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A05248 Summary:

BILL NOA05248A
 
SAME ASSAME AS S03577-A
 
SPONSORGottfried (MS)
 
COSPNSRAbinanti, Barrett, Barron, Benedetto, Bichotte, Blake, Bronson, Burke, Cahill, Carroll, Colton, Cook, Crespo, Cruz, Cymbrowitz, De La Rosa, Dickens, Dilan, Dinowitz, D'Urso, Englebright, Epstein, Fernandez, Frontus, Gantt, Hunter, Hyndman, Jaffee, Jean-Pierre, Joyner, Kim, Lavine, Lifton, Lupardo, Miller MG, Mosley, Niou, Ortiz, Paulin, Peoples-Stokes, Perry, Pheffer Amato, Pichardo, Ramos, Reyes, Richardson, Rivera, Rodriguez, Rosenthal L, Seawright, Simon, Simotas, Solages, Steck, Stirpe, Taylor, Thiele, Titus, Vanel, Walker, Wallace, Weinstein, Weprin, Williams, Wright, Sayegh, Fall
 
MLTSPNSRArroyo, Aubry, Davila, DenDekker, Fahy, Galef, Glick, Gunther, Lentol, Magnarelli, O'Donnell, Pretlow, Quart, Rosenthal D, Rozic
 
Ren Art 50 5000 - 5003 to be Art 80 8000 - 8003, add Art 51 5100 - 5111, add Art 49 Title 3 4920 - 4928, amd 270, Pub Health L; add 89-j, St Fin L
 
Establishes the New York Health program, a comprehensive system of access to health insurance for New York state residents; provides for administrative structure of the plan; provides for powers and duties of the board of trustees, the scope of benefits, payment methodologies and care coordination; establishes the New York Health Trust Fund which would hold monies from a variety of sources to be used solely to finance the plan; enacts provisions relating to financing of New York Health, including a payroll assessment, similar to the Medicare tax; establishes a temporary commission on implementation of the plan; provides for collective negotiations by health care providers with New York Health.
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A05248 Actions:

BILL NOA05248A
 
02/08/2019referred to health
02/28/2019reported referred to codes
01/08/2020referred to codes
01/13/2020committed to health
05/22/2020amend and recommit to health
05/22/2020print number 5248a
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A05248 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5248--A
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 8, 2019
                                       ___________
 
        Introduced  by M. of A. GOTTFRIED, ABINANTI, BARRETT, BARRON, BENEDETTO,
          BICHOTTE, BLAKE, BRONSON, BURKE, CAHILL, CARROLL, COLTON, COOK,  CRES-
          PO,  CRUZ,  CYMBROWITZ,  DE LA ROSA, DICKENS, DILAN, DINOWITZ, D'URSO,
          ENGLEBRIGHT, EPSTEIN,  FERNANDEZ,  FRONTUS,  GANTT,  HUNTER,  HYNDMAN,
          JAFFEE, JEAN-PIERRE, JOYNER, KIM, LAVINE, LIFTON, LUPARDO, M. G. MILL-
          ER, MOSLEY, NIOU, ORTIZ, PAULIN, PEOPLES-STOKES, PERRY, PHEFFER AMATO,
          PICHARDO,  RAMOS,  REYES, RICHARDSON, RIVERA, RODRIGUEZ, L. ROSENTHAL,
          SEAWRIGHT, SIMON, SIMOTAS, SOLAGES,  STECK,  STIRPE,  TAYLOR,  THIELE,
          VANEL,  WALKER,  WALLACE, WEINSTEIN, WEPRIN, WILLIAMS, WRIGHT, SAYEGH,
          FALL -- Multi-Sponsored by -- M. of A. ARROYO, AUBRY, DAVILA, DenDEKK-
          ER, FAHY, GALEF, GLICK, GUNTHER, LENTOL, MAGNARELLI, O'DONNELL,  PRET-
          LOW,  QUART,  D. ROSENTHAL,  ROZIC  --  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  commit-
          tee
 
        AN  ACT  to  amend  the  public health law and the state finance law, in
          relation to enacting the "New York health act" and to establishing New
          York Health
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "New York health act".
     3    § 2. Legislative  findings  and  intent.  1.  The  state  constitution
     4  states:  "The  protection and promotion of the health of the inhabitants
     5  of the state are matters of public concern and provision therefor  shall
     6  be made by the state and by such of its subdivisions and in such manner,
     7  and by such means as the legislature shall from time to time determine."
     8  (Article  XVII,  §3.)  The legislature finds and declares that all resi-
     9  dents of the state have the right to health care.    While  the  federal
    10  Affordable  Care Act brought many improvements in health care and health

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09777-06-0

        A. 5248--A                          2
 
     1  coverage, it still leaves many New  Yorkers  without  coverage  or  with
     2  inadequate coverage.  Millions of New Yorkers do not get the health care
     3  they  need  or face financial obstacles and hardships to get it. That is
     4  not  acceptable.    There  is no plan other than the New York health act
     5  that will enable New York state to meet that need.   New  Yorkers  -  as
     6  individuals,  employers,  and taxpayers - have experienced a rise in the
     7  cost of health care and  coverage  in  recent  years,  including  rising
     8  premiums, deductibles and co-pays, restricted provider networks and high
     9  out-of-network charges.  Many New Yorkers go without health care because
    10  they  cannot  afford  it  or suffer financial hardship to get it.  Busi-
    11  nesses have also experienced increases in the costs of health care bene-
    12  fits for their employees, and many employers are shifting a larger share
    13  of the cost of coverage to their employees or dropping coverage  entire-
    14  ly.  Including long-term services and supports (LTSS) in New York Health
    15  is  a major step forward for older adults, people with disabilities, and
    16  their families. Older adults and people with disabilities  often  cannot
    17  receive  the  services necessary to stay in the community or other LTSS.
    18  Even when older adults and people with disabilities receive LTSS,  espe-
    19  cially  services  in the community, it is often at the cost of unreason-
    20  able demands on unpaid family caregivers, depleting their own or  family
    21  resources,  or  impoverishing themselves to qualify for public coverage.
    22  Health care providers are also affected by inadequate health coverage in
    23  New York state. A large portion of hospitals, health centers  and  other
    24  providers now experience substantial losses due to the provision of care
    25  that  is  uncompensated.    Medicaid and Medicare often do not pay rates
    26  that are reasonably related to the cost of efficiently providing  health
    27  care services and sufficient to assure an adequate and accessible supply
    28  of  health  care  services, as guaranteed under the New York Health Act.
    29  Individuals often find that they are deprived  of  affordable  care  and
    30  choice because of decisions by health plans guided by the plan's econom-
    31  ic  interests rather than the individual's health care needs. To address
    32  the fiscal crisis facing the health care system and  the  state  and  to
    33  assure  New  Yorkers can exercise their right to health care, affordable
    34  and comprehensive health coverage must  be  provided.  Pursuant  to  the
    35  state constitution's charge to the legislature to provide for the health
    36  of  New  Yorkers,  this legislation is an enactment of state concern for
    37  the purpose of establishing a comprehensive universal guaranteed  health
    38  care  coverage  program  and  a  health care cost control system for the
    39  benefit of all residents of the state of New York.
    40    2. (a) It is the intent of the Legislature  to  create  the  New  York
    41  Health program to provide a universal single payer health plan for every
    42  New  Yorker, funded by broad-based revenue based on ability to pay.  The
    43  legislature intends that federal waivers and approvals be  sought  where
    44  they will improve the administration of the New York Health program, but
    45  the  legislature  intends  that  the  program be implemented even in the
    46  absence of such waivers or approvals.  The state shall  work  to  obtain
    47  waivers  and  other  approvals  relating to Medicaid, Child Health Plus,
    48  Medicare, the Affordable Care Act, and  any  other  appropriate  federal
    49  programs,  under  which  federal  funds  and  other subsidies that would
    50  otherwise be paid to New  York  State,  New  Yorkers,  and  health  care
    51  providers  for  health  coverage that will be equaled or exceeded by New
    52  York Health will be paid by the federal government to New York State and
    53  deposited in the New York Health trust fund,  or  paid  to  health  care
    54  providers and individuals in combination with New York Health trust fund
    55  payments,  and for other program modifications (including elimination of
    56  cost sharing and insurance premiums).  Under such waivers and approvals,

        A. 5248--A                          3
 
     1  health coverage under those programs will, to the maximum extent  possi-
     2  ble,  be replaced and merged into New York Health, which will operate as
     3  a true single-payer program.
     4    (b)  If  any  necessary  waiver or approval is not obtained, the state
     5  shall use state plan amendments and seek waivers and approvals to  maxi-
     6  mize,  and  make  as  seamless as possible, the use of federally-matched
     7  health programs and federal health programs in New York Health.    Thus,
     8  even where other programs such as Medicaid or Medicare may contribute to
     9  paying  for  care,  it is the goal of this legislation that the coverage
    10  will be delivered by New York Health  and,  as  much  as  possible,  the
    11  multiple  sources  of  funding will be pooled with other New York Health
    12  funds and not be apparent to New York Health  members  or  participating
    13  providers.
    14    (c)  This  program  will  promote  movement  away from fee-for-service
    15  payment, which tends to reward quantity and requires excessive  adminis-
    16  trative  expense,  and  towards alternate payment methodologies, such as
    17  global or capitated payments to providers or health care  organizations,
    18  that  promote  quality, efficiency, investment in primary and preventive
    19  care, and innovation and integration in the organizing of health care.
    20    (d) The program shall promote the use of clinical data to improve  the
    21  quality  of health care and public health, consistent with protection of
    22  patient confidentiality. The program shall maximize patient autonomy  in
    23  choice  of  health care providers and health care decision making.  Care
    24  coordination within the program shall ensure management and coordination
    25  among a patient's health care services, consistent with patient autonomy
    26  and person-centered service planning, rather than acting as a gatekeeper
    27  to needed services.
    28    (e) The program shall operate with care, skill,  prudence,  diligence,
    29  and professionalism, and for the best interests primarily of the members
    30  and health care providers.
    31    3.  This  act  does  not create or relate to any employment benefit or
    32  employment benefit plan, nor does it require,  prohibit,  or  limit  the
    33  providing of any employment benefit or employment benefit plan.
    34    4. In order to promote improved quality of, and access to, health care
    35  services and promote improved clinical outcomes, it is the policy of the
    36  state  to  encourage cooperative, collaborative and integrative arrange-
    37  ments among health care providers who might  otherwise  be  competitors,
    38  under  the  active  supervision of the commissioner of health. It is the
    39  intent of the state to supplant competition with such  arrangements  and
    40  regulation  only  to  the extent necessary to accomplish the purposes of
    41  this act, and to provide state  action  immunity  under  the  state  and
    42  federal  antitrust  laws  to  health  care  providers, particularly with
    43  respect to their relations with the single-payer New  York  Health  plan
    44  created by this act.
    45    5.  There  have  been numerous professional economic analyses of state
    46  and national single-payer  health  proposals,  including  the  New  York
    47  Health Act, by noted consulting firms and academic economists. They have
    48  almost  all  come  to  similar conclusions of net savings in the cost of
    49  health coverage and health care. These savings are driven by (a)  elimi-
    50  nating  the  administrative  bureaucracy costs, marketing, and profit of
    51  multiple health plans and replacing that  with  the  dramatically  lower
    52  costs  of  running a single-payer system; (b) substantially reducing the
    53  administrative costs borne by health care providers dealing  with  those
    54  health  plans; and (c) using the negotiating power of 20 million consum-
    55  ers to achieve lower drug prices. These savings will  more  than  offset
    56  costs primarily from (a) relieving patients of deductibles, co-pays, and

