S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2412
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by  Sens.  BAILEY,  ADDABBO, CLEARE, HOYLMAN-SIGAL, KENNEDY,
   RIVERA, SALAZAR, SEPULVEDA, STAVISKY, THOMAS -- read twice and ordered
   printed, and when printed to be committed to the Committee on Health
 
 AN ACT to amend the social services law, in relation  to  transportation
   management brokers

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 4 of section 365-h of the social services  law,
 as amended by section 2 of part LL of chapter 56 of the laws of 2020, is
 amended to read as follows:
   4.  [(a)] The commissioner of health is authorized to assume responsi-
 bility from a local social  services  official  for  the  provision  and
 reimbursement of transportation costs under this section. If the commis-
 sioner  elects  to  assume  such  responsibility, the commissioner shall
 notify the local social services official in writing as to the election,
 the date upon which the election shall be effective and such information
 as to transition of responsibilities as the commissioner deems  prudent.
 The commissioner is authorized to contract with a transportation manager
 or  managers  to  manage  transportation  services  in  any local social
 services  district,  other  than  transportation  services  provided  or
 arranged  for  enrollees  of managed long term care plans issued certif-
 icates of authority under section  forty-four  hundred  three-f  of  the
 public  health  law.  Any transportation manager or managers selected by
 the commissioner to manage transportation  services  shall  have  proven
 experience  in  coordinating transportation services in a geographic and
 demographic area similar to the area in New York state within which  the
 contractor  would  manage  the provision of services under this section.
 Such a contract or contracts may  include  responsibility  for:  review,
 approval  and  processing  of  transportation  orders; management of the
 appropriate level of transportation based on documented patient  medical
 need; and development of new technologies leading to efficient transpor-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05652-01-3
              

 S. 2412                             2
 
 tation  services. If the commissioner elects to assume such responsibil-
 ity from a local social services district, the commissioner shall  exam-
 ine  and,  if  appropriate,  adopt  quality  assurance measures that may
 include,  but  are  not  limited  to, global positioning tracking system
 reporting requirements and service verification mechanisms. Any and  all
 reimbursement  rates  developed  by  transportation  managers under this
 subdivision shall be subject to the review and approval of  the  commis-
 sioner.
   [(b)(i) Subject to federal financial participation, for periods on and
 after April first, two thousand twenty-one, in order to more cost-effec-
 tively  provide  non-emergency  transportation to Medicaid beneficiaries
 who need access to  medical  care  and  services,  the  commissioner  is
 authorized  to  contract  with  one  or  more  transportation management
 brokers to manage such transportation on a statewide or regional  basis,
 as determined by the commissioner, in accordance with the federal social
 security act as follows:
   (A)  The transportation management broker or brokers shall be selected
 through a competitive bidding process based  on  an  evaluation  of  the
 broker's  experience, performance, references, resources, qualifications
 and costs; provided, however, that the  department's  selection  process
 shall  be memorialized in a procurement record as defined in section one
 hundred sixty-three of the state finance law;
   (B) The transportation management broker or brokers shall  have  over-
 sight  procedures  to monitor Medicaid beneficiary access and complaints
 and ensure that enrolled Medicaid transportation providers are licensed,
 qualified, competent and courteous.
   (C) The transportation management broker or brokers shall  be  subject
 to  regular  auditing and oversight by the department in order to ensure
 the quality of the transportation  services  provided  and  adequacy  of
 Medicaid beneficiary access to medical care and services.
   (D)  The transportation management broker or brokers shall comply with
 requirements related to  prohibitions  on  referrals  and  conflicts  of
 interest required by the federal social security act.
   (ii) The transportation management broker or brokers may be paid a per
 member  per month capitated fee or a combination of capitation and fixed
 cost reimbursement and the contract shall include, but  not  be  limited
 to, responsibility for:
   (A)  establishing  a network of high-quality Medicaid enrolled provid-
 ers; provided, however, that in developing such network the  transporta-
 tion  management  broker  shall  evaluate  the qualifications of current
 Medicaid transportation providers on a priority basis for  participation
 in  its  network, and leverage reputable transportation providers with a
 proven  record  of  serving  Medicaid  beneficiaries  with  high-quality
 services;
   (B)  continuing  outreach to Medicaid enrolled providers to assess and
 resolve service quality issues;
   (C) developing mandatory corrective actions for any Medicaid  enrolled
 provider that falls under quality performance standards;
   (D)  establishing a prior approval process which shall include verify-
 ing Medicaid eligibility and reviewing, approving and processing  trans-
 portation orders;
   (E)  managing  the  appropriate level of transportation based on docu-
 mented patient medical need to ensure that  Medicaid  beneficiaries  are
 using  the  most medically appropriate mode of transportation, including
 public transportation, which shall be maximized statewide, including  in
 rural  areas;  provided  that  when determining the appropriate level of
 S. 2412                             3

