Assemblymember Simon Introduces Our BH MMC
Carve Out Bill at our request

April 23, 2025

1) As you know, the NYS Council has been leading an effort to compel state leaders to release us from the quagmire we are mired in as the result of the state’s decision over a decade ago to ‘carve in’ most outpatient mental health and substance use disorder services into the state’s Medicaid managed care program. You also know that we drafted bill language several years ago and have been shopping it ever since.

Recently we requested and Assemblywoman JoAnn Simon (Chair, Assembly Mental Hygiene Committee) agreed to sponsor and champion our legislation (see below) in the Assembly, and we are currently awaiting a bill # for a ‘same as’ Senate bill that will be sponsored by Senate MH Chair Samra Brouk.   Many thanks to both lawmakers for championing this important effort!

The delay in getting a new state budget has slowed movement on most policy matters that will be taken up during the remaining months of the legislative session.  We have a great deal of work to do in a short period of time to ensure our bill gets the attention and votes it needs to get us out of this mess once and for all.  Stand by for more on this.

2) Also (below the info about the MMC bill) we copied information regarding a newly introduced bill that would extend provisions relating to mental health practitioners getting diagnostic privileges to 6/24/27. We are reviewing the bill and will have more shortly.

3) See additional news and information below the Diagnostic Privilege information.

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A8055  Simon  No Same as
Social Services Law
TITLE….Relates to outpatient mental health and substance use disorder services and Medicaid fee-for-service

     
04/22/25 referred to health

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8055
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 22, 2025
                                       ___________
 
        Introduced  by M. of A. SIMON -- read once and referred to the Committee
          on Health
 
        AN ACT to amend the social services law, in relation to returning outpa-
          tient mental health and substance use disorder  services  to  Medicaid
          fee-for-service
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 3 of section 364-j of the social services  law,
     2  is amended by adding three new paragraphs (d-4), (d-5) and (d-6) to read
     3  as follows:
     4    (d-4)  Subject  to federal approval, outpatient mental health services
     5  as determined by the  commissioner  of  the  office  of  mental  health,
     6  provided to individuals with mental illness at facilities or in programs
     7  licensed  pursuant  to  article  thirty-one of the mental hygiene law or
     8  clinics serving individuals with mental  illness  licensed  pursuant  to
     9  article  thirty-one of the mental hygiene law, or dually licensed pursu-
    10  ant to article twenty-eight of the public health law and  article  thir-
    11  ty-one of the mental hygiene law shall be administered and managed under
    12  fee-for-service in the medical assistance program.
    13    (d-5)  Subject  to federal approval, outpatient substance use services
    14  as determined by the commissioner of the office  of  addiction  services
    15  and  supports,  provided  to  individuals with substance use disorder at
    16  facilities or in programs licensed pursuant to article thirty-two of the
    17  mental hygiene law or clinics servicing individuals with  substance  use
    18  disorders  licensed pursuant to article thirty-two of the mental hygiene
    19  law, or dually licensed pursuant to article twenty-eight of  the  public
    20  health  law  and  article  thirty-two of the mental hygiene law shall be
    21  administered and managed under fee-for-service in the medical assistance
    22  program.
    23    (d-6) Subject to federal approval, comprehensive Medicaid case manage-
    24  ment services provided to individuals with mental illness  or  substance
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11629-01-5
        A. 8055                             2
 
     1  use  disorder shall be administered and managed under fee-for-service in
     2  the medical assistance program.
     3    §  2.  Section 365-m of the social services law is amended by adding a
     4  new subdivision 6 to read as follows:
     5    6. (a) Pursuant to appropriations within the office of  mental  health
     6  and  the  office  of  addiction services and supports, the department of
     7  health shall reinvest savings realized through the transition of  outpa-
     8  tient  mental  health  and  substance  use disorder services pursuant to
     9  paragraph (d) of subdivision three of section three hundred sixty-four-j
    10  of this title from the managed care model to the  Medicaid  fee-for-ser-
    11  vice  system for the purpose of increasing investment in community based
    12  behavioral health services, including residential services certified  by
    13  the office of addiction services and supports.
    14    (b)  The  commissioner  shall  include information regarding the funds
    15  available for reinvestment from the transition of outpatient  behavioral
    16  health  services from managed care to fee-for-service on its website and
    17  the funds shall be included in each year's  annual  budget  itemization,
    18  beginning April first, two thousand twenty-six.
    19    §  3.  This  act shall take effect October 1, 2025; provided, however,
    20  that the amendments to section 364-j of the social services law made  by
    21  section  one of this act shall not affect the repeal of such section and
    22  shall be deemed repealed therewith.

