Public Hearing - January 23, 2024

                                                                       1

 1  BEFORE THE NEW YORK STATE SENATE FINANCE
    AND ASSEMBLY WAYS AND MEANS COMMITTEES
 2  -----------------------------------------------------

 3          JOINT LEGISLATIVE HEARING

 4             In the Matter of the
            2024-2025 EXECUTIVE BUDGET
 5                  ON HEALTH 
    
 6  -----------------------------------------------------

 7  
                                Hearing Room B
 8                              Legislative Office Building 
                                Albany, New York 
 9  
                                January 23, 2024
10                              9:38 a.m.
    
11
    PRESIDING:
12
              Senator Liz Krueger
13            Chair, Senate Finance Committee
    
14            Assemblywoman Amy Paulin
              Chair, Assembly Health Committee
15  
    PRESENT:
16
              Senator Thomas F. O'Mara
17            Senate Finance Committee (RM)
    
18            Assemblyman Edward P. Ra
              Assembly Ways & Means Committee (RM)
19  
              Senator Gustavo Rivera
20            Chair, Senate Committee on Health
    
21            Senator Neil D. Breslin
              Chair, Senate Committee on Insurance
22  
              Assemblyman David I. Weprin
23            Chair, Assembly Committee on Insurance
    
24


                                                                   2

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3   PRESENT:  (Continued)
    
 4            Senator Patrick M. Gallivan
    
 5            Senator John C. Liu
    
 6            Assemblyman Khaleel M. Anderson
    
 7            Assemblyman Harry B. Bronson
    
 8            Senator Brad Hoylman-Sigal
    
 9            Assemblyman Edward C. Braunstein
    
10            Senator Rachel May
    
11            Assemblyman Phil Steck
    
12            Senator Pamela Helming
    
13            Assemblyman John T. McDonald III
    
14            Assemblywoman Jessica González-Rojas
    
15            Senator Daniel G. Stec
    
16            Assemblyman Jake Ashby 
    
17            Assemblywoman Michaelle C. Solages
    
18            Senator Leroy Comrie
    
19            Assemblyman Jarett Gandolfo
    
20            Assemblyman Josh Jensen
    
21            Assemblymember Alex Bores
    
22            Assemblywoman Jen Lunsford
    
23            Senator Lea Webb
    
24            Assemblyman Jake Blumencranz
    

                                                                   3

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3  PRESENT:  (Continued)
    
 4            Senator George M. Borrello
    
 5            Assemblywoman Nikki Lucas
    
 6            Assemblywoman Dr. Anna R. Kelles
    
 7            Senator Samra G. Brouk
    
 8            Assemblyman Nader J. Sayegh 
    
 9            Assemblywoman Jo Anne Simon
    
10            Senator Zellnor Myrie
    
11            Senator Steven D. Rhoads
    
12            Assemblyman Scott Gray
    
13            Senator Michelle Hinchey
    
14            Assemblywoman Pamela J. Hunter
    
15            Assemblyman Scott Bendett
    
16            Assemblywoman Latrice M. Walker
    
17            Assemblyman Jonathan G. Jacobson 
    
18            Senator Andrew Gounardes
    
19            Assemblywoman Karines Reyes
    
20            Assemblywoman Rebecca A. Seawright
    
21            Assemblyman Erik M. Dilan
    
22            Senator John W. Mannion
    
23            Assemblywoman Mary Beth Walsh
    
24            Assemblywoman Jenifer Rajkumar
    

                                                                   4

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3  PRESENT:  (Continued)
    
 4            Assemblyman John K. Mikulin
    
 5            Assemblywoman Amanda Septimo
    
 6            Assemblyman Ken Blankenbush
    
 7            Assemblywoman Phara Souffrant Forrest
    
 8            Senator Jeremy A. Cooney
    
 9            Assemblywoman Rodneyse Bichotte Hermelyn
    
10  
    
11  
    
12  

13

14

15

16

17

18

19

20

21

22

23

24


                                                                   5

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3                    LIST OF SPEAKERS
    
 4                                        STATEMENT  QUESTIONS
    
 5  Dr. James V. McDonald
    Acting Commissioner
 6  NYS Department of Health                 
         -and-
 7  Amir Bassiri
    NYS Medicaid Director                    
 8       -and-
    Adrienne Harris 
 9  Superintendent 
    NYS Department of 
10   Financial Services                      20         40
    
11  Beatrice Grause
    President
12  Healthcare Association of NYS          
     (HANYS)                                
13       -and-
    Kenneth E. Raske
14  President
    Greater New York Hospital 
15   Association
         -and-
16  George Gresham
    President
17  1199 SEIU Healthcare 
     Workers East                           266        275
18  
    David Sandman
19  President & CEO
    New York Health Foundation
20       -and-
    Jordan Goldberg
21  Director of Policy
    Primary Care Development 
22   Corporation
         -and-
23  Rose Duhan
    President & CEO
24  Community Health Care 
     Association of NYS                     329        339

                                                                   6

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3                      LIST OF SPEAKERS, Continued 
    
 4                                        STATEMENT  QUESTIONS
    
 5  Eric Linzer 
    President & CEO
 6  NY Health Plan Association             
         -and-
 7  Erin Drinkwater
    Chief of Government Relations
 8  Coalition of NYS Public Health
     Plans and NYS Coalition of 
 9   Managed Long Term Care Plans            
         -and-
10  Mia Wagner
    Health Policy Manager
11  Health Care for All New York            361        372
    
12  Bill Hammond
    Sr. Fellow for Health Policy
13  Empire Center
         -and-
14  James W. Clyne Jr.
    President/CEO
15  LeadingAge New York                     
         -and-
16  Charles King
    CEO
17  Housing Works                            
         -and-
18  Lindsay Heckler
    Policy Director
19  Center for Elder Law
     & Justice                              384        396
20  

21

22

23

24


                                                                   7

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3                      LIST OF SPEAKERS, Continued 
    
 4                                        STATEMENT  QUESTIONS
    
 5  Dr. Irina Gelman
    Commissioner 
 6  Nassau County DOH 
    President 
 7  New York State Association 
     of County Health Officials
 8       -and-
    Stephen B. Hanse
 9  President & CEO
    NYS Health Facilities Association/
10   NYS Center for Assisted Living
     (NYSHFA|NYSCAL)
11       -and-
    Michael Duteau
12  President
    Community Pharmacy Association
13   of New York State
         -and-
14  Megan C. Ryan
    Interim CEO
15  Nassau Health Care Corporation          429         442
    
16  

17

18

19

20

21

22

23

24


                                                                   8

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3                      LIST OF SPEAKERS, Continued 
    
 4                                        STATEMENT  QUESTIONS
    
 5  Scott Mesh, Ph.D. 
    Board Member 
 6  Agencies For Children's
     Therapy Services
 7       -and-
    Nicole Bryl
 8  CEO
    Children's Health Home of 
 9   Upstate New York
         -and-
10  Brigit Hurley
    Chief Program Officer
11  The Children's Agenda                 
         -and-
12  Lauren Spiker
    Executive Director
13  13thirty Cancer Connect
         -and-
14  Maggie Dickson
    Director of Public Policy
15  Alliance of NYS YMCAs                  462       477
    
16

17

18

19

20

21

22

23

24


                                                                   9

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3                      LIST OF SPEAKERS, Continued 
    
 4                                        STATEMENT  QUESTIONS
    
 5  Dr. Jerome Cohen
    President Elect
 6  Medical Society of the 
     State of New York
 7       -and-
    Leon Bell
 8  Director of Public Policy
    NYS Nurses Association
 9       -and-
    Edward Mathes
10  President 
    New York State Society of
11   Physician Assistants
         -and-
12  Jonathan Teyan
    President & CEO
13  Associated Medical Schools
     of New York
14       -and-
    Rebecca Miller
15  NYS Legislative and
     Political Director
16  CWA District 1                          498       514
    
17  Georgana Hanson
    VP of Public Policy &
18   Regulatory Affairs
    Planned Parenthood 
19   Empire State Acts
         -and-
20  Jeanne M. Chirico
    President & CEO
21  Hospice and Palliative Care
     Association of NYS                     535       541
22   
    
23

24


                                                                   10

 1  2024-2025 Executive Budget
    Health 
 2  1-23-24
    
 3                      LIST OF SPEAKERS, Continued 
    
 4                                        STATEMENT  QUESTIONS
    
 5  Ryan Healy
    Advocacy Manager
 6  Feeding New York State
         -and-
 7  Natasha Pernicka
    Executive Director
 8  The Alliance for a 
     Hunger Free New York
 9       -and-
    Angela Pender-Fox
10  Associate Executive Director
    The Food Pantries for the
11   Capital District                       550        560
    
12  Al Cardillo
    President & CEO
13  Home Care Association of
     New York State
14       -and-
    Bryan O'Malley
15  Executive Director
    Consumer Directed Action
16   of New York
         -and-
17  Chris Vitale
    Legislative Coordinator
18  Empire State Association
     of Assisted Living
19       -and-
    Kathy Febraio
20  President & CEO
    NYS Association of
21   Health Care Providers
         -and-
22  Connor Shaw
    Political Director
23  Home Healthcare Workers 
     of America-IUJAT                       572        588
24  
    

                                                                   11

 1                  CHAIRWOMAN KRUEGER:  Good morning, 

 2           everyone.  Hi.  I'm State Senator Liz 

 3           Krueger, chair of Finance, joined by -- we 

 4           don't have the chair of Ways and Means with 

 5           us for at least the first couple of hearings.  

 6           But every day the senior Assemblymember for 

 7           the leading committee will be representing as 

 8           if they were the chair of Ways and Means.  

 9           Today it's my colleague Amy Paulin.

10                  Some of you may have already noticed 

11           there have been some improvements in this 

12           conference room, which hopefully will make 

13           everybody's life a little happier.

14                  I want to remind or just point out to 

15           all legislators, the microphones are new.  

16           They should be better.  But note, when you 

17           have -- when you push the push button to be 

18           heard as a speaker, you have to push it 

19           pretty hard, and the light goes from red to 

20           green.  And so it's just reminding everyone, 

21           make sure the light is green when you're 

22           talking.

23                  And also reminding my colleagues, 

24           because we all are guilty of this sometimes, 


                                                                   12

 1           make sure it's off when you're chatting when 

 2           you're not supposed to be on record, because 

 3           sometimes some interesting things pop up on 

 4           the recording.

 5                  The upgrades include increased WiFi 

 6           strength, so people should actually be able 

 7           to get the WiFi to work in here.  And there's 

 8           both the member WiFi and the guest WiFi.  

 9                  So we're really hoping all of this 

10           works; this is sort of our beginning test 

11           since you're the first budget hearing.

12                  You'll also see there are new screens 

13           as well as, for people who have hearing 

14           impairment, there is -- bless you -- 

15           automatic text that will continue with 

16           whoever is asking questions or responding to 

17           questions.  It's a really terrific 

18           technology.  I use them all the time when I 

19           do webinars for my constituents.  It really 

20           helps to have the text along.

21                  So I'm excited about our first day.  

22           I'm now going to -- before I make the opening 

23           statement, I'll just go over a couple of 

24           other things.  So for witnesses to present 


                                                                   13

 1           their testimony, each government invitee -- 

 2           and we have three with us at the table now -- 

 3           each gets 10 minutes to present.  The 

 4           nongovernment invitees, when we get to their 

 5           panels later, only have three minutes to 

 6           present.  

 7                  The chairs of the relevant committees 

 8           get 10 minutes to ask questions, and they get 

 9           a second round of three minutes if necessary.  

10           The rankers get five minutes.  All other 

11           members get three minutes and no second round 

12           for those storylines.  

13                  So now to do an official opening 

14           statement.  Good morning.  Again, Liz 

15           Krueger, chair of the Senate Finance 

16           Committee.  The cochair of today's budget 

17           hearing is my colleague Amy Paulin.  

18                  Today is the first of 13 hearings 

19           conducted by the joint fiscal committees of 

20           the Legislature regarding the Governor's 

21           proposed budget for state fiscal year 

22           '24-'25.  These hearings are conducted 

23           pursuant to the New York State Constitution 

24           and Legislative Law.


                                                                   14

 1                  Today the Senate Finance Committee and 

 2           the Assembly Ways and Means Committee will 

 3           hear testimony concerning the Governor's 

 4           proposed budget for the Department of Health 

 5           and the Department of Financial Services.  