 transportation, the transportation management broker shall  ensure  that
 patients  have  reasonable  and  timely  access to medically appropriate
 transportation services;
   (F)  implementing  technologies to effectuate efficient transportation
 services, such as GPS, to improve match to mode of transportation;
   (G) establishing fees to reimburse  enrolled  Medicaid  transportation
 providers;
   (H)  adjudicating  and  paying  claims  submitted by enrolled Medicaid
 transportation providers;
   (I) reporting on performance encompassing all aspects of the transpor-
 tation program,  including  but  not  limited  to  Medicaid  beneficiary
 complaints  including the length of time to make a compliant, wait times
 related to the receipt of services by a recipient, and tracking  medical
 justifications to modes of transportation provided;
   (J)  collaborating  with Medicaid beneficiaries and consumer groups to
 identify and resolve issues to increase consumer satisfaction;
   (K) auditing cancellation data on a quarterly basis to ensure  accura-
 cy;
   (L)  coordinating  medical  benefits  and transportation with Medicaid
 managed  care  organizations,  including  development  of  value   based
 payments for transportation services; and
   (M)  such  contracts  shall  include  penalties for incorrect denials,
 unresolved complaint rates, unfulfilled trips, and  any  other  criteria
 determined  by the commissioner and specified in the competitive bidding
 process.
   (iii) A transportation management broker with which  the  commissioner
 contracts  shall  file with the commissioner a bond issued by an insurer
 authorized to write fidelity and surety insurance in this state,  in  an
 amount and form to be determined by the commissioner. The purpose of the
 surety bond shall be to provide the sole source of recourse to providers
 of  Medicaid  transportation  services,  other  than  the transportation
 management broker, that cannot receive  payment  for  services  properly
 provided  if  the transportation management broker becomes insolvent. To
 the extent permitted by law, the surety  bond  shall  provide  that  any
 funds that remain after such provider liabilities are satisfied shall be
 paid to that state.
   (iv)  A  transportation  management broker with which the commissioner
 contracts shall  provide  to  Medicaid  enrolled  providers  annually  a
 conspicuous  written disclosure that states the following: "The New York
 State Department of  Health  has  contracted  with  this  transportation
 management  broker  to arrange non-emergency transportation for Medicaid
 beneficiaries who need access to medical care and services and is paying
 the transportation management broker a per member  per  month  capitated
 fee  or  a  combination of capitation and fixed cost reimbursement. This
 transportation management broker is not licensed by the New  York  State
 Department of Financial Services as an insurer and is not subject to its
 supervision  as an insurer. This transportation management broker is not
 protected by New York security funds and there will not be any right  to
 recover  against  the  department  of  health,  department  of financial
 services, or this state in the event of  the  transportation  management
 broker's insolvency.
   (v) To the extent practicable, the competitive bidding and contracting
 process  maybe  completed  by  April  first,  two  thousand  twenty-one;
 provided, however, such contract may be effective  at  some  date  after
 April  first,  two  thousand  twenty-one, if the process takes longer to
 complete.
 S. 2412                             4

   (vi) Responsibility for transportation services provided  or  arranged
 for  enrollees  of  managed  long term care plans issued certificates of
 authority under section forty-four hundred three-f of the public  health
 law,  not  including  a program designated as a Program of All-Inclusive
 Care for the Elderly (PACE) as authorized by Federal Public law 1053-33,
 subtitle  I  of title IV of the Balanced Budget Act of 1997, and, at the
 commissioner's discretion, other plans that integrate benefits for dual-
 ly eligible Medicare and Medicaid beneficiaries based on a demonstration
 by the plan that inclusion of transportation within the benefit  package
 will  result  in  cost  efficiencies  and  quality improvement, shall be
 transferred to a transportation management broker that  has  a  contract
 with  the  commissioner  in accordance with this paragraph. Providers of
 adult day health care may elect to, but shall not be  required  to,  use
 the services of the transportation management broker.]
   §  2.  Paragraph  (a)  of subdivision 6 of section 365-h of the social
 services law, as added by section 4 of part LL of chapter 56 of the laws
 of 2020, is amended to read as follows:
   (a) The commissioner of health shall require transportation  providers
 enrolled  in  the  Medicaid  program  and  specified by the commissioner
 pursuant to regulation, to report the costs incurred in providing trans-
 portation services to Medicaid beneficiaries pursuant to this  section[;
 provided,  however,  this  requirement  shall  only apply if there is no
 transportation management broker contract authorized in subdivision four
 of this section]. The  commissioner  shall  specify  the  frequency  and
 format  of such reports and determine the type and amount of information
 required to be submitted, including supporting  documentation,  provided
 that  such reports shall be no more frequent than quarterly. The commis-
 sioner shall give all  transportation  providers  no  less  than  ninety
 calendar days' notice before such reports are due.
   §  3.  This  act shall take effect immediately; provided, however that
 the amendments to subdivisions 4 and 6 of section 365-h  of  the  social
 services  law  made by sections one and two of this act shall not affect
 the expiration and reversion of such section pursuant to subdivision (a)
 of section 40 of part B of chapter 109 of the laws of 2010, as amended.