BILL NUMBER: S8650

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to amend the social services law, in relation to the application
for the medicare savings program

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow low-income subsidy data transmitted from the social security
administration to local departments of social services to be treated as
an application for the Medicare savings program without requiring
submission of another application.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends subparagraph 3 of paragraph (d) of subdivision 3 of
section 367-a of the social services law to add new (ii) allowing low-
income subsidy data transmitted from the social security administration
to local departments of social services to be treated as an application
for the Medicare savings program without requiring submission of another
              

application and further states that the information provided through
low-income subsidy data supports a determination of eligibility under
this section. The provision requires the Commissioner of Health to
report on an annual basis the status of the Medicare savings program and
the number of applications received by local social services districts.

Section two amends subparagraph 3 of paragraph (c)of subdivision 3 of
section 367-a of the social services law adding a new (ii) with the same
language as (ii) in section one of the bill to be consistent with Part
AAA in the 2022-23 budget (Chapter 56 of 2022).

Section 3 of the bill is the effective date.

 
JUSTIFICATION:

The Medicare Savings Program, administered by the DOH and funded with
federal dollars, is aimed at helping low-income Medicare consumers
reduce their monthly premium costs. New York State has expanded the
program by increasing its income limit, making nearly 300,000 more New
Yorkers on Medicare eligible. These residents could receive a consider-
able decrease in their monthly Medicare premium payment, but many may
not even know they are eligible. The average annual amount that would go
back into a person's social security check as an enrollee in the Medi-
care Savings Program and savings in prescription drug costs is $7,078.80
for 2023.

The Medicare Improvement for Patients and Providers Act (MIPPA) requires
an application for the federal Part D prescription drug Low Income
Subsidy (LIS) program that is administered by SSA to be considered an
application for the Medicare Savings Program (MSP).(Social Security Act
§ 1144(c)(3).) Annually, New York State Department of Health receives
24,000-30,000 MIPPA LIS files that contain Medicare beneficiary informa-
tion from SSA that can be used to enroll people automatically in an MSP.

New York State currently does not use LIS applications submitted through
SSA to automatically enroll beneficiaries into the MSPs.  Instead, New
York State sends a paper Request for Additional Information (RFAI) with
an MSP application to residents that have applied for LIS through SSA.
Recipients are expected to fill out the application and return it with
the required documentation. NYSDOH does not track outcomes from these
applications or response rates.

The legislation will effectively use Social Security Administration
(SSA) data to automatically enroll people into the MSP and eliminate the
paper application. CMS has recommended this action to increase enroll-
ments and take the burden off individuals to verify assets, financial
information, citizenship, and identity by requiring states to rely on
existing federal electronic data that information where possible:

 
PRIOR LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that 13
section two of this act shall take effect on the same date and in the 14
same manner as section 4 of part AAA of chapter 56 of the laws of 2022,
15 takes effec