STATE OF NEW YORK
________________________________________________________________________
67--A
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. PAULIN, ROSENTHAL, SIMON, BURDICK, RIVERA,
SIMONE, RAGA, BRONSON, SHIMSKY, STECK, SHRESTHA, HEVESI, KELLES,
LEVENBERG, DAVILA, LUNSFORD, GIBBS, EACHUS, DINOWITZ, BICHOTTE HERME-
LYN, REYES, MEEKS, BLANKENBUSH, KIM, LEMONDES, ROZIC, SAYEGH, TAYLOR,
LEE, MAHER, KAY, BEEPHAN, BRABENEC, STERN, KASSAY, GRIFFIN, McDONALD,
ROMERO, LASHER, BARRETT, SANTABARBARA, SEMPOLINSKI, GALLAHAN, WALKER,
TORRES, TAPIA, GRAY -- read once and referred to the Committee on
Health -- recommitted to the Committee on Health in accordance with
Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the public health law, in relation to federally quali-
fied health center rate adequacy
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 8 of section 2807 of the
2 public health law, as added by section 28 of part B of chapter 1 of the
3 laws of 2002, is amended to read as follows:
4 (b) For each twelve month period following September thirtieth, two
5 thousand one and continuing through September thirtieth, two thousand
6 twenty-six, the operating cost component of such rates of payment shall
7 reflect the operating cost component in effect on September thirtieth of
8 the prior period as increased by the percentage increase in the Medicare
9 Economic Index as computed in accordance with the requirements of 42 USC
10 § 1396a(aa)(3) and as adjusted pursuant to applicable regulations to
11 take into account any increase or decrease in the scope of services
12 furnished by the facility. For each twelve month period following
13 September thirtieth, two thousand twenty-six, the operating cost compo-
14 nent shall be calculated consistent with rates of payment established
15 pursuant to paragraph (c-1) of this subdivision, and then annually
16 adjusted by using the FQHC Market Basket inflator as calculated under
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00317-03-6
A. 67--A 2
1 federal law, and as adjusted pursuant to applicable regulations to take
2 into account any increase or decrease in the scope of services furnished
3 by the facility; provided, however, that no facility shall be subject to
4 an operating cost component lower than what was applied prior to Septem-
5 ber thirtieth, two thousand twenty-six.
6 § 2. Subdivision 8 of section 2807 of the public health law is amended
7 by adding a new paragraph (c-1) to read as follows:
8 (c-1) As soon as practicable the department shall analyze the actual
9 federally qualified health center costs filed as required by department
10 regulations, during the prior five year reporting periods. In addition
11 to such data, the commissioner shall consider the scope of services,
12 including type, intensity, duration and amount, provided by such facili-
13 ties; staffing to meet competitive market and case mix needs of popu-
14 lations served; physical plant and maintenance costs; infrastructure
15 costs; technology costs associated with telehealth modality of service
16 delivery; informational technology costs; and other costs deemed neces-
17 sary by the commissioner. Notwithstanding any other statute, rule, or
18 regulation otherwise imposing ceilings or caps on payments to federally
19 qualified health centers, provided that such payments are still subject
20 to federal financial participation, beginning on April first, two thou-
21 sand twenty-six, and then again every three years thereafter, the
22 department shall develop and issue updated rates of payments reflecting
23 the actual costs and updated aggregated data consistent with the method-
24 ology described in this paragraph; provided, however, that no facility
25 shall be subject to a rate that is less than the rate used prior to
26 September thirtieth, two thousand twenty-six.
27 § 3. This act shall take effect immediately.
