2003 Green Book | ||||
Backward | Forward | Cover | Overview | Table of Contents |
DEPARTMENT OF HEALTH |
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Adjusted Appropriation 2002-03 |
Executive Request 2003-04 |
Legislative Appropriation 2003-04 |
Change | ||
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STATE OPERATIONS | |||||
General Fund | 211,254,000 | 168,891,600 | 165,891,600 | (3,000,000) | |
Special Revenue-Other | 393,991,000 | 414,664,000 | 416,664,000 | 2,000,000 | |
Special Revenue-Federal | 3,901,679,000 | 3,961,720,000 | 3,961,720,000 | 0 | |
Fiduciary | 4,225,000 | 4,675,000 | 4,675,000 | 0 | |
Enterprise | 10,000 | 10,000 | 10,000 | 0 | |
Total for STATE OPERATIONS | 4,511,159,000 | 4,549,960,600 | 4,548,960,600 | (1,000,000) | |
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AID TO LOCALITIES | |||||
General Fund | 6,598,064,768 | 6,063,507,000 | 6,736,928,500 | 673,421,500 | |
Special Revenue-Other | 3,709,264,000 | 4,420,464,000 | 4,255,664,000 | (164,800,000) | |
Special Revenue-Federal | 19,069,313,000 | 23,235,401,000 | 23,704,913,000 | 469,512,000 | |
Total for Agency | 29,376,641,768 | 33,719,372,000 | 34,697,505,500 | 978,133,500 | |
Total Contingency | 950,000,000 | 1,230,000,000 | 1,230,000,000 | 0 | |
Total for AID TO LOCALITIES | 30,326,641,768 | 34,949,372,000 | 35,927,505,500 | 978,133,500 | |
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CAPITAL PROJECTS | |||||
Capital Projects Fund | 156,800,000 | 76,600,000 | 76,600,000 | 0 | |
Total for CAPITAL PROJECTS | 156,800,000 | 76,600,000 | 76,600,000 | 0 | |
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The Legislature provides $39,323,066,100 for the Department of Health (DOH) on an All Funds basis, a net increase of $978,133,500 over the Executive budget submission. This net increase reflects restorations to the State’s Medical Assistance Program (Medicaid), as well as restorations to various general public health programs that were either reduced or eliminated by the Executive. |
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Legislative Reductions |
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The Legislature reduces the Executive’s proposed budget: |
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Legislative Changes | |
The Legislature provides for a gross restoration of $1,057,950,000 to the Medical Assistance (Medicaid) Program, various public health programs, and the Health Care Reform Act (HCRA) in State Fiscal Year (SFY) 2003-04. Of this amount, the Legislature restores approximately $889,400,000 to the Medical Assistance (Medicaid) Program, $40,100,000 to public health programs within the Department of Health (DOH), and $128,400,000 to various programs in the Health Care Reform Act (HCRA). These restorations are offset by approximately $266,000,000, in new revenue actions for a total net restoration of $792,000,000 in SFY 2003-04. |
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Medical Assistance (Medicaid) Program |
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In the State Fiscal Year (SFY) 2003-04 budget, the Legislature restores approximately $889,400,000 State Share to the Medical Assistance Program. This restoration is offset by new revenue actions totaling $254,000,000. |
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Pharmacy Restorations: The Legislature provides restorations to the pharmacy sector, totaling $38,600,000 State Share in SFY 2003-04. Included in this amount is $24,500,000 for the partial restoration of a proposed 5 percent reduced in pharmacy reimbursement, bringing the reimbursement rate to Average Wholesale Price minus 12 percent instead of Average Wholesale Price minus 15 percent as proposed by the Executive. Also included is $11,700,000 related to the Legislature’s denial of increased co-payments for Medicaid and Medicaid Managed Care recipients, and $2,400,000 related to denial of the Executive’s Forge Proof Prescription Proposal. |
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Hospital Restorations: The Legislature provides restorations to the hospital sector, totaling $281,600,000 State Share in SFY 2003-04, by denying actions that would have: imposed a 0.7 percent assessment on inpatient and outpatient services; eliminated the SFY 2003-04 trend factor in the reimbursement rate; restructured Graduate Medical Education (GME); limited case payments to the group average reimbursement; eliminated the length of stay adjustment; decreased the per-diem rates by 5 percent with the exception of AIDS services; and placed a freeze on specialty-clinic rates with the exception of AIDS services. |