 6           Following each testimony, there will be time 

 7           for questions from the chairs of the relevant 

 8           committees.

 9                  I will now introduce members of the 

10           Senate, and Assemblymember -- oh, it says 

11           Helene Weinstein, but it's not -- Amy Paulin 

12           will introduce members of the Assembly.  In 

13           addition, my colleague, the ranker on 

14           Finance, Senator Tom O'Mara, will introduce 

15           members from his conference.  

16                  But just to note, for people who might 

17           still be confused if they're in the right 

18           room, today we have, representing the 

19           agencies, I'm welcoming Dr. James McDonald, 

20           commissioner of the New York State Department 

21           of Health; Amir Bassiri, Medicaid director 

22           for the New York State Department of Health; 

23           and Adrienne Harris, the superintendent of 

24           the New York State Department of Financial 


                                                                   15

 1           Services.  

 2                  Sorry, oh -- and just reading off the 

 3           members from the Senate so far -- some people 

 4           come, they go, there are committee meetings.  

 5           Thank you.  We have Senator Rachel May; 

 6           Senator Neil Breslin, who is the chair of 

 7           Insurance; Senator Gustavo Rivera, chair of 

 8           Health; Senator Zellnor Myrie; Senator 

 9           John Liu; Senator Brad Hoylman-Sigal; 

10           Senator Webb.  I think that's so far the 

11           Democratic Senators.  

12                  And I'm going to turn it over to 

13           Tom O'Mara to introduce the Republican 

14           members.

15                  SENATOR O'MARA:  Thank you, 

16           Senator Krueger.  Good morning, all.  

17                  On our side here we have, down in 

18           front, Senator Jake Ashby, Senator Dan Stec.  

19           Up here to my right is Senator Pam Helming, 

20           our ranking member on Insurance, and 

21           Senator Patrick Gallivan, our ranking member 

22           on Health.

23                  Thank you.

24                  CHAIRWOMAN KRUEGER:  Thank you.  


                                                                   16

 1                  Amy Paulin, who's technically the 

 2           chair of Health, but also leading for the 

 3           Assembly today.

 4                  ASSEMBLYWOMAN PAULIN:  Hi, I'm Amy 

 5           Paulin, chair of the Assembly Health 

 6           Committee.  

 7                  Today, in addition to my role as 

 8           Health chair, I'm also filling in for 

 9           Assemblymember Helene Weinstein, who is the 

10           chair of Ways and Means, who originally -- or 

11           would ordinarily be chairing the hearing with 

12           Senator Krueger.  Assemblywoman Weinstein is 

13           presently recovering from knee surgery and is 

14           expecting to be back in a few weeks.

15                  So I -- everything's been said except 

16           the introduction of the Assemblymembers, 

17           right?  Got it.

18                  So on the Assembly side we have, to my 

19           left, David Weprin, chair of Insurance; 

20           Assemblymember Phil Steck; Assemblymember 

21           John McDonald.  Down below, Assemblymembers 

22           Ed Braunstein, Harry Bronson, Michaelle 

23           Solages, Nader Sayegh, Alex Bores, Jen 

24           Lunsford, and somewhere is Khaleel Anderson, 


                                                                   17

 1           I don't know where.  But he is here.  Got it.

 2                  And then I'm going to turn this over 

 3           to my colleague Ed Ra, who will introduce the 

 4           Republican members of the Assembly.

 5                  ASSEMBLYMAN RA:  Thank you.  

 6                  Good morning.  On the Republican side 

 7           we have Assemblymember Josh Jensen, who is 

 8           our ranker on Health; Assemblymember Ken 

 9           Blankenbush, our Insurance ranker; and we 

10           also have Members Gandolfo, Bendett and Gray.  

11                  ASSEMBLYWOMAN PAULIN:  (Mic off) -- 

12           anybody who wants to ask a question, so raise 

13           your hands.  Okay.  Thank you.

14                  CHAIRWOMAN KRUEGER:  And just a little 

15           more housekeeping, because this topic comes 

16           up every year, and this is really for my 

17           legislative colleagues.  

18                  If you have 10 minutes, five minutes 

19           or three minutes, that is for both asking the 

20           question and getting the answer.  Some people 

21           like to use all of their minutes asking a 

22           question, or perhaps sometimes it's not a 

23           question.  So the deal is you still only get 

24           that much time.  So if you use it all up on 


                                                                   18

 1           your side, there's not going to be time for 

 2           anyone to answer.  

 3                  When that happens -- and trust me, it 

 4           will, we're doing this many years -- we will 

 5           ask the testifiers if they can please respond 

 6           in writing to myself and Ways and Means, and 

 7           we'll make sure all members get the written 

 8           responses.  

 9                  And sometimes testifiers sincerely 

10           don't actually know the answer, which I think 

11           is fine.  Then say:  I don't know that 

12           answer, I will find out for you and get back 

13           to you.  And that's a perfectly appropriate 

14           response.

15                  So, you know, everyone who's 

16           testifying today, don't make it up.  If you 

17           don't know, then just say we'll have to get 

18           back to you, you stumped me.  Everybody gets 

19           stumped sometimes.  So I just wanted to make 

20           sure that I raised that storyline because, 

21           trust me, it will happen.

22                  And as Amy just said, for members of 

23           the Senate or the Assembly, if you want to 

24           ask questions, then if you're a Republican, 


                                                                   19

 1           let Tom O'Mara or Assemblymember Ra know, 

 2           because they'll keep a list.  And then if 

 3           you're a Democrat, let me know or let Amy 

 4           know, because we're alternating and taking 

 5           turns asking the questions.  And you can, 

 6           like, signal a staff member there, you can 

 7           wave to me, try to get my attention.  We all 

 8           figure it out.  But just because we do have 

 9           some members who maybe haven't gone through 

10           as many budget hearings as some of us have, 

11           you just need to make sure you let us know.  

12                  We will always ask the chairs and the 

13           rankers to go before we ask other people to 

14           go.  Not that you have to have questions, but 

15           usually you do.

16                  So with that, I would like to turn it 

17           over to Dr. James McDonald -- he has many 

18           letters after his name, but he's our 

19           Commissioner of Health, to testify for 

20           10 minutes.  Oh, I'm sorry, one more thing.

21                  If you are a legislator here, we have 

22           printout copies of the government 

23           representatives' testimony.  Everyone else's 

24           testimony is up online on the Senate Finance 


                                                                   20

 1           and/or the Assembly Ways and Means sites.  So 

 2           we've decided a couple of years ago to stop 

 3           killing so many trees and just make the 

 4           testimony available online.

 5                  So with that, thank you, Commissioner.

 6                  COMMISSIONER McDONALD:  Yeah, thank 

 7           you.  Wow, that's loud.  All right, well, let 

 8           me start with wishing a speedy recovery to 

 9           Chairperson Weinstein.  I'm sorry she can't 

10           be here.  But I do want to say good morning 

11           to you, Chairpersons Krueger, Rivera and 

12           Paulin, and all the members of the Senate and 

13           Assembly Finance Committee.  It's great to be 

14           back, it's great to be with you today.  

15                  And I'm really glad to be the first 

16           person to talk about Governor Hochul's fiscal 

17           year '25 budget as it relates to the health 

18           and well-being of all New Yorkers.  You know, 

19           it occurred to me, though, that when you look 

20           at the entire budget, the whole budget is 

21           about protecting the health and safety of all 

22           New Yorkers.  

23                  I'm going to limit my comments and 

24           really focus on the Department of Health 


                                                                   21

 1           budget today.  I do want to just acknowledge 

 2           my colleague and friend Amir Bassiri here 

 3           from Medicaid -- great to have him -- and my 

 4           Acting Executive Deputy Commissioner Johanne 

 5           Morne, who's with me today as well.  Thrilled 

 6           to have them.  

 7                  You know, if I could describe this 

 8           budget in one word, it's really about 

 9           stewardship.  And, you know, it's no secret 

10           this is a challenging budget year and there 

11           are some difficult choices that are being 

12           made.  But this is about stewardship for 2025 

13           and beyond.

14                  You know, last year I traveled very 

15           widely throughout the state.  I had 59 trips, 

16           all in total, met hundreds of organizations 

17           and tens of thousands of people.  You know, 

18           really traveled, you know, from the Far 

19           Rockaways to the Akwesasne.  And of note, I 

20           had the chance to visit the Tuscarora Nation, 

21           the Tonawanda Seneca Nation, and the 

22           St. Regis Mohawk Nation.  

23                  I was also particularly pleased to 

24           welcome the Rochester delegation to our 


                                                                   22

 1           regional office in Rochester.  

 2                  You know, at every meeting I pretty 

 3           much go with the same two things:  I'm here 

 4           to listen, and I want to hear how I can 

 5           partner with folks to eliminate health 

 6           disparities.  

 7                  I want to turn my attention now to 

 8           talk a little bit about distressed hospitals.  

 9           You know, the funding for distressed 

10           hospitals has tripled between fiscal years 

11           '21 and '24.  In fiscal year '25, we're 

12           providing an additional $984 million to 

13           distressed hospitals, so just a little under 

14           a billion.  

15                  Under the 1115 Medicaid waiver we'll 

16           provide up to an additional $2.2 billion in 

17           multiyear funding to support our safety net 

18           hospitals while encouraging them to transform 

19           in ways that will improve care and financial 

20           sustainability.  All told, the 1115 waiver 

21           includes $7.5 billion, of which $6 billion is 

22           new federal funding to address health 

23           inequities.  

24                  In my visits across the state, the 


                                                                   23

 1           issue that came up repeatedly everywhere was 

 2           workforce.  And we need your help to solve 

 3           this problem.  And I'm hoping we can work 

 4           together to look at changing maybe some 

 5           outdated laws that prevent healthcare 

 6           professionals from working in New York.  And 

 7           these limitations contribute significantly to 

 8           our shortages and rising costs.

 9                  You know, we're one of only 11 states 

10           that hasn't joined the Physician Licensure 

11           Compact; one of only nine states that hasn't 

12           joined the Nurse Licensure Compact.  You 

13           know, we're also -- we have to look at 

14           legislation about like can we let healthcare 

15           workers do things they're already trained to 

16           do, like medication aides.  You know, 

17           allowing them to give basic medications in 

18           long-term care.

19                  I think we need to look at how we look 

20           at physician assistants too.  You know, 

21           physician assistants should be allowed to 

22           practice independently in primary care and 

23           hospitals after sufficient training.  I think 

24           we need to look at medical assistants too.  


                                                                   24

 1           You know, we're the only state in the country 

 2           that doesn't allow a medical assistant to 

 3           administer a vaccine.

 4                  You know, while we're supporting 

 5           healthcare workers, I want to shift our 

 6           conversation a little bit to how we can make 

 7           health insurance easier to obtain.  Our 1332 

 8           innovation waiver, which I expect to be 

 9           approved by the federal government this week, 

10           is going to raise eligibility from 200 to 

11           250 percent of the federal poverty line.  So 

12           someone earning a little more than $38,000 

13           could obtain affordable coverage with no 

14           premium.  It's going to help an additional 

15           100,000 New Yorkers get affordable insurance.

16                  You know, we're also proposing this 

17           year to allow subsidies for folks who make up 

18           to 350 percent of the federal poverty line 

19           for qualified health plans.  And we're going 

20           to eliminate cost sharing in both the 

21           Essential Plan and qualified health plans for 

22           office visits, lab work, pharmaceutical and 

23           other things, for things like chronic 

24           conditions such as Type 2 diabetes.


                                                                   25

 1                  I want to talk a little bit about 

 2           maternal health.  You know, the budget also 

 3           increases our commitment to maternal health 

 4           in several ways:  $700,000 to the Perinatal 

 5           Quality Collaborative, which helps 

 6           participating hospitals develop a 

 7           multidisciplinary approach to eliminating 

 8           racial disparities in birth outcomes.  We're 

 9           also adding doula coverage for New Yorkers 

10           enrolled in the Essential Plan.  We're also 

11           asking for allowing me, the commissioner, to 

12           write a standing order so anybody who's 

13           giving birth can access a doula.

14                  You know, we're also going to 

15           eliminate out-of-pocket medical costs for 

16           pregnancy-related benefits via the Essential 

17           Plan and other qualified health plans, and 

18           use financial incentives to get hospitals to 

19           reduce unnecessary C-section births.