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)

 
BILL NUMBER: A8055
 
SPONSOR: Simon
 
TITLE OF BILL:
 
An act to amend the social services law, in relation to returning outpa-
tient mental health and substance use disorder services to Medicaid
fee-for-service
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
This legislation would return outpatient mental health and substance use
disorder services to Medicaid Fee-For-Service (FFS) for reimbursement.
 
 
SUMMARY OF SPECIFIC PROVISIONS:
 
SECTION 1: Amends the social services law to require that outpatient
mental health and substance use disorder services are reimbursed under
FFS Medicaid, subject to federal approval.
 
SECTION 2: Amends the social services law to require that the savings
realized from the return of outpatient mental health and substance use
disorder services back to FFS Medicaid are reinvested in community based
behavioral health services overseen by the Office of Mental Health and
the Office of Addiction Services and Supports. This section also
requires that information regarding the funds available for reinvestment
from the return of these services to FFS Medicaid be included on the
State Department of Health's website and itemized in the annual state
budget beginning April 1, 2026.
 
SECTION 3: Establishes the effective date.
 
 
JUSTIFICATION:
 
The State began carving in behavioral health services into the state's
Medicaid managed care program in 2015. This shift has been a failure
with serious negative outcomes. Managed care means that middlemen
(managed care plans) are paid to reimburse providers for Medicaid bene-
fits for vulnerable New Yorkers with mental health and substance use
disorder service needs. Many managed care plans have been found to
violate state laws, regulations or contract provisions while New Yorkers
wait to obtain care from a community-based provider that has to employ
full-time staff who do nothing but deal with health plans and chase
reimbursement from delinquent insurers. When plans fail to reimburse
providers on time and in full, providers are unable to pay adequate
wages to staff, increase the amount of care they provide to match
demand, or manage ever increasing operating expenses associated with
running these programs.
 
New York State could save hundreds of millions of dollars per year by
carving out outpatient mental health and substance use disorder services
from the state's Medicaid managed care program where managed care plans
are permitted to keep (at a minimum) 11% of the funds they are paid by
the state for profit and 'administrative expenses' despite the fact that
there is no value add associated with employing these companies.
 
This savings from returning these services to FFS Medicaid should be
properly directed to actual mental health and substance use disorder
services for New Yorkers, not to health insurance plan administration
and profits. It is urgent that New York State carve outpatient behav-
ioral health service reimbursement out of Medicaid managed care as this
legislation provides.
 
 
PRIOR LEGISLATIVE HISTORY:
 
New Bill
 
 
FISCAL IMPLICATIONS:
 
This legislation will save the state hundreds of millions of dollars by
no longer paying managed care plans to reimburse for outpatient behav-
ioral health services.
 
 
EFFECTIVE DATE:
This act shall take effect October 1, 2025.

————————-

A 8045  Bronson   Same as S 7622  BROUK EducationTITLE….Extends certain provisions authorizing certain mental health practitioners to engage in diagnosis and the development of assessment-based treatment plans04/22/25referred to higher education S7622 BROUK    Same as A 8045  Bronson NOT ON FILE EducationTITLE….Extends certain provisions authorizing certain mental health practitioners to engage in diagnosis and the development of assessment-based treatment plans04/23/25REFERRED TO HIGHER EDUCATION

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8045
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 22, 2025
                                       ___________
 
        Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
          tee on Higher Education
 
