S T A T E O F N E W Y O R K
________________________________________________________________________
1137
2021-2022 Regular Sessions
I N A S S E M B L Y
January 7, 2021
___________
Introduced by M. of A. BUTTENSCHON, WILLIAMS, CRUZ, DICKENS, DARLING --
Multi-Sponsored by -- M. of A. SAYEGH -- read once and referred to the
Committee on Health
AN ACT to amend the public health law, the insurance law and the public
authorities law, in relation to payments to home care services provid-
ers and authorizing the commissioner of health to establish a program
to provide loans, through the dormitory authority, to home care to
finance health care reform efforts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 4406-c of the public health law is amended by
adding a new subdivision 11 to read as follows:
11. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, CONTRACTS WITH
CERTIFIED HOME HEALTH AGENCIES, LONG TERM HOME HEALTH CARE PROGRAMS,
LICENSED HOME CARE SERVICES PROGRAMS OR FISCAL INTERMEDIARIES OPERATING
PURSUANT TO SECTION THREE HUNDRED SIXTY-FIVE-F OF THE SOCIAL SERVICES
LAW TO PROVIDE HOME CARE AIDE SERVICES AS DEFINED IN SECTION THIRTY-SIX
HUNDRED FOURTEEN-C OF THIS CHAPTER, OR CONSUMER DIRECTED PERSONAL
ASSISTANCE SERVICES AS AUTHORIZED PURSUANT TO SECTION THREE HUNDRED
SIXTY-FIVE-F OF THE SOCIAL SERVICES LAW SHALL AT A MINIMUM ENSURE THAT
THE RESOURCES MADE AVAILABLE BY SUCH CONTRACTS SHALL SUPPORT COMPEN-
SATION FOR PERSONS PROVIDING SUCH HOME CARE AIDE SERVICES AND CONSUMER
DIRECTED PERSONAL ASSISTANCE SERVICES TO ENSURE THE RETENTION OF A QUAL-
IFIED WORKFORCE CAPABLE OF PROVIDING HIGH QUALITY CARE TO RECIPIENTS OF
SUCH SERVICES CONSISTENT WITH THE PROVISIONS OF SUCH SECTION.
§ 2. Subsection (a) of section 3224-a of the insurance law, as amended
by chapter 237 of the laws of 2009, is amended to read as follows:
(a) Except in a case where the obligation of an insurer or an organ-
ization or corporation licensed or certified pursuant to article forty-
three or forty-seven of this chapter or article forty-four of the public
health law to pay a claim submitted by a policyholder or person covered
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00634-01-1
A. 1137 2
under such policy ("covered person") or make a payment to a health care
provider is not reasonably clear, or when there is a reasonable basis
supported by specific information available for review by the super-
intendent that such claim or bill for health care services rendered was
submitted fraudulently, such insurer or organization or corporation
shall pay the claim to a policyholder or covered person or make a
payment to a health care provider within thirty days of receipt of a
claim or bill for services rendered that is transmitted via the internet
or electronic mail, or forty-five days of receipt of a claim or bill for
services rendered that is submitted by other means, such as paper or
facsimile. PROVIDED, HOWEVER, ANY PAYMENT FOR SERVICES TO HEALTH CARE
PROVIDERS LICENSED UNDER ARTICLE THIRTY-SIX OF THE PUBLIC HEALTH LAW OR
FISCAL INTERMEDIARIES OPERATING PURSUANT TO SECTION THREE HUNDRED
SIXTY-FIVE-F OF THE SOCIAL SERVICES LAW SHALL BE PAID WITHIN FIFTEEN
DAYS OF THE RECEIPT OF A CLAIM OR A BILL FOR SERVICES RENDERED DURING
THE TRANSITION PERIOD FROM FEE FOR SERVICE TO MEDICAID MANAGED LONG TERM
CARE CONSISTENT WITH THE STATE MEDICAID PLAN FOR SUCH HEALTH CARE
PROVIDERS AND FOR THE TWELVE MONTH PERIOD BEYOND THE FINAL TRANSITION OF
MEDICAID BENEFICIARIES IN THAT COUNTY. IN ADDITION, PAYMENTS FOR ANY
DISPUTED CLAIM OR BILL FOR SERVICES SHALL BE PAID TO SUCH HEALTH CARE
PROVIDERS BY AN INSURER OR AN ORGANIZATION OR CORPORATION LICENSED OR
CERTIFIED PURSUANT TO ARTICLE FORTY-THREE OR FORTY-SEVEN OF THIS CHAPTER
OR ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW WITHIN TWENTY DAYS OF THE
RECEIPT OF A CLAIM OR A BILL FOR SERVICES; PROVIDED THAT AT THE OPTION
OF SUCH INSURER OR ORGANIZATION OR CORPORATION LICENSED OR CERTIFIED
PURSUANT TO ARTICLE FORTY-THREE OR FORTY-SEVEN OF THIS CHAPTER OR ARTI-
CLE FORTY-FOUR OF THE PUBLIC HEALTH LAW, SUCH CLAIM OR BILL FOR SERVICES
SHALL SUBSEQUENTLY BE SUBJECT TO ARBITRATION PURSUANT TO ARTICLE SEVEN-
TY-FIVE OF THE CIVIL PRACTICE LAW AND RULES.
