S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5553

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 1, 2011
                               ___________

Introduced  by  Sen.  HANNON -- 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  authorizing  the
  commissioner  of  health to extend the use of audit findings to subse-
  quent un-audit periods with regard  to  payments  to  patient  service
  providers and assessments on covered lives

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (f) of subdivision 8-a of section 2807-j  of  the
public  health  law, as amended by section 17 of part B of chapter 58 of
the laws of 2010, is amended to read as follows:
  (f) The commissioner may enter into agreements with designated provid-
ers of services, and with third-party payors, in regard to  which  audit
findings have been made pursuant to this section or section twenty-eight
hundred seven-s of this article, extending and applying such audit find-
ings  or  a  portion thereof in settlement and satisfaction of potential
audit liabilities for subsequent un-audited  periods  [through  the  two
thousand  nine  calendar  year].  The  commissioner  may reduce or waive
payment of interest and penalties otherwise applicable  to  such  subse-
quent unaudited periods when such amounts due as a result of such agree-
ment,  other  than reduced or waived penalties and interest, are paid in
full to the commissioner or the  commissioner's  designee  within  sixty
days of execution of such agreement by all parties to the agreement. Any
payments  made  pursuant  to  agreements entered into in accordance with
this paragraph shall be deemed to be in full satisfaction of any liabil-
ity arising under this section and section twenty-eight hundred  seven-s
of this article, as referenced in such agreements and for the time peri-
ods covered by such agreements, provided, however, that the commissioner
may audit future retroactive adjustments to payments made for such peri-
ods  based  on  reports filed by providers and payors subsequent to such
agreements.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11718-01-1
              

S. 5553                             2

  S 2. Paragraph (f) of subdivision 10 of section 2807-t of  the  public
health  law,  as  amended by section 17-a of part B of chapter 58 of the
laws of 2010, is amended to read as follows:
  (f)  The  commissioner may enter into agreements with specified third-
party payors in regard to which audit findings have been  made  pursuant
to this section, extending and applying such audit findings or a portion
thereof  in  settlement  and satisfaction of potential audit liabilities
for subsequent un-audited periods [through the two thousand nine  calen-
dar  year]. The commissioner may reduce or waive payment of interest and
penalties otherwise applicable to such subsequent unaudited periods when
such amounts due as a result of such agreement, other  than  reduced  or
waived  interest  and penalties, are paid in full to the commissioner or
the commissioner's designee within  sixty  days  of  execution  of  such
agreement by all parties to the agreement. Any payments made pursuant to
agreements  entered  into  in  accordance  with  this paragraph shall be
deemed to be in full satisfaction of any liability  arising  under  this
section,  as  referenced  in  such  agreements  and for the time periods
covered by such agreements, provided, however, that the commissioner may
audit future retroactive adjustments to payments made for  such  periods
based on reports filed by payors subsequent to such agreements.
  S  3. This act shall take effect immediately; provided that the amend-
ments to paragraph (f) of subdivision  8-a  of  section  2807-j  of  the
public health law, made by section one of this act, shall not affect the
expiration  of  such  section  and  shall  expire  therewith;  provided,
further, that the amendments to  paragraph  (f)  of  subdivision  10  of
section  2807-t  of  the  public health law, made by section two of this
act, shall not affect the expiration of such section  and  shall  expire
therewith.