20                  Talking a little bit about children's 

21           health, I'm pleased with some of the 

22           investments we're making here.  We're going 

23           to seek approval to provide continuous 

24           Medicaid coverage and Children's Health 


                                                                   26

 1           Insurance Program coverage for any eligible 

 2           little one up to the age of six.  This will 

 3           eliminate an administrative burden for an 

 4           estimated 650,000 kids enrolled in Medicaid 

 5           and Child Health Plus.  We're also making 

 6           some investments in school-based health 

 7           centers.

 8                  And something else we're doing this 

 9           year which I'm excited about is increasing 

10           the reimbursement rate for in-person visits 

11           for Early Intervention.  It's a 5 percent 

12           increase across the board, and 9 percent for 

13           rural areas of the state.

14                  I want to shift my conversation now to 

15           talk a little bit about emergency medical 

16           services.  Now, I think most people think of 

17           this as an essential service, yet it's not 

18           considered an essential service in our state, 

19           so we'd like to mandate that.  Because it's 

20           not mandated, we see a wide variety of 

21           response times, particularly in rural areas.  

22           We're hoping to change that by making this an 

23           essential service and creating five EMS zones 

24           intended to augment local EMS agencies where 


                                                                   27

 1           the workforce isn't quite what it could be.

 2                  We're also talking about establishing 

 3           a first-in-the-nation paramedic telemedicine 

 4           urgent care program that will increase access 

 5           to care and hopefully reduce unnecessary 

 6           emergency department visits.

 7                  There is some energy here in 

 8           strengthening primary care as well.  In 

 9           addition to the investments made in the 1115 

10           Medicaid waiver, which are substantial, we'll 

11           increase Medicaid rates for providers 

12           participating in patient-centered medical 

13           homes, an additional $2 per member per month 

14           for adults and $4 per member per month for 

15           kids.

16                  I'm pleased that this budget includes 

17           some increased reimbursement rates for those 

18           providers who take care of people who are 

19           intellectually and developmentally disabled.  

20           It's 50 percent above the base rate.

21                  And I want to shift our conversation 

22           now and just talk a little bit about the 

23           opioid epidemic.  You know, combating the 

24           opioid epidemic is definitely a priority of 


                                                                   28

 1           all of us in this room.  In the last year 

 2           we've worked really well with the Office of 

 3           Addiction Services and Supports to get the 

 4           settlement money out.  The disbursed money, 

 5           we're actually leading the nation in 

 6           disbursing money from the settlement.  We're 

 7           better than any other state with this.

 8                  But it's not just fentanyl that's a 

 9           problem.  We also have to consider the impact 

10           of xylazine.  So one of the things in our 

11           proposal is to make xylazine a controlled 

12           substance, which I think makes a lot of 

13           sense.

14                  I'm going to talk really briefly about 

15           oral health.  It's critical to our overall 

16           health and well-being.  You know, one of the 

17           things we have to talk about, though, is the 

18           challenge in people who are lower-income 

19           accessing a dentist.  You know, only 

20           30 percent of Medicaid enrollees have seen a 

21           dentist in the last year.  

22                  In addition, we're talking about 

23           adding dental services to school-based health 

24           centers, an additional million and a half for 


                                                                   29

 1           that.  And we'll support the dentistry 

 2           workforce by launching a new loan repayment 

 3           program supported by the 1115 waiver, up to 

 4           $100,000 for dentists who make a four-year 

 5           commitment to serve the Medicaid population 

 6           in New York.

 7                  There's also a proposal to increase 

 8           the scope of practice of dental hygienists 

 9           that will also allow collaborative practice 

10           in certain senses, which will improve access 

11           to care.

12                  You know, it's interesting, when I 

13           visited the Tuscarora Nation, I was struck by 

14           how beautiful their new dental clinic was.  

15           It was really state-of-the-art, had all 

16           wonderful equipment there.  But they didn't 

17           have a dentist -- no dental staff at all -- 

18           so their folks had to travel an hour and a 

19           half to Rochester to get dental care.

20                  You know, it's been very wonderful to 

21           work with Deputy Secretary Ruhl (ph), you 

22           know, to find an additional $4.5 million to 

23           address the critical oral health needs and 

24           disparities experienced by Tribal Nations.


                                                                   30

 1                  You know, and the last topic I'm going 

 2           to address is veterans.  I'm very thankful 

 3           for our veterans, and I'm very grateful that 

 4           our budget includes an additional 

 5           $22.5 million to ensure that our veterans 

 6           receive the best possible care.  We have four 

 7           Veterans Homes; I had a chance to visit the 

 8           folks at St. Albans and at Batavia this year.  

 9           I look forward to meeting the folks at Oxford 

10           and Montrose next year.  But it's nice to see 

11           that investment continues.

12                  In closing, I do want to thank 

13           Governor Hochul for her commitment to 

14           supporting healthcare and public health.  You 

15           know, when you get back to the one word in 

16           our budget, it really is about stewardship, 

17           and this budget reflects some difficult 

18           choices.  I know finding $200 million in 

19           savings in long-term care and Medicaid is 

20           going to be hard.  You know, I look forward 

21           to working collaboratively with you and your 

22           team to identify the best way to achieve 

23           these savings.

24                  Thank you.


                                                                   31

 1                  CHAIRWOMAN KRUEGER:  (Mic off.)  Thank 

 2           you very much.  Oh, sorry -- yes, it's on.  

 3           Someone turned it on for me.  Thank you up 

 4           there.

 5                  So we're going to not have, my 

 6           understanding is, the Medicaid director 

 7           testify separately, but we will be asking 

 8           questions that are specific to Medicaid and 

 9           they will be directed to her.  So -- excuse 

10           me, to him.  Excuse me, I'm so sorry.

11                  And now I'm going to turn it over to 

12           Adrienne Harris, who's the supervisor -- 

13           superintendent.  I'm always concerned because 

14           she's not a commissioner like everyone, and I 

15           get lost -- to testify on insurance issues.  

16                  Adrienne.  

17                  DFS SUPERINTENDENT HARRIS:  Good 

18           morning, Chairs Krueger, Breslin, Weprin, 

19           Rivera, and Paulin, Ranking Members O'Mara, 

20           Ra, Helming, Gallivan and Jensen, and all 

21           distinguished members of the New York State 

22           Senate and Assembly.  

23                  And I also wish a speedy recovery to 

24           Chair Weinstein.


                                                                   32

 1                  My name is Adrienne Harris, and I'm 

 2           the superintendent of the Department of 

 3           Financial Services.  Thank you for inviting 

 4           me to discuss the Executive Budget and all 

 5           that DFS has accomplished in the past year 

 6           thanks to the support of the Governor and 

 7           Legislature.

 8                  Created in the wake of the 2008 

 9           banking crisis, DFS regulates the activities 

10           of over 3,000 financial institutions, 

11           including globally systemic institutions, 

12           with nearly $10 trillion in assets.  When I 

13           arrived at DFS just over two years ago, the 

14           department was known as a lone wolf 

15           prosecutor, famous for little process, 

16           transparency, or stakeholder engagement, 

17           including with our partners in government.  

18           The department was underfunded and without 

19           adequate investment in human capital, 

20           technology, or process management.  This left 

21           DFS incapable of meeting the standards 

22           New Yorkers have a right to expect from their 

23           government.

24                  So I got to work on transforming the 


                                                                   33

 1           department.  I spent the first several months 

 2           identifying issues and risks and created a 

 3           strategic plan mapped to those findings.  In 

 4           its simplest form, it's what I call the three 

 5           P's -- policy, process, and people.  

 6                  On policy I instituted a rule that 

 7           going forward all policy would be data-driven 

 8           rather than based on ideology.  The 

 9           policy-making process would include robust 

10           collaboration and engagement with 

11           stakeholders to achieve our mission of 

12           building an equitable, transparent and 

13           resilient financial system.

14                  I deepened the department's focus on 

15           kitchen table issues, things that are 

16           meaningful to the everyday New Yorker and 

17           that would help them trust that their 

18           government is working for them.

19                  For process, I committed to DFS 

20           becoming a transparent, process-driven 

21           organization.  We began to set KPIs, measure 

22           progress, and build knowledge management.

23                  And then I emphasized that neither our 

24           policy nor our process goals could be 


                                                                   34

 1           achieved without the third P:  People.  We 

 2           had to attract and retain expert talent, 

 3           fostering a culture of inclusion and 

 4           performance.  To unify employees across 

 5           divisions, we rewrote our mission statement 

 6           and established four core values:  Equitable, 

 7           innovative, transparent, and collaborative.

 8                  I'm immensely proud of the progress we 

 9           have made in my time since joining the 

10           department.  From a policy perspective, we 

11           have implemented 100 amendments to the 

12           insurance, banking, and financial services 

13           laws, issued more than 60 pieces of 

14           regulatory guidance, promulgated 31 

15           data-driven regulations, and secured more 

16           than 344.4 million in restitution.

17                  In the past year we amended our 

18           nation-leading cybersecurity regulation, 

19           modernized the pay structure for check 

20           cashing, and adopted guidance to protect 

21           banking institutions from climate risk.

22                  On process, we are clearing 

23           significant backlogs and are engaged in a 

24           department-wide technology transformation, 


                                                                   35

 1           rolling out a new CRM platform, data 

 2           warehouse, and productivity tools.  These 

 3           upgrades give DFS the modern resources to 

 4           identify and respond to risk and better 

 5           protect financial markets and consumers.

 6                  But to do all this, the department 

 7           relies on the third P, people.  I spent much 

 8           of my first months engaged in a risk-based 

 9           analysis of our human capital needs and 

10           created a five-year strategic plan.  We have 

11           been able to get the agency fully funded for 

12           the first time in its history, thanks to the 

13           support from the Legislature and the 

14           Governor.  As a result of that backing, we 

15           have hired 336 new team members and promoted 

16           309 existing team members since January 2022.

17                  Beyond the people within the 

18           department, we have expanded our network to 

19           collaborate with partners at the state, 

20           federal and international levels.  For 

21           example, for the first time, New York is 

22           represented on the U.S. Department of 

23           Treasury's Financial Stability Oversight 

24           Council, a role in which I am honored to 


                                                                   36

 1           serve.

 2                  All the actions we have taken have 

 3           been with one core objective in mind:  To 

 4           transform DFS into a preeminent regulator, 

 5           fitting of the financial capital of the 

 6           world.

 7                  As we move forward, we will focus on 

 8           three key areas:  Equity, innovation, and 

 9           consumer protection.  We consider policy 

10           decisions through the lens of building a more 

11           equitable financial system that protects and 

12           empowers all New Yorkers, including those in 

13           historically underserved and marginalized 

14           communities.  

15                  In the past year, the department has 

16           taken definitive action to help New York's 

17           financial and healthcare systems become more 

18           accessible and equitable.  We enacted 

19           policies to cut check-cashing fees, 

20           implemented expanded abortion protections to 

21           reduce reproductive health inequities, and 

22           have prioritized increasing access to 

23           affordable banking services to underserved 

24           communities.


                                                                   37

 1                  DFS also remains laser-focused on 

 2           innovation, a key area that shapes my vision 

 3           for the department and our future.  In 

 4           revising the department's mission statement, 

 5           it was important to me that we articulated 

 6           DFS's commitment to driving economic growth 

 7           through responsible innovation.  

 8                  One clear example is our world-leading 

 9           virtual currency framework, which has served 

10           well to protect consumers, keep entities safe 

11           and sound, and hold bad actors to account.  

12           To carry out this work, I have built the 

13           largest virtual currency regulatory team in 

14           the nation, growing the unit from a handful 

15           of employees to more than 60 seasoned 

16           experts.  

17                  The same principles of responsible 

18           innovation also apply to AI, where 

19           significant benefits and risks coexist.  Just 

20           last week we proposed guidance on regulating 

21           the use of AI in insurance to help mitigate 

22           harm to consumers.

23                  Finally, I want to discuss DFS's 

24           progress on consumer protection.  Last year, 


                                                                   38

 1           in partnership with all of you, we created 

 2           the Health Guaranty Fund, a critical safety 

 3           net for New Yorkers.  Now New York is no 

 4           longer the only state without this essential 

 5           protection for policyholders.  The department 

 6           has published new guidance prohibiting 

 7           deceptive overdraft practices, introduced new 

 8           financing disclosures for small businesses, 

 9           and mitigated a national banking crisis, 

10           safeguarding the finances of consumers and 

11           businesses.  