        A. 5248--A                          4
 
     1  out-of-network  charges;  (b)  covering  the  uninsured;  (c) increasing
     2  provider payment rates  above  Medicare  and  Medicaid  rates;  and  (d)
     3  replacing uncompensated home health care with paid care. Unlike premiums
     4  and out-of-pocket spending, the New York Health Act tax will be progres-
     5  sively  graduated  based  on  ability to pay.   The vast majority of New
     6  Yorkers today spend dramatically more in premiums, deductibles and other
     7  out-of-pocket costs than they will in New York Health Act taxes.    They
     8  will  have  broader  coverage  (including long-term care), no restricted
     9  provider networks or  out-of-network  charges,  and  no  deductibles  or
    10  co-pays.
    11    §  3.  Article 50 and sections 5000, 5001, 5002 and 5003 of the public
    12  health law are renumbered article 80 and sections 8000, 8001,  8002  and
    13  8003, respectively, and a new article 51 is added to read as follows:
    14                                 ARTICLE 51
    15                               NEW YORK HEALTH
    16  Section 5100. Definitions.
    17          5101. Program created.
    18          5102. Board of trustees.
    19          5103. Eligibility and enrollment.
    20          5104. Benefits.
    21          5105. Health  care providers; care coordination; payment method-
    22                  ologies.
    23          5106. Health care organizations.
    24          5107. Program standards.
    25          5108. Regulations.
    26          5109. Provisions relating to federal health programs.
    27          5110. Additional provisions.
    28          5111. Regional advisory councils.
    29    § 5100. Definitions. As used in  this  article,  the  following  terms
    30  shall  have  the following meanings, unless the context clearly requires
    31  otherwise:
    32    1. "Board" means the board of trustees of the New York Health  program
    33  created  by section fifty-one hundred two of this article, and "trustee"
    34  means a trustee of the board.
    35    2. "Care coordination" means, but is not limited to, managing,  refer-
    36  ring to, locating, coordinating, and monitoring health care services for
    37  the  member  to assure that all medically necessary health care services
    38  are made available to and are effectively used by the member in a timely
    39  manner, consistent with patient autonomy.  Care  coordination  does  not
    40  include  a  requirement for prior authorization for health care services
    41  or for referral for a member to receive a health care service.
    42    3. "Care coordinator"  means  an  individual  or  entity  approved  to
    43  provide  care  coordination  under  subdivision two of section fifty-one
    44  hundred five of this article.
    45    4. "Federally-matched public health program" means the medical assist-
    46  ance program under title eleven of article five of the  social  services
    47  law,  the basic health program under section three hundred sixty-nine-gg
    48  of the social services law, and the  child  health  plus  program  under
    49  title one-A of article twenty-five of this chapter.
    50    5.  "Health care organization" means an entity that is approved by the
    51  commissioner under section fifty-one hundred  six  of  this  article  to
    52  provide health care services to members under the program.
    53    6.  "Health  care  provider"  means  any  individual or entity legally
    54  authorized to provide a health care service under Medicaid  or  Medicare
    55  or this article. "Health care professional" means a health care provider
    56  that  is  an  individual  licensed,  certified,  registered or otherwise

        A. 5248--A                          5
 
     1  authorized to practice under title eight of the education law to provide
     2  such health care service, acting within his or her lawful scope of prac-
     3  tice.
     4    7. "Health care service" means any health care service, including care
     5  coordination, included as a benefit under the program.
     6    8. "Implementation period" means the period under subdivision three of
     7  section  fifty-one  hundred one of this article during which the program
     8  will be subject to special eligibility and financing provisions until it
     9  is fully implemented under that section.
    10    9. "Medicaid" or "medical assistance" means title  eleven  of  article
    11  five  of  the  social  services  law and the program thereunder.  "Child
    12  health plus" means title one-A of article twenty-five  of  this  chapter
    13  and  the program thereunder. "Medicare" means title XVIII of the federal
    14  social security act and the programs thereunder.  "Affordable care  act"
    15  means the federal patient protection and affordable care act, public law
    16  111-148,  as amended by the health care and education reconciliation act
    17  of 2010, public law 111-152, and as  otherwise  amended  and  any  regu-
    18  lations  or  guidance  issued thereunder.   "Basic health program" means
    19  section three hundred sixty-nine-gg of the social services law  and  the
    20  program thereunder.
    21    10. "Member" means an individual who is enrolled in the program.
    22    11.  "New  York Health", "New York Health program", and "program" mean
    23  the New York Health program created by section fifty-one hundred one  of
    24  this article.
    25    12.  "New York Health trust fund" means the New York Health trust fund
    26  established under section eighty-nine-j of the state finance law.
    27    13. "Out-of-state health care service" means  a  health  care  service
    28  provided  to  a  member while the member is temporarily out of the state
    29  and (a) it is medically  necessary  that  the  health  care  service  be
    30  provided  while  the member is out of the state, or (b) it is clinically
    31  appropriate that the health care service be  provided  by  a  particular
    32  health  care provider located out of the state rather than in the state.
    33  However, any health care service provided to a New York Health  enrollee
    34  by  a  health care provider qualified under paragraph (a) of subdivision
    35  three of section fifty-one hundred five of this article that is  located
    36  outside  the  state  shall not be considered an out-of-state service and
    37  shall be covered as otherwise provided in this article.
    38    14. "Participating provider" means any individual or entity that is  a
    39  health  care  provider  qualified  under  subdivision  three  of section
    40  fifty-one hundred  five  of  this  article  that  provides  health  care
    41  services to members under the program, or a health care organization.
    42    15.  "Person"  means any individual or natural person, trust, partner-
    43  ship, association,  unincorporated  association,  corporation,  company,
    44  limited  liability  company,  proprietorship, joint venture, firm, joint
    45  stock association, department, agency, authority, or other legal entity,
    46  whether for-profit, not-for-profit or governmental.
    47    16. "Prescription and non-prescription drugs" means prescription drugs
    48  as defined in section two hundred seventy of this chapter, and non-pres-
    49  cription smoking cessation products or devices.
    50    17. "Resident" means an individual whose primary place of abode is  in
    51  the  state or, in the case of an individual whose primary place of abode
    52  is not in the state, who is employed or self-employed full-time  in  the
    53  state,  without regard to the individual's immigration status, as deter-
    54  mined according to regulations of the commissioner.    Such  regulations
    55  shall include a process for appealing denials of residency.

        A. 5248--A                          6
 
     1    §  5101.  Program  created.  1.  The New York Health program is hereby
     2  created in the department. The commissioner shall establish  and  imple-
     3  ment  the  program under this article. The program shall provide compre-
     4  hensive health coverage to every resident who enrolls in the program.
     5    2.  The  commissioner shall, to the maximum extent possible, organize,
     6  administer and market the program and services as a single program under
     7  the name "New York Health" or such other name as the commissioner  shall
     8  determine,  regardless  of under which law or source the definition of a
     9  benefit is found including (on a voluntary basis) retiree  health  bene-
    10  fits.  In  implementing this article, the commissioner shall avoid jeop-
    11  ardizing federal financial participation in  these  programs  and  shall
    12  take  care  to  promote  public understanding and awareness of available
    13  benefits and programs.
    14    3. The commissioner shall determine when individuals may begin enroll-
    15  ing in the program. There shall be an implementation period, which shall
    16  begin on the date that individuals may begin enrolling  in  the  program
    17  and  shall  end  as determined by the commissioner.  Individuals may not
    18  enroll in the New York Health program until the legislature has  enacted
    19  the  revenue  proposal, as amended, and as the legislature shall further
    20  provide.
    21    4. An insurer authorized to provide coverage pursuant to the insurance
    22  law or a health maintenance organization certified  under  this  chapter
    23  may,  if  otherwise  authorized,  offer  benefits  that do not cover any
    24  service for which coverage is offered to individuals under the  program,
    25  but  may not offer benefits that cover any service for which coverage is
    26  offered to individuals under the program. Provided, however,  that  this
    27  subdivision  shall  not  prohibit (a) the offering of any benefits to or
    28  for individuals, including their families, who are employed or  self-em-
    29  ployed  in  the state but who are not residents of the state, or (b) the
    30  offering of benefits during the implementation period to individuals who
    31  enrolled or may enroll as members of the program, or (c) the offering of
    32  retiree health benefits.
    33    5. A college, university or other institution of higher  education  in
    34  the  state  may  purchase coverage under the program for any student, or
    35  student's dependent, who is not a resident of the state.
    36    6. To the extent any provision of this chapter,  the  social  services
    37  law, the insurance law or the elder law:
    38    (a) is inconsistent with any provision of this article or the legisla-
    39  tive  intent  of  the  New York Health Act, this article shall apply and
    40  prevail, except where explicitly provided otherwise by this article;  or
    41  explicitly required by applicable federal law or regulations and
    42    (b) is consistent with the provisions of this article and the legisla-
    43  tive  intent of the New York Health Act, the provision of that law shall
    44  apply.
    45    7.  (a) (i) The program shall be deemed to be a health care  plan  for
    46  purposes  of  external  appeal  under article forty-nine of this chapter
    47  (referred to in this subdivision as "article  forty-nine"),  subject  to
    48  this subdivision and any other applicable provision of this article.
    49    (ii)    An  external appeal shall not require utilization review or an
    50  adverse determination under title one  of  article  forty-nine  of  this
    51  chapter.  Any reference in article forty-nine to utilization review or a
    52  universal  review agent shall mean the program.  Where the program makes
    53  an adverse determination, an external appeal shall be  automatic  unless
    54  specifically waived or withdrawn by the member or the member's designee.
    55  Services,  including  services  provided  for  a chronic condition, will
    56  continue unchanged until the outcome of the external appeal decision  is

