January 4, 2025
The NYS Council has been contracting with Reid, McNally and Savage (RMS) for external government relations services for over a decade.
The RMS 1/3/2025 end of week wrap up is below. Note: RMS represents a range of clients in the healthcare space and so the news and info they share at the end of the week may not always be absolutely on point for mental health and substance use disorder providers, but I find the weekly wrap up to be very helpful. Thank you Marcy!
RMS End of Week Update 1/3/2025
What to Expect in the 2025 Legislative Session
The NYS legislative session is set to begin on Wednesday January 8th, 2025, and Governor Hochul’s State of the State address is set for January 14th. Another key date in January is January 21st which is the deadline for Governor Hochul to submit her executive budget to the Legislature. Below are a number of issues we expect to be considered during session this year:
· Inflation Rebate: Governor Hochul’s ‘inflation rebate’ for low- and middle-income New Yorkers would send one-time checks of up to $500 to families with a household income of up to $300,000 and one-time checks of up to of $300 to single filers earning less than $150,000;
· Ban Cellphones in Schools: Cellphone bans in schools has been proposed by Governor Hochul to address youth mental health concerns;
· NY HEAT Act: The NY HEAT Act which would end what’s called the “100-ft. rule,” which requires utility companies to install new gas hookups at no charge for ratepayers within that distance who request them, and it would cap utility bills for low-income households at 6% of their income;
· School Funding: New York’s school funding formula. Governor Hochul proposed an overhaul last year of Foundation Aid, which is the primary source of state support for schools;
· Revenue Funding for Public Transit: A new revenue stream for the MTA is likely to considered both to fill any gap left by the reduction in the pricing of congestion pricing and to backfill the costs of the MTA 5 Year Capital Plan. Upstate Transit is seeking funding to address the diminishing returns of the PBT for operating funding;
· MCO Tax: A tax on Medicaid Managed Care Organizations (MCOs) this is a tax on commercial insurance companies that contract with New York to provide Medicaid services. Those are called Managed Care Organizations (MCOs). The Biden administration has now approved New York to move forward with that tax which means it’s on the table in 2025;
· Additional Paid Leave: Paid Medical Leave (Temporary Disability) is also likely to be addressed during budget this year as the current temporary disability benefit pays $170 each week someone is out of work and hasn’t gone up since 1989. The deal reached between Hochul and lawmakers last year, which time ran out to pass, would raise that benefit to two-thirds of the employee’s average weekly wage instead. It would be capped at two-thirds of the statewide average weekly wage; and
· EPR: The Packaging Reduction and Recycling Infrastructure Act is likely going to be a hot topic this session as it gained momentum during last year’s legislative session but didn’t gain enough support to pass. This legislation is especially contentious as it would require large companies to reduce the amount of packaging they use while investing in local recycling infrastructure. However, there is no cap to the costs associated with it and opponents have argued that there are logistical and financial problems with the legislation as it stands currently that would lead to ballooning costs and a program that may not be feasible. The bill would increase the cost of consumer goods across the board.
The above are just a few of the numerous issues that will likely be considered during the upcoming session. We will continue to keep you updated as we get more information.
To view the calendar please click here.
Governor Hochul Announces New Policies Taking Effect In 2025 To Put Money Back Into The Pockets Of New Yorkers
Today, Governor Hochul announced three new policies that will put money back in the pockets of millions of New Yorkers. This week marks the first implementation of an increased minimum wage, the nation’s first paid prenatal leave law, and a ban on insulin co-pays for state-regulated insurance plans. Governor Hochul’s affordability agenda also includes proposing an inflation refund, and will continue focusing on affordability in this year’s State of the State. A pregnant woman who earns minimum wage and is diabetic would have an additional $2,500 in their pocket as a result of these new initiatives.
“The new year has arrived — and so have three major new policies that will make a difference in the lives of working people,” Governor Hochul said. “The cost of living is just too damn high, so I’m doing everything in my power to make New York more affordable for families.”
Minimum Wage
On Jan. 1, 2024 the State minimum wage increased to $16 in New York City and the counties of Nassau, Suffolk and Westchester, and to $15 in all other parts of the State and is scheduled to increase by $0.50 per year on Jan. 1, 2025 and Jan. 1, 2026.
Beginning in 2027, the minimum wage will increase annually by the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. An “off-ramp” is available in the event of certain economic or budget conditions. More information can be found on the State Department of Labor website.
First-in-the-Nation Paid Prenatal Leave Law
Effective Jan. 1, 2025, any privately employed pregnant New Yorker is now able to receive an additional 20 hours of paid leave for prenatal care. The New York State Department of Labor estimates that about 130,000 pregnant women per year will be eligible for this benefit, with about 65,800 of those being hourly workers.
