senate Bill S133

2013-2014 Legislative Session

Enacts the New York state community health care investment fund act

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to finance
Jan 09, 2013 referred to finance

S133 - Bill Details

Current Committee:
Senate Finance
Law Section:
State Finance Law
Laws Affected:
Add §§99-u & 99-v, St Fin L; add §23, Pub Health L; add §44, Lab L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1548
2009-2010: S86

S133 - Bill Texts

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Enacts the New York state community health care investment fund act; creates two new funds in the state finance law to be known as the New York state community health care investment fund and the New York state health care entrepreneurial stimulus fund; establishes the New York state community health care investment fund council consisting of 13 members to oversee the New York state health care community investment funds, establish the RFP process, award grants and issue an annual report.

view sponsor memo
BILL NUMBER:S133

TITLE OF BILL:
An act
to amend the state finance law, the public health law and the labor law,
in relation to enacting the "New York state community health care
investment fund act"

PURPOSE:
This bill enacts the New York State Community Health Care Investment
Fund Act. It creates the New York State Community Health Care
Investment Fund and the New York State Community Health Care
Entrepreneurial Stimulus Fund. These funds will provide grants to
projects that seek to address health care disparities and will
provide grants to new individual entrepreneurs to assist with their
first-year costs of participating in health insurance programs. This
includes, but is not limited to, the Healthy New York and Family
Health Plus Programs.

SUMMARY OF PROVISIONS:
Section 1 Short Title

Section 2 Legislative Intent

Section 3 Amends the State Finance Law by adding two sections 99u the
New York State Community Health Care Investment Fund and 99v the New
York State Health Care Entrepreneurial Stimulus Fund.

Section 4 Provides that any health maintenance organization certified
under Article 44 of the Public Health Law or licensed pursuant to the
state Insurance Law shall be required to deposit moneys into the New
York State Community Health Care Investment Fund, Exempts
not-for-profit health maintenance organizations from the requirement
to contribute to the fund.
Also establishes the amounts to be deposited into each fund.

Section 5 Establishes the New York State Community Health Care
Investment Fund Council consisting of 13 members.

Section 6 Amends the Public Health Law to establish the New York State
Community Health Care Investment Grant Program.

Section 7 Amends the Labor Law to establish the New York State
Entrepreneurial Stimulus Investment Grant Program.

Section 8 Effective Date

JUSTIFICATION:
The provision of health care in New York must be affordable,
accessible and address the multifaceted needs of its diverse
population, from preconception planning through the end of life.
The Legislature also finds that many constituencies play an important
role in the State's health care infrastructure: consumers, health
care professionals, communities of faith, state and local
governments, businesses, insurance companies, community based


organizations, home care agencies, school based health clinics,
nursing homes and hospitals.

Health care in New York State also faces many challenges. Our State is
home to many world-class medical institutions and research centers.
According to the United Health Foundation 2006 "America's Health
Rankings" New York has the 4th highest per capita spending on public
health in the nation, a low rate of motor vehicle deaths and a low
rate of cancer deaths. However, the health care challenges in New
York State include a high incidence of infectious disease, limited
access to prenatal care and a low high school graduation rate. Twenty
percent of the State's children under the age of 18 live in poverty.
Furthermore, the state's overall rank among the rest of the country
decreased from 26th place in 2005 to 29th in 2006. Despite high per
capita spending on health ($316 per person) almost three million of
its residents do not have health insurance Not surprisingly, health
disparities persist in low-income cities and neighborhoods where
racial and ethnic minorities comprise a majority of the population.
According to a report released in 2004 by the New York City
Department of Health and Mental Health, "more than 4,000 deaths would
be prevented if the all-cause mortality rate in the poorest
neighborhoods were lowered to the rate in
the wealthiest neighborhoods.

