STATE OF NEW YORK
        ________________________________________________________________________

                                          6959

                               2023-2024 Regular Sessions

                    IN SENATE

                                      May 16, 2023
                                       ___________

        Introduced  by  Sen.  RIVERA -- 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  federally  quali-
          fied health center rate adequacy

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph (b) of subdivision  8  of  section  2807  of  the
     2  public  health law, as added by section 28 of part B of chapter 1 of the
     3  laws of 2002, is amended to read as follows:
     4    (b) For each twelve month period following  September  thirtieth,  two
     5  thousand  one  and  continuing through September thirtieth, two thousand
     6  twenty-four, the operating cost component of such rates of payment shall
     7  reflect the operating cost component in effect on September thirtieth of
     8  the prior period as increased by the percentage increase in the Medicare
     9  Economic Index as computed in accordance with the requirements of 42 USC
    10  § 1396a(aa)(3) and as adjusted pursuant  to  applicable  regulations  to
    11  take  into  account  any  increase  or decrease in the scope of services
    12  furnished by the facility.   For  each  twelve  month  period  following
    13  September thirtieth, two thousand twenty-four, the operating cost compo-
    14  nent  shall  be  calculated consistent with rates of payment established
    15  pursuant to paragraph (c-1)  of  this  subdivision,  and  then  annually
    16  adjusted by using the FQHC Market Basket inflator as calculated pursuant
    17  to  42  USC  § 1395m(o)(2), and as adjusted pursuant to applicable regu-
    18  lations to take into account any increase or decrease in  the  scope  of
    19  services furnished by the facility.
    20    § 2. Subdivision 8 of section 2807 of the public health law is amended
    21  by adding a new paragraph (c-1) to read as follows:
    22    (c-1)  As  soon as practicable the department shall analyze the actual
    23  federally qualified health center  costs  filed  pursuant  to  10  NYCRR
    24  86-4.3  during  the  prior  five year reporting periods.  In addition to
    25  such data, the commissioner  shall  consider,  the  scope  of  services,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11404-01-3

        S. 6959                             2

     1  including type, intensity, duration and amount, provided by such facili-
     2  ties;  staffing  to  meet competitive market and case mix needs of popu-
     3  lations served; physical plant and  maintenance  costs,  infrastructure;
     4  technology  costs  associated with telehealth modality of service deliv-
     5  ery; informational technology costs; and other costs deemed necessary by
     6  the commissioner.   Notwithstanding any other statute,  rule,  or  regu-
     7  lation  otherwise  imposing  ceilings  or  caps on payments to federally
     8  qualified health centers, provided that such payments are still  subject
     9  to  federal financial participation, beginning on April first, two thou-
    10  sand twenty-four, the department shall develop and issue  updated  rates
    11  of  payments  reflecting  the  actual costs and updated aggregated data.
    12  Prior to implementing the updated rates of payment, the department shall
    13  consult with relevant stakeholders including  but  not  limited  to  the
    14  statewide trade association representing such federally qualified health
    15  centers  for  review, revision, and confirmation of the updated rates of
    16  payment, as appropriate.
    17    § 3.  This act shall take effect immediately.