Cahill Advocates for Health Care Coverage; Ratepayer Interests in 2013-14 Budget

March 28, 2013

Albany, NY – Assemblymember Kevin Cahill (D – Ulster, Dutchess) announced the passage of the 2013-14 budget. The final plan includes numerous protections for New York’s consumers in a variety of areas including health care and utility services.

Affordable Care Act Compliance

As Chair of the Assembly Committee on Insurance, Cahill was part of the team responsible for bringing New York into compliance with the Affordable Care Act (ACA). The budget conforms state law to the federal provisions while requiring health insurance policies to maintain essential benefits. Additionally, individuals who currently have coverage with out-of-network benefits will be able to keep those benefits when transitioning to an ACA compliant policy.

“The budget provides a clear path for implementation of the Affordable Care Act, expanding access to quality, affordable health care,” said Assemblymember Cahill. “Throughout the budget negotiation process, I have advocated for a seamless transition to the ACA and this agreement succeeds in that aspect.”

Early Intervention

The Executive Budget detailed numerous changes to the state’s Early Intervention program that would have increased costs to families while essentially limiting enrollment in the program. The enacted plan rejected these provisions.

“This proposal was problematic both in scope and timing. There are measures previously approved by the Legislature that have yet to be implemented that will significantly improve delivery of these services. When these steps are put in place, we should look to further refinements leading to more affordable services. In the meantime, we worked to ensure that children with disabilities continue to receive vital community services,” said Cahill. “The enacted budget recognizes the transformative role that Early Intervention programs play for the families of young children with special needs and sets the stage for continued improvements.”

Medical Malpractice

The final agreement rejected the Executive’s proposal to cut funding for the Excess Medical Malpractice Pool. The Assembly also successfully pushed to give priority to doctors performing high risk procedures in high risk areas. Providers who currently receive coverage will remain eligible and participation has been opened to doctors, such as those just entering practice, not currently covered under the Pool.

“By maintaining the pool and expanding access for new doctors, we are encouraging quality care providers to keep practicing in the state, particularly in much needed but high risk specialties and in underserved rural areas,” said Cahill.

Protecting Utility Consumers

Assemblymember Cahill was successful in advocating for the phasing down and ultimately the end of the 18-a assessment, otherwise known as the Temporary State Energy and Utility Service Conservation Assessment. The charge is currently imposed on public utility companies, the Long Island Power Authority and ESCOs and has resulted in increased ratepayer costs of over $500 million a year. Originally proposed to be renewed and continue through 2019, the Legislature instead adopted Assemblymember Cahill’s compromise proposal to completely phase out the tax over the next three years.

“The 18-a assessment was originally intended to be a surcharge to assure funding for the fair administration and regulation of our utilities. After a traumatic budget crisis, it was transformed into a temporary source for general revenue in the form of a regressive tax. As New York residential ratepayers do not have time-of-use meters, they do not have the ability to reduce consumption like large commercial and industrial customers,” said Assemblymember Cahill. “The phasing down of the charge will represent significant energy cost savings for both businesses and homeowners.”

Assemblymember Cahill’s continued commitment to consumer advocacy and protection also resulted in the inclusion of $505,000 for the Public Utility Law Project and a re-appropriation of unspent dollars from last year. PULP is a non-governmental organization that assists low-income and rural consumers with utility and energy related matters, including bringing lawsuits on their behalf. The organization provides information for ratepayers on matters such as termination and denial of service and consultation services to help local advocates represent people at risk of losing their utility service.

“PULP has been an active party in many industry-wide proceedings, including their current filings with the Public Service Commission concerning a lack of significant public benefits associated with the potential merger of Central Hudson and Fortis, Inc.,” said Assemblymember Cahill. “This worthy organization provides unparalleled services for ratepayers.”

“The Legislature's inclusion of funding for PULP in the budget will prevent another shutdown and enable PULP to continue its advocacy for low and fixed income utility customers. We thank Assemblymember Cahill for advocating for the inclusion of this funding,” said Gerald Norlander, Executive Director of the Public Utility Law Project.

Conclusion

“The Assembly has a long standing tradition of advocating for the needs of New York residents. I am proud that we were able to come together with our colleagues in the Senate to pass a fiscally responsible, on-time budget that includes these strong protections for the state’s consumers,” said Cahill.

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