§ 3. Section 2801-a of the public health law is amended by adding a
new subdivision 17 to read as follows:
17. (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A PROGRAM TO
ASSIST IN RESTRUCTURING LONG TERM HOME HEALTH CARE DELIVERY SYSTEMS BY
PROVIDING CREDIT ENHANCEMENT TO HEALTH CARE PROVIDERS LICENSED PURSUANT
TO ARTICLE THIRTY-SIX OF THIS CHAPTER THAT LACK THE CREDIT RESOURCES
NECESSARY TO TRANSITION FROM FEE FOR SERVICE TO MANAGED LONG TERM CARE
CONSISTENT WITH THE GOALS OF THE STATE'S MEDICAID PROGRAM MULTI-YEAR
ACTION AS ADOPTED BY THE MEDICAID REDESIGN TEAM. THE PROGRAM SHALL APPLY
TO HEALTH CARE PROVIDERS WHO CAN DEMONSTRATE FINANCIAL NEED AND ADVANCE
THE STATE'S HEALTH REFORM AGENDA OF BETTER CARE, BETTER HEALTH FOR POPU-
LATIONS, LOWER COSTS, AND TRANSITIONING THE STATE'S LONG TERM CARE
SYSTEM.
(B) APPLICANTS MUST COMMIT THAT THE USES OF THE CREDIT-ENHANCED LOANS
WILL PROMOTE AGREED UPON GOALS OF TRANSITIONING THE LONG TERM HOME
HEALTH CARE DELIVERY SYSTEMS. APPLICANTS SHALL SUBMIT A COMPREHENSIVE
PROGRAM AND BUSINESS PLAN, AND SUCH PLAN MUST PROMOTE AGREED OBJECTIVES
OF TRANSITION. LOAN DOCUMENTS SHALL CONTAIN HEALTH REFORM COVENANTS,
MILESTONE DATES AND STATISTICAL TARGETS TO BE ATTAINED BY THE BORROWER.
THE APPLICATION MUST ADDRESS HOW THE APPLICANT WILL UNDERTAKE THE
IMPROVEMENTS IN FORMAL OR INFORMAL COOPERATION WITH OTHER HEALTH CARE
PROVIDERS IN THE REGION. TO THE EXTENT REQUIRED TO PROVIDE LEGAL
PROTECTION FOR SUCH COOPERATIVE ENDEAVORS, THE COMMISSIONER SHALL EXER-
CISE ALL NECESSARY POWERS PURSUANT TO ARTICLE TWENTY-NINE-F OF THIS
CHAPTER AND ANY FEES ASSOCIATED WITH SUCH OVERSIGHT MAY BE INCLUDED IN
THE PROJECT FINANCING COSTS.
A. 1137 3
(C) THE CREDIT ENHANCEMENT PROGRAM SHALL BE ADMINISTERED BY THE DORMI-
TORY AUTHORITY, OR A NOT-FOR-PROFIT CORPORATION DESIGNATED BY THE DORMI-
TORY AUTHORITY. THE COMMISSIONER SHALL CHAIR THE CREDIT ENHANCEMENT
APPLICATION AND APPROVAL COMMITTEE. THE COMMISSIONER SHALL DESIGNATE
THREE OR MORE MEMBERS OF THE MEDICAID REDESIGN TEAM AS ADDITIONAL
MEMBERS OF THE CREDIT ENHANCEMENT APPLICATION AND APPROVAL COMMITTEE.
