S04884 Summary:

BILL NOS04884
 
SAME ASSAME AS UNI. A07854
 
SPONSORDUANE
 
COSPNSR
 
MLTSPNSR
 
Ren Art 50 SS5000 - 5003 to be Art 80 SS8000 - 8003, add Art 51 SS5100 - 5110, Art 49 Title III SS4920 - 4928, amd SS2510, 2511 & 270, Pub Health L; amd SS364-j & 369-ee, Soc Serv L
 
Establishes New York Health Plus to provide comprehensive health coverage to all New Yorkers; provides for a phase-in period for such program and requires the governor to submit a financing plan to include assessments on employers.
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S04884 Actions:

BILL NOS04884
 
04/27/2009REFERRED TO HEALTH
01/06/2010REFERRED TO HEALTH
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S04884 Floor Votes:

There are no votes for this bill in this legislative session.
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S04884 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 4884                                                  A. 7854
 
                               2009-2010 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                     April 27, 2009
                                       ___________
 
        IN SENATE -- Introduced by Sen. DUANE -- read twice and ordered printed,
          and when printed to be committed to the Committee on Health
 
        IN  ASSEMBLY  --  Introduced  by  M.  of  A.  GOTTFRIED -- read once and
          referred to the Committee on Health
 
        AN ACT to amend the public health law and the social  services  law,  in

          relation to establishing New York health plus
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Article 50 and sections 5000, 5001, 5002 and  5003  of  the
     2  public  health  law  are  renumbered article 80 and sections 8000, 8001,
     3  8002 and 8003, respectively, and a new article 51 is added  to  read  as
     4  follows:
     5                                 ARTICLE 51
     6                            NEW YORK HEALTH PLUS
     7  Section 5100. Definitions.
     8          5101. Program created.
     9          5102. Board of trustees.
    10          5103. Eligibility and enrollment.
    11          5104. Benefits.
    12          5105. Health plans.
    13          5106. Premiums paid to health plans by the program.

    14          5107. Program standards.
    15          5108. Phase-in period.
    16          5109. Regulations.
    17          5110. Other provisions.
    18    §  5100.  Definitions.  As  used  in this article, the following terms
    19  shall have the following meanings, unless the context  clearly  requires
    20  otherwise:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07055-03-9

        S. 4884                             2                            A. 7854
 
     1    1.  "Board"  means  the  board of trustees of the New York health plus

     2  program created by section five thousand one hundred two of  this  arti-
     3  cle, and "trustee" means a trustee of the board.
     4    2. "Program" means the New York health plus program created by section
     5  five thousand one hundred one of this article.
     6    3. "Member" means an individual who is enrolled in a health plan under
     7  the program.
     8    4.  "Participating  provider"  means  any person that is a health care
     9  provider that provides health care services to members  under  a  health
    10  plan.
    11    5.  "Health  care service" means any health care service included as a
    12  benefit under the program under section five thousand one  hundred  four
    13  of this article.

    14    6.  "Resident"  means an individual whose primary place of abode is in
    15  the state, as determined according to regulations of the commissioner.
    16    7. "Person" means any individual or natural  person,  trust,  partner-
    17  ship,  association,  unincorporated  association,  corporation, company,
    18  limited liability company, proprietorship, joint  venture,  firm,  joint
    19  stock association, department, agency, authority, or other legal entity,
    20  whether for-profit, not-for-profit or governmental.
    21    8.  "Phase-in period" means the period under section five thousand one
    22  hundred eight of this article during which the program will  be  subject
    23  to special eligibility and financing provisions until it is fully imple-
    24  mented under that section.

    25    9. "Federally-matched public health program" means the medical assist-
    26  ance  program  under title eleven of article five of the social services
    27  law, the family health plus program under title eleven-D of article five
    28  of the social services law, the child health plus  program  under  title
    29  one-A of article twenty-five of this chapter.
    30    10.  "Health plan" means (i) an entity that is approved by the commis-
    31  sioner under the program to enroll and provide health care  services  to
    32  members under the program and (ii) the fee-for-service health plan under
    33  section five thousand one hundred five of this article.
    34    11.  "Medicaid"  or "medical assistance" means title eleven of article

    35  five of the social services law  and  the  program  thereunder.  "Family
    36  health  plus"  means  title  eleven-D of the social services law and the
    37  program thereunder. "Child health plus" means  title  one-A  of  article
    38  twenty-five of this chapter and the program thereunder.
    39    12.  "Threshold income level" means the amount of income above which a
    40  premium contribution may be charged during the phase-in period.
    41    13. "Income" means net household income, or the  gross  equivalent  of
    42  that net income.
    43    14.  "Care management" means services provided by a care manager under
    44  paragraph (b) of subdivision three of section five thousand one  hundred
    45  five of this article.

    46    15.  "Care  manager" means an individual or entity approved to provide
    47  care management under paragraph (b) of subdivision three of section five
    48  thousand one hundred five of this article.
    49    § 5101. Program created.  1. The New York health plus program is here-
    50  by created in the department. The program  shall  provide  comprehensive
    51  health  coverage  to  every resident who enrolls as a member of a health
    52  plan. However, during the phase-in period, the program shall be  subject
    53  to  the  provisions  of  section five thousand one hundred eight of this
    54  article.
    55    2. Health coverage under the program shall be provided through  titles
    56  eleven and eleven-D of article five of the social services law and title


        S. 4884                             3                            A. 7854
 
     1  one-A of article twenty-five of this chapter.  Except where inconsistent
     2  with the provisions of this article, the provisions of titles eleven and
     3  eleven-D  of  article five of the social services law and title one-A of
     4  article twenty-five of this chapter shall apply to the program.
     5    3.  The  commissioner shall, to the maximum extent possible, organize,
     6  administer and market the program and services under titles  eleven  and
     7  eleven-D  of  article five of the social services law and title one-A of
     8  article twenty-five of this chapter as a single program under  the  name
     9  "New  York  health  plus"  or  such other name as the commissioner shall

    10  determine. In implementing  this  subdivision,  the  commissioner  shall
    11  avoid jeopardizing federal financial participation in these programs and
    12  shall  take care to promote public understanding and awareness of avail-
    13  able benefits and programs.
    14    § 5102. Board of trustees.  1. The New York health plus board of trus-
    15  tees is hereby created in the department.  The board of trustees  shall,
    16  at  the  request  of the commissioner, consider any matter to effectuate
    17  the provisions and purposes of this article, and may advise the  commis-
    18  sioner thereon; and it may, from time to time, submit to the commission-
    19  er,  any  recommendations  to  effectuate the provisions and purposes of

    20  this article. The commissioner may propose  regulations  and  amendments
    21  thereto  for  consideration  by  the  board.  The  board of trustees may
    22  appoint one or more advisory committees. Members of advisory  committees
    23  need  not  be  members  of  the board of trustees. The board of trustees
    24  shall have no executive, administrative or appointive duties  except  as
    25  otherwise  provided  by  law.  The board of trustees shall have power to
    26  establish, and from time to time, amend regulations  to  effectuate  the
    27  provisions  and  purposes  of  this  article, subject to approval by the
    28  commissioner.
    29    2. The board shall be composed of:
    30    (a) the commissioner and the  superintendent  of  insurance,  and  the

