NY State Senate Bill 2023-S6911

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to finance
May 15, 2023	referred to finance

2023-S6911 (ACTIVE) - Details

Current Committee:: Senate Finance
Law Section:: State Finance Law
Laws Affected:: Add §97-bbbb, St Fin L

2023-S6911 (ACTIVE) - Summary

Establishes a temporary 340B covered entity no-interest loan fund.

2023-S6911 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6911

SPONSOR: RIVERA
 
TITLE OF BILL:

An act to amend the state finance law, in relation to establishing a
temporary 340B covered entity no-interest loan fund; and providing for
the repeal of such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide funding opportunities to 340B entities that have experienced
financial disruptions due to the transition of Medicaid pharmacy bene-
fits from managed care to fee-for-service (FFS).

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill would establish a temporary no-interest loan fund for 340B
entities within the state finance law. The bill authorizes up to
$100,000 of the monies made available to be used for administrative
expenses associated with the operation of the fund. The loan funds would
be dedicated to to mitigate financial disruptions associated with the

transition of the pharmacy benefit in Medicaid from managed care to FFS.
Awards would be based on the anticipated revenues the 340B entities
would receive pending a positive approval of the state plan amendment
increasing the funding to these entities as included in the SFY 2023-24
budget process.

 
JUSTIFICATION:

Many 340B entities are community based providers that are operating with
slim margins in order to maximize the delivery of healthcare services
they are providing to their patients, which often include vulnerable
members of the public. The Medicaid pharmacy transition had the effect
of eliminating the 340B program for Medicaid patients.  This created a
significant financial liability for many of these providers. The SFY
2023-24 enacted budget contained resources to help these entities offset
anticipated financial losses. However, due to the funding mechanisms
being utilized, it is likely that it will take months for the full value
of these offsets to be made available to 340B providers. In the interim,
many will be left struggling to adjust their operational financing pend-
ing the release of this funding. Additionally, private creditors are
unlikely to make financing available for resources that are pending
federal and state approvals before the funding can be guaranteed or
released.

This legislation will allow the state to intervene to provide direct
operational support to the entities that are being directly disrupted as
a result of the State's transition of Medicaid pharmacy benefits.  This
bill can provide significant relief with minimal costs.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

Undetermined, but minimal as the funding distributed under this initi-
ative would be recouped by the state.
 
EFFECTIVE DATE:
The bill takes effect immediately and is deemed repealed March 31, 2024.

2023-S6911 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6911
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2023
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the state finance law, in  relation  to  establishing  a
   temporary 340B covered entity no-interest loan fund; and providing for
   the repeal of such provisions upon expiration thereof

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The state finance law is amended by adding  a  new  section
 97-bbbb to read as follows:
   §  97-BBBB.  TEMPORARY  340B  COVERED ENTITY NO-INTEREST LOAN FUND. 1.
 THERE IS HEREBY ESTABLISHED WITHIN THE CUSTODY OF THE STATE  COMPTROLLER
 A NEW FUND TO BE KNOWN AS THE "TEMPORARY 340B COVERED ENTITY NO-INTEREST
 LOAN FUND".
   2.  THE  TEMPORARY  340B  COVERED  ENTITY  NO-INTEREST LOAN FUND SHALL
 CONSIST OF ALL MONEYS APPROPRIATED FOR ITS PURPOSE,  ALL  MONEYS  TRANS-
 FERRED  TO SUCH ACCOUNT PURSUANT TO LAW, AND ALL MONEYS REQUIRED BY THIS
 SECTION OR ANY OTHER LAW TO BE PAID INTO OR CREDITED  TO  THIS  ACCOUNT,
 INCLUDING ALL MONEYS RECEIVED BY THE ACCOUNT OR DONATED TO IT.
   3.   MONEYS IN THE TEMPORARY 340B COVERED ENTITY NO-INTEREST LOAN FUND
 SHALL BE KEPT SEPARATELY FROM AND SHALL NOT  BE  COMMINGLED  WITH    ANY
 OTHER  MONEYS  IN  THE CUSTODY OF THE STATE COMPTROLLER TO MAKE LOANS AS
 PROVIDED IN THIS SECTION.
   4. MONEYS OF THE ACCOUNT, WHEN ALLOCATED, SHALL BE  AVAILABLE  TO  THE
 COMMISSIONER  OF HEALTH TO MAKE LOANS AS PROVIDED IN THIS SECTION. UP TO
 ONE HUNDRED THOUSAND DOLLARS MAY BE USED TO PAY THE EXPENSES,  INCLUDING
 PERSONAL  SERVICE  AND MAINTENANCE AND OPERATION, IN CONNECTION WITH THE
 ADMINISTRATION OF SUCH LOANS.
   5. THE COMMISSIONER OF HEALTH SHALL MAKE LOANS TO 340B  COVERED  ENTI-
 TIES  AS  DEFINED  BY  THE FEDERAL PUBLIC HEALTH SERVICE ACT (42 U.S.C §
 256B) TO MITIGATE FINANCIAL DISRUPTIONS ASSOCIATED WITH  THE  TRANSITION
 OF  PHARMACY BENEFIT IN THE MEDICAL ASSISTANCE PROGRAM (MEDICAID) ESTAB-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11199-01-3