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Nursing Home Restorations: The Legislature provides restorations to the nursing home sector, totaling $202,600,000 State Share in SFY 2003-04, by denying actions that would have: established a regional average reimbursement methodology; eliminated the SFY 2003-04 trend factor in the reimbursement rate; implemented a Medicaid-only case mix adjustment; and eliminated return on equity incentive for proprietary nursing homes. The Legislature also takes action to reduce the current 6 percent assessment to 5 percent, effective April 1, 2003, and provides for Article VII legislation which further reduces the assessment from 5 percent to 2.5 percent in State Fiscal Year (SFY) 2004-05, and eliminates such assessment on and after April 1, 2005. |
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Home Care Restorations: The Legislature provides restorations to the home care sector, totaling $32,400,000 State Share in SFY 2003-04, denying reductions that would have: eliminated the SFY 2003-04 trend factor in the reimbursement rate, and imposed a 0.6 percent assessment on providers. |
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The Legislature provides restorations to other areas, totaling $334,312,000 State Share in SFY 2003-04. |
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Medicaid Share Realignment (SWAP) |
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The Legislature restores $227,000,000 and denies the Executive’s proposal to realign State and local shares of certain Medicaid costs. Under the proposal the State would have assumed the entire non-Federal share of pharmaceutical costs while shifting to localities a greater financial responsibility for hospital inpatient and outpatient costs and clinic services. Under the Executive’s proposal, local districts would have been responsible for 37 percent of expenditures for these services, as opposed to the current 25 percent share, while the State would have assumed a lower 13 percent share. The SWAP would have cost New York City $271,000,000 in SFY 2003-04. It would have cost Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan and Westchester counties a combined total of $23,000,000. The remaining upstate counties would have saved $35,000,000 before any hospital restorations were made. |
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Medicare Crossover | |
The Legislature provides $10,800,000 as partial restoration of a reduction in reimbursement for services provided to individuals dually eligible for Medicare and Medicaid. The Legislature provides for full restoration for transportation and psychology services, and provides a 20 percent restoration for physician, chiropractor, podiatrist, eye care, rehabilitation therapy, pharmacy, laboratory, durable medical equipment (DME) and hearing aids, referred ambulatory, and nurse practitioner services. |
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Local Overburden Aid |
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The Legislature restores $25,000,000 of a $44,500,000 reduction to localities related to the Executive’s proposal to cap Overburden Aid at the 2002 level and eliminates language imposing the cap. |
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Loss of Additional Upper Payment Limit (UPL) Savings |
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The Legislature provides $69,000,000 to the Medicaid Program resulting from the loss of $69,000,000 in Federal Funds related to Upper Payment Limit (UPL) savings that had to be foregone due to the rejection of new hospital and nursing home reductions. |
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Clinic Transition Funding |
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The Legislature further restores $2,456,000 (State Share) in clinic transition funding and $56,000 (State Share) in dental clinic transition funding, to be fully matched by Federal Funds, to assist such clinics in the acquisition and upgrading of information technology (IT) systems. |
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Other Medicaid Actions |
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The Legislature accepts a total of $93,300,000 State share in Medicaid reductions proposed by the Executive that would: |
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Health Care Reform Act (HCRA) Related Restorations | |
Denies Family Health Plus (FHP) Rollback |