    31  director of the budget, or their designees, as ex officio members;
    32    (b) seventeen trustees appointed by the governor:
    33    (i) two of whom shall be representatives of health care consumer advo-
    34  cacy  organizations which have a statewide or regional constituency, who
    35  have been involved in activities related to health care consumer advoca-
    36  cy, including issues of interest to low-  and  moderate-income  individ-
    37  uals;
    38    (ii)  two  of  whom shall be representatives of professional organiza-
    39  tions representing physicians;
    40    (iii) two of whom shall be representatives of  professional  organiza-
    41  tions  representing  licensed  or  registered  health care professionals
    42  other than physicians;

    43    (iv) three of whom shall be representatives of hospitals, one of  whom
    44  shall be a representative of public hospitals;
    45    (v) one of whom shall be representative of community health centers or
    46  other health care provider entities;
    47    (vi) two of whom shall be representatives of local governments;
    48    (vii) two of whom shall be representatives business;
    49    (viii) two of whom shall be representatives of organized labor;
    50    (ix) one of whom shall be representative of plans;
    51    (c)  three  trustees  appointed  by the speaker of the assembly; three
    52  trustees appointed by the temporary president of the senate; one trustee
    53  appointed by the minority  leader  of  the  assembly;  and  one  trustee

    54  appointed by the minority leader of the senate.
    55    Beginning  one  year  after  the end of the phase-in period, no person
    56  shall be a trustee unless he or she is a member of a health plan, except

        S. 4884                             4                            A. 7854
 
     1  the ex officio trustees. Each trustee shall serve at the pleasure of the
     2  appointing officer, except the ex officio trustees.
     3    3.  The  chair  of  the board shall be appointed and may be removed as
     4  chair by the governor from among the trustees. The board shall  meet  at
     5  least  four  times  each calendar year.  Meetings shall be held upon the
     6  call of the chair and as provided  by  the  board.  A  majority  of  the

     7  appointed  trustees  shall be a quorum of the board, and the affirmative
     8  vote of a majority of the trustees voting, but not less than ten,  shall
     9  be  necessary  for  any  action to be taken by the board.  The board may
    10  establish an executive committee to exercise any powers or duties of the
    11  board as it may provide, and other committees to assist the board or the
    12  executive committee. The chair of the board shall  chair  the  executive
    13  committee  and  shall appoint the chair and members of all other commit-
    14  tees. The board may also establish  advisory  committees  consisting  of
    15  individuals other than trustees.
    16    4.  Trustees  shall serve without compensation but shall be reimbursed

    17  for their necessary and actual expenses incurred while  engaged  in  the
    18  business of the board.
    19    5. Notwithstanding any provision of law to the contrary, no officer or
    20  employee of the state or any local government shall forfeit or be deemed
    21  to  have  forfeited his or her office or employment by reason of being a
    22  trustee.
    23    6. The board and its committees and advisory  committees  may  request
    24  and  receive  the  assistance  of  the department and any other state or
    25  local governmental entity in exercising its powers and duties.
    26    § 5103. Eligibility and enrollment.  1. Every resident shall be eligi-
    27  ble and entitled to enroll as a  member  of  a  health  plan  under  the

    28  program;  provided  that no person shall at any time be a member of more
    29  than one health plan.
    30    2. No member shall be required to pay any premium or other charge  for
    31  enrolling  in  or  being  a  member  of a health plan, except during the
    32  phase-in period as provided in section five thousand one  hundred  eight
    33  of this article.
    34    3.  (a)  The  commissioner may apply for coverage under any federally-
    35  matched public health program on behalf of any  member  and  enroll  the
    36  member  in  the federally-matched public health program if the member is
    37  eligible for it. The commissioner shall provide members  with  notifica-
    38  tion  of  any enhanced benefits if they have been enrolled in a federal-

    39  ly-matched public health program; however, enrollment  in  a  federally-
    40  matched  public  health  program  shall not cause any member to lose any
    41  health care service provided by the program.
    42    (b) The commissioner may by regulation increase the income eligibility
    43  level, increase or eliminate the  resource  test  for  eligibility,  and
    44  simplify  any procedural or documentation requirement for enrollment for
    45  any federally-matched public health program, notwithstanding any law  or
    46  regulation  to  the  contrary. The commissioner may act under this para-
    47  graph upon a finding, approved by the director of the budget,  that  the
    48  action  (i) will help to increase the number of members who are eligible

    49  for and enroll in federally-matched public health  programs;  (ii)  will
    50  not  diminish  any  individual's  access  to any health care service and
    51  (iii) does not require or has received any necessary federal waivers  or
    52  approvals  to ensure federal financial participation. Actions under this
    53  paragraph shall not apply to individuals seeking payment for  long  term
    54  care,  treatment,  maintenance,  or  services  not  covered under family
    55  health plus or child health plus, as appropriate, with the exception  of
    56  short term rehabilitation, as defined by the commissioner.

        S. 4884                             5                            A. 7854
 
     1    4.  As  a  condition of continued eligibility for health care services

     2  under the program, a member who is eligible  for  benefits  under  Title
     3  XVIII  of  the  federal  social  security act (Medicare) shall enroll in
     4  Medicare, including parts A, B and D.
     5    (a) If a member who is enrolled in Medicare does not enroll in a Medi-
     6  care  managed care plan or enrolls in a managed care program that is not
     7  a managed care provider in the program, that member shall use  the  fee-
     8  for-service health plan created in subdivision two of section five thou-
     9  sand one hundred five of this article.
    10    (b)  If a member enrolls in a Medicare managed care plan offered by an
    11  entity that is also a managed care provider; that member shall have  the
    12  option of receiving health care services in the program through the same

    13  entity's  managed care plan or through the fee for service option of the
    14  program as created in subdivision  two  of  section  five  thousand  one
    15  hundred five of this article, provided that:
    16    (i)  if  the  member  changes his or her Medicare managed care plan as
    17  authorized by Medicare and enrolls in another Medicare managed care plan
    18  that is also a managed care provider, the member shall  be  enrolled  in
    19  that  managed  care provider or receive health care services through the
    20  fee-for-service health plan created in subdivision two of  section  five
    21  thousand one hundred five of this article;
    22    (ii)  if  the  member changes his or her Medicare managed care plan as
    23  authorized by Medicare, but enrolls in  another  Medicare  managed  care

    24  plan  that  is  not  also  a managed care provider, the individual shall
    25  receive health care benefits pursuant to paragraph (a) of this  subdivi-
    26  sion;
    27    (iii)  if  the member disenrolls from his or her Medicare managed care
    28  plan as authorized by Title XVIII of the federal  social  security  act,
    29  and  does  not  enroll in another Medicare managed care plan, the member
    30  shall receive health care benefits pursuant to  paragraph  (a)  of  this
    31  subdivision; and
    32    (iv)  nothing herein shall require an individual enrolled in a managed
    33  long term care plan, pursuant to  section  four  thousand  four  hundred
    34  three-f of this chapter, to disenroll from such program.