Pregnancy-related health care includes:
· Physical examinations
· Medical procedures
· Monitoring
· Testing
· Discussions with a health care provider needed to ensure a healthy pregnancy
· Fertility treatment
· End of pregnancy care
The paid prenatal leave benefits are in addition to New York State Paid Family Leave, existing employer-provided leave and existing sick leave benefits, ensuring workers can receive the health care needed to address all pregnancy related care to create healthy outcomes without jeopardizing their employment or finances. The law applies to all private employers in New York State, with no minimum employee threshold, and is applicable to both full-time and part-time employees.
Eliminating Insulin Co-Pays on State-Regulated Insurance Plans
This initiative is the most expansive prohibition against insulin cost-sharing in the nation, providing financial relief to New Yorkers and improving adherence to these life-saving medications. With 1.8 million New Yorkers diagnosed with diabetes, the proposal is estimated to save eligible New Yorkers up to $1,200 per year, and an estimated $14 million in 2025 alone.
According to the American Diabetes Association, people with diabetes have medical expenses that are 2.3 times higher than people who do not have diabetes and the impact is even larger for communities of color, which face disproportionately high diagnosis rates.
State Senate Majority Leader Andrea Stewart-Cousins said, “Our Senate Majority’s efforts to make life more affordable for New Yorkers will continue to be our primary focus for this year’s legislative agenda, and I’m excited to start the new year with impactful policies that will make a real difference. For hardworking families across New York, the minimum wage increase will help ease the burden of rising living costs. We’re also eliminating insulin cost-sharing, ensuring no New Yorker has to choose between life-saving medication and other essentials. And our new paid prenatal leave policy will allow expectant parents to take time off without financial strain, promoting healthier beginnings for both parents and babies. These policies demonstrate what’s possible when we prioritize working families, creating a state where all New Yorkers can thrive.”
Assembly Speaker Carl Heastie said, “Health and wealth are closely intertwined as we navigate daily life regardless of our zip code. And while inflation is down, we know that the cost of living remains too high. This minimum wage increase, the implementation of a first in the nation prenatal care leave program and the elimination of cost sharing for insulin in state regulated health plans will improve healthcare outcomes and help make New York a more affordable place for families.”
To view the full press release please click here.
Federal Government Approves New York Tax To Boost Medicaid Reimbursement Funds
Recently, the federal government approved New York’s request to create a new tax that’s expected to generate billions of dollars in additional Medicaid reimbursement funds for the state, budget officials said Monday.
Earlier this year, the state Legislature applied for a federal waiver to tax Managed Care Organizations the state Health Department pays for Medicaid as part of its last $239 billion budget deal. State leaders applied with the Centers for Medicare & Medicaid Services to create a new funding mechanism for the tax.
Officials with the state Health Department confirmed the approval Monday but would not answer questions about how much money it will provide the state and when. “The department is currently reviewing the final approval,” Health Department spokesperson Danielle De Souza said in a statement. “Additional information will be made available at a later date.”
It remains unclear what will become of the approval after President-elect Donald Trump takes office Jan. 20.
For more information please click here.
NYS Senate GOP Sends Letter Detailing ‘Affordability’ Alternative To Governor Hochul
New York State borrowed billions of dollars during the coronavirus pandemic to pay for unemployment costs, which sharply rose as the virus hit its peak in 2020. But the state has not paid off that debt, which means businesses have had to shoulder the costs themselves. The cost depends on the size of the business but it’s typically a few hundred dollars per employee each year. Republicans in the state Legislature have called on Hochul and Democrats to pay down that debt for the last few years. There’s been some spending there but not a ton.
Three Republicans in the state Senate George Borrello, Dean Murray and Pamela Helming, members of the Senate Commerce, Economic Development and Small Business Committee, sent a letter to Governor Hochul this week asking her to set aside state funding to pay off the remaining $6 billion owed in unemployment debt. “Eliminating that massive expense will allow those businesses and employers to pass the savings on to consumers, by reducing the costs of goods and services,” they wrote.
To view the full letter please click here.
NYS COVID-19 Monitoring Dashboard
Below we have included the link to the State’s Testing Tracker which includes the State’s overall testing status–by clicking on the link above you can view the testing results by county. This data is current through January 2, 2025.
Use this link to view the State’s updated COVID-19 Hub.
NYS COVID-19 Fatalities Tracker
Below we have included the Fatalities Tracker with the webpage where updated numbers can be found throughout the week linked here.
Helpful Links and Resources
Center for Disease Control and Prevention
Department of Financial Services information and resources
New York COVID-19 Vaccine Information Page
Department of Health
https://coronavirus.health.ny.gov/home
COVID-19 Guidance for Medicaid Providers
Office of Mental Health
https://omh.ny.gov/omhweb/covid-19-resources.html
OPWDD
https://opwdd.ny.gov/coronavirus-guidance
State Education Department
http://www.op.nysed.gov/COVID-19.html
NYS Department of Labor