 S. 6911                             2
 
 LISHED PURSUANT TO PART FFF OF CHAPTER FIFTY-SIX  OF  THE  LAWS  OF  TWO
 THOUSAND TWENTY. THE LOANS SHALL BE MADE AS SOON AS REASONABLY PRACTICA-
 BLE AND NO LATER THAN JUNE FIFTEENTH, TWO THOUSAND TWENTY-THREE.
   6. LOAN AMOUNTS SHALL BE BASED ON TOTAL ANTICIPATED REVENUES, THE FULL
 AMOUNTS  OF  WHICH  WOULD  BE PROVIDED TO THESE ENTITIES IN STATE FISCAL
 YEAR TWO THOUSAND TWENTY-THREE--TWO THOUSAND TWENTY-FOUR PENDING  EITHER
 A  MEDICAL  ASSISTANCE  STATE  PLAN  AMENDMENT  APPROVAL, OR A COMPLETED
 CONTRACTUAL AGREEMENT ASSOCIATED WITH THE ENACTED STATE FISCAL YEAR  TWO
 THOUSAND TWENTY-THREE--TWO THOUSAND TWENTY-FOUR BUDGET LEGISLATION. SUCH
 LOAN  AMOUNTS  MAY  BE  REDUCED  BY ANY STATE-ONLY FUNDING THAT HAS BEEN
 PROVIDED TO AN ENTITY TO OFFSET 340B FISCAL LOSSES AS AUTHORIZED BY  THE
 STATE  FISCAL  YEAR  TWO THOUSAND TWENTY-THREE--TWO THOUSAND TWENTY-FOUR
 BUDGET LEGISLATION. ANY OBLIGATION BY A 340B COVERED ENTITY INCURRED  AS
 A  RESULT OF A LOAN FROM THIS FUND SHALL BE DEEMED FULLY SATISFIED AFTER
 THE STATE HAS RECONCILED  ALL  340B  MITIGATION  PAYMENTS  TO  THE  340B
 COVERED ENTITY WITH ANY APPLICABLE OFFSETS.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2023;  provided
 however,  the provisions of this act shall expire and be deemed repealed
 March 31, 2024, or after the commissioner of health has made a  determi-
 nation  that all loans, reasonably expected to, have been repaid; which-
 ever is later; provided that the commissioner of health shall notify the
 legislative bill drafting commission upon making such  determination  in
 order  that the commission may maintain an accurate and timely effective
 data base of the official text of the laws of the state of New  York  in
 furtherance of effectuating the provisions of section 44 of the legisla-
 tive law and section 70-b of the public officers law.

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Senate Bill S6911

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

2023-S6911 (ACTIVE) - Details

2023-S6911 (ACTIVE) - Summary

2023-S6911 (ACTIVE) - Sponsor Memo

2023-S6911 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6911

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Sponsored By

Gustavo Rivera

Current Bill Status - In Senate Committee Finance Committee

2023-S6911 (ACTIVE) - Details

2023-S6911 (ACTIVE) - Summary

2023-S6911 (ACTIVE) - Sponsor Memo

2023-S6911 (ACTIVE) - Bill Text download pdf

Comments