S T A T E O F N E W Y O R K
________________________________________________________________________
8055--A
2025-2026 Regular Sessions
I N A S S E M B L Y
April 22, 2025
___________
Introduced by M. of A. SIMON, HEVESI, LEVENBERG, McDONOUGH, K. BROWN,
PAULIN, BERGER, GRIFFIN, STECK, WEPRIN, LUNSFORD, LUPARDO,
GONZALEZ-ROJAS, SCHIAVONI, MEEKS, ANGELINO -- read once and referred
to the Committee on Health -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the social services law, in relation to returning outpa-
tient mental health, substance use disorder, residential and rehabili-
tation 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-5), (d-6) and (d-7) to read
as follows:
(D-5) 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-6) SUBJECT TO FEDERAL APPROVAL, OUTPATIENT SUBSTANCE USE SERVICES,
RESIDENTIAL SERVICES AND REHABILITATION 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, DUALLY
LICENSED PURSUANT TO ARTICLE TWENTY-EIGHT OF THE PUBLIC HEALTH LAW AND
ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW, OR RESIDENTIAL AND REHA-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11629-02-6
A. 8055--A 2
BILITATION SERVICES REGULATED BY THE OFFICE OF ADDICTION SERVICES AND
SUPPORTS EXCLUDING SERVICES UNDER PART EIGHT HUNDRED SIXTEEN AND PART
EIGHT HUNDRED EIGHTEEN OF THE REGULATIONS OF THE OFFICE OF ADDICTION
SERVICES AND SUPPORTS SHALL BE ADMINISTERED AND MANAGED UNDER FEE-FOR-
SERVICE IN THE MEDICAL ASSISTANCE PROGRAM.
(D-7) SUBJECT TO FEDERAL APPROVAL, COMPREHENSIVE MEDICAID CASE MANAGE-
MENT SERVICES PROVIDED TO INDIVIDUALS WITH MENTAL ILLNESS OR SUBSTANCE
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 AND OTHER MENTAL HEALTH AND SUBSTANCE USE DISORDER SERVICES PURSU-
ANT 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-SERVICE SYSTEM FOR THE PURPOSE OF INCREASING INVESTMENT IN
COMMUNITY BASED BEHAVIORAL HEALTH SERVICES AND RESIDENTIAL AND REHABILI-
TATION 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 AND OTHER
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-SEVEN.
§ 3. This act shall take effect October 1, 2026; 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.