Against this backdrop of high public health spending, significant
health care disparities experienced by ethnic and racial minorities
and approximately three million uninsured people in New York State,
HMO profits in New York State have soared in recent years while costs
for Members have risen and reimbursement for health care providers
has fallen. Premium increases statewide have increased about 20% and
revenues have risen from $14.5 billion in 2001 to $17.4 billion in
2005. In fact, premium rate increases outpaced medical payments from
2001-2005 by over $1 billion as New York's HMOs' profits climbed 93%
from $672 million to $1.3 billion HMOs' administrative and claims
adjustment costs went up by 24% from 2001-2005 and average
revenue per member increased an average of 8.6% annually. During the
same period, enrollments declined 14%, provider reimbursements
trended downward from 85.3% of every dollar to 81.7% and
out-of-pocket-costs for Members increased by 7.7%.

The Legislature additionally finds that HMOs that conduct business in
New York State have a responsibility toward improving the health
status of the residents of this State and should assist in providing
revenue to support critical community health and economic development
needs.

PRIOR LEGISLATIVE HISTORY:
S.4795A of 2007
04/23/07 Referred to Finance
S.1548 of 2011
01/10/11 Referred to Finance

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Unknown.

EFFECTIVE DATE:
This act shall take effect immediately


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

                                   133

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT to amend the state finance law, the public  health  law  and  the
  labor  law,  in  relation  to  enacting  the "New York state community
  health care investment fund act"

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York state community health care investment fund act".
  S 2. Legislative intent. The  legislature  hereby  declares  that  the
provision  of health care in New York state must be affordable, accessi-
ble, and address the multi-faceted needs of its diverse population, from
pre-conception planning through the end of life.  The  legislature  also
finds  that  many  constituencies  play an important role in the state's
health care  infrastructure:    consumers,  health  care  professionals,
communities of faith, state and local governments, businesses, insurance
companies,  community  based  organizations,  home care agencies, school
based health clinics, nursing homes, and hospitals.
  Health care in New York state also faces  many  challenges.  New  York
state  is home to world class medical institutions and research centers.
According to the United Health Foundation 2006 America Health  Rankings,
New  York state has the 4th highest per capita spending on public health
in the nation, a low rate of motor vehicle deaths  and  a  low  rate  of
cancer  deaths.  The  health care challenges in New York state include a
high incidence of infectious disease, limited access to adequate  prena-
tal  care,  and a low high school graduation rate. Twenty percent of the
state's children under 18 years of age live in poverty. Furthermore, the
state's overall rank among the rest of  the  country  decreased  between
2005  and 2006, from 26th place to 29th place. Despite a high per capita
spending on health ($316 per person) almost three million of  its  resi-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01275-01-3

