S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    67
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of  A.  PAULIN,  ROSENTHAL,  SIMON, BURDICK, RIVERA,
   SIMONE, RAGA,  BRONSON,  SHIMSKY,  STECK,  SHRESTHA,  HEVESI,  KELLES,
   MAMDANI,   LEVENBERG,   DAVILA,  LUNSFORD,  GIBBS,  EACHUS,  DINOWITZ,
   BICHOTTE HERMELYN, REYES, MEEKS, BLANKENBUSH,  KIM,  LEMONDES,  ROZIC,
   SAYEGH,  TAYLOR,  LEE  --  read  once and referred to the Committee on
   Health
 
 AN ACT to amend the public health law, in relation to  federally  quali-
   fied health center rate adequacy
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision  8  of  section  2807  of  the
 public  health law, as added by section 28 of part B of chapter 1 of the
 laws of 2002, is amended to read as follows:
   (b) For each twelve month period following  September  thirtieth,  two
 thousand  one  AND  CONTINUING THROUGH SEPTEMBER THIRTIETH, TWO THOUSAND
 TWENTY-FIVE, the operating cost component of such rates of payment shall
 reflect the operating cost component in effect on September thirtieth of
 the prior period as increased by the percentage increase in the Medicare
 Economic Index as computed in accordance with the requirements of 42 USC
 § 1396a(aa)(3) and as adjusted pursuant  to  applicable  regulations  to
 take  into  account  any  increase  or decrease in the scope of services
 furnished by the facility.   FOR  EACH  TWELVE  MONTH  PERIOD  FOLLOWING
 SEPTEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE, THE OPERATING COST COMPO-
 NENT  SHALL  BE  CALCULATED CONSISTENT WITH RATES OF PAYMENT ESTABLISHED
 PURSUANT TO PARAGRAPH (C-1)  OF  THIS  SUBDIVISION,  AND  THEN  ANNUALLY
 ADJUSTED  BY  USING  THE FQHC MARKET BASKET INFLATOR AS CALCULATED UNDER
 FEDERAL LAW, AND AS ADJUSTED PURSUANT TO APPLICABLE REGULATIONS TO  TAKE
 INTO ACCOUNT ANY INCREASE OR DECREASE IN THE SCOPE OF SERVICES FURNISHED
 BY THE FACILITY; PROVIDED, HOWEVER, THAT NO FACILITY SHALL BE SUBJECT TO
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00317-01-5
              

 A. 67                               2
 
 AN OPERATING COST COMPONENT LOWER THAN WHAT WAS APPLIED PRIOR TO SEPTEM-
 BER THIRTIETH, TWO THOUSAND TWENTY-FIVE.
   § 2. Subdivision 8 of section 2807 of the public health law is amended
 by adding a new paragraph (c-1) to read as follows:
   (C-1)  AS  SOON AS PRACTICABLE THE DEPARTMENT SHALL ANALYZE THE ACTUAL
 FEDERALLY QUALIFIED HEALTH CENTER COSTS FILED AS REQUIRED BY  DEPARTMENT
 REGULATIONS,  DURING THE PRIOR FIVE YEAR REPORTING PERIODS.  IN ADDITION
 TO SUCH DATA, THE COMMISSIONER SHALL CONSIDER  THE  SCOPE  OF  SERVICES,
 INCLUDING TYPE, INTENSITY, DURATION AND AMOUNT, PROVIDED BY SUCH FACILI-
 TIES;  STAFFING  TO  MEET COMPETITIVE MARKET AND CASE MIX NEEDS OF POPU-
 LATIONS SERVED; PHYSICAL PLANT  AND  MAINTENANCE  COSTS;  INFRASTRUCTURE
 COSTS;  TECHNOLOGY  COSTS ASSOCIATED WITH TELEHEALTH MODALITY OF SERVICE
 DELIVERY; INFORMATIONAL TECHNOLOGY COSTS; AND OTHER COSTS DEEMED  NECES-
 SARY  BY  THE COMMISSIONER.  NOTWITHSTANDING ANY OTHER STATUTE, RULE, OR
 REGULATION OTHERWISE IMPOSING CEILINGS OR CAPS ON PAYMENTS TO  FEDERALLY
 QUALIFIED  HEALTH CENTERS, PROVIDED THAT SUCH PAYMENTS ARE STILL SUBJECT
 TO FEDERAL FINANCIAL PARTICIPATION, BEGINNING ON APRIL FIRST, TWO  THOU-
 SAND  TWENTY-FIVE,  AND  THEN  AGAIN  EVERY  THREE YEARS THEREAFTER, THE
 DEPARTMENT SHALL DEVELOP AND ISSUE UPDATED RATES OF PAYMENTS  REFLECTING
 THE ACTUAL COSTS AND UPDATED AGGREGATED DATA CONSISTENT WITH THE METHOD-
 OLOGY  DESCRIBED  IN THIS PARAGRAPH; PROVIDED, HOWEVER, THAT NO FACILITY
 SHALL BE SUBJECT TO A RATE THAT IS LESS THAN  THE  RATE  USED  PRIOR  TO
 SEPTEMBER THIRTIETH, TWO THOUSAND TWENTY-FIVE.
   § 3.  This act shall take effect immediately.