        A. 5248--A                          7
 
     1  issued.  Where  an  external  appeal  is  initiated  or  pursued  by the
     2  patient's health care provider, the provider shall notify the member  or
     3  the  member's  designee,  and  it  shall  be  subject to the member's or
     4  member's  designee's right to waive or withdraw the external appeal.  No
     5  fee shall be required to be paid by any party  to  an  external  appeal,
     6  including the member's health care provider.
     7    (iii)    Where an external appeal is denied, the external appeal agent
     8  shall notify the member or the member's designee and, where appropriate,
     9  the member's health care provider,  within  two  business  days  of  the
    10  determination.    The  notice shall include a statement that the member,
    11  member's designee or health care provider has the right  to  appeal  the
    12  determination to a fair hearing under this subdivision and seek judicial
    13  review.
    14    (iv)  An enrollee may designate a person or entity, including, but not
    15  limited  to,  the  enrollee's  family member, care coordinator, a health
    16  care organization providing the service under review  or  appeal,  or  a
    17  labor union or an entity affiliated with and designated by a labor union
    18  of  which the enrollee or enrollee's family member is a member, to serve
    19  as the enrollee's designee for purposes of that article, if  the  person
    20  or entity agrees to be the designee.
    21    (b)  (i)  This paragraph applies where an external appeal is denied in
    22  whole or in part; or the program  denies  coverage  for  a  health  care
    23  service  on  any  grounds  other  than  under article forty-nine; or the
    24  program makes any other determination as to a member or individual seek-
    25  ing to become a member, contrary to the interest of the member or  indi-
    26  vidual (including but not limited to a denial of eligibility for lack of
    27  residence).
    28    (ii)  The  program  shall  notify  the  member or individual, member's
    29  designee or health care provider, as appropriate, that  the  person  has
    30  the  right  to  appeal  the  determination  to a fair hearing under this
    31  subdivision or seek judicial review.
    32    (iii)  The commissioner shall establish by regulation  a  process  for
    33  fair  hearings  under this subdivision.   The process shall at a minimum
    34  conform to the standards for fair hearings under section  twenty-two  of
    35  the social services law.
    36    (c)    Article seventy-eight of the civil practice law and rules shall
    37  apply to any matter under this article.
    38    8. (a) No member shall be required to receive any health care  service
    39  through  any  entity  organized, certified or operating under guidelines
    40  under article forty-four of this chapter,  or  specified  under  section
    41  three hundred sixty-four-j of the social services law, the insurance law
    42  or  the  elder law. No such entity shall receive payment for health care
    43  services (other than care coordination) from the program.
    44    (b) However, this subdivision shall not preclude the use of a Medicare
    45  managed care ("Medicare advantage") entity or other entity created by or
    46  under the direction of the program where reasonably necessary  to  maxi-
    47  mize  federal financial participation or other federal financial support
    48  under any federally-matched  public  health  program,  Medicare  or  the
    49  Affordable Care Act. Any entity under this paragraph shall, to the maxi-
    50  mum  extent  feasible,  operate  in the background, without burden on or
    51  interference with the member and health care provider, without depriving
    52  the member or health care provider of any right  or  benefit  under  the
    53  program and otherwise consistent with this article.
    54    9.  The  program  shall  include provisions for an appropriate reserve
    55  fund.

        A. 5248--A                          8
 
     1    10. (a) This subdivision applies to every person who is a retiree of a
     2  public employer, as defined in section two  hundred  one  of  the  civil
     3  service law, and any person who is a beneficiary of the retiree's public
     4  employee retiree health benefit. Any reference to the retiree shall mean
     5  and  include  any  beneficiary of the retiree. This subdivision does not
     6  create or increase any  eligibility  for  any  public  employee  retiree
     7  health  benefit that would not otherwise exist and does not diminish any
     8  public employee retiree health benefit.
     9    (b) This paragraph applies to the retiree while he or she is  a  resi-
    10  dent of New York state. The retiree shall enroll in the program.  If, by
    11  the  implementation  date,  the retiree has not enrolled in the program,
    12  the appropriate public employee retiree health benefit program  and  the
    13  commissioner shall enroll the retiree in the New York Health program. If
    14  the  retiree's  public  employee  retiree  health  benefit  includes any
    15  service for which coverage is not offered  under  the  New  York  Health
    16  program,  the  retiree  shall  continue to receive that benefit from the
    17  appropriate public employee retiree health benefit program.
    18    (c) For every retiree, while he or she is not a resident of  New  York
    19  state,  the  appropriate  public employee retiree health benefit program
    20  shall maintain the retiree's public employee retiree health  benefit  as
    21  if this article had not been enacted.
    22    § 5102. Board of trustees. 1. The New York Health board of trustees is
    23  hereby  created  in  the department. The board of trustees shall, at the
    24  request of the commissioner,  consider  any  matter  to  effectuate  the
    25  provisions and purposes of this article, and may advise the commissioner
    26  thereon;  and  it may, from time to time, submit to the commissioner any
    27  recommendations to effectuate the provisions and purposes of this  arti-
    28  cle.  The  commissioner  may  propose regulations under this article and
    29  amendments thereto for consideration by the board. The board of trustees
    30  shall have no executive, administrative or appointive duties  except  as
    31  otherwise  provided  by  law.  The board of trustees shall have power to
    32  establish, and from time to time, amend regulations  to  effectuate  the
    33  provisions  and  purposes  of  this  article, subject to approval by the
    34  commissioner.
    35    2. The board shall be composed of:
    36    (a) the commissioner, the superintendent of  financial  services,  and
    37  the director of the budget, or their designees, as ex officio members:
    38    (b) twenty-nine trustees appointed by the governor;
    39    (i) six of whom shall be representatives of health care consumer advo-
    40  cacy  organizations which have a statewide or regional constituency, who
    41  have been involved in issues of interest  to  low-  and  moderate-income
    42  individuals,  older adults, and people with disabilities; at least three
    43  of whom shall represent organizations led by consumers in those groups;
    44    (ii) three of whom shall be representatives of professional  organiza-
    45  tions representing physicians;
    46    (iii) three of whom shall be representatives of professional organiza-
    47  tions  representing  licensed  or  registered  health care professionals
    48  other than physicians;
    49    (iv) three of whom shall be representatives of general hospitals,  one
    50  of whom shall be a representative of public general hospitals;
    51    (v) one of whom shall be a representative of community health centers;
    52    (vi)  two  of  whom shall be representatives of rehabilitation or home
    53  care providers;
    54    (vii) two of whom shall be representatives  of  behavioral  or  mental
    55  health or disability service providers;

        A. 5248--A                          9
 
     1    (viii)  two  of whom shall be representatives of health care organiza-
     2  tions;
     3    (ix) three of whom shall be representatives of organized labor;
     4    (x)  two  of  whom  shall  have  demonstrated expertise in health care
     5  finance; and
     6    (xi) two of whom shall be employers or  representatives  of  employers
     7  who  pay the payroll tax under this article, or, prior to the tax becom-
     8  ing effective, will pay the tax; and
     9    (c) sixteen trustees appointed by the governor;  six  of  whom  to  be
    10  appointed  on  the recommendation of the speaker of the assembly; six of
    11  whom to be appointed on the recommendation of the temporary president of
    12  the senate; two of whom to be appointed on  the  recommendation  of  the
    13  minority  leader of the assembly; and two of whom to be appointed on the
    14  recommendation of the minority leader of the senate.
    15    3. (a) After the end of the implementation period, no person shall  be
    16  a trustee unless he or she is a member of the program.
    17    (b)  Each  trustee shall serve at the pleasure of the appointing offi-
    18  cer, except the ex officio trustees.
    19    4. The chair of the board shall be appointed, and may  be  removed  as
    20  chair,  by the governor from among the trustees. The board shall meet at
    21  least four times each calendar year. Meetings shall  be  held  upon  the
    22  call  of  the  chair  and  as  provided  by the board. A majority of the
    23  appointed trustees shall be a quorum of the board, and  the  affirmative
    24  vote  of  a  majority  of the trustees voting, but not less than twelve,
    25  shall be necessary for any action to be taken by the  board.  The  board
    26  may establish an executive committee to exercise any powers or duties of
    27  the board as it may provide, and other committees to assist the board or
    28  the  executive  committee. The chair of the board shall chair the execu-
    29  tive committee and shall appoint the chair  and  members  of  all  other
    30  committees.  The  board  of  trustees  may  appoint one or more advisory
    31  committees. Members of advisory committees need not be  members  of  the
    32  board of trustees.
    33    5.  Trustees  shall serve without compensation but shall be reimbursed
    34  for their necessary and actual expenses incurred while  engaged  in  the
    35  business of the board.
    36    6. Notwithstanding any provision of law to the contrary, no officer or
    37  employee of the state or any local government shall forfeit or be deemed
    38  to  have  forfeited his or her office or employment by reason of being a
    39  trustee.
    40    7. The board and its committees and advisory  committees  may  request
    41  and  receive  the  assistance  of  the department and any other state or
    42  local governmental entity in exercising its powers and duties.
    43    8. No later than two years after the effective date of this article:
    44    (a) The board shall develop proposals for: (i)  incorporating  retiree
    45  health  benefits into New York Health; (ii) accommodating employer reti-
    46  ree health benefits for people who have been members of New York  Health
    47  but  live as retirees out of the state; and (iii) accommodating employer
    48  retiree health benefits for people who earned or accrued  such  benefits
    49  while  residing  in  the  state  prior to the implementation of New York
    50  Health and live as retirees out of the state.  The board  shall  present
    51  its proposals to the governor and the legislature.
    52    (b) The board shall develop a proposal for New York Health coverage of
    53  health  care  services  covered  under  the  workers'  compensation law,
    54  including whether and how to continue funding for those  services  under
    55  that  law  and  whether  and how to incorporate an element of experience
    56  rating.

        A. 5248--A                         10
 
     1    (c) The board shall develop a proposal for New York  Health  coverage,
     2  for  members,  of  health  care  services covered under paragraph one of
     3  subsection (a) of section fifty-one hundred two  of  the  insurance  law
     4  relating  to  motor vehicle insurance reparations, including whether and
     5  how to continue funding for those services.
     6    (d)  The  board  shall  develop  a proposal for integration of federal
     7  veterans health administration programs with New York Health coverage of
     8  health care services; provided however that enrollment in or eligibility
     9  for federal veterans health administration programs shall not  affect  a
    10  resident's eligibility for New York Health coverage.
    11    §  5103.  Eligibility  and  enrollment. 1. Every resident of the state
    12  shall be eligible and entitled to enroll as a member under the program.
    13    2. No individual shall be required to pay any premium or other  charge
    14  for enrolling in or being a member under the program.
    15    3.  A  newborn  child  shall be enrolled as of the date of the child's
    16  birth if enrollment is done prior to the child's birth or  within  sixty
    17  days after the child's birth.
    18    §  5104.  Benefits.  1. The program shall provide comprehensive health
    19  coverage to every member, which shall include all health  care  services
    20  required  to  be  covered  under any of the following, without regard to
    21  whether the member would otherwise be eligible for  or  covered  by  the
    22  program or source referred to:
    23    (a) child health plus;
    24    (b)  Medicaid,  including  but  not limited to services provided under
    25  Medicaid waiver programs, including but not  limited  to  those  granted
    26  under  section  1915  of the federal social security act to persons with
    27  traumatic brain injuries or qualifying for nursing  home  diversion  and
    28  transition services;
    29    (c) Medicare;
    30    (d)  article  forty-four  of  this  chapter  or  article thirty-two or
    31  forty-three of the insurance law;
    32    (e) article eleven of the civil service law, as of the date  one  year
    33  before the beginning of the implementation period;
    34    (f)  any  cost  incurred defined in paragraph one of subsection (a) of
    35  section fifty-one hundred two of the insurance law, provided  that  this
    36  coverage  shall  not  replace  coverage  under  article fifty-one of the
    37  insurance law;
    38    (g) any additional health care service authorized to be added  to  the
    39  program's benefits by the program; and
    40    (h)  provided  that  where  any state law or regulation related to any
    41  federally-matched public health program states that a benefit is contin-
    42  gent on federal financial participation, or words to  that  effect,  the
    43  benefit  shall  be  included  under  the New York Health program without
    44  regard to federal financial participation.
    45    2. No member shall be required to pay any premium, deductible, co-pay-
    46  ment or co-insurance under the program.
    47    3. The program shall provide for payment under the program for:
    48    (a) emergency and temporary health care services provided to a  member
    49  or  individual  entitled to become a member who has not had a reasonable
    50  opportunity to become a member or to enroll with a care coordinator; and
    51    (b) health care services provided in an emergency to an individual who
    52  is entitled to become a member or  enrolled  with  a  care  coordinator,
    53  regardless of having had an opportunity to do so.
    54    §  5105.  Health  care providers; care coordination; payment methodol-
    55  ogies.  1. Choice of health care provider. (a) Any health care  provider
    56  qualified  to  participate  under  this  section may provide health care

