S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8055
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 22, 2025
                                ___________
 
 Introduced  by M. of A. SIMON -- read once and referred to the Committee
   on Health
 
 AN ACT to amend the social services law, in relation to returning outpa-
   tient mental health and substance use disorder  services  to  Medicaid
   fee-for-service
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 364-j of the social services  law,
 is amended by adding three new paragraphs (d-4), (d-5) and (d-6) to read
 as follows:
   (D-4)  SUBJECT  TO FEDERAL APPROVAL, OUTPATIENT MENTAL HEALTH SERVICES
 AS DETERMINED BY THE  COMMISSIONER  OF  THE  OFFICE  OF  MENTAL  HEALTH,
 PROVIDED TO INDIVIDUALS WITH MENTAL ILLNESS AT FACILITIES OR IN PROGRAMS
 LICENSED  PURSUANT  TO  ARTICLE  THIRTY-ONE OF THE MENTAL HYGIENE LAW OR
 CLINICS SERVING INDIVIDUALS WITH MENTAL  ILLNESS  LICENSED  PURSUANT  TO
 ARTICLE  THIRTY-ONE OF THE MENTAL HYGIENE LAW, OR DUALLY LICENSED PURSU-
 ANT TO ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW AND  ARTICLE  THIR-
 TY-ONE OF THE MENTAL HYGIENE LAW SHALL BE ADMINISTERED AND MANAGED UNDER
 FEE-FOR-SERVICE IN THE MEDICAL ASSISTANCE PROGRAM.
   (D-5)  SUBJECT  TO FEDERAL APPROVAL, OUTPATIENT SUBSTANCE USE SERVICES
 AS DETERMINED BY THE COMMISSIONER OF THE OFFICE  OF  ADDICTION  SERVICES
 AND  SUPPORTS,  PROVIDED  TO  INDIVIDUALS WITH SUBSTANCE USE DISORDER AT
 FACILITIES OR IN PROGRAMS LICENSED PURSUANT TO ARTICLE THIRTY-TWO OF THE
 MENTAL HYGIENE LAW OR CLINICS SERVICING INDIVIDUALS WITH  SUBSTANCE  USE
 DISORDERS  LICENSED PURSUANT TO ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE
 LAW, OR DUALLY LICENSED PURSUANT TO ARTICLE TWENTY-EIGHT OF  THE  PUBLIC
 HEALTH  LAW  AND  ARTICLE  THIRTY-TWO OF THE MENTAL HYGIENE LAW SHALL BE
 ADMINISTERED AND MANAGED UNDER FEE-FOR-SERVICE IN THE MEDICAL ASSISTANCE
 PROGRAM.
   (D-6) SUBJECT TO FEDERAL APPROVAL, COMPREHENSIVE MEDICAID CASE MANAGE-
 MENT SERVICES PROVIDED TO INDIVIDUALS WITH MENTAL ILLNESS  OR  SUBSTANCE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11629-01-5
              

 A. 8055                             2
 
 USE  DISORDER SHALL BE ADMINISTERED AND MANAGED UNDER FEE-FOR-SERVICE IN
 THE MEDICAL ASSISTANCE PROGRAM.
   §  2.  Section 365-m of the social services law is amended by adding a
 new subdivision 6 to read as follows:
   6. (A) PURSUANT TO APPROPRIATIONS WITHIN THE OFFICE OF  MENTAL  HEALTH
 AND  THE  OFFICE  OF  ADDICTION SERVICES AND SUPPORTS, THE DEPARTMENT OF
 HEALTH SHALL REINVEST SAVINGS REALIZED THROUGH THE TRANSITION OF  OUTPA-
 TIENT  MENTAL  HEALTH  AND  SUBSTANCE  USE DISORDER SERVICES PURSUANT TO
 PARAGRAPH (D) OF SUBDIVISION THREE OF SECTION THREE HUNDRED SIXTY-FOUR-J
 OF THIS TITLE FROM THE MANAGED CARE MODEL TO THE  MEDICAID  FEE-FOR-SER-
 VICE  SYSTEM FOR THE PURPOSE OF INCREASING INVESTMENT IN COMMUNITY BASED
 BEHAVIORAL HEALTH SERVICES, INCLUDING RESIDENTIAL SERVICES CERTIFIED  BY
 THE OFFICE OF ADDICTION SERVICES AND SUPPORTS.
   (B)  THE  COMMISSIONER  SHALL  INCLUDE INFORMATION REGARDING THE FUNDS
 AVAILABLE FOR REINVESTMENT FROM THE TRANSITION OF OUTPATIENT  BEHAVIORAL
 HEALTH  SERVICES FROM MANAGED CARE TO FEE-FOR-SERVICE ON ITS WEBSITE AND
 THE FUNDS SHALL BE INCLUDED IN EACH YEAR'S  ANNUAL  BUDGET  ITEMIZATION,
 BEGINNING APRIL FIRST, TWO THOUSAND TWENTY-SIX.
   §  3.  This  act shall take effect October 1, 2025; provided, however,
 that the amendments to section 364-j of the social services law made  by
 section  one of this act shall not affect the repeal of such section and
 shall be deemed repealed therewith.