S T A T E O F N E W Y O R K
________________________________________________________________________
5799
2025-2026 Regular Sessions
I N S E N A T E
March 3, 2025
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Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
printed to be committed to the Committee on Health
AN ACT to amend the public health law, in relation to audits conducted
by the office of Medicaid inspector general detecting ministerial or
clerical errors that generate an overpayment to certain services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public health law is amended by adding a new section 37
to read as follows:
§ 37. OVERPAYMENT; PROCEDURES, PRACTICES AND STANDARDS IN CERTAIN
INSTANCES. 1. SUBJECT TO FEDERAL LAW OR REGULATION, RECOVERY OF AN OVER-
PAYMENT RESULTING FROM THE ISSUANCE OF A FINAL AUDIT REPORT OR FINAL
NOTICE OF AGENCY ACTION BY THE INSPECTOR SHALL COMMENCE NOT LESS THAN
SIXTY DAYS AFTER THE ISSUANCE OF THE FINAL AUDIT REPORT OR FINAL NOTICE
OF AGENCY ACTION REGARDING THE DELIVERY OF NON-EMERGENCY MEDICAL TRANS-
PORTATION SERVICES TO RECIPIENTS ENROLLED IN THE MEDICAL ASSISTANCE
PROGRAM.
2. ANY VENDOR PROVIDING NON-EMERGENCY MEDICAL TRANSPORTATION SERVICES
WHO HAS BEEN COMPENSATED FOR SUCH SERVICE, AND AFTER AN AUDIT CONDUCTED
BY THE INSPECTOR, HAD SUCH COMPENSATION DISQUALIFIED AND DENOMINATED AN
OVERPAYMENT DUE TO A MINISTERIAL OR INADVERTENT ERROR IN RECORD KEEPING,
MAY BE AFFORDED A REASONABLE TIME TO PROVIDE AND SUBMIT INDEPENDENT
PROOF THAT SUCH SERVICE WAS ACTUALLY RENDERED TO A RECIPIENT ENROLLED IN
THE MEDICAL ASSISTANCE PROGRAM. IN SUCH INSTANCES, SUBJECT TO FEDERAL
LAW OR REGULATION, THE INSPECTOR SHALL AMEND THE FINAL AUDIT OR FINAL
NOTICE OF AGENCY ACTION TO ELIMINATE AND REDUCE THE OVERPAYMENT SUM
STATED THEREIN, INCLUDING ANY EXTRAPOLATION CALCULATION DERIVATIVE OF
SUCH ALLEGED OVERPAYMENT, FOR EACH INSTANCE THAT THE VENDOR CAN ESTAB-
LISH BY INDEPENDENT PROOF THAT TRANSPORTATION SERVICES WERE ACTUALLY
RENDERED TO A RECIPIENT ENROLLED IN THE MEDICAL ASSISTANCE PROGRAM.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01430-01-5