May 7, 2025

All – Late yesterday and early this morning, the Senate and Assembly started printing some of the Article VII final budget bills.  We expect more to be introduced and both houses will go into session to pass the budget today.
The final Health/Mental Hygiene Article VII budget bill (S3007C/AA3007C) has been released and below is an initial outline of its provisions.

Note:  The NYS Council shared the budget bill that corresponds with this outline with all members about an hour ago.

Many thanks to our fabulous government relations consultant Marcy Savage for quickly putting together the following outline of provisions of import to NYS Council members in the H/MH Article VII bill.  More to follow.

One more thing:  I know many NYS Council member agencies await regarding the Round IV awards connected to the Statewide Healthcare Facilities Transformation Grant Program, and that Round IV awards were due out some time ago.  I am not sure how the information about the Rounds III and IV grants (below) impacts the release of Round IV awards (if at all) but we will work to figure it out.  Stand by.

Outline of Final Health/ Mental Hygiene Article VII Budget Bill:

• Part A Global Cap: Extends through state fiscal year 2026-27
• Part B Health Related Extenders: Extends various health-related programs with some date changes from Executive budget proposal.
• Part C Pharmacy Related Proposal: Rejects Executive budget proposal to eliminate prescriber prevails in Medicaid
• Part D Hospital Reforms: Includes proposals to end certain voluntary upper payment limit payments on 12/31/25 and reduces Indigent Care Pool payments for public general hospitals in NYC
• Part E Managed Care Reforms: Includes proposal to shift individuals permanently placed in a residential healthcare facility for 3 months or more to fee for service from the current MLTC partial capitation program. Rejects proposal  to exclude medical services under Medicaid from the independent dispute resolution (IDR) process.  Includes the proposal to authorize DOH to impose enhanced penalties on managed care organizations for failure to meet obligations/performance standards under the model contract and laws/regulations.
• Part F MCO Tax: Includes proposal to require proceeds of MCO tax to be deposited into the healthcare stability fund.  Directs proceeds of the tax to be distributed as follows: up to $425M to hospitals, up to $445M for nursing homes for 4/1/25-3/31/26 and thereafter up to $385M per year, up to $40M for FQHCs for 4/1/25-3/31/26 and thereafter up to $20M per year, up to $15M for assisted living programs contingent of the availability of funds
• Part G Excess Malpractice program: Extends program to 6/30/26
• Part H Public Health programs:  Rejects Executive proposals to eliminate the EQUAL, ECRIP and Tick-Borne Disease programs
• Part I Electronic Death Registration System (EDRS): Accepts proposal to remove required fees
• Part J Statewide Health Care Facility Transformation III and IV: Accepts Executive budget proposal to change the date for when SHCFT IV projects from funding under III were awarded to 2/28/23
• Part K Temporary Operator for Hospital/Adult Care Facility:  Rejects Executive budget proposal to give DOH authority
• Part L Medical Debt Consent law: Rejects Executive budget proposal to remove requirement for consent for payment occuring after services are administered
• Part M Community Benefit Spending:  Includes Executive budget proposal for general hospitals to annual report on how their community benefit expenses are spent
• Part N Spinal Cord Injury Research Program:  Rejects Executive budget proposal  to expand the type of research projects eligible for funding under the program
• Part O State Controlled Substance Schedules:  Rejects proposals to align state controlled substance schedules with the federal DEA schedule and to expand controlled substance administration by EMTs for emergency treatment for SUDs.
• Part P Maternal and Reproductive Health proposals: Includes proposals to ensure access to abortion care services in emergency situations and expand certain privacy protections
• Part Q Medicaid Coverage of Infertility Treatments: Includes proposal for Medicaid coverage and establishing a DOH grant program to improve access to such services.
• Part R EMS Services: Rejects proposal to reform EMS system
• Part S Healthcare Transaction Reporting:  Rejects proposal to impose new requirements for reporting of healthcare transactions
• Part T SAFE program:  Includes proposal for hospitals to have Sexual Assault Forensic Examiners (SAFE) available
• Part U Genealogical Records: Rejects Executive budget proposal to digitize genealogical records
• Part V Scope of Practice: Rejects Executive budget proposal to expand scope of practice for certified medication aides, medical assistants, pharmacy technicians, pharmacists and physician assistants
• Part W Nurse Licensing Compact: Rejects Executive budget proposal to establish a nurse licensing compact
• Part X Dental Care: Rejects Executive budget proposal to expand scope of practice for dental hygienists
• Part Y Hospital at Home: Rejects Executive budget proposal to establish Hospital at Home program
• Part Z Preferred Source Program: Rejects Executive budget proposal to make this program permanent and instead extends to 2029
• Part AA Flexibilities for Mental Hygiene Demonstration Programs: Rejects Executive budget proposal to make this program permanent and instead extends to 2028
• Part BB OMH and OPWDD Authority to Appoint Temporary Operators: Rejects Executive budget proposal to make this program permanent and instead extends to 2028
• Part CC Authority for Managed Care for OPWDD: Includes proposal to preserve authority to 2027
• Part DD Homeless Youth Consent to BH Treatment: Includes proposal to allow homeless youth to consent for behavioral health services
• Part EE Involuntary Commitment and Assisted Outpatient Treatment: Includes proposal allowing for expansions to the state’s involuntary commitment law to include individuals who face a substantial risk for physical harm because they are unable to meet their basic needs. Includes a requirement for hospitals to notify community-based providers when a client is admitted or discharged with enhanced discharge planning.  Creates a behavioral health crisis technical assistance center.
• Part FF Targeted Inflationary Increase: Increases rate increase to 2.6% (Executive proposal was 2.1%) for 4/1/25-3/31/26 for programs under OMH, OASAS, OPWDD, OTDA, OCFS and SOFA.  Unrestricted but providers will submit a written certification attesting how funding will be used to first promote the recruitment and retention of support staff, direct care staff, clinical staff and non-executive admin staff or to respond to other critical non-personal service costs prior to supporting salary or other compensation for executive level job titles.
• Part GG Mental Health Review Panel: Amends existing law to require DOH to establish at least one mental health incident review panel per quarter to review the circumstances and events related to an incident involving a person with serious mental illness occurring in the community that involved the use of deadly force.  DOH shall every two years submit a cumulative report to the Governor and Legislature and be made public on the OMH website on the findings/recommendations made by the review panels.
• Part HH School-Based Health Centers (SBHCs): Stopped 4/1/25 carve in of SBHCs into Medicaid managed care (MMC) and prevents the state to move forward with MMC before 4/1/26 at the earliest
• Part II Opioid Settlement Fund Reporting: Includes a provision requiring that on or before November 1st of each year, any NY subdivision directly receiving settlement funds shall publicly post on its website information on how such unding was utilized and shall report information to OASAS and updated on an annual basis. OASAS shall re-post the information on its website.
• Part JJ Pregnancy Loss Reporting:  Makes changes to state requirements for reporting of pregnancy loss.
• Part KK EMS: Extends authorization for fees and charges for EMS at the municipal levels for five additional years
• Part LL Nassau County Health Care Corporation:  Includes funding and requirements for the sustainability of the Corporation including a study for its modernization and revitalization
• Part MM NYS Medical Indemnity Fund:  Extends through 6/1/26