12                  One of my proudest accomplishments is 

13           our continuous work to put money back in 

14           New Yorkers' pockets.  Last year DFS returned 

15           a record $163 million to consumers and 

16           healthcare providers, bringing the total in 

17           restitution during my tenure to more than 

18           $344.4 million.

19                  Before I close, I want to take a 

20           moment to reflect on the events of the past 

21           year.  In March last year, just one week 

22           after I testified, community and regional 

23           banks across the country suddenly began to 

24           fail.  The self-liquidation of Silvergate 


                                                                   39

 1           Bank and the $42 million run on deposits at 

 2           Silicon Valley Bank quickly led to three of 

 3           the four largest bank failures in the history 

 4           of the country, including one here in 

 5           New York.  

 6                  The unprecedented speed of events put 

 7           DFS at the center of preventing a global 

 8           financial meltdown.  Along with regulators in 

 9           other states, in Washington, D.C., and in 

10           Europe, my team and I worked around the clock 

11           to mitigate further panic and contagion 

12           across the broader banking system and ensure 

13           that individuals and small businesses could 

14           safely access their money, all while we 

15           continued the day-to-day operations of the 

16           agency.

17                  It is a set of events that is marked 

18           in the history of this country.  And as we 

19           approach the one-year anniversary, I want to 

20           again express my deep gratitude to my team 

21           for all they did to protect New Yorkers and 

22           the global financial system.  I'm also 

23           grateful for your partnership.  Your support 

24           and collaboration were critical as we 


                                                                   40

 1           weathered the storm.

 2                  I look forward to continuing to work 

 3           together to advance an affirmative policy 

 4           agenda to benefit New Yorkers.  Thank you for 

 5           the opportunity to address you today to 

 6           discuss how the department is working to 

 7           build a more equitable and innovative 

 8           financial system that benefits New Yorkers, 

 9           supports businesses, and drives economic 

10           growth, cementing New York's place as the 

11           financial capital of the world.

12                  I look forward to answering your 

13           questions.

14                  CHAIRWOMAN KRUEGER:  Thank you.  Thank 

15           you very much.  

16                  Our first questions will come from 

17           Senator Neil Breslin, the chair of Insurance.

18                  Oh, Neil, before you start, I'm so 

19           sorry.  We've also been joined by Senator 

20           Brouk, Senator Hinchey, Senator Borrello, 

21           Senator Comrie and Senator Rhoads.

22                  SENATOR BRESLIN:  Thank you, 

23           Madam Chairman.  And I will be brief.  

24                  But I think I should first talk about 


                                                                   41

 1           the appointment of the superintendent.  And 

 2           I've been around for many years, and I've 

 3           found the relationship between the department 

 4           and the Legislature to be at the best 

 5           possible stage imaginable.  There's 

 6           participation, there's discussions.  

 7                  As in past years, it seemed as though 

 8           either one side or the other were the enemy.  

 9           Whether it was the agency or the Legislature, 

10           there was a continuing battle.  And when we 

11           both work on the same team and we're both 

12           discussing the same issues and how to 

13           confront them, it makes the job of everyone 

14           that much easier.  So thank you, 

15           Superintendent.

16                  There's so many issues that confront 

17           insurance today, with the economy the way it 

18           is and the expense of insurance.  And so many 

19           people know if they collect all the checks 

20           that they write to various forms of 

21           insurance, it's a lot of money.  And our job 

22           is to make that a little more pleasurable.

23                  The first I'd like you to talk about, 

24           there's been some discussions recently about 


                                                                   42

 1           low-income housing insurance.  And obviously 

 2           if that's an impediment to housing, 

 3           particularly for low-income people, it's a 

 4           real problem that must be solved.  But I'd 

 5           appreciate your comments on it.

 6                  DFS SUPERINTENDENT HARRIS:  Thank you 

 7           so much, Senator Breslin.  It's an incredibly 

 8           important issue and one that we've been 

 9           deeply engaged in.  

10                  And of course as you know, the 

11           Governor has proposed prohibiting insurers 

12           from asking the question about the presence 

13           of affordable or subsidized housing units in 

14           the underwriting of those multifamily housing 

15           buildings.  It's something we've been engaged 

16           on for quite some time but also, as you 

17           alluded to, the cost of insurance across many 

18           lines is continuing to go up due to a number 

19           of factors, including inflation, supply chain 

20           issues, reinsurance, and climate change.  

21                  But I think the Governor's proposal is 

22           a strong one, so that we can eliminate a 

23           factor that many feel is discriminatory in 

24           the underwriting of multifamily housing.


                                                                   43

 1                  SENATOR BRESLIN:  Thank you.

 2                  In the area of PBMs we've had 

 3           discussions for many years.  We've finally 

 4           taken measures to regulate a group of people 

 5           that -- referred to as PBMs, who many of us 

 6           did not know anything about until there was 

 7           initial legislation and now additional 

 8           legislation.  I'd like you to tell us of the 

 9           progress on the regulation of PBMs and our 

10           ability to control them so that there's 

11           access to the marketplace by not only the 

12           three major pharmacies but the independent 

13           pharmacies as well.

14                  DFS SUPERINTENDENT HARRIS:  Thank you.  

15           And again, I'm so grateful to the Legislature 

16           for giving the authority to regulate PBMs to 

17           DFS.  They are a middleman that often seeks 

18           rents and contributes to increasing the cost 

19           of prescription drugs, and therefore 

20           increases the cost of the provision of 

21           healthcare overall.  So having the ability to 

22           regulate them and add transparency to the 

23           space is incredibly important.  

24                  As it was a new authority, we had to 


                                                                   44

 1           build a new bureau from scratch, so we've 

 2           added about 25 experts to our team to build 

 3           that bureau from scratch.  We've also now 

 4           successfully licensed every PBM that does 

 5           business in the state, as was the requirement 

 6           in the statute, by January 1 of this year.  

 7                  We're also already examining the PBMs.  

 8           So our examiners go in and they're currently 

 9           on site with some of the largest PBMs in the 

10           country, making sure that their financials 

11           are as they should be and examining for 

12           market conduct.

13                  As you know, we also proposed some 

14           market conduct rules at the end of last year.  

15           As we were engaged in the SAPA, there were 

16           lots of very helpful comments that came in in 

17           connection with that process.  And those 

18           comments led us to take another look at the 

19           proposal that we had made.  I felt, given 

20           those comments, the best course of action was 

21           to withdraw that proposal and start again, 

22           because that engagement with stakeholders is 

23           so important and we need to be taking that 

24           into account.


                                                                   45

 1                  So we've been working diligently so 

 2           that we don't lose too much time, but to meet 

 3           with those stakeholders, engage with those 

 4           stakeholders.  And we've been doing that 

 5           since last year, and we are weeks away from 

 6           reproposing some very strong market conduct 

 7           and consumer protection rules.

 8                  SENATOR BRESLIN:  Thank you.

 9                  Another area that's of great concern 

10           to most consumers is the long-term care.  The 

11           problems predate your coming to the 

12           department.  That doesn't mean the problems 

13           have been solved.  Could you discuss with us 

14           some of the steps that we've taken to make it 

15           a better market and a more inexpensive and a 

16           long-term-providing-care market?  

17                  DFS SUPERINTENDENT HARRIS:  Yes, thank 

18           you, Senator.  As you noted, this is really a 

19           longstanding and nationwide problem.  

20                  As you know, I write a report to the 

21           Legislature every two years, as I'm required 

22           to do under statute, but last year the 

23           department took the extra step of writing an 

24           additional report that laid out the history 


                                                                   46

 1           of long-term care nationwide and how we 

 2           landed in the crisis that we have today.  

 3                  So it really goes back to when the 

 4           product was invented, there was not a history 

 5           of claims to inform the underwriting 

 6           experience.  And those products, when they 

 7           came online 30, 40 years ago, were mispriced, 

 8           essentially.  And then rates were kept 

 9           artificially low for ideological and 

10           political reasons, again, around the country 

11           for decades.  

12                  Now those chickens are coming home to 

13           roost, and we see large rate increases that 

14           we're forced to sometimes grant so that we 

15           can make sure the insurers don't go under and 

16           that seniors don't lose decades of 

17           investment.  

18                  We are trying to think very creatively 

19           at the department.  One of the things we do 

20           is we work with those long-term-care insurers 

21           to phase in rate increases over time.  We 

22           also allow for them -- for consumers to 

23           choose whether they'd like a rate increase or 

24           a reduction in benefits.  Which is not a 


                                                                   47

 1           pleasant choice, but at least it gives 

 2           consumers some optionality.  

 3                  And then in rare instances where we're 

 4           able to do so, we require capital infusions 

 5           from other parts of the corporate family, 

 6           although that is not something we're able to 

 7           do often.  

 8                  But we continue to work very hard to 

 9           mitigate this nationwide issue.  We're 

10           implementing Senator Mayer's transparency 

11           laws now.  And we look forward to continuing 

12           to collaborate with you and your colleagues 

13           and other stakeholders on this issue.

14                  SENATOR BRESLIN:  One last question.  

15           It's really dealing with the mandates that 

16           face the Legislature each and every year.  

17           All legislators have -- or not all, but most 

18           have ideas of who should be covered as a 

19           mandate under health insurance.  And many of 

20           us, including the chairman of the Insurance 

21           Committee many years ago, did not think about 

22           the consequences of mandates and the expense 

23           to the ultimate health-insured person.

24                  Can you give us an idea of how that 


                                                                   48

 1           discussion takes place in making 

 2           recommendations to us when we put in proposed 

 3           legislation mandates?

 4                  DFS SUPERINTENDENT HARRIS:  Thank you, 

 5           Senator.  As you allude to, there's no such 

 6           thing as a free lunch, so to speak.  So every 

 7           time we seek to add a coverage or cover a new 

 8           population, there is some cost to that.  

 9                  At the department we do our best to 

10           provide technical assistance to help 

11           policymakers understand what the potential 

12           costs of additional mandates might be, but of 

13           course helping to weigh the policy decisions 

14           of providing these important protections to 

15           consumers.  And then as we are reviewing 

16           rates, we are tasked with balancing increased 

17           costs to consumers with the safety and 

18           soundness of the health insurer.  Because 

19           really the best protection that we can 

20           provide to insureds is to make sure that 

21           there's a solvent insurance company at the 

22           end of the line that is there to pay claims 

23           when they come due.  But it is always a 

24           balancing act.


                                                                   49

 1                  SENATOR BRESLIN:  Thank you very much, 

 2           Superintendent.  

 3                  I would be remiss, too, if I didn't 

 4           mention that we're joined by Senator Helming, 

 5           the ranker on the committee; Senator O'Mara, 

 6           who's down there and is always here; and our 

 7           newest member, Senator Jake Ashby.

 8                  Thank you very much.

 9                  DFS SUPERINTENDENT HARRIS:  Thank you, 

10           Senator.

11                  CHAIRWOMAN KRUEGER:  Thank you.  

12                  Assembly.

13                  ASSEMBLYWOMAN PAULIN:  (Mic issues.)  

14           There we go.  Thank you.  

15                  First, before I call on our first 

16           person to question, we've been joined by 

17           Assemblymembers Latrice Walker, Rebecca 

18           Seawright, Anna Kelles, and Jessica 

19           González-Rojas.  

20                  So the first person for the Assembly 

21           will be the chair of our Insurance Committee, 

22           David Weprin, who will get 10 minutes.

23                  ASSEMBLYMAN WEPRIN:  Thank you, 

24           Chair Paulin.  


                                                                   50

 1                  Thank you, Superintendent Harris.  I 

 2           must say at the outset it's been a pleasure 

 3           working with you and your office and your 

 4           team this past year.  It has been a very 

 5           productive year, including, as you mentioned, 

 6           the first Healthcare Guaranty Fund, joining 

 7           49 other states in doing that.  And I know 

 8           that was a priority of both of us during the 

 9           session.  And that, in my opinion, was a 

10           major accomplishment.  

