S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4589
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 10, 2025
                                ___________
 
 Introduced  by  Sens.  RIVERA,  BORRELLO, BROUK, CLEARE, COMRIE, COONEY,
   FERNANDEZ,   GALLIVAN,   GOUNARDES,   HARCKHAM,   HELMING,    HINCHEY,
   HOYLMAN-SIGAL,  JACKSON, KAVANAGH, LIU, MARTINS, MAY, OBERACKER, PARK-
   ER, SALAZAR, SEPULVEDA, SKOUFIS, STAVISKY, STEC, WEBB  --  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 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
 AN OPERATING COST COMPONENT LOWER THAN WHAT WAS APPLIED PRIOR TO SEPTEM-
 BER THIRTIETH, TWO THOUSAND TWENTY-FIVE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00317-01-5
              

 S. 4589                             2
 
   § 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.