S. 133                              2

dents do not have health insurance. Not surprisingly, health disparities
persist  in  low-income  cities  and  neighborhoods and where racial and
ethnic minorities comprise a majority of the population. According to  a
report  released  in 2004 by the New York city departments of health and
mental health, "more than 4,000 deaths would be prevented  if  the  all-
cause  mortality  rate  in the poorest neighborhoods were lowered to the
rate in the wealthiest neighborhoods."
  Against this backdrop of  high  public  health  spending,  significant
health  care disparities experienced by ethnic and racial minorities and
approximately three million uninsured people  in  New  York  state,  HMO
profits  in  New  York state have soared in recent years while costs for
members have risen and reimbursement for health care providers has fall-
en. Premium increases statewide have increased  about  20  percent,  and
revenues have risen from $14.5 billion in 2001 to $17.4 billion in 2005.
In  fact,  premium rate increases outpaced medical payments from 2001 to
2005 by over $1 billion as New York's HMOs' profits climbed 93  percent,
from  $672  million  to  $1.3  billion.  HMOs' administrative and claims
adjustment costs went up by 24 percent from 2001 to  2005,  and  average
revenue  per member increased an average of 8.6 percent annually. During
the same period, enrollments declined 14  percent,  provider  reimburse-
ments  trended  downward  from  85.3  percent  of  every  dollar to 81.7
percent, and out of pocket costs for members increased by 7.7 percent.
  The legislature additionally finds that HMOs that conduct business  in
New  York state have a responsibility toward improving the health status
of the residents of this state and should assist in providing revenue to
support critical community health and economic development needs.
  Definitions.  For the purposes of this act, the following terms  shall
have the following meanings:
  1.  New  York  state stimulus health care investment fund and New York
state health care entrepreneurial  stimulus  fund  refer  to  the  funds
established pursuant to section three of this act.
  2. New York state community health care investment fund council refers
to the council established pursuant to section five of this act.
  3.  New York state community health care investment fund grant program
refers to the grant program established pursuant to section six of  this
act.
  4.  New  York  state entrepreneurial stimulus investment grant program
refers to the program established pursuant to section seven of this act.
  S 3. The state finance law is amended by adding two new sections  99-u
and 99-v to read as follows:
  S  99-U.  NEW  YORK  STATE  COMMUNITY HEALTH CARE INVESTMENT FUND.  1.
THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER  AND
THE  COMMISSIONER  OF  HEALTH  A  FUND TO BE KNOWN AS THE NEW YORK STATE
COMMUNITY HEALTH CARE INVESTMENT FUND.
  2. SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE  PURPOSE
OF  SUCH  FUND,  ALL  OTHER  MONEYS CREDITED OR TRANSFERRED TO SUCH FUND
PURSUANT TO LAW, ALL MONEYS REQUIRED BY THE PROVISIONS OF  THIS  SECTION
OR  ANY  OTHER  LAW  TO  BE  PAID INTO OR CREDITED TO SUCH FUND, AND ALL
MONEYS RECEIVED BY THE FUND OR DONATED TO IT.
  3. MONEYS OF SUCH FUND SHALL BE AVAILABLE FOR APPROPRIATION AND  ALLO-
CATION  TO  THE  DEPARTMENT  OF HEALTH FOR PURPOSES OF DISTRIBUTING SUCH
MONEYS TO QUALIFIED ENTITIES OF THE NEW YORK STATE COMMUNITY HEALTH CARE
INVESTMENT FUND GRANT PROGRAM. FUNDS COLLECTED PURSUANT TO SECTION TWEN-
TY-THREE OF THE PUBLIC HEALTH LAW SHALL BE USED FOR ONE OR MORE  OF  THE
FOLLOWING:

S. 133                              3

  (A)  PROJECTS  THAT ADDRESS THE SIX CLINICAL INDICATORS AS ESTABLISHED
BY THE FEDERAL CENTER FOR DISEASE CONTROL'S  GOAL  TO  ELIMINATE  HEALTH
DISPARITIES:  INFANT MORTALITY; CANCER SCREENING AND MANAGEMENT; CARDIO-
VASCULAR DISEASE; DIABETES; HIV INFECTION/AIDS; AND IMMUNIZATIONS.
  (B)  PROJECTS  THAT IMPROVE THE CULTURAL COMPETENCE OF THE HEALTH CARE
WORKFORCE.
  (C) PROJECTS THAT COLLECT  DATA  REGARDING  (I)  ETHNIC  AND  MINORITY
REPRESENTATION  IN  THE  NEW  YORK  STATE HEALTH CARE WORKFORCE AND (II)
ETHNIC AND RACIAL MINORITIES SERVED IN HOSPITALS AND NURSING HOMES.
  (D) PROJECTS THAT CONDUCT SURVEYS ON RACIAL AND ETHNIC HEALTH DISPARI-
TIES.
  (E) SCHOLARSHIPS TO RECRUIT AND TRAIN RACIAL AND ETHNIC MINORITIES  IN
THE HEALTH CARE PROFESSIONS.
  (F) PROJECTS THAT ADDRESS UNMET HEALTH CARE NEEDS IN RURAL AREAS.
  4.  MONEYS  SHALL  BE  PAID  OUT ON THE AUDIT AND WARRANT OF THE COMP-
TROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER OF HEALTH.
  S 99-V. NEW YORK STATE HEALTH CARE ENTREPRENEURIAL STIMULUS FUND.   1.
THERE  IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND
THE COMMISSIONER OF LABOR A FUND TO BE  KNOWN  AS  THE  NEW  YORK  STATE
HEALTH CARE ENTREPRENEURIAL STIMULUS FUND.
  2.  SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE
OF SUCH FUND, ALL OTHER MONEYS CREDITED  OR  TRANSFERRED  TO  SUCH  FUND
PURSUANT  TO  LAW, ALL MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION
OR ANY OTHER LAW TO BE PAID INTO OR  CREDITED  TO  SUCH  FUND,  AND  ALL
MONEYS RECEIVED BY THE FUND OR DONATED TO IT.
  3.  MONEYS OF SUCH FUND SHALL BE AVAILABLE FOR APPROPRIATION AND ALLO-
CATION TO THE DEPARTMENT OF LABOR  FOR  PURPOSES  OF  DISTRIBUTING  SUCH
MONEYS  TO QUALIFIED PERSONS OR ENTITIES OF THE NEW YORK STATE ENTREPRE-
NEURIAL STIMULUS INVESTMENT GRANT PROGRAM. FUNDS COLLECTED  PURSUANT  TO
SECTION FORTY-FOUR OF THE LABOR LAW SHALL BE USED FOR ONE OR MORE OF THE
FOLLOWING:
  GRANTS  TO  NEW  INDIVIDUAL  ENTREPRENEURS IN THE STATE AND TO PERSONS
QUALIFYING FOR UNEMPLOYMENT INSURANCE IN THE STATE, TO ASSIST WITH THEIR
FIRST-YEAR COSTS OF PURCHASING  HEALTH  INSURANCE,  INCLUDING,  BUT  NOT
LIMITED  TO, PARTICIPATION IN THE HEALTHY NEW YORK OR FAMILY HEALTH PLUS
PROGRAMS, ESTABLISHED PURSUANT TO SECTIONS FOUR THOUSAND  THREE  HUNDRED
TWENTY-SIX AND FOUR THOUSAND THREE HUNDRED TWENTY-SEVEN OF THE INSURANCE
LAW.
  4.  MONEYS  SHALL  BE  PAID  OUT ON THE AUDIT AND WARRANT OF THE COMP-
TROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER OF LABOR.
  S 4. Any health  maintenance  organization,  company  or  corporation,
certified under article 44 of the public health law or licensed pursuant
to the insurance law shall be subject to the following provisions:
  1.  On  or  before  each  April first, the superintendent of insurance
shall collect from the entities covered by this section all  moneys  for
deposit  into  the  New York state community health care investment fund
and the New York state health care entrepreneurial stimulus fund.
  2. The total amount paid by all entities covered by this section shall
equal:
  a. in 2014 the sum of $35,000,000 for deposit into the New York  state
community  health  care  investment  fund and the sum of $35,000,000 for
deposit into the New York state  health  care  entrepreneurial  stimulus
fund;
  b. beginning in 2015, and each year thereafter, the total amount to be
collected  for  deposit  into  the  New York state community health care
investment fund shall equal the total of the prior  year  deposits  into

S. 133                              4

the  New  York state community health care investment fund multiplied by
the sum of one plus any positive percent  change  in  the  total  annual
profits of all companies and corporations covered by this section;
  c. beginning in 2015, and each year thereafter, the total amount to be
collected for deposit into the New York state health care entrepreneuri-
al  stimulus  fund shall equal the total of the prior year deposits into
the New York state health care entrepreneurial stimulus fund  multiplied
by  the  sum of one plus any positive percent change in the total annual
profits of all companies and corporations covered by this section;
  3. The amount paid by each company  or  corporation  covered  by  this
section  shall equal their net income divided by the total net income of
all companies and corporations covered by this section, rounded to  four
decimal  places,  multiplied  by the total amount calculated pursuant to
paragraphs a, b and c of subdivision two of this section.
  4. For any company or corporation with a net income of less than zero,
their amount shall be calculated based on their net income in  the  last
year  that  it  was  greater  than zero. The superintendent of financial
services shall have the authority to grant  waivers  from  this  section
when  deemed  necessary  to  prevent  an  undue burden, provided that no
company or corporation may receive a full or partial waiver in  any  two
successive years.
  5.  Every  not-for-profit  health  maintenance  organization  shall be
excluded from the provisions of this section.
  S 5. The New York state community health care investment fund council.
1. There is hereby established the New York state community health  care
investment  fund  council  consisting of 13 members. The purpose of such
council is to oversee the New York state health care  community  invest-
ment  funds, establish the RFP process, award grants and issue an annual
report. The members of such council  shall  consist  of  representatives
from the insurance industry, health care institutions and providers, and
consumer  and  advocacy  groups.  The  members  of  the council shall be
appointed in the following manner:  six  state  agency  heads  or  their
representatives:  one from the department of health; one from the office
for the aging; one from the office of mental health; one from the office
for people with developmental disabilities; one from the office of alco-
holism and substance abuse services; one from the office of children and
family services; and three members by the governor and one by the speak-
er of the assembly, one by the temporary president of the senate; one by
the minority leader of the assembly; and one by the minority  leader  of
the senate.
  2.  The  New  York state community health care investment fund council
shall issue an annual report to the governor and legislature. Such annu-
al report shall include, but not  be  limited  to,  the  following:  the
dollar amount of HMO investments; the amount of award money granted; the
names  of  the  groups awarded grants; and a description of the projects
for which the grants were awarded.
  3. No member shall receive any compensation for his or  her  services,
but shall be reimbursed for their actual and necessary expenses, includ-
ing travel expenses, incurred in the performance of their duties.
  S  6.  The  public health law is amended by adding a new section 23 to
read as follows:
  S 23. NEW YORK STATE  COMMUNITY  HEALTH  CARE  INVESTMENT  FUND  GRANT
PROGRAM.  THE  COMMISSIONER SHALL ESTABLISH THE NEW YORK STATE COMMUNITY
HEALTH CARE INVESTMENT FUND GRANT PROGRAM WHICH SHALL INCLUDE,  BUT  NOT
BE LIMITED TO THE FOLLOWING:

S. 133                              5

  1. PROJECTS THAT ADDRESS THE SIX CLINICAL INDICATORS AS ESTABLISHED BY
THE  FEDERAL  CENTER  FOR  DISEASE  CONTROL'S  GOAL  TO ELIMINATE HEALTH
DISPARITIES: INFANT MORTALITY; CANCER SCREENING AND MANAGEMENT;  CARDIO-
VASCULAR DISEASE; DIABETES; HIV INFECTION/AIDS; AND IMMUNIZATIONS;
  2.  PROJECTS  THAT  IMPROVE THE CULTURAL COMPETENCE OF THE HEALTH CARE
WORKFORCE;
  3. PROJECTS THAT COLLECT DATA REGARDING ETHNIC AND MINORITY  REPRESEN-
TATION IN THE NEW YORK STATE HEALTH CARE WORKFORCE AND ETHNIC AND RACIAL
MINORITIES SERVED IN HOSPITALS AND NURSING HOMES;
  4.  PROJECTS THAT CONDUCT SURVEYS ON RACIAL AND ETHNIC HEALTH DISPARI-
TIES;
  5. SCHOLARSHIPS TO RECRUIT AND TRAIN RACIAL AND ETHNIC  MINORITIES  IN
THE HEALTH CARE PROFESSIONS; AND
  6. PROJECTS THAT ADDRESS UNMET HEALTH CARE NEEDS IN RURAL AREAS.
  S  7.  The  labor law is amended by adding a new section 44 to read as
follows:
  S  44.  NEW  YORK  STATE  ENTREPRENEURIAL  STIMULUS  INVESTMENT  GRANT
PROGRAM.    1.  THE COMMISSIONER SHALL ESTABLISH WITHIN THE DEPARTMENT A
NEW YORK STATE ENTREPRENEURIAL STIMULUS INVESTMENT  GRANT  PROGRAM.  THE
PURPOSE  OF  THE  PROGRAM  IS  TO  ENCOURAGE STATE RESIDENTS TO DIRECTLY
PARTICIPATE IN THE ECONOMY OF THE STATE  BY  ESTABLISHING  NEW  BUSINESS
ENTERPRISES.
  2.  THE COMMISSIONER SHALL ESTABLISH RULES AND REGULATIONS FOR IDENTI-
FYING  QUALIFYING  INDIVIDUALS,  PROCEDURES  FOR  OUTREACH,   CERTIFYING
PROGRAM  PARTICIPATION,  AND  FOR THE APPLICATION AND AWARDING OF GRANTS
FROM THE NEW YORK STATE ENTREPRENEURIAL STIMULUS FUND.
  S 8. This act shall take effect immediately.

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