11                  And I hope the results are good, and 

12           I'd like to hear about any particular 

13           companies that may take advantage of it.  But 

14           I'll get into that in a little while.  

15                  First I'd like to talk about the 

16           Physician's Excess Medical Malpractice 

17           Program.  How would the proposed changes to 

18           the Physician's Excess Medical Malpractice 

19           Program under HMH Part K impact the medical 

20           malpractice insurance market in general?

21                  DFS SUPERINTENDENT HARRIS:  Thank you 

22           so much, Chair Weprin.  And it's been a 

23           pleasure to work with you over this last year 

24           as well.


                                                                   51

 1                  We also saw that proposal in the 

 2           budget.  My understanding is it is -- 

 3           although it's med-mal, it is a DOH proposal, 

 4           and so I may defer to my colleagues from DOH 

 5           on discussing that proposal further.

 6                  ASSEMBLYMAN WEPRIN:  Okay.  

 7           Commissioner McDonald, would you like to 

 8           address that, or someone on your team?

 9                  COMMISSIONER McDONALD:  Yeah, no, I'll 

10           address that.  It's really moving from 

11           two-year budgeting to one-year budgeting, is 

12           my understanding, and just decreasing 

13           eventually, over time, the reimbursement on 

14           that.  It's one of those things where it's 

15           about trying to find savings in a challenging 

16           budget year.

17                  ASSEMBLYMAN WEPRIN:  And you think 

18           there will be significant savings?  

19                  COMMISSIONER McDONALD:  Over time.  

20           There will be, over time.

21                  ASSEMBLYMAN WEPRIN:  Okay.  

22                  Superintendent Harris, on -- in the 

23           affordable housing discrimination area.  As 

24           you may know, I carry a bill, along with 


                                                                   52

 1           Senator Kavanagh in the Senate, which would 

 2           prohibit discrimination against affordable 

 3           subsidized or Section 8 housing in any 

 4           underwriting or insurance policy decisions.

 5                  How would the proposed changes under 

 6           TED Part FF affect the premium rates of 

 7           affordable housing developments?  

 8                  DFS SUPERINTENDENT HARRIS:  Thank you, 

 9           Mr. Assemblymember.  This proposal is really 

10           about what we were hearing from affordable 

11           housing owners and the discrimination that 

12           they felt they were encountering in the 

13           underwriting of insurance.  

14                  And so the Governor has taken the step 

15           I think of following your lead in proposing 

16           that we prohibit insurers from asking about 

17           the existence of affordable or subsidized 

18           housing in the underwriting or renewal of 

19           these insurance policies.

20                  So I think it's an important policy 

21           decision to make sure we're rooting out any 

22           unfair discrimination.  We know that some 

23           insurers were asking this question in their 

24           underwriting, and many were not.  We -- so we 


                                                                   53

 1           will have to see the impact of this policy 

 2           decision on premiums as it rolls out, if 

 3           enacted.

 4                  ASSEMBLYMAN WEPRIN:  Well, do you 

 5           think this proposal would inhibit any 

 6           underwriting of affordable housing 

 7           developments?  

 8                  DFS SUPERINTENDENT HARRIS:  Well, as 

 9           you know, sir, we cannot dictate what 

10           insurers choose to underwrite and what they 

11           don't underwrite.  We can only require that 

12           they don't engage in unfair discrimination.  

13                  So it may be that there are insurers 

14           that decide if they cannot inquire about the 

15           presence of affordable housing, that they 

16           decide against underwriting some of these 

17           buildings or providing insurance to some of 

18           these buildings.

19                  But in our collection of data from the 

20           insurers, most of them were not asking this 

21           question or inquiring about the presence of 

22           affordable or subsidized housing.  

23                  But -- I can't say for sure what the 

24           impact will be, but this is always a risk 


                                                                   54

 1           that insurers will decide not to underwrite 

 2           these projects.

 3                  ASSEMBLYMAN WEPRIN:  Okay.  Getting 

 4           back to the Life Insurance Guaranty Fund tax 

 5           credit reform, how was the assessment offset 

 6           plan under TED Part LL developed?  And which 

 7           entities were consulted in the process?  

 8                  DFS SUPERINTENDENT HARRIS:  So thank 

 9           you, Assemblymember.  We consulted with all 

10           stakeholders -- not just in the Executive, 

11           including the Department of Tax, but with the 

12           plans themselves and many others, including 

13           legislators.  

14                  As you know, we were directed as part 

15           of the creation of the Health Guaranty Fund 

16           to figure out how to put not-for-profit 

17           insurers on the same footing as for-profit 

18           insurers, who already had a tax credit 

19           available to them under the preexisting Life 

20           Guaranty Fund.  

21                  To do so, we worked closely with the 

22           Tax Department and others and have put 

23           forward a proposal to the Legislature in time 

24           for the January 15th due date that proposes 


                                                                   55

 1           to reduce assessments for the Health Guaranty 

 2           Fund on not-for-profit insurers by 80 

 3           percent.  And that would effectively put them 

 4           on par with for-profit insurers who receive 

 5           an existing tax credit for participation in 

 6           the fund.

 7                  ASSEMBLYMAN WEPRIN:  Again, how does 

 8           the proposal differ from the current model of 

 9           how tax credits are issued to members of the 

10           Life and Health Insurance Company Guaranty 

11           Corporations?  

12                  DFS SUPERINTENDENT HARRIS:  So it 

13           actually just extends the credits to 

14           not-for-profit insurers.  Under the Life 

15           Guaranty Fund, for-profit insurance companies 

16           were entitled to a tax credit that existed 

17           prior to our enactment of the Health Guaranty 

18           Fund.  

19                  So with the Health Guaranty Fund in 

20           the proposal that the Legislature required us 

21           to put forward, that tax credit is extended 

22           to insurers that are now part of the guaranty 

23           fund that weren't before.  And again, we took 

24           this step as directed by the Legislature to 


                                                                   56

 1           reduce assessments on not-for-profit insurers 

 2           80 percent, to put them on par with 

 3           for-profit insurers.

 4                  ASSEMBLYMAN WEPRIN:  And how do you 

 5           think the proposal will impact overall the 

 6           state tax revenue receipts.

 7                  DFS SUPERINTENDENT HARRIS:  Sir, I 

 8           think that question is probably best answered 

 9           by the Tax Department and DOB.

10                  ASSEMBLYMAN WEPRIN:  Okay.  One of the 

11           Governor's major proposals -- and I know 

12           you're a supporter of it -- is the insulin 

13           cost-sharing elimination or elimination of 

14           copayments.  

15                  What is the anticipated effect of 

16           eliminating cost sharing for insulin 

17           prescriptions on health insurance premiums?  

18                  DFS SUPERINTENDENT HARRIS:  Thank you, 

19           sir.  I think this is an incredibly important 

20           proposal, especially as we talk about health 

21           equity.  As we know, communities of color are 

22           disproportionately impacted by diabetes.  

23                  We expect the premium impact to be 

24           minimal; .03 to .04 percent is our best 


                                                                   57

 1           estimate.  But we've seen from studies in 

 2           other states where this has been implemented 

 3           that taking the cost of insulin to zero cost 

 4           sharing increases medical compliance, reduces 

 5           the rate of complications from diabetes, and 

 6           can result in up to 18 percent in cost 

 7           savings overall.  

 8                  ASSEMBLYMAN WEPRIN:  How many other 

 9           states have proposed or enacted a 

10           zero-cost-sharing proposal similar to the one 

11           the Governor's proposing?

12                  DFS SUPERINTENDENT HARRIS:  So I can 

13           come back to you with a precise number of the 

14           other states.  We looked at a couple of 

15           states, and I think the most studied state in 

16           this space is Louisiana.  

17                  ASSEMBLYMAN WEPRIN:  So it's still a 

18           small number of states?

19                  DFS SUPERINTENDENT HARRIS:  I'd have 

20           to come back to you with a precise number of 

21           how many states have done this, yes.

22                  ASSEMBLYMAN WEPRIN:  APG rate floor 

23           for Office of Mental Health and OASAS 

24           facilities.  And again, this might be a 


                                                                   58

 1           question for Commissioner McDonald.  How does 

 2           the average commercial reimbursement rate for 

 3           OMH and OASAS facilities compare to the APG 

 4           rate?

 5                  DFS SUPERINTENDENT HARRIS:  So, sir, 

 6           as you know, I like to be data-driven.  And 

 7           so when we looked at the data around this 

 8           question and proposal, we found that in some 

 9           cases commercial insurers paid more than the 

10           Medicaid reimbursement rate, and in some 

11           cases they paid less.  

12                  But we thought it was important, the 

13           Governor thought it was important to make 

14           sure that everybody was paying at least the 

15           Medicaid reimbursement rate.  And so as I 

16           said, in some cases it's more and in some 

17           cases it's less, but putting this floor in 

18           place assures that those who are paying less 

19           can no longer do so.

20                  ASSEMBLYMAN WEPRIN:  And how many 

21           facilities would be eligible for this rate 

22           floor under the proposal?

23                  DFS SUPERINTENDENT HARRIS:  That's a 

24           question best answered I think by OMH.  I 


                                                                   59

 1           know it's the state-authorized OMH and OASAS 

 2           facilities.

 3                  ASSEMBLYMAN WEPRIN:  Okay.  And now 

 4           time is going, but what -- on supplemental 

 5           spousal liability reform, how will insurers 

 6           implement that proposal?  And will the 

 7           proposal apply to renewed policies as well?  

 8                  DFS SUPERINTENDENT HARRIS:  Yes, and I 

 9           will be mindful of time, so we can follow up 

10           in writing.  This is a proposal with which I 

11           have some personal experience, having had to 

12           decline supplemental spousal insurance as a 

13           single woman.

14                  But we will work with insurers very 

15           closely to make sure that they are 

16           implementing the new proposal within the 

17           180 days of enactment, if it's enacted.  And 

18           happy to follow up separately in writing and 

19           otherwise to fully answer your question, sir. 

20                  ASSEMBLYMAN WEPRIN:  Okay.  And 

21           finally, will single insurers enrolled in 

22           this coverage have to submit a -- I'll get 

23           back to it on my three-minute rebuttal.

24                  (Laughter.)


                                                                   60

 1                  CHAIRWOMAN KRUEGER:  Yes, we're very 

 2           serious about time limits here, so --

 3                  ASSEMBLYMAN WEPRIN:  I see.  I see.

 4                  CHAIRWOMAN KRUEGER:  I'm sorry.  I 

 5           just wanted to let people know that for those 

 6           of you who have seats sort of in front of the 

 7           top panel, when we call your name and you 

 8           need a microphone, just ask someone who's 

 9           near a microphone to give up their seat and 

10           then give it back to them afterward.  And 

11           they will be very happy to be helpful with 

12           that, because we've just already outgrown the 

13           room.

14                  So our next questioner is Pat 

15           Gallivan, the ranker on Health.

16                  SENATOR GALLIVAN:  Thank you, 

17           Madam Chair.  Good morning to everybody on 

18           the panel, and thanks for being here.

19                  My first question is to Director 

20           Bassiri.  The Governor's budget proposes 

21           $400 million in unallocated cuts in Medicaid.  

22           I'm curious about a number of things.  How 

23           did the 400 -- where did the number 

24           400 million come from when these cuts aren't 


                                                                   61

 1           identified at all?  And what ideas do you 

 2           have for cuts?  I mean, are you able -- 

 3           surely, if you came up with the number 

 4           400 million, you've got ideas of where cuts 

 5           should be made.  

 6                  MEDICAID DIRECTOR BASSIRI:  Thank you 

 7           for the question, Senator.

 8                  The number 400 is really specific to 

 9           being balanced in the Medicaid Global Cap.  

10           We do have a statutory growth rate of 

11           around -- this year it's 6.7 percent.  We are 

12           growing at almost 11 percent.  And so many of 

13           the reductions are to get us in line with 

14           that statutory growth rate, the 400 being 

15           included.

16                  Two hundred of the 400 is specific to 

17           long-term care.  The other 200 is general.  

18           We don't have any predetermined savings 

19           proposals.  I think that's something that we 

20           would work collaboratively with the 

21           Legislature to identify.  But we do take our 

22           stewardship in the program very seriously and 

23           want to live within the resources we've been 

24           allotted, which we are currently not doing.  


                                                                   62

 1                  So we don't have any specifics to 

 2           share at this time, but we certainly look 

 3           forward to working with the Legislature 

 4           through the budget process.