    35    (c)  The  program  shall  provide  premium  assistance for all members
    36  enrolling in a Medicare part D drug  coverage  under  section  1860D  of
    37  Title XVIII of the federal social security act limited to the low-income
    38  benchmark premium amount established by the federal centers for Medicare
    39  and Medicaid services and any other amount which such agency establishes
    40  under  its  de minimus premium policy, except that such payments made on
    41  behalf of members enrolled in a Medicare advantage plan may  exceed  the
    42  low-income  benchmark  premium amount if determined to be cost effective
    43  to the program.
    44    (d) If the commissioner has  reasonable  grounds  to  believe  that  a
    45  member  could  be  eligible  for an income-related subsidy under section

    46  1860D-14 of Title XVIII of the federal social security act,  the  member
    47  shall  provide,  and authorize the program to obtain, any information or
    48  documentation required to establish the member's  eligibility  for  such
    49  subsidy,  provided that the commissioner shall attempt to obtain as much
    50  of the information and documentation as possible from records  that  are
    51  available to him or her.
    52    (e)  The  program  shall make a reasonable effort to notify members of
    53  their obligations under this subdivision. After a reasonable effort  has
    54  been made to contact the member, the member shall be notified in writing
    55  that  he  or she has sixty days to provide such required information. If


        S. 4884                             6                            A. 7854
 
     1  such information is not  provided  within  the  sixty  day  period,  the
     2  member's coverage under the program may be terminated.
     3    §  5104.  Benefits.    The  program shall provide comprehensive health
     4  coverage to every member of a health plan, which shall include  but  not
     5  be limited to:
     6    (a) all health care services under family health plus; and
     7    (b)  for  every member under the age of twenty-one, all covered health
     8  care services under child health plus; and
     9    (c) for every member who is eligible for Medicaid,  all  medical  care
    10  and  services  under Medicaid, provided that this shall not include long

    11  term care, treatment, maintenance, or services not covered under  family
    12  health plus or child health plus, as appropriate.
    13    §  5105.  Health plans.   1. (a) An entity seeking to be a health plan
    14  shall file an application with the commissioner, in the form provided by
    15  the commissioner. The application shall provide  information  to  demon-
    16  strate that the entity meets all requirements to be a health plan and to
    17  provide  health  care services and comply with all other requirements of
    18  this article and the program, and any additional information required by
    19  the commissioner.  Upon approval by the commissioner, the  entity  shall
    20  be  a health plan under the program. The commissioner may, at his or her

    21  discretion, require health plans to renew  their  application,  provided
    22  that the frequency of renewal may not be more than annually.
    23    (b)  The  entity  or  health  plan shall be under a continuing duty to
    24  report  to  the  commissioner  any  change  in  facts  or  circumstances
    25  reflected  in  the application or any newly discovered or occurring fact
    26  or circumstance which is required to be included in the application.
    27    (c) The public health plan under subdivision  three  of  this  section
    28  shall be a health plan without complying with this subdivision.
    29    2. (a) In order to be a health plan, an entity shall be a managed care
    30  provider under section three hundred sixty-four-j of the social services

    31  law  (Medicaid  managed  care),  an  approved organization under section
    32  three hundred sixty-nine-ee of the social services  law  (family  health
    33  plus),  and  an approved organization under title one-A of article twen-
    34  ty-five of this chapter (child health plus). If a health plan no  longer
    35  complies with this paragraph it shall cease to be a health plan.
    36    (b) In addition, the commissioner shall provide, by regulation, that a
    37  health  plan  organized  on other models, including but not limited to a
    38  preferred provider organization, may be a health  plan.  A  health  plan
    39  formed under this paragraph may provide Medicaid, family health plus and
    40  child  health  plus, as appropriate, to members in the program, notwith-

    41  standing any provision of Medicaid, family health plus or  child  health
    42  plus to the contrary.
    43    3.  Fee-for-service  health  plan.   (a) General provisions.   (i) The
    44  commissioner shall establish a fee-for-service health  plan  under  this
    45  subdivision.   Any member who is not a member of another health plan may
    46  be a member of the fee-for-service health plan.
    47    (ii) Any health care provider qualified to participate under paragraph
    48  (c) of this subdivision may provide health care services under the  fee-
    49  for-service  health  plan,  provided  that  the  health care provider is
    50  otherwise legally authorized to perform the health care service for  the
    51  individual and under the circumstances involved.

    52    (iii)  Health care services provided to members under the fee-for-ser-
    53  vice health plan shall be paid for under this subdivision on a  fee-for-
    54  service basis, except that care management shall be paid for under para-
    55  graph (b) of this subdivision.

        S. 4884                             7                            A. 7854
 
     1    (iv) Health care services provided to a member shall not be subject to
     2  payment under this subdivision unless the member is enrolled with a care
     3  manager  under  paragraph (b) of this subdivision at the time the health
     4  care service is provided.
     5    (b)  Care management.   (i) Every member of the fee-for-service health
     6  plan shall enroll with a  care  manager  that  agrees  to  provide  care

     7  management  to the member, prior to receiving health care services to be
     8  paid for under this subdivision. The member shall remain  enrolled  with
     9  that  care  manager  until  the member becomes enrolled with a different
    10  care manager or ceases to be a  member  of  the  fee-for-service  health
    11  plan.  The  commissioner shall provide, by regulation, that care manage-
    12  ment members have the right to change their care  manager  on  terms  at
    13  least  as  permissive  as the provisions of section three hundred sixty-
    14  four-j of the social services law relating to an individual changing his
    15  or her primary care provider or managed care provider.
    16    (ii) Care management shall be provided to the member by  the  member's

    17  care  manager.    Care  management  shall  include but not be limited to
    18  managing, referring to, locating, coordinating,  and  monitoring  health
    19  care  services  for  the  member  to assure that all medically necessary
    20  health care services are made available to and are effectively  used  by
    21  the  member in a timely manner. Care management is not a requirement for
    22  prior authorization for health care services and referral shall  not  be
    23  required for a member to receive a health care service.
    24    (iii)  A  care manager may be an individual or entity that is approved
    25  by the fee-for-service health plan that is:
    26    (A) a health care practitioner who is (I) the  member's  primary  care
    27  practitioner;  (II)  at  the  option  of  a  female member, the member's

    28  provider of primary gynecological care; or (III)  at  the  option  of  a
    29  member  who  has  a  chronic  condition  that requires specialty care, a
    30  specialist  health  care  practitioner  who  regularly  and  continually
    31  provides treatment for that condition to the member.
    32    (B)  an  entity licensed under article twenty-eight of this chapter or
    33  certified under article thirty-six of this chapter, or, with respect  to
    34  a  member  who  receives  chronic mental health care services, an entity
    35  licensed under article thirty-one of the mental hygiene law.
    36    (C) an entity authorized to be a health plan;
    37    (D) a Taft-Hartley fund, with respect to its members and their  family
    38  members;

    39    (E) any other entity approved by the fee-for-service health plan.
    40    (iv) Where a member of the fee-for-service health plan receives chron-
    41  ic mental health care services, consistent with standards established by
    42  the fee-for-service health plan, at the option of the member, the member
    43  may  enroll  with  a  care  manager  for  his  or her mental health care
    44  services and another care manager approved for his or her  other  health
    45  care services. In such a case, the two care managers shall work in close
    46  consultation with each other.
    47    (v) The commissioner shall develop and implement procedures and stand-
    48  ards  for an individual or entity to be approved to be a care manager in
    49  the fee-for-service health plan, including but not limited to procedures

    50  and standards relating to the  revocation,  suspension,  limitation,  or
    51  annulment  of  approval on a determination that the individual or entity
    52  is incompetent to be a care manager or has exhibited a course of conduct
    53  which is either inconsistent with program standards and  regulations  or
    54  which  exhibits an unwillingness to meet such standards and regulations,
    55  or is a potential threat to the public health or safety. Such procedures
    56  and standards shall not limit approval to be a care manager in the  fee-

        S. 4884                             8                            A. 7854
 
     1  for-service  health  plan  for economic purposes and shall be consistent
     2  with good professional practice. In developing the procedures and stand-

     3  ards, the commissioner shall: (A) consider existing standards  developed
     4  by  national accrediting and professional organizations; and (B) consult
     5  with national and local organizations  working  on  care  management  or
     6  similar models, including health care practitioners, hospitals, clinics,
     7  and  consumers and their representatives. When developing and implement-
     8  ing standards of approval of care  managers  for  individuals  receiving
     9  chronic mental health care services, the commissioner shall consult with
    10  the  commissioner of mental health. An individual or entity may not be a
    11  care manager unless the services included in care management are  within
    12  the  individual's  professional  scope of practice or the entity's legal
    13  authority.