        A. 5248--A                         11
 
     1  services under the program, provided that the health  care  provider  is
     2  otherwise  legally authorized to perform the health care service for the
     3  individual and under the circumstances involved.
     4    (b)  A  member  may  choose  to receive health care services under the
     5  program from any participating provider, consistent with  provisions  of
     6  this  article  relating  to  care coordination and health care organiza-
     7  tions, the willingness or  availability  of  the  provider  (subject  to
     8  provisions  of  this article relating to discrimination), and the appro-
     9  priate clinically-relevant circumstances.
    10    2. Care coordination. (a) A care coordinator may be an  individual  or
    11  entity that is approved by the program that is:
    12    (i)  a  health care practitioner who is: (A) the member's primary care
    13  practitioner; (B) at the option of a female member, the member's provid-
    14  er of primary gynecological care; or (C) at the option of a  member  who
    15  has  a  chronic  condition  that  requires  specialty care, a specialist
    16  health care practitioner who regularly and continually  provides  treat-
    17  ment for that condition to the member;
    18    (ii)  an entity licensed under article twenty-eight of this chapter or
    19  certified under article thirty-six of this chapter, or, with respect  to
    20  a  member  who  receives  chronic mental health care services, an entity
    21  licensed under article thirty-one of the mental  hygiene  law  or  other
    22  entity approved by the commissioner in consultation with the commission-
    23  er of mental health;
    24    (iii) a health care organization;
    25    (iv)  a  labor  union or an entity affiliated with and designated by a
    26  labor union of which the enrollee  or  enrollee's  family  member  is  a
    27  member,  with  respect to its members and their family members; provided
    28  that this provision shall not preclude such an entity  from  becoming  a
    29  care  coordinator  under  subparagraph (v) of this paragraph or a health
    30  care organization under section fifty-one hundred six of  this  article;
    31  or
    32    (v) any not-for-profit or governmental entity approved by the program.
    33    (b)(i)  Every  member shall enroll with a care coordinator that agrees
    34  to provide care coordination to the member  prior  to  receiving  health
    35  care  services  to  be paid for under the program.  Health care services
    36  provided to a member shall not be subject to payment under  the  program
    37  unless  the  member  is enrolled with a care coordinator at the time the
    38  health care service is provided.
    39    (ii) This paragraph shall not apply to health care  services  provided
    40  under  subdivision three of section fifty-one hundred four of this arti-
    41  cle (certain emergency or temporary services).
    42    (iii) The member shall remain  enrolled  with  that  care  coordinator
    43  until  the  member becomes enrolled with a different care coordinator or
    44  ceases to be a member. Members have the right to change their care coor-
    45  dinator on terms at least as permissive as  the  provisions  of  section
    46  three  hundred  sixty-four-j  of  the social services law relating to an
    47  individual changing his or her primary care  provider  or  managed  care
    48  provider.
    49    (c)  Care coordination shall be provided to the member by the member's
    50  care coordinator.  A care coordinator may employ or utilize the services
    51  of other individuals or entities to assist  in  providing  care  coordi-
    52  nation for the member, consistent with regulations of the commissioner.
    53    (d)  A  health  care organization may establish rules relating to care
    54  coordination for members in the health care organization, different from
    55  this subdivision but otherwise consistent with this  article  and  other
    56  applicable laws.

        A. 5248--A                         12
 
     1    (e) The commissioner shall develop and implement procedures and stand-
     2  ards for an individual or entity to be approved to be a care coordinator
     3  in  the  program,  including but not limited to procedures and standards
     4  relating to the revocation,  suspension,  limitation,  or  annulment  of
     5  approval  on a determination that the individual or entity is not quali-
     6  fied or competent to be a care coordinator or has exhibited a course  of
     7  conduct  which  is  either inconsistent with program standards and regu-
     8  lations or which exhibits an unwillingness to meet  such  standards  and
     9  regulations,  or  is  a potential threat to the public health or safety.
    10  Such procedures and standards shall not limit  approval  to  be  a  care
    11  coordinator  in  the  program  for  criteria other than those under this
    12  section and shall be consistent  with  good  professional  practice.  In
    13  developing  the  procedures  and  standards, the commissioner shall: (i)
    14  consider  existing  standards  developed  by  national  accrediting  and
    15  professional  organizations;  and  (ii)  consult with national and local
    16  organizations working on care coordination or similar models,  including
    17  health  care  practitioners, hospitals, clinics, and consumers and their
    18  representatives. When developing and implementing standards of  approval
    19  of  care  coordinators  for  individuals receiving chronic mental health
    20  care services, the commissioner shall consult with the  commissioner  of
    21  mental  health.  An  individual  or entity may not be a care coordinator
    22  unless the services included in care coordination are within  the  indi-
    23  vidual's professional scope of practice or the entity's legal authority.
    24    (f)  To  maintain approval under the program, a care coordinator must:
    25  (i) renew its status at a frequency determined by the commissioner;  and
    26  (ii)  provide  data to the department as required by the commissioner to
    27  enable the commissioner to evaluate the impact of care  coordinators  on
    28  quality, outcomes, cost, and patient and provider satisfaction.
    29    (g)  Nothing  in  this  subdivision  shall authorize any individual to
    30  engage in any act in violation of title eight of the education law.
    31    3. Health care providers. (a) The  commissioner  shall  establish  and
    32  maintain procedures and standards for health care providers to be quali-
    33  fied  to participate in the program, including but not limited to proce-
    34  dures and standards relating to the revocation, suspension,  limitation,
    35  or annulment of qualification to participate on a determination that the
    36  health  care  provider is not qualified or competent to be a provider of
    37  specific health care services or has exhibited a course of conduct which
    38  is either inconsistent with program standards and regulations  or  which
    39  exhibits  an unwillingness to meet such standards and regulations, or is
    40  a potential threat to the public health or safety. Such  procedures  and
    41  standards  shall  not  limit  health  care provider participation in the
    42  program for criteria other than those under this section  and  shall  be
    43  consistent  with good professional practice.  Such procedures and stand-
    44  ards may be different for different types of health care  providers  and
    45  health  care  professionals.    The commissioner may require that health
    46  care providers and health care professionals  participate  in  Medicaid,
    47  child health plus, or Medicare to qualify to participate in the program.
    48  Any  health  care  provider that is qualified to participate under Medi-
    49  caid, child health plus or Medicare shall be deemed to be  qualified  to
    50  participate  in  the program, and any health care provider's revocation,
    51  suspension, limitation, or annulment of qualification to participate  in
    52  any  of  those programs shall apply to the health care provider's quali-
    53  fication to participate in the program;  provided  that  a  health  care
    54  provider  qualified  under  this sentence shall follow the procedures to
    55  become qualified under the program by  the  end  of  the  implementation
    56  period.

        A. 5248--A                         13
 
     1    (b) The commissioner shall establish and maintain procedures and stan-
     2  dards for recognizing health care providers located out of the state for
     3  purposes of providing coverage under the program for out-of-state health
     4  care services.
     5    (c)  Procedures  and  standards  under  this subdivision shall include
     6  provisions for expedited temporary qualification to participate  in  the
     7  program for health care professionals who are (i) temporarily authorized
     8  to  practice  in  the state or (ii) are recently arrived in the state or
     9  recently authorized to practice in the state.
    10    4. Payment for health care services.  (a)  (i)  The  commissioner  may
    11  establish  by  regulation payment methodologies for health care services
    12  and care coordination provided to members under the program  by  partic-
    13  ipating  providers,  care  coordinators,  and health care organizations.
    14  There may be a variety of  different  payment  methodologies,  including
    15  those established on a demonstration basis.
    16    (ii)  All  payment  methodologies and rates under the program shall be
    17  reasonable and reasonably related to the cost of  efficiently  providing
    18  the  health  care service and assuring an adequate and accessible supply
    19  of the health care service.
    20    (iii) In determining such payment methodologies and rates, the commis-
    21  sioner shall consider factors including usual and customary rates  imme-
    22  diately prior to the implementation of the program, reported in a bench-
    23  marking database maintained by a nonprofit organization specified by the
    24  superintendent of financial services, under section six hundred three of
    25  the  financial services law; the level of training, education, and expe-
    26  rience of the health care provider or providers involved; and the  scope
    27  of  services, complexity, and circumstances of care including geographic
    28  factors. Until and unless other  applicable  payment  methodologies  are
    29  established,  health care services provided to members under the program
    30  shall be paid for on a fee-for-service basis, except  for  care  coordi-
    31  nation.
    32    (b)  The  program  shall engage in good faith negotiations with health
    33  care providers' representatives under title III of article forty-nine of
    34  this chapter, including, but not limited to, in  relation  to  rates  of
    35  payment and payment methodologies.
    36    (c) (i) Prescription drugs eligible for reimbursement under this arti-
    37  cle and dispensed by a pharmacy shall be provided and paid for under the
    38  preferred  drug program and the clinical drug review program under title
    39  one of article two-A of this chapter, except as  otherwise  provided  in
    40  this  paragraph.    As  used  in this paragraph, "managed care provider"
    41  means an entity under paragraph (b)  of  subdivision  eight  of  section
    42  fifty-one  hundred  one of this article that qualifies under the federal
    43  Public Health Services Act (the "340B program").
    44    (ii) Where the member is enrolled in a managed  care  provider  and  a
    45  prescription  for  the  member is made under section 340B of the federal
    46  Public Health Service Act (the "340B program") and under a memorandum of
    47  understanding relating to the 340B program between the New  York  Health
    48  program  and  the relevant 340B program covered entity, the managed care
    49  provider shall purchase, pay for and provide for  the  drugs  under  the
    50  340B  program. However, the prescription shall be subject to section two
    51  hundred seventy-three (preferred drug program prior  authorization)  and
    52  section  two hundred seventy-four (clinical drug review program) of this
    53  chapter.
    54    (iii) The New York Health program shall  enter  into  and  maintain  a
    55  memorandum  of understanding relating to the 340B program with each 340B
    56  covered entity in the state that agrees to do so.

