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 Open Your Eyes Sean Delaney went to Washington D.C. to open the eyes of our Congressional leaders and to share stories of life as a Direct Support Professional serving people with developmental disabilities.  Please watch Sean's music video, "Open Your Eyes" and share it with everyone you know, help tell their story.

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News & Views: Budget Update 4-04-08 PDF Print E-mail
Friday, 04 April 2008
·  BUDGET UPDATE!!

In This Issue

Open Your Eyes! Watch it Now!

BUDGET UPDATE!!

 


Open Your Eyes! Watch it Now!

 


 NYSACRA Calendar


 Executive Positions


 Action Center

 

Greetings NYSACRA Members!

 
 
 

·  BUDGET UPDATE!!

  As previously reported the NYS Legislature passed the Health and Mental Hygiene portion of the NYS Budget - which is about $59 billion, or nearly half of the $124 billion budget - and included what the Governor called the "most significant reimbursement changes since 1996". Division of Budget (DOB) officials and aides to Paterson said the agreement on health care spending included 75 percent of the $1.1 billion in Medicaid cuts sought by Paterson.

The Health & Mental Hygiene budget bills,
A. 9804-D / S6804-D, and  A. 9808-C / S6808-C include restorations to the cuts the governor's Executive Budget prescribed, including $100 million more for nursing homes; $25 million more for home care; $8 million more for rural home care; and $35.9 million for hospital inpatient services while setting up a shift to outpatient care.

However, to pay for those additions, the Legislature agreed, among other things, to raise taxes on cigarettes, and on health insurance policies, which end up getting passed on to consumers. The cigarette tax at $1.25 per pack is expected to raise $265 million; however, they could not say how they calculated this figure. The higher "covered lives assessment" means an additional $70 million from the health insurance policies sold in New York. That will bring the total assessment on the policies to $920 million a year.

The Budget Bills created a rate restructuring including for diagnostic and treatment centers (DTC's). They created the ambulatory patient group (APG) methodology, in which patients are grouped based on their diagnosis, the intensity of the services provided and the medical procedures performed, and with each APG assigned a weight reflecting the projected utilization of resources. Regulations will need to be promulgated to provide for the development of one or more base rates and the multiplication of such base rates by the assigned weight for each APG to establish the appropriate payment level for each such APG. The plan would be phased in over four years through 2012. It is anticipated that the new rates would save New York State $57 million in the first year.

There will be a new prescription drug discount card for people with disabilities of all ages and any person between the ages of 50 to 64, subject to income limits, for drugs not covered by other plans. The Governor's office said the card will be good for 30 percent discounts on name brand medications, for about 400,000 eligible people.

The bills also redefined "voluntary agency" to also include any entity receiving financing, approvals or assistance of any form from the State Housing Finance Agency or the State Division of Housing and Community Renewal for one or more integrated housing projects.

Reasons for failure to pass the remaining Budget Bills are elusive, but seem to center around the NYC Congestion Pricing plan, the funding for LI schools, and a breakdown in the agreement on anticipated revenues. For example, it is questionable whether the State can raise $265 million from the cigarette tax, and yet it remains as a revenue basis for a balanced budget.

NYSACRA will update you as the Budget negotiations progress, and provide a more detailed fiscal analysis once the State Budget is fully passed.
 
   
 

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