    14    (vi) To maintain approval under the  fee-for-service  health  plan,  a
    15  care manager must: (A) renew its status at a frequency determined by the
    16  commissioner;  and (B) provide data to the department as required by the
    17  commissioner to enable the commissioner to evaluate the impact  of  care
    18  managers on quality, outcomes and cost.
    19    (vii)  The  fee-for-service  health plan shall establish methodologies
    20  for paying care managers for care management services. The methodologies
    21  may provide for capitated or other forms of payment.
    22    (c) Health care providers. The commissioner shall establish and  main-
    23  tain  procedures and standards for health care providers to be qualified
    24  to participate in the fee-for-service health  plan,  including  but  not

    25  limited  to procedures and standards relating to the revocation, suspen-
    26  sion, limitation, or annulment of  qualification  to  participate  on  a
    27  determination  that  the health care provider is an incompetent provider
    28  of specific health care services or has exhibited a  course  of  conduct
    29  which  is  either inconsistent with program standards and regulations or
    30  which exhibits an unwillingness to meet such standards and  regulations,
    31  or is a potential threat to the public health or safety. Such procedures
    32  and  standards shall not limit health care provider participation in the
    33  fee-for-service health plan for economic purposes and shall be  consist-
    34  ent  with  good  professional  practice. Any health care provider who is

    35  qualified to participate under Medicaid, family  health  plus  or  child
    36  health  plus  shall be deemed to be qualified to participate in the fee-
    37  for-service health plan, and  any  health  care  provider's  revocation,
    38  suspension,  limitation, or annulment of qualification to participate in
    39  any of those programs shall apply to the health care  provider's  quali-
    40  fication to participate in the fee-for-service health plan.
    41    §  5106. Premiums paid to health plans by the program.  1. The program
    42  shall pay to every health plan a premium on behalf of each member of the
    43  health plan, for each month the member is a member of the health plan.
    44    2. The program shall, where not inconsistent  with  the  rate  setting

    45  authority  of other state agencies and subject to approval of the direc-
    46  tor of the division of the budget, develop methodologies for determining
    47  the amount of premiums to be paid to health plans under the program.
    48    3. The program, in consultation with organizations representing health
    49  plans, shall select an independent actuary to review  the  methodologies
    50  and  premiums. The independent actuary shall review and make recommenda-
    51  tions concerning  appropriate  actuarial  assumptions  relevant  to  the
    52  establishment  of methodologies and premiums, including but not limited,
    53  to the adequacy of the methodologies and premiums  in  relation  to  the
    54  population to be served adjusted for case mix, the scope of services the

    55  plans  must  provide,  the  utilization  of  services and the network of
    56  providers necessary to meet program standards. The  independent  actuary

        S. 4884                             9                            A. 7854
 
     1  shall  issue  an  annual report, which shall be provided to the program,
     2  the governor, the temporary president and the  minority  leader  of  the
     3  senate  and  the  speaker  and  the minority leader of the assembly. The
     4  program  shall  assess health plans on a per enrollee basis to cover the
     5  cost of the report.
     6    § 5107. Program  standards.    1.  The  commissioner  shall  establish
     7  requirements and standards for the program and for health plans, includ-

     8  ing requirements and standards for, as applicable:
     9    (a) the scope, quality and accessibility of health care services;
    10    (b)  relations between health plans and members, including approval of
    11  health care services; and
    12    (c) relations between health plans and health care providers,  includ-
    13  ing  (i)  credentialing  and  participation in health plan networks; and
    14  (ii) terms, methods and rates of payment.
    15    2. Requirements and standards under the program shall include, but not
    16  be limited to, provisions to promote the following:
    17    (a) Simplification, transparency, uniformity, and fairness  in  health
    18  care  provider  credentialing and participation in health plan networks,

    19  referrals, payment procedures and rates, claims processing, and approval
    20  of health care services, as applicable.
    21    (b) Payment rates for health care services and  care  management  that
    22  are reasonable and reasonably related to the cost of efficiently provid-
    23  ing the health care service.
    24    (c) Primary and preventive care, care management, efficient and effec-
    25  tive health care services, quality assurance, and coordination and inte-
    26  gration  of health care services, including use of appropriate technolo-
    27  gy.
    28    (d) Elimination of health care disparities.
    29    (e) Non-discrimination with respect to members and health care provid-
    30  ers on the basis of race, ethnicity, national origin, religion, disabil-

    31  ity, age, sex, sexual orientation, gender  identity  or  expression;  or
    32  economic  circumstances; health care services provided under the program
    33  shall be appropriate to the patient's circumstances.
    34    (f) Accessibility of health plan services and  health  care  services,
    35  including  accessibility  for  people  with disabilities and people with
    36  limited ability to speak or understand English,  and  the  providing  of
    37  health  plan services and health care services in a culturally competent
    38  manner.
    39    3. Any health plan that is organized as a for-profit entity  shall  be
    40  required  to  meet  the  same requirements and standards as health plans
    41  organized as not-for-profit entities, and the premium  paid  to  such  a

    42  plan  shall not be calculated to accommodate the generation of profit or
    43  revenue for dividends or other return on investment or  the  payment  of
    44  taxes that would not be paid by a not-for-profit entity.
    45    4.  The commissioner shall require health plans to compile and period-
    46  ically report to the commissioner data and  information  on  the  health
    47  plan's  performance,  including  the  availability and quality of health
    48  care services and relevant characteristics of the health  plan's  health
    49  care  providers and members. The commissioner shall analyze the data and
    50  information received under this subdivision and make it publicly  avail-
    51  able,  including  on the program's website, in appropriate risk-adjusted

    52  form and in a manner designed to facilitate evaluation and comparison of
    53  health plans by the public and members.
    54    5. In developing requirements and standards and  making  other  policy
    55  determinations  under  this article, the commissioner shall consult with

        S. 4884                            10                            A. 7854
 
     1  representatives of members, health  care  providers,  health  plans  and
     2  other interested parties.
     3    6.  (a) For purposes of this section, "income-eligible member" means a
     4  member who is enrolled in a federally-matched public health program  and
     5  (i)  there is federal financial participation in the individual's health
     6  coverage, or (ii) the member is eligible to  enroll  in  the  federally-

     7  matched  public  health  program by reason of income, age, and resources
     8  (where applicable) under state law in effect on the  effective  date  of
     9  this  section,  but  there  is no federal financial participation in the
    10  individual's health coverage. A person who is eligible to  enroll  in  a
    11  federally-matched  public  health  program  solely  by reason of section
    12  three hundred sixty-nine-ff of the social services law  (employer  part-
    13  nerships for family health plus) is not an income-eligible member.
    14    (b)  A  health plan, with respect to those members who are not income-
    15  eligible members, shall not be  considered  a  federally-matched  public
    16  health  program or governmental payor under article twenty-eight of this
    17  chapter with respect to:

