low income seniors in the community, and avoid higher Medicaid
costs which result when residents are displaced.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
Savings to the state as low income elderly and disabled individuals are
maintained in lower cost care settings which do not rely on Medicaid
funding.
EFFECTIVE DATE:
Retroactive to April 1, 2016 with enactment of the budget, provided
however that the first increase does not apply until January 1, 2017.
