senate Bill S1359

Provides that depreciation of assets of all self-employed individuals shall not be considered income for purposes of determining eligibility for family health plus

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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

  • 09 / Jan / 2013
    • REFERRED TO HEALTH
  • 08 / Jan / 2014
    • REFERRED TO HEALTH

Summary

Provides that depreciation of assets of all self-employed individuals shall not be considered income for purposes of determining eligibility for the family health plus program.

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Bill Details

Versions:
S1359
Legislative Cycle:
2013-2014
Current Committee:
Senate Health
Law Section:
Social Services Law
Laws Affected:
Amd ยง369-ee, Soc Serv L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S4158
2009-2010: S280

Sponsor Memo

BILL NUMBER:S1359

TITLE OF BILL:
An act
to amend the social services law, in relation to the determination of
eligibility for the family health plus program for self-employed
individuals

PURPOSE:
Provides that depreciation of assets of all self-employed individuals
shall not be considered income for purposes of determining
eligibility for family health plus.

SUMMARY OF PROVISIONS:
The Social Services Law is amended as follows: Section I. Subdivision
2 of section 369-ee of the social services law is amended by adding a
new paragraph (e) to extract depreciated business assets from gross
family income for the purposes of Family Health Plus program. This
amendment will only apply if all necessary approvals under federal
law have been met.

JUSTIFICATION:
New York has made great advances in providing residents with quality
health care at an affordable price. Successful programs like Child
health Plus and Family Health Plus have helped many families afford
health insurance and better access to needed health care. However,
barriers to program access arise in certain circumstances surrounding
the Family Health Plus program and depreciation of business related
assets for self-employed individuals.

Currently, when a family applies for insurance through the Family
Health Plus program, the family income must be below a certain
threshold (150 percent of the federal poverty level) for eligibility.
Many families who are self-employed seemingly meet this threshold,
yet are prevented from accessing the program, as the family income,
as stated on the program application forms, is required to include
depreciation of business assets.

One segment of the self employed population is especially hard hit by
this. Farmers, by nature of their land and equipment-intensive
business, must purchase expensive farm machinery on an ongoing basis,
and most times add the cost of such machinery to their already
considerable farm
debt load. As a result, depreciation of such machinery, including
tractors, combines and spreaders, is customary in the farm business.
While inclusion of depreciation in income calculations may provide
indications regarding the extent of farm machinery owed for necessary
farm operation, it does not help to accurately reflect actual farm
family income.

For example, a farm family of four may be living on approximately
$22,000 in actual annual farm income, and thus seemingly would be
eligible for Family Health Plus. However, when depreciation of farm
machinery is included in the family income, the same family could
appear to be making $90,000 a year and be prevented from access to
the Family Health Plus program. As a result, steps must be taken to


facilitate access to the Family Health Plus program for families in
these circumstances. This is also evident in many self-employed
individuals.

This legislation is a follow-up to Chapter 101 of the Laws of 2007
which applied only to farm families, but because the federal Centers
for Medicare and Medicaid Services (CMS) believed that the farm-only
waiver enacted by New York State was too narrowly drafted, we have
redrafted the proposal in order to broaden the scope of the
legislation to address CMS's concerns.

LEGISLATIVE HISTORY:
2011-12 S. 4158 Referred to Health and reported and committed to
Finance
2009-2010- S.280/A.1280; Social Services
2008: S.7472/A.10800 Veto
166
Similar legislation was chaptered in 2007 (Chapter
101), but failed to receive the necessary federal waiver.

FISCAL IMPLICATIONS: Minimal

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all
determinations made on or after such effective date.

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

                                  1359

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. LITTLE, LARKIN, MONTGOMERY -- read twice and ordered
  printed, and when printed to be committed to the Committee on Health

AN  ACT  to  amend  the social services law, in relation to the determi-
  nation of eligibility for the family health plus program for  self-em-
  ployed individuals

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

  Section 1. Paragraph (d) of subdivision 2 of  section  369-ee  of  the
social  services  law,  as  added by chapter 101 of the laws of 2007, is
amended to read as follows:
  [(d)] (E) For purposes of determining income eligibility  pursuant  to
this  subdivision,  depreciation  of  assets  owned by [a] self-employed
[individual operating a farm  operation  as  defined  in  section  three
hundred one of the agriculture and markets law] INDIVIDUALS, as included
on  the Internal Revenue Service Form 1040 of the applicable year, shall
not be included as part of the gross family  income.  If  all  necessary
approvals  relating  to  this paragraph under federal law and regulation
have not been obtained to receive federal financial participation,  then
this  paragraph  shall  not  apply;  however,  that shall not affect the
status of any other provision of this title.
  S 2. This act shall take effect immediately and  shall  apply  to  all
determinations made on or after such effective date.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01197-01-3

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