 5                  SENATOR GALLIVAN:  And you anticipate 

 6           all of that to be identified before the 

 7           April 1st budget's adopted.

 8                  MEDICAID DIRECTOR BASSIRI:  I do.

 9                  SENATOR GALLIVAN:  Thank you.  

10                  Dr. McDonald, you testified briefly 

11           about the opioid epidemic.  And it is an 

12           epidemic.  Each year we talk about it, and we 

13           come back the following year and there's more 

14           people that have died as a result.

15                  Do you happen to know, as far as the 

16           deaths that are taking place across the 

17           state, are these overdoses caused by legally 

18           possessed drugs or have they come into the 

19           hands of these people illegally?  And what I 

20           mean, legally, like a prescription.

21                  COMMISSIONER McDONALD:  Yeah, I really 

22           appreciate your interest in this.  

23                  You know, it's really shifted, hasn't 

24           it?  You know, I've been dealing with the 


                                                                   63

 1           overdose epidemic for well over a decade 

 2           here.  You know, it's interesting how it used 

 3           to be prescription drugs were really the way 

 4           that just killed people.  But it's 

 5           interesting, in 2013 when you saw fentanyl 

 6           really take over, and fentanyl analogs come 

 7           in, you really saw this shift.  And really 

 8           it's fentanyl, but it's the illicitly 

 9           obtained fentanyl.  

10                  You know, it's interesting, you do see 

11           fentanyl as a legal drug.  Certainly if you 

12           have a colonoscopy or something like that, 

13           you get fentanyl from your doctor.  But it's 

14           the illegally imported fentanyl that's really 

15           driving the deaths in New York and every 

16           other state across the country.  And so 

17           really it's the illicit drugs that are 

18           causing the majority of the deaths.

19                  SENATOR GALLIVAN:  So what do we do 

20           about it?  

21                  COMMISSIONER McDONALD:  You know, so 

22           there's a lot that we can do.  You know, I 

23           think of it as a supply problem and a demand 

24           problem.  


                                                                   64

 1                  As far as a supply problem, there's 

 2           not a whole lot the Department of Health can 

 3           do.  It's coming into the country, there's 

 4           other places and people who can help mitigate 

 5           the supply into the country.  

 6                  From a demand problem, we do intend to 

 7           reduce the risk.  If some are getting a 

 8           prescription opioid, we want responsible 

 9           prescribing.  We're doing a lot in this 

10           budget to increase access to buprenorphine.  

11           You know, it's interesting, the federal 

12           government moved in a direction to allow 

13           people to get a three-day supply of 

14           buprenorphine.  We're having an amendment in 

15           our budget so we can do that in New York as 

16           well.  

17                  You know, so if you go to the 

18           emergency department and you're interested in 

19           getting treatment, you'd get buprenorphine.  

20           I think it's a nice, tangible change.  

21                  We're doing other things to make 

22           buprenorphine more widely available as well.  

23           We do that through telemedicine.  I love the 

24           MATTERS program.  We're doing some other 


                                                                   65

 1           things as far as make sure there's more peer 

 2           recovery coaches out there, doing things like 

 3           that.  And of course with more naloxone.  

 4                  It really gets, though, to one of the 

 5           other issues that I've talked about in my 

 6           testimony, though.  It's not just fentanyl.  

 7           Xylazine is real, it's a real big issue.  And 

 8           I think getting that on the controlled 

 9           substance list would help a lot, so at least 

10           we can educate people about preventing that 

11           from being more of a problem than it is.

12                  Thank you.  

13                  SENATOR GALLIVAN:  Thank you.  

14                  Doctor -- or director, I don't know 

15           who'd be the most appropriate to answer the 

16           question very quickly, because of the time.

17                  The proposed budget calls for the 

18           elimination of the Quality Incentive Program 

19           and its funding.  It seems to me that's been 

20           a successful program.  Why would we get rid 

21           of it?  

22                  MEDICAID DIRECTOR BASSIRI:  It 

23           certainly -- you know, the department 

24           certainly prioritizes quality.  This is not a 


                                                                   66

 1           cut that we're necessarily proud of.  But in 

 2           a tough budget year, we wanted to preserve 

 3           services and avoid cuts that would impact 

 4           members directly.  So we are exploring other 

 5           ways to mitigate that through the 1115 

 6           waiver.  But yeah, it's a tough cut.

 7                  SENATOR GALLIVAN:  Thank you.  

 8                  CHAIRWOMAN KRUEGER:  Thank you.  

 9                  Before I hand it back to the Assembly, 

10           we've also been joined by Senator Gounardes 

11           and Senator Mannion.  Thank you.

12                  ASSEMBLYWOMAN PAULIN:  And on the 

13           Assembly side, we've been joined by 

14           Assemblymember Jenifer Rajkumar.

15                  Next on the Assembly list of 

16           questioners, Assemblymember Ed Ra, for 

17           five minutes.

18                  ASSEMBLYMAN RA:  Thank you.  

19                  Good morning.  Thank you all for your 

20           testimony.

21                  So, Commissioner McDonald, just to 

22           start, you know, we obviously have a managed 

23           care procurement provision in this budget.  I 

24           know that this report was just released 


                                                                   67

 1           yesterday afternoon, which is, you know, 

 2           disappointing because we have a proposal in 

 3           this budget, it -- the report's dated 

 4           October 2023, so a few months ago.  Why was 

 5           this dropped at the 11th hour the day before 

 6           the budget hearing?  That is something that I 

 7           expected from prior administrations within 

 8           your department.  But it's disappointing to 

 9           see that happen so that the Legislature 

10           didn't have a chance to review prior to 

11           today's hearing.

12                  COMMISSIONER McDONALD:  I'm sorry 

13           about that.  I'll just own it.  How's that?  

14           I mean, I'd just say we are trying the best 

15           we can to get reports out as quickly as 

16           possible and to get them on time.  I want 

17           things to come to you on time.  It's 

18           something that I think it's just harder than 

19           I imagined it would be.  But we'll do what we 

20           can to get them.  You know, there's a couple 

21           of dozen reports we had to get out this year.  

22           I'm sorry about the ones that were late.

23                  ASSEMBLYMAN RA:  So there's an 

24           estimated $300 million total Medicaid savings 


                                                                   68

 1           related to managed care from this procurement 

 2           proposal.  Can you elaborate on how you 

 3           believe that this proposal would achieve 

 4           those savings?  

 5                  COMMISSIONER McDONALD:  Let me have 

 6           Director Bassiri address that, please.

 7                  MEDICAID DIRECTOR BASSIRI:  Yes.  

 8           thank you for the question, Assemblymember.  

 9                  We are currently assuming a percentage 

10           of administrative efficiency that would be 

11           able to be achieved through the managed care 

12           procurement, which is on -- across all lines 

13           of business with the exception of HIV SNPs 

14           plans.  So it's an assumption on 

15           administrative efficiency that we would 

16           garner from going through the competitive 

17           process and identifying plans that had 

18           brought broader networks and we would be able 

19           to spread some of their fixed infrastructure 

20           across the state.

21                  ASSEMBLYMAN RA:  And does the 

22           procurement proposal and the elimination of 

23           Quality Incentive funding run counter to the 

24           work DOH expects the plans to do as part of 


                                                                   69

 1           the recently approved 1115 waiver to improve 

 2           health equity, to eliminate disparities and 

 3           address social determinants of health?  

 4                  MEDICAID DIRECTOR BASSIRI:  I would 

 5           say that it shifts some of the quality 

 6           incentives and priorities that we currently 

 7           have towards the goals of the 1115 waiver, 

 8           which are centered around health-related 

 9           social needs and connecting members to the 

10           social care supports that they need.  

11                  So it's really a shift because the 

12           current Quality Incentive programs are 

13           focused on medical and clinical outcomes.  So 

14           we're sort of reprioritizing our quality 

15           incentives.

16                  ASSEMBLYMAN RA:  I have -- 

17           Commissioner McDonald, I have a totally 

18           separate issue.  But I don't know if you 

19           happened to see this, but there was an op-ed 

20           yesterday in Newsday about I guess illegal 

21           vaping products coming from China, in 

22           particular ones that are geared towards 

23           children.  I know this has been an area of 

24           focus, you know, both for the administration 


                                                                   70

 1           and the department over the last few years.  

 2                  I was wondering if you can tell us 

 3           anything that's going on within the 

 4           department to address that issue and crack 

 5           down on these illegal products.

 6                  COMMISSIONER McDONALD:  Yeah.  You 

 7           know, I'm concerned about children, just 

 8           period.  And I'm very concerned when children 

 9           participate in vaping.  We don't need 

10           children addicted to any substance.

11                  You know, you can expect the 

12           department to be deploying some funds from 

13           last year, some from the JUUL settlement, 

14           some from you, a little over $7.5 million 

15           towards the campaign we're doing to address 

16           this.

17                  You know, I think really one of the 

18           big issues we have to face is that this stuff 

19           is far too accessible.  You know?  And really 

20           just one of those things we have to look at 

21           is how do we make this less accessible to 

22           children.  You know, the age here is 21, but 

23           there's too many kids who are getting access 

24           to this.


                                                                   71

 1                  ASSEMBLYMAN RA:  Thank you.  I think 

 2           that's all I have.  Thank you very much, 

 3           Madam Chair.

 4                  ASSEMBLYWOMAN PAULIN:  Okay, you're 

 5           next. 

 6                  CHAIRWOMAN KRUEGER:  All right.  You 

 7           don't get those extra seconds, I'm sorry.  

 8                  Our next is the ranker on Insurance, 

 9           Senator Helming.

10                  SENATOR HELMING:  Thank you, 

11           Senator Krueger.

12                  Thank you, Commissioner, for your 

13           testimony.  Superintendent, it's always great 

14           to hear from you.

15                  As you all know -- I'm not saying 

16           anything that you don't know, probably even 

17           better than I do -- but our hospitals, our 

18           nursing homes, our FQHCs, they're in crisis.  

19           They're struggling.  We talked about the 

20           workforce issue, we talked about funding 

21           issues.  And I just want to make it very 

22           abundantly clear that they need our support 

23           right now.  They don't need more cuts, 

24           especially to funding.  


                                                                   72

 1                  I wanted to talk real quick about 

 2           FQHCs.  In my district what's happening, 

 3           because the funding reimbursement rates 

 4           aren't keeping up, is I'm seeing closures, 

 5           cuts to service, cuts to hours.  I don't 

 6           know, Commissioner, if you saw the Urban 

 7           Institute's recent study that they did 

 8           that -- it showed that costs for FQHCs are 

 9           44 percent higher than the maximum allowable 

10           Medicaid rate.  

11                  This is unsustainable.  And again, 

12           it's driving those changes to operations, 

13           which in my rural communities is a real 

14           detriment.  There aren't primary care 

15           individual single providers who are 

16           available.  We count on these centers.  

17                  So we need to invest in our providers.  

18           And one of the things that we can do -- I did 

19           notice in the budget that the Governor 

20           proposes expanding billable providers to 

21           certain entities.  Those providers being -- 

22           whether it's substance use counselors, 

23           doulas, we've talked a lot about, et cetera.  

24           But it doesn't expand that billing option to 


                                                                   73

 1           our FQHCs.  Why not?

 2                  COMMISSIONER McDONALD:  Yeah, I like 

 3           FQHCs a lot.  You know, there's a lot in the 

 4           budget to improve funding through the 1115 to 

 5           patients that are medical home.  So that will 

 6           help those that participate, which is 

 7           probably most.

 8                  I really do think the workforce issues 

 9           are real.  I've talked to a lot of federally 

10           qualified health centers.  They'd love to 

11           have medical assistants to give vaccines.  

12           They'd love to be able to hire more doctors.  

13           I think the licensure compacts are more 

14           important than ever, because they can't find 

15           staff.  

16                  And the dental work -- oh, my gosh.  

17           They can't get dentists.

18                  SENATOR HELMING:  Can you just address 

19           the issue about why -- my question, why not 

20           expand the FQHCs' ability to bill for doulas, 

21           substance abuse providers, and similar so 

22           that they can continue to provide those 

23           services?  

24                  COMMISSIONER McDONALD:  So I don't 


                                                                   74

 1           know specifically that they're prohibited.  