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The Legislature provides $20,000,000 (State Share) and denies the Executive Budget proposal to decrease Family Health (FHP) eligibility levels for adults with children from 150 percent and 133 percent of the Federal Poverty Level (FPL). |
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Denies Shifting kids from Medicaid to Child Health Plus |
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The Legislature provides $26,400,000 million as full restoration related to the rejection of the Executive’s proposal to shift children in families with incomes between 100 to 133 percent of the Federal Poverty Level (FPL) from Medicaid to the Child Health Plus (CHP) program. |
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Elderly Pharmaceutical Insurance Coverage (EPIC) Program |
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The Legislature provides: |
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AIDS Institute | |
The Legislature restores $5,575,500 in AIDS-related programs, including: |
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Center for Community Health | |
The Legislature restores a total of $34,500,000 and allocates $600,000 for public health programs reduced or eliminated by the Executive, including: |
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Adult Homes | |
The Legislature provides $8,000,000 for adult home initiatives. Of this amount, $6,000,000 is provided for the Adult Care Facility Quality Incentive Payment Program (QUIP), which the Legislature amends to achieve various reforms to the program to assure quality of care, and $2,000,000 is provided to support an adult care facility quality service and advocacy initiative to be accomplished through a competitive bid, request-for-proposal process. |
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Health Care Reform Act |
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The Legislature extends for an additional two years, through June 30, 2005, the Health Care Reform Act (HCRA). |
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The Legislature also extends the Medicaid Managed Care Program through March 31, 2006, and rejects the Executive’s proposal to repeal the Managed Care Advisory Panel. In addition, the Legislature extends the Child Health Plus Program for an additional two years, through July 1, 2005. |
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The Legislature allocates $34,600,000 to restore various HCRA programs that were reduced by the Executive, including the: |
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The Legislature also preserves a $1,600,000 annual allocation for Area Health Education Centers (AHEC) from Graduate Medical Education funding. | |
The Legislature accepts the Executive’s proposal to allocate new revenues to HCRA, including: |
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The Legislature denies the Executive’s proposal to allow other not-for-profit insurers to convert to for profit status. This action was expected to generate $200,000,000 which would have been dedicated to HCRA in SFY 2005-06. | |
The Legislature, accepts with modifications, the Executive’s proposal to securitize tobacco settlement payments. This action results in a loss of revenue to HCRA, totaling $847,000,000 over two years. In order to ensure that HCRA is protected, the Legislature requires the director of the Division of the Budget (DOB) to prepare a fiscal plan in SFY 2004-05 and SFY 2005-06 for HCRA, including quarterly estimates of receipts to and disbursements from the HCRA pools throughout the year, to make certain that pledged receipts are sufficient to cover HCRA expenditures. If DOB determines that the pledged receipts are insufficient to cover HCRA expenditures, General Fund revenues of an amount limited to the annual receipts from the Tobacco Settlement Agreement that are securitized, will be transferred to HCRA to cover any shortfalls. |
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Article VII |
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The Legislature authorizes Article VII legislation to: |
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Part V2: Public Health Programs |
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Part W2: Vital Records | |
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Part X2: Office of Professional Medical Conduct (OPMC) | |
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Part Y2: Elderly Pharmaceutical Insurance Coverage (EPIC) Program | |
