senate Bill S7083

Waives interest and penalties due on surcharges and assessments due prior to January 1, 2012, relating to payments to health care providers

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 27 / Apr / 2012
    • REFERRED TO FINANCE
  • 22 / May / 2012
    • 1ST REPORT CAL.892
  • 23 / May / 2012
    • 2ND REPORT CAL.
  • 30 / May / 2012
    • ADVANCED TO THIRD READING
  • 05 / Jun / 2012
    • SUBSTITUTED BY A10103

Summary

Waives interest and penalties due on surcharges and assessments due prior to January 1, 2012, relating to payments to health care providers.

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Bill Details

See Assembly Version of this Bill:
A10103
Versions:
S7083
Legislative Cycle:
2011-2012
Law Section:
Health
Laws Affected:
Amd Part B ยง18, Chap 58 of 2010

Sponsor Memo

BILL NUMBER:S7083

TITLE OF BILL:
An act to amend chapter 58 of the laws of 2010, amending the public
health law relating to audits for service providers, in relation to
interest and penalties on certain surcharges and assessments due prior
to January 1, 2012

PURPOSE:
This bill would provide an amnesty period during calendar year 2012 to
relieve providers of interest and penalty charges arising from HCRA
surcharges calculated based on audits of prior years.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 18 of part B of chapter 58 of the
laws of 2010, as amended by section 67 part H of chapter 59 of 2011, to
extend amnesty periods for certain HCRA surcharges and assessments due
from periods prior to January 1, 2011 to periods prior to January 1,2012
and paid before December 31, 2012.

Section 2 of the bill provides for an effective date.

JUSTIFICATION:
This bill will provide some relief from interest and penalty charges to
providers who take advantage of the amnesty period and will likely
provide the state with payments sooner thus producing a financial bene-
fit to the state. There are a multitude of insurance payors, electing
different methods of making payments and an enormous accounting and
reconciliation process that goes on to try and determine the correct
amount that a particular provider needs to pay into the HCRA surcharge
pool. Misunderstandings and the complicated nature of how to implement
the surcharge have existed for many years and, as a result, an amnesty
period has been provided in prior years.

Education/clarification to providers on the implementation of the HCRA
Surcharge has been relatively recent. The first in-depth educational
sessions sponsored by DOH along with KPMG (auditors) for providers
started in the fall of 2010 and have continued with other sessions in
the spring and winter of 2011 the most recent being in April 2012.

Continuing amnesty related to interest and penalties associated with
surcharge audits would provide some relief. This is especially important
given the logistical nightmare and hurculean tasks associated with this
process.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
Possible savings as providers make payments to the state sooner in order
to avoid interest and penalty charges during the amnesty period.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7083

                            I N  S E N A T E

                             April 27, 2012
                               ___________

Introduced  by  Sen.  HANNON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend chapter 58 of the laws  of  2010,  amending  the  public
  health  law  relating  to audits for service providers, in relation to
  interest and penalties on certain surcharges and assessments due prior
  to January 1, 2012

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  18  of part B of chapter 58 of the laws of 2010,
amending the public health law relating to audits of service  providers,
as amended by section 67 of part H of chapter 59 of the laws of 2011, is
amended to read as follows:
  S  18.  Notwithstanding  any contrary provision of law, surcharges and
assessments due and owing pursuant to sections 2807-j, 2807-s and 2807-t
of the public health law for any period prior to January 1, [2011] 2012,
which are paid and accompanied by all required  reports  and  which  are
received  on  or before December 31, [2011] 2012 shall not be subject to
interest or penalties as otherwise provided in such sections,  provided,
however,  that  such  reports  may  be  based on estimates by payors and
designated providers of services of the amounts owed, subject to  subse-
quent  audit  by the commissioner of health or the commissioner's desig-
nee, and provided further, however, with regard to all principal, inter-
est and penalty amounts collected by the commissioner of health prior to
the effective date of this  act,  the  penalty  provisions  of  sections
2807-j,  2807-s and 2807-t of the public health law shall remain in full
force and effect and such amounts collected  shall  not  be  subject  to
further  adjustment  pursuant  to  this  section,  and provided further,
however, that payments of principal amounts of  surcharges  and  assess-
ments  which  were paid late and received prior to the effective date of
this provision, and in regard to which interest and penalty amounts have
not been collected, shall not be subject to such interest and penalties,
and provided, further, however, that  the  provisions  of  this  section
shall  not  apply  to delinquent amounts which have been referred by the
commissioner  of  health  for  recoupment  or   collection   proceeding.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15541-01-2

S. 7083                             2

Furthermore,  the  provisions  of  this  section  shall not apply to any
surcharge or assessment payments made in response to a final audit find-
ing issued by the commissioner of health or the commissioner's designee.
  S 2. This act shall take effect immediately.

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