    18    (i) patient services payments in accordance with section  twenty-eight
    19  hundred seven-j of this chapter;
    20    (ii)  professional  education  pool funding under section twenty-eight
    21  hundred seven-s of this chapter; or
    22    (iii) assessments on covered lives under section twenty-eight  hundred
    23  seven-t of this chapter.
    24    §  5108.  Phase-in  period.   1. The commissioner shall determine when
    25  individuals may begin enrolling in health plans under  the  program  and
    26  when  health  plans  may begin providing health care services to members
    27  under the program. The phase-in period shall  begin  on  the  date  when
    28  health  plans  may  begin providing health care services to members. The

    29  phase-in period shall consist of annual periods, provided that the first
    30  annual period may be less than one year, as determined  by  the  commis-
    31  sioner. The phase-in period shall end as determined by the commissioner.
    32    2.  (a)  During  the  phase-in  period,  the  commissioner may require
    33  members whose incomes are above the threshold  income  level  to  pay  a
    34  premium  contribution to the program. Another person may pay all or part
    35  of a member's premium contribution on the member's behalf.  The  premium
    36  contribution  shall be on a sliding scale for income brackets and house-
    37  hold sizes determined by the commissioner at  and  above  the  threshold
    38  income level.
    39    (b)  The premium contribution for an income bracket and household size

    40  shall not exceed five percent for an individual, not to exceed  a  total
    41  of  eight  percent for all the individuals in a household, of the income
    42  for a household in the income bracket. In the case of a member under the
    43  age of nineteen, the premium contribution  attributable  to  the  member
    44  shall  not  exceed  the applicable allowable premium payment under child
    45  health plus. No individual who is eligible for Medicaid or family health
    46  plus (other than under section three hundred sixty-nine-ff of the social
    47  services law) shall be required to  pay  any  premium  contribution.  No
    48  member's premium contribution shall exceed eighty percent of the average
    49  per-member premium paid by the program in the member's region, as deter-
    50  mined by the commissioner.

    51    (c)  For each annual period after the first annual period, the commis-
    52  sioner shall raise the threshold level and income brackets and determine
    53  the appropriate premium contribution levels.
    54    (d) (i) In order to determine a member's income bracket  for  purposes
    55  of  this  subdivision,  a member or an individual seeking to enroll as a
    56  member shall, at the time of the initial application,  and  may  at  any

        S. 4884                            11                            A. 7854
 
     1  time  thereafter,  attest  to  all  information regarding income that is
     2  necessary and sufficient to determine the  individual's  income  bracket
     3  and  provide  his  or her social security account number, as well as the

     4  social security account number for each legally responsible relative who
     5  is a member of the household and whose income is available to the appli-
     6  cant.  Except  as  provided  in subparagraph (ii) of this paragraph, the
     7  attestation of the individual to all information necessary to  establish
     8  the  individual's  income bracket shall be sufficient to do so. Upon the
     9  receipt of such  information,  the  commissioner  may,  in  his  or  her
    10  discretion,  verify  the  accuracy of the income information provided by
    11  the individual by matching it against information to which  the  commis-
    12  sioner  has  access,  including the state's wages reporting system or by
    13  inquiry to the individual's employer.

    14    (ii) In the event there is an inconsistency  between  the  information
    15  reported  by the individual under subparagraph (i) of this paragraph and
    16  any information obtained by the commissioner from other sources pursuant
    17  to this paragraph and such inconsistency is material to the individual's
    18  income bracket, the commissioner may require that the individual provide
    19  adequate documentation  to  verify  his  or  her  income  bracket.  Such
    20  documentation may include, but not be limited to the following:
    21    (A) paycheck stubs; or
    22    (B) written documentation of income from all employers; or
    23    (C)  other  documentation of income (earned or unearned) as determined
    24  by the commissioner, provided  however,  such  documentation  shall  set

    25  forth the source of such income; and
    26    (D) proof of identity and residence as determined by the commissioner.
    27    In  the  event an individual is not required and elects not to provide
    28  his or her social security account number or the social security account
    29  numbers of each legally responsible relative who  is  a  member  of  the
    30  household  and whose income is available to the individual, the individ-
    31  ual shall provide adequate documentation to verify  his  or  her  income
    32  bracket.  In  the event that an inconsistency is found, and it is due to
    33  inaccurate reporting on behalf of an employer, the individual shall  not
    34  be held liable for the error, unless it can be determined that the indi-
    35  vidual was a willful participant in misleading the department.

    36    (iii)  Once  an individual's income bracket is determined for purposes
    37  of the phase-in period, it shall not be necessary for it to be re-deter-
    38  mined even if the individual would be in a  higher  income  bracket.  An
    39  individual seeking to change his or her income bracket may apply to have
    40  it  re-determined  in  accordance with this paragraph. An individual may
    41  choose not to have his or her income bracket determined, in  which  case
    42  the  individual  shall  pay the maximum premium contribution, subject to
    43  paragraph (b) of this subdivision.
    44    § 5109. Regulations.   The commissioner may  approve  regulations  and
    45  amendments  thereto, under section five thousand one hundred two of this

    46  article. The commissioner may make regulations or amendments thereto  to
    47  effectuate  the  provisions and purposes of this article on an emergency
    48  basis under section two hundred two of the state  administrative  proce-
    49  dure  act, provided that such regulations or amendments shall not become
    50  permanent unless adopted under section five thousand one hundred two  of
    51  this article.
    52    §  5110. Other provisions.  1. The commissioner shall seek all federal
    53  waivers and other federal approvals necessary  to  operate  the  program
    54  consistent with this article.

        S. 4884                            12                            A. 7854
 
     1    2.  Consumer,  health  care provider, and care manager assistance. The

     2  commissioner  shall  contract  with  not-for-profit   organizations   to
     3  provide:
     4    (a)  consumer assistance to members and individuals seeking or consid-
     5  ering whether to become members, with respect to selection of  a  health
     6  plan, enrolling, obtaining health care services, disenrolling, and other
     7  matters relating to the program;
     8    (b) health care provider assistance to health care providers providing
     9  and  seeking  or considering whether to provide, health care services to
    10  members under the program, with respect to  participating  in  a  health
    11  plan and dealing with a health plan; and
    12    (c)  care manager assistance to individuals and entities providing and

    13  seeking or considering whether to provide, care  management  to  members
    14  under the fee-for-service health plan.
    15    §  2. Subdivision 3 of section 2510 of the public health law, as added
    16  by chapter 922 of the laws of 1990, is amended to read as follows:
    17    3. "Eligible organization" means:
    18    (a) a commercial insurer;
    19    (b) a corporation or health maintenance  organization  licensed  under
    20  article forty-three of the insurance law;
    21    (c)  a  health maintenance organization certified under article forty-
    22  four of this chapter; or
    23    (d) a comprehensive health services plan operating pursuant  to  regu-
    24  lations   of  the  department  of  social services or the department [of
    25  health]; or
    26    (e) a health plan under section five thousand one hundred five of this

    27  chapter, including the fee-for-service health plan.
    28    § 3. Paragraph (b) of subdivision 1 of section  364-j  of  the  social
    29  services  law,  as  amended by chapter 649 of the laws of 1996, subpara-
    30  graphs (i) and (ii) as amended by chapter 433 of the laws  of  1997,  is
    31  amended to read as follows:
    32    (b)  "Managed  care provider". An entity that provides or arranges for
    33  the provision of medical assistance services  and  supplies  to  partic-
    34  ipants  directly  or  indirectly (including by referral), including case
    35  management; and:
    36    (i) is authorized to operate under article forty-four  of  the  public
    37  health  law  or article forty-three of the insurance law and provides or
    38  arranges, directly or indirectly (including  by  referral)  for  covered
    39  comprehensive health services on a full capitation basis; or

    40    (ii)  is  authorized  as  a  partially  capitated  program pursuant to
    41  section three hundred sixty-four-f of this title or  section  forty-four
    42  hundred  three-e of the public health law or section 1915b of the social
    43  security act; or
    44    (iii) is a health plan under section five thousand one hundred five of
    45  the public health law, including the fee-for-service health plan.
    46    § 4. Paragraph (b) of subdivision 1 of section 369-ee  of  the  social
    47  services  law,  as added by chapter 1 of the laws of 1999, is amended to
    48  read as follows:
    49    (b) "Eligible organization" means  an  insurer  licensed  pursuant  to
    50  article  thirty-two  or forty-two of the insurance law, a corporation or
    51  an organization under article forty-three of the insurance  law,  or  an
    52  organization  certified  under  article  forty-four of the public health

    53  law, including providers  certified  under  section  forty-four  hundred
    54  three-e  of  such  article, or a health plan under section five thousand
    55  one hundred five of the public health law, including the fee-for-service
    56  health plan.