        A. 5248--A                         14
 
     1    (iv) Where prescription drugs are not dispensed  through  a  pharmacy,
     2  payment  shall  be made as otherwise provided in this article, including
     3  use of the 340B program as appropriate.
     4    (d)  Payment  for  health care services established under this article
     5  shall be considered payment in full. A participating provider shall  not
     6  charge  any rate in excess of the payment established under this article
     7  for any health care service provided under the  program  and  shall  not
     8  solicit  or  accept  payment from any member or third party for any such
     9  service except as provided under section fifty-one hundred nine of  this
    10  article.    However,  this paragraph shall not preclude the program from
    11  acting as a primary or  secondary  payer  in  conjunction  with  another
    12  third-party  payer  where permitted under section fifty-one hundred nine
    13  of this article.
    14    (e) The program may provide in payment methodologies for  payment  for
    15  capital  related  expenses  for specifically identified capital expendi-
    16  tures incurred by  not-for-profit  or  governmental  entities  certified
    17  under  article twenty-eight of this chapter. Any capital related expense
    18  generated by a capital expenditure that requires  or  required  approval
    19  under  article  twenty-eight  of  this  chapter  must have received that
    20  approval for the capital related  expense  to  be  paid  for  under  the
    21  program.
    22    (f) Payment methodologies and rates shall include a distinct component
    23  of  reimbursement  for direct and indirect graduate medical education as
    24  defined, calculated and implemented  pursuant  to  section  twenty-eight
    25  hundred seven-c of this chapter.
    26    (g)  The commissioner shall provide by  regulation for payment method-
    27  ologies and procedures for paying for out-of-state health care services.
    28    5. Prior authorization. The program shall not require  prior  authori-
    29  zation  for  any  health  care service in any manner more restrictive of
    30  access to or payment for the service than  would  be  required  for  the
    31  service  under  Medicare  Part  A  or  Part  B.  Prior authorization for
    32  prescription drugs provided by pharmacies under  the  program  shall  be
    33  under title one of article two-A of this chapter.
    34    §  5106.  Health  care organizations. 1. A member may choose to enroll
    35  with and receive health care services under the program  from  a  health
    36  care organization.
    37    2.  A  health  care  organization shall be a not-for-profit or govern-
    38  mental entity that is approved by the commissioner that is:
    39    (a) an accountable care organization under  article  twenty-nine-E  of
    40  this chapter; or
    41    (b)  a  labor  union  or an entity affiliated with and designated by a
    42  labor union of which the enrollee  or  enrollee's  family  member  is  a
    43  member  (i)  with  respect  to its members and their family members, and
    44  (ii) if allowed by applicable law and approved by the commissioner,  for
    45  other members of the program.
    46    3.  A health care organization may be responsible for providing all or
    47  part of the health care services to which its members are entitled under
    48  the program, consistent with the terms of its approval  by  the  commis-
    49  sioner.
    50    4.  (a)  The  commissioner  shall develop and implement procedures and
    51  standards for an entity to be approved to be a health care  organization
    52  in  the  program,  including but not limited to procedures and standards
    53  relating to the revocation,  suspension,  limitation,  or  annulment  of
    54  approval  on  a  determination  that the entity is not competent to be a
    55  health care organization or has exhibited a course of conduct  which  is
    56  either  inconsistent  with  program  standards  and regulations or which

        A. 5248--A                         15
 
     1  exhibits an unwillingness to meet such standards and regulations, or  is
     2  a  potential  threat to the public health or safety. Such procedures and
     3  standards shall not limit approval to be a health care  organization  in
     4  the  program  for criteria other than those under this section and shall
     5  be consistent with good professional practice. In developing the  proce-
     6  dures and standards, the commissioner shall: (i) consider existing stan-
     7  dards  developed by national accrediting and professional organizations;
     8  and (ii) consult with national and local organizations  working  in  the
     9  field of health care organizations, including health care practitioners,
    10  hospitals,  clinics, long-term supports and service providers, consumers
    11  and their representatives and labor  organizations  representing  health
    12  care  workers. When developing and implementing standards of approval of
    13  health care organizations,  the  commissioner  shall  consult  with  the
    14  commissioner  of  mental health, the commissioner of developmental disa-
    15  bilities, the director of the state office for the aging and the commis-
    16  sioner of the office of alcoholism and substance abuse services.
    17    (b) To maintain approval under the program, a health care organization
    18  must: (i) renew its status at a frequency determined by the  commission-
    19  er;  and  (ii) provide data to the department as required by the commis-
    20  sioner to enable the commissioner to evaluate the health care  organiza-
    21  tion  in  relation  to  quality  of  health  care  services, health care
    22  outcomes, cost, and patient and provider satisfaction.
    23    5. The commissioner shall make regulations  relating  to  health  care
    24  organizations  consistent  with and to ensure compliance with this arti-
    25  cle.
    26    6. The provision of health care services directly or indirectly  by  a
    27  health  care  organization  through  health  care providers shall not be
    28  considered the practice of a profession under title eight of the  educa-
    29  tion law by the health care organization.
    30    §  5107.  Program  standards.  1.  The  commissioner  shall  establish
    31  requirements and standards for the program and for health care organiza-
    32  tions, care coordinators, and health  care  providers,  consistent  with
    33  this article, including requirements and standards for, as applicable:
    34    (a) the scope, quality and accessibility of health care services;
    35    (b) relations between health care organizations or health care provid-
    36  ers and members; and
    37    (c)  relations  between  health  care  organizations  and  health care
    38  providers, including (i) credentialing and participation in  the  health
    39  care organization; and (ii) terms, methods and rates of payment.
    40    2. Requirements and standards under the program shall include, but not
    41  be limited to, provisions to promote the following:
    42    (a)  simplification,  transparency, uniformity, and fairness in health
    43  care provider credentialing and participation in health  care  organiza-
    44  tion  networks, referrals, payment procedures and rates, claims process-
    45  ing, and approval of health care services, as applicable;
    46    (b) primary and preventive  care,  care  coordination,  efficient  and
    47  effective  health  care  services,  quality  assurance, coordination and
    48  integration of health care services, including use of appropriate  tech-
    49  nology, and promotion of public, environmental and occupational health;
    50    (c) elimination of health care disparities;
    51    (d) non-discrimination with respect to members and health care provid-
    52  ers on the basis of race, ethnicity, national origin, religion, disabil-
    53  ity,  age,  sex,  sexual  orientation, gender identity or expression, or
    54  economic circumstances; provided  that  health  care  services  provided
    55  under the program shall be appropriate to the patient's clinically-rele-
    56  vant circumstances;

        A. 5248--A                         16
 
     1    (e)  accessibility  of  care  coordination,  health  care organization
     2  services and health care services, including  accessibility  for  people
     3  with disabilities and people with limited ability to speak or understand
     4  English,  and  the providing of care coordination, health care organiza-
     5  tion services and health care services in a culturally competent manner;
     6  and
     7    (f)  especially  in  relation  to long-term supports and services, the
     8  maximization and prioritization of the most  integrated  community-based
     9  supports and services.
    10    3. Any participating provider or care coordinator that is organized as
    11  a  for-profit  entity (other than a professional practice of one or more
    12  health care professionals) shall be required to meet the  same  require-
    13  ments  and  standards  as entities organized as not-for-profit entities,
    14  and payments under the program paid to such entities shall not be calcu-
    15  lated to accommodate the generation of profit or revenue  for  dividends
    16  or  other return on investment or the payment of taxes that would not be
    17  paid by a not-for-profit entity.
    18    4. Every participating provider shall  furnish  to  the  program  such
    19  information  to,  and permit examination of its records by, the program,
    20  as may be reasonably required for purposes  of  reviewing  accessibility
    21  and  utilization  of  health care services, quality assurance, promoting
    22  improved patient outcomes and cost containment, the making of  payments,
    23  and  statistical or other studies of the operation of the program or for
    24  protection and  promotion  of  public,  environmental  and  occupational
    25  health.
    26    5.  In  developing  requirements and standards and making other policy
    27  determinations under this article, the commissioner shall  consult  with
    28  representatives  of  members,  health care providers, care coordinators,
    29  health care organizations  employers, organized labor  including  repre-
    30  sentatives of health care workers, and other interested parties.
    31    6.  The program shall maintain the security and confidentiality of all
    32  data and other information collected under the program  when  such  data
    33  would  be normally considered confidential patient data.  Aggregate data
    34  of the program which is derived from  confidential  data  but  does  not
    35  violate  patient  confidentiality  shall be public information including
    36  for purposes of article six of the public officers law.
    37    § 5108. Regulations. The commissioner  shall  make  regulations  under
    38  this  article  by  approving  regulations  and amendments thereto, under
    39  subdivision one of section fifty-one hundred two of  this  article.  The
    40  commissioner may make regulations or amendments thereto under this arti-
    41  cle  on  an  emergency  basis under section two hundred two of the state
    42  administrative procedure act, provided that such regulations  or  amend-
    43  ments shall not become permanent unless adopted under subdivision one of
    44  section fifty-one hundred two of this article.
    45    § 5109. Provisions relating to federal health programs. 1. The commis-
    46  sioner  shall  seek  all federal waivers and other federal approvals and
    47  arrangements and submit state plan amendments necessary to  operate  the
    48  program consistent with this article to the maximum extent possible.  No
    49  provision of this article and no action under the program shall diminish
    50  any  right or benefit the member would otherwise have under any federal-
    51  ly-matched program or Medicare.
    52    2. (a) The commissioner shall apply to the  secretary  of  health  and
    53  human  services or other appropriate federal official for all waivers of
    54  requirements, and make other arrangements, under Medicare, any  federal-
    55  ly-matched public health program, the affordable care act, and any other
    56  federal  programs that provide federal funds for payment for health care

        A. 5248--A                         17

     1  services, that are necessary to enable all New York  Health  members  to
     2  receive all benefits under the program through the program to enable the
     3  state  to  implement this article and to receive and deposit all federal
     4  payments  under  those programs (including funds that may be provided in
     5  lieu of premium tax credits, cost-sharing subsidies, and small  business
     6  tax  credits) in the state treasury to the credit of the New York Health
     7  trust fund and to use those funds for the New York  Health  program  and
     8  other provisions under this article. To the extent possible, the commis-
     9  sioner shall negotiate arrangements with the federal government in which
    10  bulk  or  lump-sum federal payments are paid to New York Health in place
    11  of  federal  spending  or  tax  benefits  for  federally-matched  health
    12  programs  or  federal  health  programs.    The  commissioner shall take
    13  actions under paragraph (b) of subdivision eight  of  section  fifty-one
    14  hundred one of this article as reasonably necessary.
    15    (b)  The  commissioner may require members or applicants to be members
    16  to provide information necessary for the  program  to  comply  with  any
    17  waiver or arrangement under this subdivision.
    18    3.  (a) The commissioner may take actions consistent with this article
    19  to enable New York Health to administer Medicare in New York  state,  to
    20  create  a  Medicare  managed care plan ("Medicare Advantage") that would
    21  operate consistent with this article, and  to  be  a  provider  of  drug
    22  coverage under Medicare part D for eligible members of New York Health.
    23    (b)  The  commissioner  may  waive  or  modify  the  applicability  of
    24  provisions of this section  relating  to  any  federally-matched  public
    25  health  program  or  Medicare  as  necessary  to implement any waiver or
    26  arrangement under this section or to maximize the  benefit  to  the  New
    27  York  Health program under this section, provided that the commissioner,
    28  in consultation with the director of the budget,  shall  determine  that
    29  such  waiver  or  modification  is  in the best interests of the members
    30  affected by the action and the  state,  and  provided  further  that  no
    31  action  under  this  paragraph  shall  diminish any right or benefit the
    32  member would otherwise have under the program or  any  federally-matched
    33  public health program or Medicare.
    34    (c)  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 or Medicare if the
    37  member  is  eligible  for it.   Enrollment in a federally-matched public
    38  health program or Medicare shall not cause any member to lose any health
    39  care service provided by the program or diminish any  right  or  benefit
    40  the member would otherwise have.
    41    (d) The commissioner shall by regulation increase the income eligibil-
    42  ity  level,  increase  or  eliminate  the resource test for eligibility,
    43  simplify any procedural or documentation requirement for enrollment, and
    44  increase the benefits for any federally-matched public  health  program,
    45  and  for any program to reduce or eliminate an individual's coinsurance,
    46  cost-sharing or premium obligations or increase an  individual's  eligi-
    47  bility  for  any  federal  financial  support related to Medicare or the
    48  affordable care act notwithstanding any law or regulation to the contra-
    49  ry. The commissioner may  act  under  this  paragraph  upon  a  finding,
    50  approved by the director of the budget, that the action (i) will help to
    51  increase  the  number  of  members  who are eligible for and enrolled in
    52  federally-matched public health programs, or for any program  to  reduce
    53  or  eliminate an individual's coinsurance, cost-sharing or premium obli-
    54  gations or increase an individual's eligibility for any  federal  finan-
    55  cial  support  related to Medicare or the affordable care act; (ii) will
    56  not diminish any individual's access to any health care service, benefit

