NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7012
SPONSOR: Ra TITLE OF BILL:
An act to amend the state finance law, in relation to requiring addi-
tional reporting requirements on expenditures related to the healthcare
stability fund
PURPOSE OR GENERAL IDEA OF BILL:
To expand the reporting requirements of the director of budget regarding
the healthcare stability fund
SUMMARY OF PROVISIONS:
Section one expands the list of individuals who the director of budget
shall report regarding expenditures related to the healthcare stability
fund to include the legislative minorities and the rankers of the fiscal
committees, as well as expanding the information required in such
report. Additionally, the report is required to be posted on the Depart-
ment of Health website.
Section two provides an immediate effective date.
JUSTIFICATION:
The Fiscal Year 2025 Enacted Budget created a tax on Managed Care Organ-
izations (MCO Tax) to generate revenue for Medicaid through the Health-
care Stability Fund, According to the FY26 Executive Budget Financial
Plan, this Fund will see $3.7 billion in resources over the next two
years. Regarding these funds, the Department of Health Commissioner
McDonald, M.D., M.P.H stated that funds derived from the MCO Tax would
not be used for across-the-board rate increases for providers, but rath-
er targeted funding disbursements.
Due to the discretionary nature of this funding, there is a need for
increased transparency on any receipts and disbursements from the MCO
Tax and Healthcare Stability Fund to ensure that these funds are
accountable to the public. Hospitals, nursing homes, physicians, and
many other providers will be relying on this funding, so it is Incumbent
upon the Executive to make information on this funding easily accessi-
ble.
Under current law, the Division of Budget is only required to report
activities related to the Fund quarterly to the Legislative Majorities.
This legislation would expand the contents of the Division of Budget's
report and require this report be delivered to the Legislative Minori-
ties as well as .be posted publicly on the Department of Health website.
Doing so will provide New Yorkers a clearer vision of how the State is
using these targeted funds to ensure healthcare quality and access
across all areas of the State. Having this information available will
also assist legislators, providers, and stakeholders in preparation
should this funding no longer be available due to actions at the Federal
level.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7012
2025-2026 Regular Sessions
IN ASSEMBLY
March 18, 2025
___________
Introduced by M. of A. RA, JENSEN -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the state finance law, in relation to requiring addi-
tional reporting requirements on expenditures related to the health-
care stability fund
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 6 of section 99-rr of the state finance law, as
2 added by section 2 of part II of chapter 57 of the laws of 2024, is
3 amended to read as follows:
4 6. (a) The director of the budget shall provide quarterly reports to
5 the speaker of the assembly, the temporary president of the senate, the
6 chair of the senate finance committee [and], the chair of the assembly
7 ways and means committee, the minority leader of the assembly, the
8 minority leader of the senate, the ranking member of the assembly ways
9 and means committee and the ranking member of the senate finance commit-
10 tee on the receipts and distributions of the healthcare stability fund,
11 including:
12 (i) an itemization of such receipts and disbursements[,];
13 (ii) the historical and projected expenditures[, and];
14 (iii) the projected fund balance[.]; and
15 (iv) the award of any grants from the healthcare stability fund not
16 including any across-the-board rate increases, including, but not limit-
17 ed to, the following information:
18 (1) the name of the recipient;
19 (2) the amount of the award; and
20 (3) the date of the award.
21 (b) Such quarterly reports shall be published on the department of
22 health's website within thirty days of the end of each quarter.
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10227-02-5