 2           I'll have to take that back and get -- more 

 3           likely the coverage is for the patient, 

 4           through the Essential Plan.  Like, I mean, 

 5           one of the things we have in the budget this 

 6           year is a standing order so everybody can 

 7           have access to a doula who's having a baby.  

 8           That would apply to anybody.  

 9                  And I don't know that there's actually 

10           a prohibition -- 

11                  SENATOR HELMING:  If you would just 

12           look into that, the billable ability and get 

13           back to me, I'd appreciate that.

14                  COMMISSIONER McDONALD:  Sure.

15                  SENATOR HELMING:  I also wanted to get 

16           back -- Commissioner, I believe it was you 

17           who said that, on the question the 

18           Assemblyman asked about excess medical 

19           malpractice, that we're really -- the state 

20           is looking at finding savings.  

21                  You know what?  From my perspective, 

22           we need to balance that out, right?  

23           Physicians are already paying more in this 

24           state than -- I think I read 68 percent -- 


                                                                   75

 1           New York has the highest cumulative medical 

 2           liability payments of any other state, 

 3           68 percent more than the second-highest state 

 4           of Pennsylvania.

 5                  So again, when we talk about the state 

 6           is looking at trying to find savings, and 

 7           that's why the proposal in Part K of the 

 8           Governor's budget is what it is, can you just 

 9           tell me is that going to incentivize 

10           physicians to come here to work here?  We 

11           already have the highest taxes in the nation, 

12           it's one of the highest-taxed states.  Now 

13           we're going to continue to drive up the cost 

14           of medical malpractice liability.  

15                  How does that encourage or incentivize 

16           physicians to come here and want to work and 

17           live here, especially in my rural communities 

18           where we desperately need them?  

19                  COMMISSIONER McDONALD:  Yeah, we do 

20           need physicians, and I think there's a lot of 

21           incentives to come to New York, not -- 

22           obviously this isn't one of them.  I think 

23           one of the things, to just put it in mind for 

24           everybody, is this is a challenging budget 


                                                                   76

 1           year.  There's been a lot of difficult 

 2           choices that have been made.  I will be 

 3           really transparent with folks.  Like there 

 4           were a lot of difficult choices that had to 

 5           be looked at.  And quite frankly, it's about 

 6           how do we have a sustainable path forward.  

 7           We need stewardship for this year and next 

 8           and the subsequent years.  So decisions --

 9                  SENATOR HELMING:  Making it more 

10           difficult for physicians to practice in 

11           New York State is not the answer.

12                  COMMISSIONER McDONALD:  Thank you.

13                  SENATOR HELMING:  I am on the yellow 

14           warning light already.  I wanted to touch 

15           on -- there are a lot of great things in the 

16           budget, the expansion of scope of practice, 

17           et cetera.  

18                  I did want to touch on emergency 

19           services, especially in rural areas.  A 

20           couple of years ago we formed the Rural 

21           Ambulance Task Force.  The report was due 

22           back to the Legislature in December.  My 

23           question to you is, was that report ever done 

24           and completed and submitted to the 


                                                                   77

 1           Legislature?  

 2                  And, two, the recommendations in the 

 3           budget, are they based on the recommendations 

 4           of the task force?

 5                  COMMISSIONER McDONALD:  So it's -- 

 6           I'll check on the report.  

 7                  We don't have a lot of time, but 

 8           there's a lot of nice things in there for 

 9           emergency medical services.  They definitely 

10           came out of stakeholder input.  And I think 

11           we have a nice path forward with emergency 

12           medical services.

13                  SENATOR HELMING:  Did the task force 

14           meet and provide recommendations?

15                  COMMISSIONER McDONALD:  I'll have to 

16           get back to you.  As far as I know, they did.  

17           But I'll get back to you.

18                  SENATOR HELMING:  I asked that same 

19           question last year, too, how many meetings 

20           and --

21                  COMMISSIONER McDONALD:  As far as I 

22           know, they did.  You know, it -- this was 

23           built on task force recommendations as far as 

24           I know.  But I'll get back to you to be 


                                                                   78

 1           certain.

 2                  CHAIRWOMAN KRUEGER:  {Mic off} -- 

 3           Assemblymembers and the Senators who are 

 4           walking in.

 5                  And Assembly.  

 6                  ASSEMBLYWOMAN PAULIN:  First, we've 

 7           been joined by Assemblymembers Jacobson, 

 8           Reyes, and Dilan.  

 9                  And the next Assembly questioner is 

10           the ranker on Health, Josh Jensen.  

11                  ASSEMBLYMAN JENSEN:  Thank you very 

12           much, Chairwoman.  

13                  Commissioner, in the 2023 enacted 

14           budget there was $187 million allocated to 

15           support nursing homes to comply with the 

16           mandated staffing ratios.  That funding was 

17           never released.  Simultaneously, DOH is now 

18           starting to penalize nursing homes for their 

19           failure to comply with these same mandates.  

20                  Is there a plan from DOH to allocate 

21           that funding at some point?  And what is DOH 

22           going to do to assist the long-term-care 

23           facilities to comply with the mandates, 

24           especially in areas of the state where there 


                                                                   79

 1           is a labor shortage?  

 2                  COMMISSIONER McDONALD:  Yes.  So we 

 3           are enforcing the state staffing law.  There 

 4           are regulations; we are enforcing that.  

 5                  Some of those cases are walking 

 6           through the regulatory process right now, and 

 7           of course I can't get into that.

 8                  Having said that, as far as the money 

 9           goes, it -- as far as I know, it's been 

10           allocated and some of it's actually been 

11           spent, but not all of it's been spent.  So 

12           there is a path forward for that.

13                  ASSEMBLYMAN JENSEN:  Okay.  So some of 

14           that 187 million is starting to go out the 

15           door, or --

16                  COMMISSIONER McDONALD:  Yes.

17                  ASSEMBLYMAN JENSEN:  Okay.

18                  COMMISSIONER McDONALD:  And as far as 

19           the staffing shortage goes, well aware of 

20           that.  You know, I couldn't agree more, 

21           there's a real problem with staffing, 

22           particularly in the western and northern -- 

23           you know, your part of the state, quite 

24           frankly.  It's very acute up there.


                                                                   80

 1                  ASSEMBLYMAN JENSEN:  Hence -- hence my 

 2           question for it.

 3                  This transition to assisted living, 

 4           the Governor's budget proposal eliminates the 

 5           EQUAL Program.  It's only a $6 million 

 6           program, and the money's directed for 

 7           resident councils for facility improvements.  

 8           Can you explain the thought process for why 

 9           we're eliminating the small amount of funding 

10           for assisted living that's already suffering 

11           from some underfunding.

12                  COMMISSIONER McDONALD:  The thought 

13           process is we had a lot of difficult choices 

14           this year and a lot of difficult decisions.  

15           We had to find a lot of savings.  

16                  Medicaid's growing really rapidly.  A 

17           lot of things are growing really rapidly.  

18           It's crowding out other things.  So we had a 

19           lot of difficult decisions to make.  

20           Regrettably, this was one of them.

21                  ASSEMBLYMAN JENSEN:  Transitioning 

22           to -- and I know Senator Helming brought this 

23           up, but in relation to dental care.  Why are 

24           we seeing reimbursement rates for dental care 


                                                                   81

 1           not match the same reimbursement -- and I 

 2           guess this is for Director Bassiri.  Why are 

 3           we not seeing the Medicaid reimbursement 

 4           rates for dental care match the same level of 

 5           increases or commitment that we're seeing 

 6           across other healthcare areas?

 7                  MEDICAID DIRECTOR BASSIRI:  Well, we 

 8           are increasing dental rates.  Governor Hochul 

 9           put in and instituted an across-the-board 

10           increase, the 1 percent which compounds year 

11           after year.  And that does apply to dental 

12           rates as well as every other rate.

13                  I do think we have a supply challenge 

14           on the dental side, and we have spoken to 

15           other state Medicaid programs who similarly 

16           struggle with this issue.  And we've been 

17           told resoundingly that increasing rates will 

18           not single-handedly solve this problem.  

19                  And so what you'll see in this budget 

20           that Commissioner McDonald and others will 

21           speak to is around a multipronged strategy 

22           that includes scope of practice changes as 

23           well as investments in the 1115 waiver 

24           specifically to get more dentists into the 


                                                                   82

 1           Medicaid program.

 2                  ASSEMBLYMAN JENSEN:  In the financial 

 3           plan, the Medicaid budget -- I guess for you 

 4           again, Dr. Bassiri -- the Medicaid budget is 

 5           expected to exceed the Medicaid Global Cap 

 6           starting in fiscal year '26.  

 7                  If the Medicaid budget continues to 

 8           threaten the global cap, is there a plan to 

 9           address the financial health of the Medicaid 

10           program to ensure that we stay under the goal 

11           of the cap moving forward?  

12                  MEDICAID DIRECTOR BASSIRI:  

13           Absolutely.  Each year we go through that 

14           process, including right now, which is why, 

15           you know, there are some difficult choices, 

16           as Commissioner McDonald said.  And specific 

17           to the Medicaid program, there are some 

18           concerning trends that suggest we will 

19           continue to spend over the statutory growth 

20           rates absent any change.  And that is why we 

21           have some hard choices that we'll have to 

22           work through over the next couple of months.

23                  ASSEMBLYMAN JENSEN:  In the Executive 

24           Budget there's a mention of a high enrollment 


                                                                   83

 1           and lower-than-expected disenrollment, based 

 2           on the public health emergency unwind as it 

 3           contributes to Medicaid funding.  

 4                  What are the reasons for the 

 5           discrepancy between the disenrollment 

 6           projections and the actual disenrollment 

 7           numbers?

 8                  MEDICAID DIRECTOR BASSIRI:  So there's 

 9           a few reasons.  The good news is that we've 

10           done a really good job of retaining coverage 

11           through the unwind process, the 14-month 

12           unwind process.  And part of that is due to 

13           the federal flexibility we've received around 

14           ex parte and multiple modalities and giving 

15           people multiple opportunities to come back 

16           for their renewal process.

17                  When we did our initial projections, 

18           some of those flexibilities were not in 

19           place, and so our projections were slightly 

20           off.  But month over month that compounds, 

21           which is why we see more people staying on 

22           the books than anticipated.

23                  ASSEMBLYMAN JENSEN:  Thank you both.

24                  CHAIRWOMAN KRUEGER:  Thank you.  


                                                                   84

 1                  Senator Hinchey.

 2                  SENATOR HINCHEY:  Thank you very much.  

 3                  And thank you all for being here.  

 4                  My questions are for the commissioner.  

 5                  In the Executive's Briefing Book this 

 6           year it states that currently 75 of 261 of 

 7           New York's hospitals are financially 

 8           distressed, with that number increasing.

 9                  The Executive Budget also acknowledges 

10           that there's an unmet need between $1 billion 

11           and $1.5 billion for financially distressed 

12           hospitals.  And most of these 75 facilities 

13           are not eligible to participate in the 

14           1115 waiver funding for financially 

15           distressed hospitals, which is limited to a 

16           small subset of hospitals currently.

17                  Under the financial picture presented 

18           in the Budget Briefing Book, will there be 

19           any resources available for hospitals that 

20           are on the verge of becoming financially 

21           distressed that are -- that need funding to 

22           be able to operate for fiscal year '25?  

23                  COMMISSIONER McDONALD:  Yeah, let me 

24           address that first and Amir can add if we 


                                                                   85

 1           want to.

 2                  You know, we do have $984 million.  We 

 3           obviously want our hospitals to survive and 

 4           do well.  We're concerned about our 

 5           hospitals.  I'm very familiar with the data 

 6           you're quoting, of course.  And so it's one 

 7           of those things where we have a process, 

 8           there's multiple tools we have, and, you 

 9           know, we can -- there's $984 million.  That 

10           will go quite a ways.

11                  SENATOR HINCHEY:  Right.  But we know 

12           that there's more -- all of that funding 

13           right now is allocated effectively for the 

14           six hospitals that receive it, and there are 

15           significantly more hospitals that are either 

16           -- that are on the brink that do not qualify 

17           right now today, but will qualify or would 

18           qualify in the future, let alone '25.  

19                  What's the plan?  

20                  MEDICAID DIRECTOR BASSIRI:  So if you 

21           don't mind, I can go back to the first 

22           question.  You said there -- the 1115 waiver 

23           does not include hospitals in the 75.  It 

24           actually does.  


