Senate Bill S5040

                                 BILL NUMBER:  S5040

 TITLE OF BILL :  An act to amend the social services law, in relation
to medicaid reimbursement of private duty nursing services and care

 PURPOSE OR GENERAL IDEA OF BILL : To increase Medicaid beneficiaries/
access to quality health care services by increasing Medicaid fees for
private duty nursing services.

 SUMMARY OF SPECIFIC PROVISIONS : Section one of this bill would add a
new Section 365-k to the Social Services Law governing reimbursement
of private duty nursing services. The bill would allocate $15 million
in State Fiscal Year (SFY) 2009-2010 to increase reimbursement under
the Medicaid program for private duty nursing services for the period
July 1, 2009 to March 31, 2010. The bill would allocate $20 million
for such reimbursement on annual fiscal year basis thereafter.

 JUSTIFICATION : The State is currently experiencing a very serious
shortage in private duty nursing. This shortage is due to a variety of
factors including the lowest unemployment rate in over a decade, and
rates of reimbursement in both the commercial and government sectors
that have not kept pace with market demands. In some areas of the
State, the Medicaid rates for private duty nursing have not changed in
over a decade.

The nursing shortage is making it difficult to recruit and retain
              

qualified nurses, particularly in specialty areas such as nursing care
for medically and technologically dependent children and adults.  This
bill would provide the resources necessary to assist in recruiting and
retaining qualified nursing care for the State's most vulnerable
population - - Medicaid beneficiaries. In addition to easing the
workforce shortage in nursing and increasing access to quality care,
the bill would provide badly needed respite to family members who are
struggling to care for medically complex children and adults. The bill
will reduce Medicaid costs over the long term by reducing unnecessary
hospitalization that are the result of a lack of access to community
care.

 PRIOR LEGISLATIVE HISTORY :
Senate:
2007-08: S124A - referred to Social Services
2005-06: S175A - referred to Social Services
2003-04: S832A - referred to Social Services
2001-02: S1732 - referred to Social Services
1999-2000: S7353 - referred to Social Services

Assembly:    2007-2008 A.2290-A, referred to Social Services, reported
to Ways &  Means  2005-2006  A.1182-A,  referred  to  Social  Services
2003-2004  A.1558  referred to Social Services 2001-2002 A.78 referred
to Social Services  1999-2000  A.9932  referred  to  Social  Services,
reported to Ways & Means.

 FISCAL  IMPLICATIONS :  This  bill  will increase the Status share of
Medicaid costs by an estimated $15 million in SFY 2009-2010.  However,
the  bill  will  likely  decrease  Medicaid  costs  over the long term
through  the  provision  of  more  timely  care  and  a  decrease   in
institutional costs.

 EFFECTIVE DATE : July 1, 2009.