        A. 5248--A                         18
 
     1  or right the individual would otherwise have; (iii) is in  the  interest
     2  of  the program; and (iv) does not require or has received any necessary
     3  federal waivers or approvals to ensure federal financial participation.
     4    (e)  To  enable  the  commissioner  to apply for coverage or financial
     5  support under any federally-matched public health program, the  Afforda-
     6  ble  Care Act, or Medicare on behalf of any member and enroll the member
     7  in any such program, including an entity under paragraph (b) of subdivi-
     8  sion eight of section fifty-one hundred  one  of  this  article  if  the
     9  member  is  eligible  for  it,  the  commissioner may require that every
    10  member or applicant to be a member shall provide information  to  enable
    11  the commissioner to determine whether the applicant is eligible for such
    12  program.    The program shall make a reasonable effort to notify members
    13  of their obligations under this paragraph. After a reasonable effort has
    14  been made to contact the member, the member shall be notified in writing
    15  that he or she has sixty days to provide such required  information.  If
    16  such  information  is  not  provided  within  the  sixty day period, the
    17  member's coverage under the program may be terminated.
    18    (f) To the extent necessary for purposes of this section, as a  condi-
    19  tion  of  continued  eligibility  for  health  care  services  under the
    20  program, a member who is eligible  for  benefits  under  Medicare  shall
    21  enroll in Medicare, including parts A, B and D.
    22    (g)  The  program  shall  provide  premium  assistance for all members
    23  enrolling in a Medicare part D drug  coverage  under  section  1860D  of
    24  Title XVIII of the federal social security act limited to the low-income
    25  benchmark premium amount established by the federal centers for Medicare
    26  and Medicaid services and any other amount which such agency establishes
    27  under  its  de minimis premium policy, except that such payments made on
    28  behalf of members enrolled in a Medicare advantage plan may  exceed  the
    29  low-income  benchmark  premium amount if determined to be cost effective
    30  to the program.
    31    (h) If the commissioner has  reasonable  grounds  to  believe  that  a
    32  member  could  be  eligible  for an income-related subsidy under section
    33  1860D-14 of Title XVIII of the federal social security act,  the  member
    34  shall  provide,  and authorize the program to obtain, any information or
    35  documentation required to establish the member's  eligibility  for  such
    36  subsidy,  provided that the commissioner shall attempt to obtain as much
    37  of the information and documentation as possible from records  that  are
    38  available to him or her.
    39    (i)  The  program  shall make a reasonable effort to notify members of
    40  their obligations under this subdivision. After a reasonable effort  has
    41  been made to contact the member, the member shall be notified in writing
    42  that  he  or she has sixty days to provide such required information. If
    43  such information is not  provided  within  the  sixty  day  period,  the
    44  member's coverage under the program may be terminated.
    45    §  5110.  Additional  provisions.   1. The commissioner shall contract
    46  with not-for-profit organizations to provide:
    47    (a) consumer assistance to individuals with respect to  selection  and
    48  changing  selection  of  a care coordinator or health care organization,
    49  enrolling, obtaining health care services, and other matters relating to
    50  the program;
    51    (b) health care provider assistance to health care providers providing
    52  and seeking or considering whether  to  provide,  health  care  services
    53  under the program, with respect to participating in a health care organ-
    54  ization and dealing with a health care organization; and

        A. 5248--A                         19
 
     1    (c)  care coordinator assistance to individuals and entities providing
     2  and seeking or considering whether  to  provide,  care  coordination  to
     3  members.
     4    2.  The  commissioner  shall provide grants from funds in the New York
     5  Health trust fund or otherwise appropriated for this purpose, to  health
     6  systems  agencies under section twenty-nine hundred four-b of this chap-
     7  ter to support the operation of such health systems agencies.
     8    3. Retraining and re-employment of impacted employees. (a) As used  in
     9  this subdivision:
    10    (i)  "Third  party  payer"  has  its ordinary meaning and includes any
    11  entity that provides or arranges reimbursement in whole or in  part  for
    12  the purchase of health care services.
    13    (ii)  "Health care provider administrative employee" means an employee
    14  of a health care provider primarily engaged  in  relations  or  dealings
    15  with  third  party payers or seeking payment or reimbursement for health
    16  care services from third party payers.
    17    (iii) "Impacted employee" means an individual who, at  any  time  from
    18  the date this section becomes a law until two years after the end of the
    19  implementation period, is employed by a third party payer or is a health
    20  care  provider  administrative employee, and whose employment ends or is
    21  reasonably anticipated to end as a result of the implementation  of  the
    22  New York Health program.
    23    (b)  Within  ninety  days  after  this section shall become a law, the
    24  commissioner of labor shall convene a retraining and re-employment  task
    25  force  including  but  not  limited  to:  representatives  of  potential
    26  impacted employees, human resource departments of third party payers and
    27  health care providers, individuals  with  experience  and  expertise  in
    28  retraining  and  re-employment programs relevant to the circumstances of
    29  impacted employees, and representatives of the  commissioner  of  labor.
    30  The commissioner of labor and the task force shall review and provide:
    31    (i)  analysis  of  potential  impacted  employees  by  job  title  and
    32  geography;
    33    (ii) competency mapping and labor market analysis of impacted employee
    34  occupations with job openings; and
    35    (iii) establishment of regional retraining and re-employment  systems,
    36  including  but  not  limited  to  job boards, outplacement services, job
    37  search services, career advisement services, and retraining  advisement,
    38  to  be coordinated with the regional advisory councils established under
    39  section fifty-one hundred eleven of this article.
    40    (c) (i) Three or more impacted employees, a recognized union of  work-
    41  ers  including  impacted employees, or an employer of impacted employees
    42  may file a petition with the  commissioner  of  labor  to  certify  such
    43  employees as being impacted employees.
    44    (ii) Impacted employees shall be eligible for:
    45    (A) up to two years of retraining at any training provider approved by
    46  the commissioner of labor; and
    47    (B)  up  to  two  years  of  unemployment  benefits, provided that the
    48  impacted employee is enrolled in a department of labor approved training
    49  program, is actively seeking employment, and is not  currently  employed
    50  full  time;  provided, however, that such impacted employee may maintain
    51  unemployment benefits for up to two years even if he  or  she  does  not
    52  meet  the  criteria set forth in this clause but is sixty-three years of
    53  age or older at the time of loss of employment as an impacted employee.
    54    (d) The commissioner shall provide funds  from  the  New  York  Health
    55  trust fund or otherwise appropriated for this purpose to the commission-

        A. 5248--A                         20
 
     1  er  of  labor  for  retraining  and  re-employment programs for impacted
     2  employees under this subdivision.
     3    (e)  The  commissioner  of labor shall make regulations and take other
     4  actions reasonably necessary to implement this subdivision. This  subdi-
     5  vision  shall  be  implemented  consistent with applicable law and regu-
     6  lations.
     7    4. The commissioner shall, directly and through grants to not-for-pro-
     8  fit entities, conduct programs using data collected through the New York
     9  Health program, to promote  and  protect  the  quality  of  health  care
    10  services,  patient  outcomes, and public, environmental and occupational
    11  health, including cooperation with other data  collection  and  research
    12  programs of the department, consistent with this article, the protection
    13  of the security and confidentiality of individually identifiable patient
    14  information, and otherwise applicable law.
    15    5.  Settlements  and  judgments.  This  subdivision  applies where any
    16  settlement, judgment or order  in  the  course  of  litigation,  or  any
    17  contract  or  agreement  made  as an alternative to litigation, provides
    18  that one party shall pay for health care coverage for another party  who
    19  is entitled to enroll in the program. Any party to the settlement, judg-
    20  ment, order, contract or agreement may apply to an appropriate court for
    21  modification  of the judgment, order, contract or agreement. The modifi-
    22  cation may provide that the paying party, instead of paying  for  health
    23  care  coverage, shall pay all or part of the New York Health tax that is
    24  owed by the other party, and may include other  or  further  provisions.
    25  The modifications shall be appropriate, consistent with the program, and
    26  in  the  interest  of  justice.  As  used in this subdivision, "New York
    27  Health tax" means the tax or taxes enacted by the legislature as part of
    28  the revenue proposal, as amended, to fund the program.
    29    § 5111. Regional advisory councils.  1. The New York  Health  regional
    30  advisory councils (each referred to in this article as a "regional advi-
    31  sory council") are hereby created in the department.
    32    2.  There  shall be a regional advisory council established in each of
    33  the following regions:
    34    (a) Long Island, consisting of Nassau and Suffolk counties;
    35    (b) New York City;
    36    (c) Hudson Valley, consisting of Delaware, Dutchess,  Orange,  Putnam,
    37  Rockland, Sullivan, Ulster, Westchester counties;
    38    (d)  Northern,  consisting of Albany, Clinton, Columbia, Essex, Frank-
    39  lin, Fulton, Greene, Hamilton, Herkimer, Jefferson,  Lewis,  Montgomery,
    40  Otsego,  Rensselaer,  Saratoga,  Schenectady,  Schoharie,  St. Lawrence,
    41  Warren, Washington counties;
    42    (e) Central, consisting of Broome, Cayuga,  Chemung,  Chenango,  Cort-
    43  land,  Livingston,  Madison,  Monroe, Oneida, Onondaga, Ontario, Oswego,
    44  Schuyler, Seneca, Steuben, Tioga, Tompkins, Wayne, Yates counties; and
    45    (f) Western, consisting of Allegany,  Cattaraugus,  Chautauqua,  Erie,
    46  Genesee, Niagara, Orleans, Wyoming counties.
    47    3.  Each regional advisory council shall be composed of not fewer than
    48  twenty-seven members, as determined by the commissioner and  the  board,
    49  as  necessary  to appropriately represent the diverse needs and concerns
    50  of the region. Members of a regional advisory council shall be residents
    51  of or have their principal place of business in the region served by the
    52  regional advisory council.
    53    4. Appointment of members of the regional advisory councils.
    54    (a) The twenty-seven members shall be appointed as follows:
    55    (i) nine members shall be appointed by the governor;