        S. 4884                            13                            A. 7854
 
     1    § 5. Financing of New York health plus.  1. The governor shall  submit
     2  to  the  legislature  a plan and legislative bills to implement the plan
     3  (referred to collectively in this section as the "revenue proposal")  to
     4  provide  the  revenue  necessary  to  finance  the  New York Health Plus
     5  program,  as created by article 51 of the public health law (referred to
     6  in this section as the "program") to be enacted by this act. The revenue
     7  proposal shall be submitted to the legislature as part of the  executive

     8  budget  under article VII of the state constitution, for the fiscal year
     9  commencing on the first day of April in the calendar year after this act
    10  shall become a law. In developing the  revenue  proposal,  the  governor
    11  shall  consult  with  appropriate officials of the executive branch; the
    12  majority leader of the senate; the speaker of the assembly;  the  chairs
    13  of  the  fiscal  and  health  committees of the senate and assembly; and
    14  representatives of business, labor, consumers and local government.
    15    2. (a) The basic  structure  of  the  revenue  proposal  shall  be  as
    16  follows:  Revenue  for  the  program  shall  come  from  two assessments
    17  (referred to collectively in this section as the "assessments").  First,
    18  there  shall  be  an  assessment on all payroll and self-employed income
    19  (referred to in this section  as  the  "payroll  assessment"),  paid  by

    20  employers,  employees  and  self-employed,  similar to the Medicare tax.
    21  Higher brackets of income subject to this assessment shall  be  assessed
    22  at a higher marginal rate than lower brackets.  Second, there shall be a
    23  progressively-graduated  assessment on taxable income (such as interest,
    24  dividends, and capital gains) not  subject  to  the  payroll  assessment
    25  (referred  to  in  this  section  as  the "non-payroll assessment"). The
    26  assessments will be set at  levels  anticipated  to  produce  sufficient
    27  revenue  to  finance  the  program, to be scaled up as enrollment grows.
    28  Individuals and employers who choose to pay for private health  coverage
    29  instead  of  participating  in  the  program  shall be allowed to take a
    30  limited credit against the assessments they pay. Provision shall be made
    31  for state residents (who are eligible for the program) who are  employed

    32  out-of-state,  and  non-residents (who are not eligible for the program)
    33  who are employed in the state.
    34    (b) Payroll assessment. The  income  to  be  subject  to  the  payroll
    35  assessment  shall be all income subject to the Medicare tax. The assess-
    36  ment shall be set at a particular percentage of that income, which shall
    37  be progressively graduated, so the percentage is higher on higher brack-
    38  ets of income. For employed individuals, the employer shall  pay  eighty
    39  percent  of  the  assessment  and  the employee shall pay twenty percent
    40  (unless the employer agrees to pay a higher  percentage).    A  self-em-
    41  ployed individual shall pay the full assessment.
    42    (c) Non-payroll income assessment. There shall be a second assessment,
    43  on  upper-bracket  taxable  income  that  is  not subject to the payroll
    44  assessment.  It shall be progressively graduated  and  structured  as  a

    45  percentage of personal income tax.
    46    (d) Phased-in rates. Early in the program, when enrollment is low, the
    47  amount  of  the assessments shall be low, and shall be raised as enroll-
    48  ment grows, to cover  the  actual  cost  of  the  program.  The  revenue
    49  proposal  shall  include  a  mechanism  for determining the rates of the
    50  assessments.
    51    (e) Credit against the  assessments.  (i)  Employers  and  individuals
    52  shall be able to take a credit against the assessments they would other-
    53  wise pay, for amounts they spend on health benefits that would otherwise
    54  be  covered by the program. For employers, the credit shall be available
    55  regardless of the form of the health benefit (e.g., health insurance,  a
    56  self-insured  plan,  direct services, or reimbursement for services), to

        S. 4884                            14                            A. 7854
 

     1  make sure that the revenue proposal does not relate to employment  bene-
     2  fits  in violation of the federal ERISA. An employee may take the credit
     3  for his or her contribution to an employment-based health  benefit.  For
     4  non-employment-based spending by individuals, the credit shall be avail-
     5  able  for and limited to spending for health coverage (not out-of-pocket
     6  health spending). The credit shall be available without  regard  to  how
     7  little is spent or how sparse the benefit.
     8    (ii) The amount of the total credit relating to an individual (whether
     9  taken  by  an  employer, employee or individual) shall not exceed eighty
    10  percent of the total includable spending  relating  to  that  individual
    11  (including the individual's family as appropriate).
    12    (iii) The credit may only be taken against the assessments. Any excess
    13  amount may not be applied to other tax liability.

    14    (iv)  For  employment-based  health  benefits,  the  credit  shall  be
    15  distributed between the employer and employee in the same proportion  as
    16  the spending by each for the benefit. The employer and employee may each
    17  apply their respective portion of the credit to their respective portion
    18  of the assessment.
    19    (f) Cross-border employees. (i) State residents employed out-of-state.
    20  If an individual is employed out-of-state by an employer that is subject
    21  to  New  York  state law, the employer and employee shall be required to
    22  pay the payroll assessment as if the employment were in  the  state  and
    23  may  take the credit against the payroll assessment. If an individual is
    24  employed out-of-state by an employer that is not  subject  to  New  York
    25  state law, either (A) the employer and employee shall voluntarily comply
    26  with  the  assessment  and may take the credit against the assessment or

    27  (B) the employee shall pay the assessment as if he or she were  self-em-
    28  ployed and may take the credit against the assessment.
    29    (ii) Out-of-state residents employed in the state. The payroll assess-
    30  ment  and  the  credit against the payroll assessment shall apply to any
    31  out-of-state resident who is employed or self-employed in the state.
    32    3. To the extent that the revenue proposal differs from the  terms  of
    33  subdivision two of this section, the revenue proposal shall state how it
    34  differs  from those terms and reasons for and the effects of the differ-
    35  ences.
    36    § 6. Article 49 of the public health law is amended by  adding  a  new
    37  title 3 to read as follows:
    38                                   TITLE III
    39      COLLECTIVE NEGOTIATIONS BY HEALTH CARE PROVIDERS WITH HEALTH CARE
    40                                    PLANS

    41  Section 4920. Definitions.
    42          4921. Collective negotiation authorized.
    43          4922. Limitations on collective negotiation.
    44          4923. Collective negotiation requirements.
    45          4924. Requirements for health care providers' representative.
    46          4925. Certain collective action prohibited.
    47          4926. Fees.
    48          4927. Confidentiality.
    49          4928. Severability and construction.
    50    § 4920. Definitions. For purposes of this title:
    51    1.  "Health  care  plan"  means  an  entity  (other than a health care
    52  provider) that approves, provides, arranges for, or pays for health care
    53  services, including but not limited to:

    54    (a) a health maintenance organization  licensed  pursuant  to  article
    55  forty-three  of  the  insurance  law  or  certified  pursuant to article
    56  forty-four of this chapter;

        S. 4884                            15                            A. 7854
 
     1    (b) any other organization certified pursuant to article forty-four of
     2  this chapter;
     3    (c) an insurer or corporation subject to the insurance law;
     4    (d) a managed care provider licensed pursuant to section three hundred
     5  sixty-four-j of the social services law; or
     6    (e) a health plan operating under article fifty-one of this chapter.
     7    2.  "Person"  means  an  individual,  association, corporation, or any
     8  other legal entity.