THE CHAIR OF THE DORMITORY AUTHORITY SHALL ALSO SERVE AS A MEMBER OF THE
COMMITTEE, AND SHALL DETERMINE ALL RULES FOR REVIEWING AND APPROVING
APPLICATIONS, AND ADMINISTERING APPROVED CREDIT ENHANCEMENTS. NOTWITH-
STANDING ANY OTHER LAW, NO PERSON SERVING AS A MEMBER OF THE CREDIT
ENHANCEMENT APPLICATION AND APPROVAL COMMITTEE SHALL HAVE ANY PERSONAL
LIABILITY, OR INCUR LIABILITY FOR THEIR EMPLOYER, BY VIRTUE OF THEIR
ROLE OR VOTE IN THE CREDIT ENHANCEMENT APPLICATION AND APPROVAL PROCESS.
(D) A DEBT SERVICE RESERVE FUND MAY BE CREATED TO FACILITATE THE CRED-
IT ENHANCEMENT.
(E)(I) IN THE EVENT OF A DEFAULT BY A BORROWER TO A LENDER, THE AMOUNT
OF THE DEFAULTED PAYMENT SHALL BE PAID BY THE COMMISSIONER TO THE LEND-
ER. TO FINANCE THE COMMISSIONER'S REMITTANCE OF THOSE DEFAULTED
PAYMENTS, THE COMMISSIONER SHALL FIRST DRAW UPON FUNDS ALLOCATED FOR
SUCH POTENTIAL DEFAULTS, INCLUDING BUT NOT LIMITED TO FUNDS MADE AVAIL-
ABLE FOR THAT PURPOSE PURSUANT TO THE STATE'S AUGUST SIXTH, TWO THOUSAND
TWELVE SECTION 1115 PARTNERSHIP PLAN WAIVER APPLICATION AND ADDITIONAL
FEDERAL FUNDS MADE AVAILABLE THROUGH IMPLEMENTATION OF THE FEDERAL
AFFORDABLE CARE ACT (HEALTH REFORM).
(II) ALL PAYMENTS OF DEFAULTED AMOUNTS SHALL BE MADE SOLELY FROM THE
ALLOCATED FUNDS AND AS SUCH AMOUNTS ARE ACTUALLY COLLECTED AND MADE
AVAILABLE TO THE COMMISSIONER FOR REMITTANCE TO LENDERS PURSUANT TO
SUBPARAGRAPH (I) OF THIS PARAGRAPH. NEITHER THE STATE, THE COMMISSIONER,
THE DEPARTMENT, THE DORMITORY AUTHORITY, NOR ANY OTHER INSTRUMENTALITY
OF THE STATE, SHALL BE LEGALLY RESPONSIBLE FOR PAYMENT OF THE DEFAULTED
AMOUNTS, OTHER THAN PURSUANT TO THE PROCESS AND FINANCIAL RESOURCES
DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH. NO ASSETS OR RESOURCES
OF THE STATE SHALL BE PLEDGED, OR CONSIDERED TO BE PLEDGED OR OBLIGATED
IN ANY FORM, TO PAYMENT OF THE DEFAULTS, OTHER THAN PURSUANT TO THE
PROCESS AND FINANCIAL RESOURCES DESCRIBED IN SUBPARAGRAPH (I) OF THIS
PARAGRAPH, AS ACTUALLY COLLECTED AND MADE AVAILABLE TO THE COMMISSIONER
FOR THE PURPOSES OF PAYING DEFAULTED AMOUNTS PURSUANT TO SUBPARAGRAPH
(I) OF THIS PARAGRAPH.
§ 4. Paragraph (b) of subdivision 2 of section 1676 of the public
authorities law is amended by adding a new undesignated paragraph to
read as follows:
SUCH HEALTH CARE PROVIDERS LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF
THE PUBLIC HEALTH LAW AS ARE APPROVED FOR THE CREDIT ENHANCEMENT PROGRAM
PURSUANT TO SUBDIVISION SEVENTEEN OF SECTION TWENTY-EIGHT HUNDRED ONE-A
OF THE PUBLIC HEALTH LAW.
§ 5. Subdivision 1 of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
SUCH HEALTH CARE PROVIDERS LICENSED PURSUANT TO ARTICLE THIRTY-SIX OF
THE PUBLIC HEALTH LAW AS ARE APPROVED FOR THE CREDIT ENHANCEMENT PROGRAM
PURSUANT TO SUBDIVISION SEVENTEEN OF SECTION TWENTY-EIGHT HUNDRED ONE-A
OF THE PUBLIC HEALTH LAW.
§ 6. This act shall take effect immediately.