Prohibits cost recovery of medical assistance paid to retirees and former employees of the New York city off-track betting corporation, and their dependents; expands eligibility for such assistance to retirees and former employees who are not receiving Medicare benefits.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8055A
SPONSOR: Abbate
 
TITLE OF BILL: An act to amend chapter 56 of the laws of 2013,
providing medical assistance to certain retirees of the New York city
off-track betting corporation, in relation to prohibiting cost recovery
of such assistance; and to expand the provision of such medical assist-
ance
 
PURPOSE:
To make technical amendments to the OTB Retiree Health program
 
SUMMARY OF PROVISIONS:
Chapter 56 of the Laws of 2013, Part P, is amended by adding in perti-
nent part, "(p)rovided, however, that none of the cost recovery
provisions of section three hundred sixty-nine of the social services
law, with the exception of subdivision two, paragraph (a), subparagraph
(i) of such section, shall apply to the retirees of the New York city
off-track betting corporation...".
 
JUSTIFICATION:
This bill provides a critical amendment to Chapter 56 of the laws of
2013, which protects the former New York City Off Track Betting Corpo-
ration (NYC OTB) public employees by providing them with health insur-
ance and supplemental benefits through the Department of Health and New
York State Medicaid. This technical amendment would exclude this popu-
lation from provisions of the social services law, which allow the State
to seek cost recovery from a Medicaid recipient's estate.
Prior to the closure of the NYC OTB on December 7, 20'10, retirees of
the corporation received health insurance and supplements through their
employer and employee organization, respectively. Employees entered
NYCOTB service with the assurance that, if they retired from NYCOTB,
they and their dependants would continue to receive these benefits. It
was indeed a significant condition of their employment.
The State has since provided health benefits to these retirees through
Chapter 56 of the laws of 2013, part P, and its appropriation. The
program, which provides these retirees, vested members and their depen-
dents with Medicaid benefits without the financial eligibility require-
ments traditionally associated with Medicaid, was intended to provide
the retirees and their families with comprehensive health benefits as
soon as possible. Providing an existing program's benefits was deemed
more efficient than creating a new program for this small, unique popu-
lation. Unfortunately, the existing Medicaid program includes cost
recovery provisions that technically may be applied to these retirees,
if not specifically made excludable.
These workers have not become wards of the State through any fault of
their own. Many have worked 25 years or more, earning their retirement
benefits through hard work and dedication. Applying the cost recovery
provisions associated with traditional Medicaid in any situation other
than if the recipient were ineligible for the benefit would be grossly
unfair.
 
LEGISLATIVE HISTORY:
None.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as
chapter 56 of the laws of 2013, relating to providing medical assistance
to certain retirees of the New York city off-track betting corporation
(Part P), takes effect.