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Part Z2: Medical Assistance (Medicaid) Program | |
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Part A3: Health Care Reform Act | |
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The Legislature also includes language to require local Industrial Development Agencies (IDAs) to submit a copy of audited financial statements to the Legislature in instances when such entities have engaged in health care related financing. | |
Legislative Additions |
The Legislature provides funding for the following: |
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PROGRAM | APPROPRIATION | VETO # | |
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MEDICAID: INCREASED FEDERAL SHARE RELATED TO RESTORATIONS | $420,512,000 | ||
MEDICAID: REJECT PHARMACY SWAP | $227,000,000 | ||
MEDICAID: REJECT IMPOSITION OF 0.7% HOSPITAL ASSESSMENT | $190,200,000 | ||
HCRA FUNDS TRANSFER: ADDITIONAL FUNDS RELATED TO MEDICAID RESTORATIONS | $77,600,000 | ||
MEDICAID: RESTORATION OF LOST FEDERAL MAXIMIZATION SAVINGS | $69,000,000 | ||
MEDICAID: REJECT NURSING HOME REGIONAL AVG. REIMBURSEMENT METHODOLOGY | $59,900,000 | ||
CHILD HEALTH PLUS (CHP): REJECT MOVING MEDICAID KIDS TO CHP | $49,000,000 | ||
MEDICAID: REJECT ELIMINATION OF NURSING HOME INFLATIONARY TREND FACTOR | $46,700,000 | ||
MEDICAID: REJECT IMPLEMENTATION OF NURSING HOME--CASE MIX ADJUSTMENT | $46,000,000 | ||
MEDICAID: PARTIAL RESTORATION OF NURSING HOME ASSESSMENT (6% TO 5%) | $45,000,000 | ||
ARTICLE 6: STATE REIMBURSEMENT TO COUNTIES | $32,300,000 | ||
MEDICAID: REJECT RESTRUCTURING OF HOSPITAL GME | $30,200,000 | ||
MEDICAID: REJECT ELIMINATION OF HOSPITAL INFLATIONARY TREND FACTOR | $27,700,000 | ||
CHILD HEALTH PLUS (CHP): REJECT MOVING KIDS TO CHP --STATE SHARE | $26,400,000 | ||
MEDICAID: RESTORE DOH OVERBURDEN AID TO LOCALITIES | $25,000,000 | ||
MEDICAID: REJECT 3% OF PROPOSED 5% CUT IN PHARMACY REIMBURSEMENT | $24,420,000 | ||
EPIC: REJECT 3% OF PROPOSED 5% PHARMACY REIMBURSEMENT CUT(AWP-15% TO | $20,400,000 | ||
AWP-12%) | |||
MEDICAID: REJECT IMPOSITION OF 0.6% HOME CARE ASSESSMENT | $17,000,000 | ||
MEDICAID: REJECT ELIMINATION OF HOME CARE INFLATIONARY TREND FACTOR | $15,400,000 | ||
MEDICAID: REJECT LIMITING HOSPITAL REIMBURSEMENT TO GROUP AVERAGE | $15,000,000 | ||
MEDICAID: REJECT NEW AND ADDITIONAL PHARMACY CO-PAYMENTS | $11,700,000 | ||
MEDICAID: PARTIAL RESTORATION OF MEDICAL CROSSOVER FOR DUALLY ELIGIBLES | $10,805,300 | ||
MEDICAID: REJECT ELIMINATION OF HOSPITAL LENGTH OF STAY ADJUSTMENT | $8,900,000 | ||
MEDICAID: REJECT 5% CUT IN PER DIEM HOSPITAL RATES | $7,700,000 | ||
MEDICAID: REJECT ELIMINATION OF NURSING HOME RETURN ON EQUITY | $5,000,000 | ||
ADULT HOMES: QUIP | $4,000,000 | 88 | |
EPIC: REJECT IMPOSITION OF HIGHER FEES AND DEDUCTIBLES ON PROGRAM | $4,000,000 | ||
PARTICIPANTS | |||
MEDICAID: CLINIC TRANSITION FUNDING | $2,456,000 | 87 | |
AIDS: COMMUNITIES OF COLOR INITIATIVE | $2,100,000 | 74 | |
REJECT SWEEP OF TRIPLICATE PRESCRIPTION FORMS ACCOUNT TO GENERAL FUND | $2,000,000 | ||
MEDICAID: REJECT FREEZE ON SPECIALTY CLINIC RATE | $1,900,000 | ||
AIDS: HIV/AIDS-COMMUNITY SERVICE PROGRAM (CSP) | $1,062,600 | 73 | |
AIDS: HIV/AIDS-MULTI SERVICE AGENCIES (MSA) | $1,062,600 | 72 | |
HEALTH AND SOCIAL SERVICES SEXUALITY RELATED PROGRAMS | $700,000 | 85 | |
AIDS - SPECIALTY SERVICES | $437,500 | 75 | |
MEDICAID: REJECT FORGE-PROOF PRESCRIPTIONS | $400,000 | ||
AIDS - PERMANENCY PLANNING PROGRAM | $393,750 | 76 | |
AIDS: TREATMENT AND COMPLIANCE | $393,750 | 77 | |
FAMILY PLANNING SERVICES | $350,000 | 80 | |
MIGRANT WORKER HEALTH CLINICS | $309,400 | 86 | |
OFFICE OF RURAL HEALTH | $267,000 | 71 | |
HYPERTENSION PREVENTION, SCREENING AND TREATMENT PROGRAM | $254,000 | ||
RAPE CRISIS SERVICES | $252,000 | 79 | |
BREAST CANCER - SUPPORT AND EDUCATION SERVICES | $156,100 | 83 | |
DIABETES PROGRAM | $148,900 | ||
MATERNITY AND EARLY CHILDHOOD FOUNDATION | $126,000 | 84 | |
AIDS: HOMELESS HOUSING ASSISTANCE PROGRAM - OPERATING SUPPORT | $125,300 | 78 | |
OSTEOPOROSIS PREVENTION | $66,000 | ||
ACADEMIC DENTAL CLINICS | $56,000 | 87 | |
ASTHMA MANAGEMENT PROGRAMS | $54,000 | ||
SUDDEN INFANT DEATH SYNDROME CENTERS | $41,100 | ||
ALZHEIMER'S DISEASE ASSISTANCE CENTERS (ADAC) | $37,800 | 81 | |
CHILDHOOD CANCER AWARENESS | $36,000 | ||
ALZHEIMER'S COMMUNITY ASSISTANCE PROGRAM | $35,700 | 82 | |
*All program appropriations vetoed by the Executive, as indicated by a veto message number, were subsequently overridden by the Legislature. |
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