        AN ACT to amend chapter 230 of the laws of 2022, amending the  education
          law  relating  to  diagnostic  privilege, in relation to extending the
          effectiveness of certain provisions thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Section 6 of chapter 230 of the laws of 2022, amending the
     2  education law relating to diagnostic privilege, is amended  to  read  as
     3  follows:
     4    §  6. This act shall take effect June 24, 2022; provided however, that
     5  sections two and three of this act shall  take  effect  June  24,  2024;
     6  provided, further, that the provisions of section five of this act shall
     7  expire  and  be  deemed  repealed June 24, [2025] 2027.  Effective imme-
     8  diately, the addition, amendment and/or repeal of any rule or regulation
     9  necessary for the implementation of this act on its effective  date  are
    10  authorized to be made and completed on or before such effective date.
    11    § 2. This act shall take effect immediately.
 
 
 NEW YORK STATE ASSEMBLY

MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)

 
BILL NUMBER: A8045
 
SPONSOR: Bronson
 
TITLE OF BILL:
 
An act to amend chapter 230 of the laws of 2022, amending the education
law relating to diagnostic privilege, in relation to extending the
effectiveness of certain provisions thereof
 
 
PURPOSE OR GENERAL IDEA OF BILL:
 
Extends certain provisions authorizing certain mental health practition-
ers to engage in diagnosis and the development of assessment-based
treatment plans.
 
 
SUMMARY OF PROVISIONS:
 
Section 1. Extends the certain provisions authorizing certain mental
health practitioners to engage in diagnosis and the development of
assessment-based treatment plans.
 
Section 2. Provides for the effective date.
 
 
JUSTIFICATION:
 
There are critical workforce shortages in the mental health professions
across New York State, There is a need to ensure that programs and
services providing addiction and mental health services to children;
adults and communities have the appropriate staff to provide comprehen-
sive services, including diagnosis. Licensed mental health counselors
(LMHC), marriage and family therapists (LMFT), and psychoanalysts (LP)
currently do not have the authority do diagnose.  To increase the number
of licensed mental health professionals authorized to diagnose, this
bill would establish requirements for these professionals to obtain a
diagnostic privilege.
 
The requirements for the diagnostic privilege, intended to align with
the requirements of a licensed clinical social worker, include:
 
* filing an application with SED;
 
* being licensed and registered in the state as a LMHC, LMFT, or LP;
 
* verifying the completion of a 60-semester hour master's degree or
higher, including 12 semester hours (or the equivalent) of clinical
courses; and
 
* having completed at least 2,000 hours of supervised, direct client.
contact hours, unless the applicant can attest to having certain accept-
able experience.
 
In addition, this bill would allow, LMHCs, LMFTs and LPs currently work-
ing in certain settings, as defined by SED in regulations, provided that
such settings shall not include a private practice owned or operated by
the applicant, to continue to diagnose through June 24, 2025. At such
time, individuals will need to obtain a privilege from SED in order to
diagnose. This provision ensures that our community substance abuse and
mental health providers have adequate workforce to meet the current
demand for care.
 
PRIOR LEGISLATIVE HISTORY:
 
New Bill.
 
 
FISCAL IMPLICATIONS FOR STATE LOCAL GOVERNMENTS: To be determined.
 
 
EFFECTIVE DATE:
Immediately.

——————–

Webinar on Guidance for the Community Mental Health Loan Repayment Program Round 6 – 11:30 a.m. to 12:45 p.m., Tuesday April 29

The Office of Mental Health is Providing Guidance for the Community Mental Health Loan Repayment Program Round 6.

OMH has launched Round 6 of the Community Mental Health Loan Repayment Program to support providers of eligible OMH licensed mental health programs in the recruitment and retention of eligible psychiatrists, psychiatric nurse practitioners, and physician assistants.

Please join us for a presentation to explore the following topics of discussion:

• Program Background & Overview
• Application Walkthrough
• Questions & Answers

 
   OMH has invited you to a Webex webinar that requires registration. Guidance for the Community Mental Health Loan Repayment Program Round 6 Host: OMHTuesday, April 29, 202511:30 AM  |  (UTC-04:00) Eastern Time (US & Canada)  |  1 hr 15 mins Register  Need help? Go to https://help.webex.com