     9    3. "Health care providers' representative" means a third party who  is
    10  authorized  by  health  care providers to negotiate on their behalf with
    11  health care plans over contractual terms and conditions affecting  those
    12  health care providers.
    13    4. "Strike" means a work stoppage in part or in whole, direct or indi-
    14  rect,  by  a  body of workers to gain compliance with demands made on an
    15  employer.
    16    5. "Substantial market power in a business line" exists  if  a  health
    17  care  plan's  market  share  of a business line within a service area as
    18  approved by the commissioner, alone or in combination  with  the  market
    19  shares  of affiliates, exceeds either ten percent of the total number of

    20  covered lives in that service area for such business line or twenty-five
    21  thousand lives, or if the commissioner determines the  market  power  of
    22  the insurer in the relevant insurance product and geographic markets for
    23  the  services of the providers seeking to collectively negotiate signif-
    24  icantly exceeds the countervailing market power of the providers  acting
    25  individually.
    26    6.  "Health  care provider" means a person who is licensed, certified,
    27  or registered pursuant to title eight of the education law and who prac-
    28  tices as a health care provider as an independent contractor and/or  who
    29  is  an  owner,  officer,  shareholder,  or  proprietor  of a health care
    30  provider. A health care provider under title eight of the education  law

    31  who  practices  as  an  employee  of a health care provider shall not be
    32  deemed a health care provider for purposes of this title.
    33    § 4921. Collective negotiation authorized. 1.  Health  care  providers
    34  practicing  within  the  service area of a health care plan may meet and
    35  communicate for the purpose of collectively  negotiating  the  following
    36  terms and conditions of provider contracts with the health care plan:
    37    (a)  the details of the utilization review plan as defined pursuant to
    38  subdivision ten of section forty-nine hundred of this article;
    39    (b) coverage  provisions;  health  care  benefits;  benefit  maximums,
    40  including benefit limitations; and exclusions of coverage;
    41    (c) the definition of medical necessity;

    42    (d)  the  clinical  practice guidelines used to make medical necessity
    43  and utilization review determinations;
    44    (e) preventive care and other medical management practices;
    45    (f) drug formularies and  standards  and  procedures  for  prescribing
    46  off-formulary drugs;
    47    (g) respective physician liability for the treatment or lack of treat-
    48  ment of covered persons;
    49    (h)  the  details  of health care plan risk transfer arrangements with
    50  providers;
    51    (i) plan administrative procedures, including methods  and  timing  of
    52  health care provider payment for services pursuant to section forty-four
    53  hundred six-c of this chapter;
    54    (j)  procedures  to be utilized to resolve disputes between the health

    55  care plan and health care providers;

        S. 4884                            16                            A. 7854
 
     1    (k) patient referral procedures including, but not limited  to,  those
     2  applicable to out-of-pocket network referrals;
     3    (l) the formulation and application of health care provider reimburse-
     4  ment procedures;
     5    (m) quality assurance programs;
     6    (n)  the  process  for  rendering  utilization  review  determinations
     7  including: establishment of a process for rendering  utilization  review
     8  determinations  which  shall, at a minimum, include:  written procedures
     9  to assure that utilization  reviews  and  determinations  are  conducted

    10  within  the timeframes established in this article; procedures to notify
    11  an enrollee, an enrollee's designee and/or  an  enrollee's  health  care
    12  provider of adverse determinations; and procedures for appeal of adverse
    13  determinations,  including  the  establishment  of  an expedited appeals
    14  process for denials of continued inpatient care or where there is  immi-
    15  nent or serious threat to the health of the enrollee; and
    16    (o)  health  care  provider selection and termination criteria used by
    17  the health care plan.
    18    2. Nothing in this section shall be construed to allow or authorize an
    19  alteration of the terms of the internal and external  review  procedures
    20  set forth in law.

    21    3.  Nothing  in this section shall be construed to allow a strike of a
    22  health care plan by health care providers  or  plans  as  otherwise  set
    23  forth in the laws of this state.
    24    4.  Nothing  in  this section shall be construed to allow or authorize
    25  terms or conditions which would impede the ability of a health care plan
    26  to obtain or retain accreditation by the national committee for  quality
    27  assurance or a similar body.
    28    §  4922.  Limitations on collective negotiation. 1. If the health care
    29  plan has substantial market power in a  business  line  in  any  service
    30  area,  health  care  providers  practicing  within that service area may
    31  collectively negotiate the following terms and  conditions  relating  to

    32  that business line with the health care plan:
    33    (a)  the fees assessed by the health care plan for services, including
    34  fees established through the application of reimbursement procedures;
    35    (b) the  conversion  factors  used  by  the  health  care  plan  in  a
    36  resource-based  relative  value scale reimbursement methodology or other
    37  similar methodology; provided the same are not otherwise established  by
    38  state or federal law or regulation;
    39    (c)  the amount of any discount granted by the health care plan on the
    40  fee of health care services to be rendered by health care providers;
    41    (d) the dollar amount  of  capitation  or  fixed  payment  for  health
    42  services  rendered  by  health care providers to health care plan enrol-

    43  lees;
    44    (e) the procedure code or other description of a health  care  service
    45  covered  by  a  payment  and  the  appropriate grouping of the procedure
    46  codes; or
    47    (f) the amount of any other component of the reimbursement methodology
    48  for a health care service.
    49    2. Nothing in this section shall be deemed  to  affect  or  limit  the
    50  right  of  a  health  care provider or group of health care providers to
    51  collectively petition a government entity for a change in a  law,  rule,
    52  or regulation.
    53    § 4923. Collective negotiation requirements. 1. Collective negotiation
    54  rights granted by this title must conform to the following requirements:


        S. 4884                            17                            A. 7854
 
     1    (a)  health  care  providers  may  communicate  with other health care
     2  providers regarding the contractual terms and conditions to  be  negoti-
     3  ated with a health care plan;
     4    (b)  health care providers may communicate with health care providers'
     5  representatives;
     6    (c) a health care providers' representative is the only party  author-
     7  ized  to  negotiate  with health care plans on behalf of the health care
     8  providers as a group;
     9    (d) a health care provider can be bound by the  terms  and  conditions
    10  negotiated by the health care providers' representatives; and
    11    (e)  in  communicating  or negotiating with the health care providers'

    12  representative, a health care plan is entitled to contract with or offer
    13  different contract terms and conditions to individual  competing  health
    14  care providers.
    15    2. A health care providers' representative may not represent more than
    16  thirty percent of the market of health care providers or of a particular
    17  health care provider type or specialty practicing in the service area or
    18  proposed  service  area of a health care plan that covers less than five
    19  percent of the actual number of covered lives of the health care plan in
    20  the area, as determined by the department.
    21    3. Nothing in this section shall be construed to  prohibit  collective
    22  action  on  the  part  of  any health care provider who is a member of a