        A. 5248--A                         21
 
     1    (ii) six members shall be appointed by the governor on the recommenda-
     2  tion of the speaker of the assembly;
     3    (iii)  six members shall be appointed by the governor on the recommen-
     4  dation of the temporary president of the senate;
     5    (iv) three members shall be appointed by the governor on the recommen-
     6  dation of the minority leader of the assembly; and
     7    (v) three members shall be appointed by the governor on the  recommen-
     8  dation of the minority leader of the senate.
     9    Where  a regional advisory council has more than twenty-seven members,
    10  additional members shall be appointed and recommended by these officials
    11  in the same proportion as the twenty-seven members.
    12    (b) Regional advisory council membership  shall  include  but  not  be
    13  limited to:
    14    (i) representatives of organizations with a regional constituency that
    15  advocate  for health care consumers, older adults, and people with disa-
    16  bilities including organizations led by members  of  those  groups,  who
    17  shall  constitute  at least one third of the membership of each regional
    18  council;
    19    (ii) representatives of professional organizations representing physi-
    20  cians;
    21    (iii)  representatives  of  professional  organizations   representing
    22  health care professionals other than physicians;
    23    (iv) representatives of general hospitals, including public hospitals;
    24    (v) representatives of community health centers;
    25    (vi)  representatives  of  mental health, behavioral health (including
    26  substance use), physical disability, developmental disability, rehabili-
    27  tation, home care and other service providers;
    28    (vii) representatives of women's health service providers;
    29    (viii) representatives of health care organizations;
    30    (ix) representatives of organized labor including  representatives  of
    31  health care workers;
    32    (x) representatives of employers; and
    33    (xi) representatives of municipal and county government.
    34    5. Members of a regional advisory council shall be appointed for terms
    35  of  three  years provided, however, that of the members first appointed,
    36  one-third shall be appointed for one year terms and one-third  shall  be
    37  appointed  for  two  year  terms.  Vacancies shall be filled in the same
    38  manner as original appointments for the remainder of any unexpired term.
    39  No person shall be a member of a regional advisory council for more than
    40  six years in any period of twelve consecutive years.
    41    6. Members of the  regional  advisory  councils  shall  serve  without
    42  compensation  but  shall  be  reimbursed  for their necessary and actual
    43  expenses incurred while engaged in the business of  the  advisory  coun-
    44  cils.  The program shall provide financial support for such expenses and
    45  other expenses of the regional advisory councils.
    46    7. Each regional advisory council shall meet at least quarterly.  Each
    47  regional  advisory council may form committees to assist it in its work.
    48  Members of a committee need not be  members  of  the  regional  advisory
    49  council.    The  New  York  City  regional advisory council shall form a
    50  committee for each borough of New York  City,  to  assist  the  regional
    51  advisory council in its work as it relates particularly to that borough.
    52    8.  Each  regional advisory council shall advise the commissioner, the
    53  board, the governor and the legislature on all matters relating  to  the
    54  development and implementation of the New York Health program.

        A. 5248--A                         22
 
     1    9.  Each  regional advisory council shall adopt, and from time to time
     2  revise, a community health improvement  plan  for  its  region  for  the
     3  purpose of:
     4    (a)  promoting  the  delivery  of  health care services in the region,
     5  improving the quality and  accessibility  of  care,  including  cultural
     6  competency,  clinical  integration  of  care  between  service providers
     7  including but not limited to physical, mental,  and  behavioral  health,
     8  physical  and  developmental disability services, and long-term supports
     9  and services;
    10    (b) facility and health services planning in the region;
    11    (c) identifying gaps in regional health care services;
    12    (d) promoting increased public knowledge and responsibility  regarding
    13  the  availability  and  appropriate utilization of health care services.
    14  Each community health improvement plan shall be submitted to the commis-
    15  sioner and the board and shall be posted on the department's website;
    16    (e) identifying needs in professional and service  personnel  required
    17  to deliver health care services; and
    18    (f)  coordinating regional implementation of retraining and re-employ-
    19  ment programs for impacted employees under subdivision three of  section
    20  fifty-one hundred ten of this article.
    21    10.  Each  regional  advisory  council shall hold at least four public
    22  hearings annually on matters relating to the New York Health program and
    23  the development and implementation of the community  health  improvement
    24  plan.
    25    11.  Each  regional advisory council shall publish an annual report to
    26  the commissioner and the board on the progress of the  community  health
    27  improvement  plan.  These  reports  shall  be posted on the department's
    28  website.
    29    12. All meetings of the  regional  advisory  councils  and  committees
    30  shall be subject to article six of the public officers law.
    31    §  4.  Financing  of New York Health. 1.  (a) As used in this section,
    32  unless the context clearly requires otherwise:
    33    (i) "New York Health program" and the  "program"  mean  the  New  York
    34  Health  program,  as  created by article 51 of the public health law and
    35  all provisions of that article.
    36    (ii) "Revenue proposal" means the revenue plan and legislative  bills,
    37  as  proposed  and  enacted  under  this  section, to provide the revenue
    38  necessary to finance the New York Health program.
    39    (iii) "Tax" means the payroll tax or non-payroll  tax  to  be  enacted
    40  under  the  revenue  proposal.  "Payroll  tax"  means the tax on payroll
    41  income and self-employed income subject to  the  Medicare  Part  A  tax,
    42  provided for in subdivision two of this section. "Non-payroll tax" means
    43  the  tax  on  taxable  income  (such as interest, dividends, and capital
    44  gains) not subject to the payroll tax, provided for in  subdivision  two
    45  of this section.
    46    (b)  The  governor shall submit to the legislature a revenue proposal.
    47  The revenue proposal shall be submitted to the legislature  as  part  of
    48  the  executive  budget  under article VII of the state constitution, for
    49  the fiscal year commencing on the first day of  April  in  the  calendar
    50  year  after  this  act  shall  become  a  law. In developing the revenue
    51  proposal, the governor shall consult with appropriate officials  of  the
    52  executive  branch; the temporary president of the senate; the speaker of
    53  the assembly; the chairs of the fiscal  and  health  committees  of  the
    54  senate  and  assembly; and representatives of business, labor, consumers
    55  and local government.

        A. 5248--A                         23
 
     1    2. (a) Basic structure. The basic structure of  the  revenue  proposal
     2  shall  be as follows: Revenue for the program shall come from two taxes.
     3  First, there shall be a progressively graduated tax on all  payroll  and
     4  self-employed  income,  paid  by  employers, employees and self-employed
     5  individuals.    Second,  there shall be a progressively graduated tax on
     6  taxable income (such as interest,  dividends,  and  capital  gains)  not
     7  subject  to  the  payroll tax.   Income in the bracket below twenty-five
     8  thousand dollars per year shall be exempt from the taxes; provided  that
     9  for  individuals  enrolled in Medicare as defined in the program, income
    10  in the bracket below fifty thousand dollars per  year  shall  be  exempt
    11  from the taxes.  Higher brackets of income subject to the taxes shall be
    12  assessed at a higher marginal rate than lower brackets.  The taxes shall
    13  be  set  at  levels anticipated to produce sufficient revenue to finance
    14  the program, to be scaled up as enrollment grows, taking into  consider-
    15  ation  anticipated  federal revenue available for the program. Provision
    16  shall be made for state residents who  are  employed  out-of-state,  and
    17  non-residents  who  are  employed in the state (including those employed
    18  less than full-time).
    19    (b) Payroll tax. The income to be subject to the payroll tax shall  be
    20  all  income subject to the Medicare Part A tax. The payroll tax shall be
    21  set at a percentage of that income, which shall be progressively  gradu-
    22  ated,  so  the  percentage  is  higher on higher brackets of income. For
    23  employed individuals, the employer  shall  pay  eighty  percent  of  the
    24  payroll tax and the employee shall pay twenty percent of the tax, except
    25  that  an  employer may agree to pay all or part of the employee's share.
    26  A self-employed individual shall pay the full tax.
    27    (c) Non-payroll income tax. There shall be a tax  on  income  that  is
    28  subject  to  the personal income tax under article 22 of the tax law and
    29  is not subject to the payroll tax. It shall be set at  a  percentage  of
    30  that  income,  which shall be progressively graduated, so the percentage
    31  is higher on higher brackets of income.
    32    (d) Phased-in rates. Early in the program, when enrollment is growing,
    33  the amount of the taxes shall be at an appropriate level, and  shall  be
    34  changed as anticipated enrollment grows, to cover the actual cost of the
    35  program.  The revenue proposal shall include a mechanism for determining
    36  the rates of the taxes.
    37    (e) Cross-border employees. (i) State residents employed out-of-state.
    38  If an individual is employed out-of-state by an employer that is subject
    39  to New York state law, the employer and employee shall  be  required  to
    40  pay the payroll tax as to that employee as if the employment were in the
    41  state.  If an individual is employed out-of-state by an employer that is
    42  not subject to New York state law, either (A) the employer and  employee
    43  shall  voluntarily comply with the tax or (B) the employee shall pay the
    44  tax as if he or she were self-employed.
    45    (ii) Out-of-state residents employed in the state.   The  payroll  tax
    46  shall  apply  to  any  out-of-state resident who is employed or self-em-
    47  ployed in the state.  Such individual and individual's employer shall be
    48  able to take a credit against the payroll taxes each would otherwise pay
    49  as to that individual for amounts  they  spend  respectively  on  health
    50  benefits (A) for the individual, if the individual is not eligible to be
    51  a  member  of  the  program,  and (B) for any member of the individual's
    52  immediate family.   For the employer,  the  credit  shall  be  available
    53  regardless  of the form of the health benefit (e.g., health insurance, a
    54  self-insured plan, direct services, or reimbursement for  services),  to
    55  make  sure that the revenue proposal does not relate to employment bene-
    56  fits in violation of any federal law. For non-employment-based  spending

        A. 5248--A                         24
 
     1  by  the  individual,  the  credit  shall be available for and limited to
     2  spending for health coverage (not out-of-pocket  health  spending).  The
     3  credit  shall  be available without regard to how little is spent or how
     4  sparse  the  benefit.  The  credit may only be taken against the payroll
     5  tax. Any excess amount may not be applied to other  tax  liability.  The
     6  credit  shall  be  distributed  between the employer and employee in the
     7  same proportion as the spending by each  for  the  benefit  and  may  be
     8  applied to their respective portion of the tax. If any provision of this
     9  subparagraph  or any application of it shall be ruled to violate federal
    10  law, the provision or the application of it shall be null and  void  and
    11  the  ruling  shall not affect any other provision or application of this
    12  section or the act that enacted it.
    13    3. (a) The revenue proposal  shall  include  a  plan  and  legislative
    14  provisions   for  ending  the  requirement  for  local  social  services
    15  districts to pay part of  the  cost  of  Medicaid  and  replacing  those
    16  payments with revenue from the taxes under the revenue proposal.
    17    (b)  The  taxes  under this section shall not supplant the spending of
    18  other state revenue to pay for the Medicaid program as it exists  as  of
    19  the  enactment  of  the  revenue proposal as amended, unless the revenue
    20  proposal as amended provides otherwise.
    21    4. To the extent that the revenue proposal differs from the  terms  of
    22  subdivision  two  or paragraph (b) of subdivision three of this section,
    23  the revenue proposal shall state how it differs  from  those  terms  and
    24  reasons for and the effects of the differences.
    25    5.  All  revenue  from  the  taxes  shall be deposited in the New York
    26  Health trust fund account under section 89-j of the state finance law.
    27    § 5.  Article 49 of the public health law is amended by adding  a  new
    28  title 3 to read as follows:
    29                                  TITLE III
    30            COLLECTIVE NEGOTIATIONS BY HEALTH CARE PROVIDERS WITH
    31                               NEW YORK HEALTH
    32  Section 4920. Definitions.
    33          4921. Collective negotiation authorized.
    34          4922. Collective negotiation requirements.
    35          4923. Requirements for health care providers' representative.
    36          4924. Mediation.
    37          4925. Certain collective action prohibited.
    38          4926. Fees.
    39          4927. Confidentiality.
    40          4928. Severability and construction.
    41    § 4920. Definitions. For purposes of this title:
    42    1. "New York Health" means the program under article fifty-one of this
    43  chapter.
    44    2.  "Person"  means  an  individual,  association, corporation, or any
    45  other legal entity.
    46    3. "Health care providers' representative" means a third party that is
    47  authorized by health care providers to negotiate on  their  behalf  with
    48  New  York  Health  over terms and conditions affecting those health care
    49  providers.
    50    4. "Strike" means a work stoppage in part or in whole, direct or indi-
    51  rect, by a body of workers to gain compliance with demands  made  on  an
    52  employer.
    53    5.  "Health  care provider" means a health care provider under article
    54  fifty-one of this chapter. A health  care  professional  as  defined  in
    55  article  fifty-one of this chapter who practices as an employee or inde-

