Senate Bill S326

                                 
BILL NUMBER: S326

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the social services law, in relation to medicaid
reimbursement of private duty nursing services and care

 
PURPOSE OR GENERAL IDEA OF BILL:

To increase Medicaid beneficiaries' access to quality health care
services by increasing Medicaid fees for private duty nursing services.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill would add a new section to the Social Services
Law governing reimbursement of private duty nursing services. The bill
would allocate $15 million during the relevant fiscal year to increase
reimbursement under the Medicaid program for private duty nursing
services. The bill would allocate $20 million for such reimbursement on
an annual fiscal year basis thereafter. Section two sets forth the
effective date.
              

 
JUSTIFICATION:

The State is currently experiencing a very serious shortage in private
duty nursing. This shortage is due to a variety of factors including the
lowest unemployment rate in over a decade, and rates of reimbursement in
both the commercial and government sectors that have not kept pace with
market demands. In some areas of the State, the Medicaid rates for
private duty nursing have not changed in over a decade.

The nursing shortage is making it difficult to recruit and retain quali-
fied nurses, particularly in specialty areas such as nursing care for
medically and technologically dependent children and adults.  This bill
would provide the resources necessary to assist in recruiting and
retaining qualified nursing care for the State's most vulnerable popu-
lation Medicaid beneficiaries. In addition to easing the workforce shor-
tage in nursing and increasing access to quality care, the bill would
provide badly needed respite to family members who are struggling to
care for medically complex children and adults.  The bill will reduce
Medicaid costs over the long term by reducing unnecessary hospitaliza-
tion that are the result of a lack of access to community care.

 
PRIOR LEGISLATIVE HISTORY:

2017-18: S.3795 - Referred to Health

2019-20: S.2561 - Referred to Health

2021-22: S.3354 - Referred to Health

2023-24: S.1090 - Referred to Health

 
FISCAL IMPLICATIONS:

This bill will increase the status share of Medicaid costs by an esti-
mated . $15 million. However, the bill will likely decrease Medicaid

costs over the long term through the provision of more timely care and a
decrease in institutional costs.

 
EFFECTIVE DATE:
This act shall take effect July 1, 2026.