    23  collective bargaining unit recognized pursuant  to  the  national  labor
    24  relations act.
    25    §  4924.  Requirements  for  health care providers' representative. 1.
    26  Before engaging in collective negotiations with a health  care  plan  on
    27  behalf of health care providers, a health care providers' representative
    28  shall  file  with  the  commissioner,  in  the  manner prescribed by the
    29  commissioner, information identifying the representative, the  represen-
    30  tative's  plan  of  operation,  and  the  representative's procedures to
    31  ensure compliance with this title.
    32    2. Before engaging in the collective  negotiations,  the  health  care
    33  providers'  representative shall also submit to the commissioner for the

    34  commissioner's approval a report identifying the proposed subject matter
    35  of the negotiations or discussions with the health  care  plan  and  the
    36  efficiencies  or  benefits  expected  to be achieved through the negoti-
    37  ations. The commissioner shall not approve the report if the commission-
    38  er determines that the proposed negotiations would exceed the  authority
    39  granted under this title.
    40    3.  The  representative shall supplement the information in the report
    41  on a regular basis or as new information becomes  available,  indicating
    42  that  the  subject  matter of the negotiations with the health care plan
    43  has changed or will change. In no event shall the report  be  less  than
    44  every thirty days.

    45    4. With the advice of the superintendent of insurance, the commission-
    46  er  shall  approve or disapprove the report not later than the twentieth
    47  day after the date on which the report is  filed.  If  disapproved,  the
    48  commissioner  shall  furnish  a written explanation of any deficiencies,
    49  along with a statement of specific proposals for  remedial  measures  to
    50  cure  the  deficiencies.  If the commissioner does not so act within the
    51  twenty days, the report shall be deemed approved.
    52    5. A person who acts as a health care providers' representative  with-
    53  out  the approval of the commissioner under this section shall be deemed
    54  to be acting outside the authority granted under this title.

    55    6. Before reporting the results of negotiations  with  a  health  care
    56  plan or providing to the affected health care providers an evaluation of

        S. 4884                            18                            A. 7854
 
     1  any  offer made by a health care plan, the health care providers' repre-
     2  sentative shall furnish for approval by the commissioner, before dissem-
     3  ination to the health care providers, a copy of all communications to be
     4  made  to the health care providers related to negotiations, discussions,
     5  and offers made by the health care plan.
     6    7. A health care providers' representative shall  report  the  end  of
     7  negotiations to the commissioner not later than the fourteenth day after

     8  the date of a health care plan decision declining negotiation, canceling
     9  negotiations, or failing to respond to a request for negotiation.
    10    §  4925.  Certain  collective  action prohibited. 1. This title is not
    11  intended to authorize competing health care providers to act in  concert
    12  in  response  to a report issued by the health care providers' represen-
    13  tative related to the representative's discussions or negotiations  with
    14  health care plans.
    15    2. No health care providers' representative shall negotiate any agree-
    16  ment  that  excludes,  limits  the participation or reimbursement of, or
    17  otherwise limits the scope of services to be provided by any health care
    18  provider or group of health care providers with respect to the  perform-

    19  ance  of  services  that  are within the health care provider's scope of
    20  practice, license, registration, or certificate.
    21    § 4926. Fees. Each person who acts as the representative or  negotiat-
    22  ing parties under this title shall pay to the department a fee to act as
    23  a  representative.  The commissioner, by rule, shall set fees in amounts
    24  deemed reasonable and necessary to  cover  the  costs  incurred  by  the
    25  department  in  administering  this  title. Any fee collected under this
    26  section shall be deposited in the state treasury to the  credit  of  the
    27  general fund/state operations - 003 for the New York state department of
    28  health fund.
    29    § 4927. Confidentiality. All reports and other information required to

    30  be  reported  to the department under this title shall not be subject to
    31  disclosure under article six of the public officers law or article thir-
    32  ty-one of the civil practice law and rules.
    33    § 4928. Severability and construction. The provisions  of  this  title
    34  shall  be severable, and if any court of competent jurisdiction declares
    35  any phrase, clause, sentence or provision of this title to  be  invalid,
    36  or  its  applicability to any government, agency, person or circumstance
    37  is declared invalid, the remainder of this title and its relevant appli-
    38  cability shall not be affected.  The provisions of this title  shall  be
    39  liberally construed to give effect to the purposes thereof.
    40    §  7. Section 2510 of the public health law is amended by adding a new

    41  subdivision 13 to read as follows:
    42    13. "Prescription and non-prescription drugs" shall mean  prescription
    43  drugs  as  defined  in  section two hundred seventy of the public health
    44  law, which shall be provided pursuant to subdivision four-b  of  section
    45  two  thousand  five hundred eleven of this article, and non-prescription
    46  smoking cessation products or devices.
    47    § 8. Section 2511 of the public health law is amended by adding a  new
    48  subdivision 4-b to read as follows:
    49    4-b.  Prescription and non-prescription drug payments. Notwithstanding
    50  subdivisions  three  and four of this section, payment for drugs, except
    51  for such drugs provided by medical practitioners, and for which  payment
    52  is  authorized  pursuant to subdivision thirteen of section two thousand

    53  five hundred ten of this title, shall be made  pursuant  to  subdivision
    54  nine  of section three hundred sixty-seven-a of the social services law,
    55  article two-A of this chapter and  subdivision  four  of  section  three
    56  hundred sixty-five-a of the social services law.  Payment for such drugs

        S. 4884                            19                            A. 7854
 
     1  provided  by  medical  practitioners shall be included in the capitation
     2  payment for services or supplies provided to persons eligible for health
     3  care services under this title.
     4    §  9.  Subdivision  11  of  section  270  of the public health law, as
     5  amended by section 2-a of part C of chapter 58 of the laws of  2008,  is
     6  amended to read as follows:

     7    11.  "State  public  health plan" means the medical assistance program
     8  established by title eleven of article five of the social  services  law
     9  (referred  to in this article as "Medicaid"), the elderly pharmaceutical
    10  insurance coverage program established by title three of article two  of
    11  the  elder law (referred to in this article as "EPIC"), [and] the family
    12  health plus program established by section three  hundred  sixty-nine-ee
    13  of  the social services law to the extent that section provides that the
    14  program shall be subject to this article,  the  child  health  insurance
    15  program  established by title one-A of article twenty-five of this chap-
    16  ter, and the New York health plus program established by article  fifty-
    17  one of this chapter.
    18    §  10.  Severability.   If any provision of law enacted by this act or

    19  any application thereof shall be adjudged  by  any  court  of  competent
    20  jurisdiction  to  be invalid, or ruled by any appropriate federal agency
    21  to violate or be inconsistent with any applicable federal law  or  regu-
    22  lation,  the  judgment  or ruling shall not affect, impair or invalidate
    23  the remainder thereof or any other application  thereof,  but  shall  be
    24  confined  in  its  operation  to  the  provision  or application thereof
    25  directly involved in the controversy or matter in which the judgment  or
    26  ruling shall have been rendered.
    27    § 11. This act shall take effect immediately; provided that the amend-
    28  ments  made to section 364-j of the social services law by section three
    29  of this act and to section 270 of the public health law by section  nine
    30  of  this act shall not affect the expiration and repeal of such sections
    31  and shall expire and be deemed repealed therewith.

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