Assembly Bill A10348

                                BILL NUMBER:A10348

TITLE  OF BILL:  An act to amend the social services law, in relation to
reimbursement for medicaid services required by state law

PURPOSE: This bill would require that the state  will  pay  one  hundred
percent of the non-federal share of costs for Medicaid services that are
not required to be provided under federal law.

SUMMARY  OF PROVISIONS:  Section 1: Adds a new paragraph (z) to subdivi-
sion 1 of section 368-a of the  Social  Services  Law  to  provide  that
notwithstanding  any inconsistent law to the contrary, the Department of
Health shall pay one  hundred  percent  of  the  non-federal  share  for
medical services (Medicaid) required by state law but not required to be
provided by Federal Law.

Section 2: States the effective date.

JUSTIFICATION: New York is among a small minority of states that pass on
its share of Medicaid costs not paid by the federal government to county
governments. Escalating Medicaid costs are placing a great burden on the
financial  resources  of all counties in New York State and causing many
to raise taxes and cut other services.

The primary funding mechanisms for county governments, sales  taxes  and
real  property taxes, were never designed or expected to fund both local
              

services and a federal and state mandated medical services program.

At the Medicaid program has grown, with the active.  assistance  of  the
state  in  mandating almost every optional service that may be available
under the Federal Medicaid program, real property  values  and  economic
activity  have  remained stagnant throughout the state, and particularly
throughout the upstate region.

Westchester's property owners face the highest real property  tax  rates
in  the  country,  with  tax  rates going higher every year. At the same
time, wages and job opportunities continue to disappear.

The burden of federally mandated services is difficult enough for  coun-
ties to bear, and it is important to note that New York is one of only a
handful  of  states  that  requires  local government pay any portion of
Medicaid costs.

If the state wishes to provide an optional service, it is time  for  the
state to pay for that service.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL  IMPLICATIONS:  Unclear. The State will now be forced to act in a
responsible manner with respect to escalating Medicaid costs.

EFFECTIVE DATE: This act shall take effect immediately.