Senate Bill S763A

                                 BILL NUMBER:  S763

 TITLE OF BILL :

An act to amend the social services law, in relation to additional
state payments to aged, blind and disabled and personal allowance
accounts for individuals receiving enhanced residential care

 PURPOSE OR GENERAL IDEA OF BILL :

This bill would increase the state share of supplemental security
benefits and the personal needs allowances for low-income individuals
residing in adult care facilities.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends Social Services Law section 209(2) to: (1) increase
the state share of supplemental security income (SSI) benefits by $174
per month beginning in April 1, 2017; and (2) provide for an annual
cost of living adjustment (COLA) to the state share of SSI benefits by
the same percentage, if any, of any federal COLA in that year.

Section 2 amends Social Services Law section 131-o to increase the
personal needs allowance for low-income individuals residing in adult
care facilities by $24 per month beginning April 1, 2017.

              

Section 3 provides for an immediate effective date.

 EXISTING LAW :

Social Services Law section 209 currently provides for a total SSI
benefit of $1,427 per month to low-income individuals residing in
adult care facilities. Social Services Law section 131-o currently
provides for a personal needs allowance of $193 per month for such
individuals.

The personal needs allowance of $193 per month is deducted from the
$1,427 per month SSI benefit and set aside for resident to use on
personal needs, leaving approximately $1,234 per month - or
approximately $41 per day - to be paid to the adult care facility for
housing and a wide array of care and services.

 JUSTIFICATION :

Currently, adult care facilities (ACFs) are paid only $41 per day to
provide housing and a wide array of care and services to SSI
residents, including three meals per day, housekeeping, activities,
supervision, case management, medication assistance and hands-on
personal care.

The last time the State increased its share of the SSI rate was in
2007, and the last increase before that was 17 years earlier. With one
rate increase in 2 decades - and no State COLA - the SSI rate has
fallen far behind the costs of providing housing, care and services.
As a result, many ACFs that cater solely to this low-income SSI
population have been forced to close their doors in recent years and
move their residents out of their homes.

When a facility closes, a number of the SSI residents end up moving to
a higher level of care at a far greater cost to the State. For
example, for every displaced SSI resident who ends up in a nursing
home, the daily cost of housing and caring for the State increases
dramatically from $41/day to approximately $150/day to 250/day in a
nursing home under Medicaid. When one facility in Upstate recently
closed in December 2014, 8 of the remaining 14 SSI residents moved
into higher levels of care.
A modest increase in the State share of the SSI rate - together with
an annual State COLA - will help ACFs to continue providing quality
care and services to SSI recipients and help avoid future facility
closures.

 PRIOR LEGISLATIVE HISTORY :

2015-16: S.5151-A Reported to Finance;
A.7393-B Referred to Social Services

 FISCAL IMPLICATIONS :

No fiscal impact in State fiscal year 2016-17.  Beginning in State
fiscal year 2017-18, the estimated fiscal impact is approximately $25
to $30 million per year (depending on the amount of the annual COLA),
which will be offset each year by Medicaid savings due to avoided
nursing home placements.

 EFFECTIVE DATE :
This act shall take effect immediately, but the rate increases
provided therein will first occur on April 1, 2017.