        A. 5248--A                         25
 
     1  pendent contractor of another health care provider shall not be deemed a
     2  health care provider for purposes of this title.
     3    §  4921.  Collective  negotiation authorized. 1. Health care providers
     4  may meet and communicate for the  purpose  of  collectively  negotiating
     5  with  New York Health on any matter relating to New York Health, includ-
     6  ing but not limited to rates of payment and payment methodologies.
     7    2. Nothing in this section shall be construed to allow or authorize an
     8  alteration of the terms of the internal and external  review  procedures
     9  set forth in law.
    10    3. Nothing in this section shall be construed to allow a strike of New
    11  York Health by health care providers.
    12    4.  Nothing  in  this section shall be construed to allow or authorize
    13  terms or conditions which would impede the ability of New York Health to
    14  obtain or retain accreditation by the  national  committee  for  quality
    15  assurance or a similar body or to comply with applicable state or feder-
    16  al law.
    17    § 4922. Collective negotiation requirements. 1. Collective negotiation
    18  rights granted by this title must conform to the following requirements:
    19    (a)  health  care  providers  may  communicate  with other health care
    20  providers regarding the terms and conditions to be negotiated  with  New
    21  York Health;
    22    (b)  health care providers may communicate with health care providers'
    23  representatives;
    24    (c) a health care providers' representative is the only party  author-
    25  ized  to  negotiate  with  New  York Health on behalf of the health care
    26  providers as a group;
    27    (d) a health care provider can be bound by the  terms  and  conditions
    28  negotiated by the health care providers' representatives; and
    29    (e)  in  communicating  or negotiating with the health care providers'
    30  representative, New York Health is entitled to offer and provide differ-
    31  ent terms and conditions to individual competing health care providers.
    32    2. Nothing in this title shall affect or limit the right of  a  health
    33  care provider or group of health care providers to collectively petition
    34  a government entity for a change in a law, rule, or regulation.
    35    3.  Nothing  in  this title shall affect or limit collective action or
    36  collective bargaining on the part of any health care provider  with  his
    37  or  her  employer  or  any  other lawful collective action or collective
    38  bargaining.
    39    § 4923. Requirements for health care providers' representative. Before
    40  engaging in collective negotiations with New York Health  on  behalf  of
    41  health  care  providers,  a  health care providers' representative shall
    42  file with the commissioner, in the manner prescribed by the  commission-
    43  er,  information  identifying  the  representative, the representative's
    44  plan of operation, and the representative's procedures to ensure compli-
    45  ance with this title.
    46    § 4924. Mediation. 1. In the event the commissioner determines that an
    47  impasse exists  in  the  negotiations,  the  commissioner  shall  render
    48  assistance as follows:
    49    (a)  to  assist  the  parties  to effect a voluntary resolution of the
    50  negotiations, the commissioner shall appoint a mediator who is  mutually
    51  acceptable  to  both  the  health care providers' representative and the
    52  representative of New York Health. If  the  mediator  is  successful  in
    53  resolving  the  impasse,  then the health care providers' representative
    54  shall proceed as set forth in this article;
    55    (b) if an impasse continues, the commissioner shall  appoint  a  fact-
    56  finding  board of not more than three members, who are mutually accepta-

        A. 5248--A                         26
 
     1  ble to both the health care providers' representative and the  represen-
     2  tative  of  New  York  Health.  The  fact-finding  board  shall have, in
     3  addition to the powers delegated to it by the board, the power  to  make
     4  recommendations for the resolution of the dispute;
     5    (c) the fact-finding board, acting by a majority of its members, shall
     6  transmit  its findings of fact and recommendations for resolution of the
     7  dispute to the commissioner, and may thereafter assist  the  parties  to
     8  effect  a  voluntary  resolution  of the dispute. The fact-finding board
     9  shall also share its findings  of  fact  and  recommendations  with  the
    10  health care providers' representative and the representative of New York
    11  Health.  If  within  twenty days after the submission of the findings of
    12  fact and recommendations, the impasse continues, the commissioner  shall
    13  order  a  resolution to the negotiations based upon the findings of fact
    14  and recommendations submitted by the fact-finding board.
    15    § 4925. Certain collective action prohibited. 1.  This  title  is  not
    16  intended  to authorize competing health care providers to act in concert
    17  in response to a health care providers' representative's discussions  or
    18  negotiations with New York Health except as authorized by other law.
    19    2. No health care providers' representative shall negotiate any agree-
    20  ment  that  excludes,  limits  the participation or reimbursement of, or
    21  otherwise limits the scope of services to be provided by any health care
    22  provider or group of health care providers with respect to the  perform-
    23  ance of services that are within the health care provider's lawful scope
    24  or terms of practice, license, registration, or certificate.
    25    §  4926. Fees. Each person who acts as the representative of negotiat-
    26  ing parties under this title shall pay to the department a fee to act as
    27  a representative. The commissioner, by regulation,  shall  set  fees  in
    28  amounts  deemed  reasonable and necessary to cover the costs incurred by
    29  the department in administering this title.
    30    § 4927. Confidentiality. All reports and other information required to
    31  be reported to the department under this title shall not be  subject  to
    32  disclosure under article six of the public officers law.
    33    § 4928. Severability and construction. If any provision or application
    34  of  this  title  shall be held to be invalid, or to violate or be incon-
    35  sistent with any applicable federal law or regulation,  that  shall  not
    36  affect other provisions or applications of this title which can be given
    37  effect  without  that  provision  or  application;  and to that end, the
    38  provisions and applications of this title are severable. The  provisions
    39  of  this  title  shall  be  liberally  construed  to  give effect to the
    40  purposes thereof.
    41    § 6. Subdivision 11 of section  270  of  the  public  health  law,  as
    42  amended  by  section 2-a of part C of chapter 58 of the laws of 2008, is
    43  amended to read as follows:
    44    11. "State public health plan" means the  medical  assistance  program
    45  established  by  title eleven of article five of the social services law
    46  (referred to in this article as "Medicaid"), the elderly  pharmaceutical
    47  insurance  coverage program established by title three of article two of
    48  the elder law (referred to in this article as "EPIC"), and  the  [family
    49  health  plus  program established by section three hundred sixty-nine-ee
    50  of the social services law to the extent that section provides that  the
    51  program shall be subject to this article] New York Health program estab-
    52  lished by article fifty-one of this chapter.
    53    §  7. The state finance law is amended by adding a new section 89-j to
    54  read as follows:
    55    § 89-j. New York Health trust fund. 1. There is hereby established  in
    56  the joint custody of the state comptroller and the commissioner of taxa-

        A. 5248--A                         27
 
     1  tion  and  finance  a  special revenue fund to be known as the "New York
     2  Health trust fund", referred to in this section as "the fund". The defi-
     3  nitions in section fifty-one hundred of  the  public  health  law  shall
     4  apply to this section.
     5    2. The fund shall consist of:
     6    (a)  all monies obtained from taxes pursuant to legislation enacted as
     7  proposed under section three of the New York Health act;
     8    (b) federal payments received as a  result  of  any  waiver  or  other
     9  arrangements  agreed  to  by  the  United States secretary of health and
    10  human services or other appropriate federal officials  for  health  care
    11  programs established under Medicare, any federally-matched public health
    12  program, or the affordable care act;
    13    (c)  the  amounts paid by the department of health that are equivalent
    14  to those amounts that are paid on behalf  of  residents  of  this  state
    15  under  Medicare,  any  federally-matched  public  health program, or the
    16  affordable care act for health benefits which are equivalent  to  health
    17  benefits covered under New York Health;
    18    (d)  federal and state funds for purposes of the provision of services
    19  authorized under title XX of the federal social security act that  would
    20  otherwise  be  covered under article fifty-one of the public health law;
    21  and
    22    (e) state monies that would otherwise be appropriated to  any  govern-
    23  mental  agency,  office,  program,  instrumentality or institution which
    24  provides health services, for services and benefits  covered  under  New
    25  York Health. Payments to the fund pursuant to this paragraph shall be in
    26  an  amount  equal  to  the  money  appropriated for such purposes in the
    27  fiscal year beginning immediately preceding the effective  date  of  the
    28  New York Health act.
    29    3.  Monies  in  the  fund  shall only be used for purposes established
    30  under article fifty-one of the public health law.
    31    § 8. Temporary commission on implementation. 1. There is hereby estab-
    32  lished a temporary commission on implementation of the New  York  Health
    33  program,  referred  to  in this section as the commission, consisting of
    34  fifteen members: five members, including the chair, shall  be  appointed
    35  by the governor; four members shall be appointed by the temporary presi-
    36  dent of the senate, one member shall be appointed by the senate minority
    37  leader;  four members shall be appointed by the speaker of the assembly,
    38  and one member shall be appointed by the assembly minority  leader.  The
    39  commissioner  of  health,  the superintendent of financial services, and
    40  the commissioner of taxation and finance, or their designees shall serve
    41  as non-voting ex-officio members of the commission.
    42    2. Members of the commission shall receive such assistance as  may  be
    43  necessary  from  other  state  agencies  and entities, and shall receive
    44  reasonable and necessary expenses incurred in the performance  of  their
    45  duties.  The  commission  may  employ  staff  as needed, prescribe their
    46  duties, and fix their compensation within amounts appropriated  for  the
    47  commission.
    48    3.  The commission shall examine the laws and regulations of the state
    49  and consult with health care providers, consumers, and other  stakehold-
    50  ers  and  make such recommendations as are necessary to conform the laws
    51  and regulations of the state and article 51 of  the  public  health  law
    52  establishing  the  New  York  Health program and other provisions of law
    53  relating to the New York Health program, and to  improve  and  implement
    54  the  program.  The  commission  shall  report its recommendations to the
    55  governor and the legislature.   The commission shall  immediately  begin
    56  development of proposals consistent with the principles of article 51 of

        A. 5248--A                         28
 
     1  the  public  health  law  for  provision of health care services covered
     2  under the workers' compensation law; and incorporation of retiree health
     3  benefits, as described in paragraphs (a), (b) and (c) of  subdivision  8
     4  of  section 5102 of the public health law.  The commission shall provide
     5  its work product and assistance to the  board  established  pursuant  to
     6  section 5102 of the public health law upon completion of the appointment
     7  of the board.
     8    §  9.  Severability. If any provision or application of this act shall
     9  be held to be invalid, or to violate or be inconsistent with any  appli-
    10  cable  federal law or regulation, that shall not affect other provisions
    11  or applications of this act which  can  be  given  effect  without  that
    12  provision  or  application; and to that end, the provisions and applica-
    13  tions of this act are severable.
    14    § 10. This act shall take effect immediately.
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