                                                                   86

 1                  One of the criteria is that they have 

 2           to have been in receipt of one of our state 

 3           subsidy programs, the Vital Access Provider 

 4           Assurance Program, VAPAP, we call it for 

 5           short.  And we generally monitor case-by-case 

 6           issues with all hospitals on an ongoing 

 7           basis.  To the extent they are coming into 

 8           financial distress, we will know that in 

 9           advance.  

10                  Our payment programs, some of them are 

11           specific to eligibility, whether they meet a 

12           level of need or Medicaid and uninsured payer 

13           mix.  We do have the VAPAP program to address 

14           one-time and emerging needs, and we continue 

15           to do that.

16                  SENATOR HINCHEY:  Which needs more 

17           funding.  I mean, we're in this situation 

18           right now with a hospital in my district and 

19           the VAPAP funding is not there for it and 

20           they don't technically qualify for distressed 

21           hospitals today, but they will.  And we're 

22           seeing that the amount of funding that is 

23           allocated today does not cover the need 

24           that's there.  


                                                                   87

 1                  So we can follow up with you 

 2           separately; I have 25 seconds left.  But I 

 3           think there's an acknowledgment that they're 

 4           going to need more support.

 5                  On December 6, the Governor announced 

 6           $3.5 million for mental health services, and 

 7           we actually are fighting to get our mental 

 8           health beds back.  And notably, within the 

 9           13 new clinics across the state, the 

10           Mid-Hudson Valley was not included in that 

11           list.  

12                  So on the same day that we're having 

13           discussions with the Executive's office on 

14           bringing back mental health beds with an 

15           acknowledgment -- I'm just -- I'll get this 

16           in writing, of course.  But when we are 

17           fighting for mental health beds and an 

18           announcement comes out for funding, ours not 

19           included --

20                  CHAIRWOMAN KRUEGER:  I'm sorry, 

21           Michelle, you're out of time.

22                  SENATOR HINCHEY:  -- what's that 

23           reason?  I'll look for it in writing.

24                  CHAIRWOMAN KRUEGER:  You can follow up 


                                                                   88

 1           with them afterwards.  

 2                  And I'm sure we'd all love to know the 

 3           answers, so if you wouldn't mind, put them in 

 4           writing in some long list of questions you 

 5           will have to respond to after the hearing.  

 6           Thank you.

 7                  SENATOR HINCHEY:  Thank you.

 8                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

 9           Michaelle Solages.  

10                  ASSEMBLYWOMAN SOLAGES:  Thank you for 

11           being here.

12                  You know, I see a series of funding 

13           cuts to public health programs such as cancer 

14           services, Warren Disease Institute, 

15           Nurse-Family Partnerships, the Medicaid 

16           managed care pools, quality pools, which is 

17           an evidence-based program.  I'm just really 

18           worried.  What is the thought process behind 

19           this?  And how are these impacts going to 

20           affect health equity here in New York State?  

21                  COMMISSIONER McDONALD:  Yes, so I 

22           really want to preserve health equity.  And 

23           what I'm really trying to do is provide the 

24           best resources to everybody with the best 


                                                                   89

 1           outcomes.  

 2                  The thought process is we had to find 

 3           savings.  We tried to find savings that 

 4           weren't going to have as much impact as 

 5           others would.  When you look at where our 

 6           money is going, it's going to hospitals, it's 

 7           going to Medicaid.  That's where the vast 

 8           majority of our money is going.  We're trying 

 9           our best to help patients that are medical 

10           home.  We're doing a lot.

11                  We don't want to cut any public health 

12           programs, but we had to make some smaller 

13           cuts in some of these programs.  It's 

14           painful, but that's where we had to go.

15                  ASSEMBLYWOMAN SOLAGES:  Some of these 

16           programs, like Nurse-Family Partnerships, 

17           really goes at the root of the problem, 

18           making sure that mothers have access to 

19           high-quality needs programs.  So I think we 

20           should really think about how we should 

21           invest into these programs versus cuts. 

22                  COMMISSIONER McDONALD:  Love to work 

23           with you as we go through the budget process.

24                  ASSEMBLYWOMAN SOLAGES:  So next I want 


                                                                   90

 1           to go back to the conversation about 

 2           electronic cigarettes and cigarette devices 

 3           and vaping.  

 4                  So we see these devices getting in the 

 5           hands of our young people.  And I want to 

 6           know, what is the response?  What are we 

 7           doing in respect with law enforcement, you 

 8           know, using our governmental powers to ensure 

 9           that these products are not getting into the 

10           hands of youth and others?

11                  COMMISSIONER McDONALD:  Local health 

12           departments are doing what they can to work 

13           on enforcement of this.  We're going to be 

14           doing advertising and messaging with this.  

15           It's really an issue much larger than us, 

16           though, right?  Like why do kids have access 

17           to this?  Why are people selling this to 

18           people when they shouldn't be?  Because kids 

19           are kids, you know.  But why are people 

20           selling this?  Shouldn't they understand that 

21           they have a consciousness not to do this?  So 

22           we have a lot of work to do in this space.  

23                  ASSEMBLYWOMAN SOLAGES:  Can we -- can 

24           we go back -- go after the bad actors?  We 


                                                                   91

 1           see a lot of these convenience stores selling 

 2           these products to young people.  Isn't there 

 3           anything that DFS can do to go after these 

 4           actors?  

 5                  DFS SUPERINTENDENT HARRIS:  Happy 

 6           to work with you on any proposals you might 

 7           have to put forward.  

 8                  In terms of the convenience stores or 

 9           others, that would certainly be outside of 

10           DFS's purview.

11                  ASSEMBLYWOMAN SOLAGES:  Okay.  Is 

12           there any ideas?  I mean, like you have an 

13           educational campaign, but what does that 

14           entail? 

15                  COMMISSIONER McDONALD:  So, you know, 

16           a lot of it is speaking to people at their -- 

17           you know, we do focus groups, understand what 

18           people want to hear, find messaging that 

19           works.  We've had a lot of success with 

20           tobacco in the past.  So it's finding the 

21           right message and getting it in the right 

22           medium.  So a lot of it is that, is 

23           persuading people.  

24                  But a lot of it is to get to the hands 


                                                                   92

 1           of enforcement, enforcing what we can do.  

 2           You know, and a lot of this is left to local 

 3           law enforcement and local health departments, 

 4           and they're doing the very best they can.

 5                  ASSEMBLYWOMAN SOLAGES:  Are we 

 6           collaborating with those local law 

 7           enforcements?

 8                  COMMISSIONER McDONALD:  Local health 

 9           departments are collaborating with local law 

10           enforcement to the extent they're able.

11                  ASSEMBLYWOMAN SOLAGES:  Okay.  Thank 

12           you.

13                  COMMISSIONER McDONALD:  Sure.

14                  CHAIRWOMAN KRUEGER:  Thank you.  

15                  Next is Senator May.  (Pause.)  She 

16           did say she would have to run quick.  We'll 

17           put her back on the list for later.

18                  Senator Ashby.

19                  SENATOR ASHBY:  Thank you, 

20           Madam Chair.  

21                  Thank you for being here.

22                  Commissioner McDonald, given the 

23           Governor's focus and your focus on maternal 

24           and infant health, I have some questions.  I 


                                                                   93

 1           want to talk about the Burdett Birth Center.  

 2                  Trinity Health has submitted a closure 

 3           plan to your office for the Burdett Birthing 

 4           Center, due to the fact that Trinity began 

 5           acting on the closure plan prior to approval, 

 6           requiring your office to offer a 

 7           cease-and-desist warning, and considering the 

 8           Save Burdett Birth Center Coalition uncovered 

 9           falsehoods contained within the closure plan.  

10                  Do you believe that your office should 

11           commence a full review rather than a partial 

12           review?  

13                  COMMISSIONER McDONALD:  Yeah, I really 

14           appreciate what you're asking.  And I'm 

15           obviously very aware of what's going on in 

16           this area.

17                  By the way, I get emails every single 

18           day about Burdett.

19                  SENATOR ASHBY:  Me too.

20                  COMMISSIONER McDONALD:  Just so people 

21           know, I read their emails.  Every single day 

22           I get many, and just be aware, I read every 

23           one of them.  

24                  I can't talk about this as much as I'd 


                                                                   94

 1           want to, because this really is firmly in the 

 2           regulatory process right now.

 3                  I think one thing I would say, though, 

 4           just to every hospital out there, is it's 

 5           very important not to get ahead of the 

 6           department.  It's very important for 

 7           hospitals, if they have an idea they want to 

 8           close something, to go ahead through the 

 9           process but not get ahead of the department.  

10           And you shouldn't assume what the 

11           department's going to do.  What you should do 

12           is go through the closure process, do the 

13           health equity impact assessment.  But very 

14           important just to not get ahead of the 

15           department.

16                  SENATOR ASHBY:  Given the fact that 

17           they have, wouldn't that warrant a full 

18           review now?  

19                  COMMISSIONER McDONALD:  I really don't 

20           want to get too much into Burdett.  I really 

21           hear what you're saying.  I appreciate what 

22           you're saying.  I think it's very important 

23           for me to preserve the regulatory process.  

24           So I hear what you're saying, understand what 


                                                                   95

 1           you're saying, but I think we have to just 

 2           leave Burdett to the side for a minute.

 3                  SENATOR ASHBY:  Do you believe that 

 4           the closure would negatively impact the 

 5           health of mothers and newborns?

 6                  COMMISSIONER McDONALD:  Yeah, I don't 

 7           want to answer it about Burdett.  But I am 

 8           concerned about maternity deserts in 

 9           New York.  

10                  And I'll just throw this for 

11           consideration.  We do have two maternity 

12           deserts in New York.  One's in Hamilton 

13           County and another one's in Seneca County.  I 

14           don't want to see more maternity deserts.  Or 

15           just from a large-scale issue, I think it's 

16           important we understand that hospitals have 

17           certain direct patient care functions.  

18                  I think maternal care is really 

19           important.  People should be able to go to a 

20           hospital and have a baby.  But I can't speak 

21           specifically to an active regulatory issue 

22           right now.

23                  SENATOR ASHBY:  I appreciate that.  

24                  This is a question for yourself or 


                                                                   96

 1           Director Bassiri.  Given the cuts that we're 

 2           looking at in Medicaid towards long-term 

 3           care, has DOH estimated how many nursing 

 4           homes may close because of this, or limit 

 5           their beds?  I mean, we're talking about 

 6           hundreds of millions of dollars in cuts.

 7                  MEDICAID DIRECTOR BASSIRI:  So I 

 8           think -- thank you for that question, 

 9           Senator.  I think you're referring to the two 

10           nursing home actions, one being on the 

11           capital reduction.  We don't anticipate any 

12           nursing homes closing as a result of that 

13           action.  It's building on something we'd done 

14           a couple of years ago -- certainly not ideal, 

15           but don't anticipate closures as a result of 

16           that.

17                  The other is actually unallocated 

18           funding.  I wouldn't frame it as a cut per 

19           se.  It's funding we have not allocated over 

20           the past two years for financially distressed 

21           nursing homes.

22                  SENATOR ASHBY:  Thank you.

23                  CHAIRWOMAN KRUEGER:  Thank you.  

24                  Just to remind members who might have 


                                                                   97

 1           come in before -- or later than when I gave 

 2           my lecture in the beginning, that clock is 

 3           for your questions plus the answers.  So some 

 4           people go on longer.  So I'm just letting 

 5           everyone know, again, look at that clock and 

 6           that's for you and also for the responder.  

 7                  And if they don't have enough time to 

 8           answer, we're asking them to put the answer 

 9           in writing and get them to the chairs, and we 

10           will make sure all members get the answers.  

11           Thank you.

12                  Next, Assembly.

13                  ASSEMBLYWOMAN PAULIN:  Yes, thank you.

14                  First, we've been joined by 

15           Assemblymembers Forrest and -- and Hunter.  

16           Thank you.  

17                  Our next Assembly speaker is Ken 

18           Blankenbush, ranker of Insurance.

19                  ASSEMBLYMAN BLANKENBUSH:  Thank you.  

20                  Welcome, Superintendent.  It's good 

21           seeing you again.  And I again, with 

22           David Weprin, appreciated you showing up at 

23           our Insurance Committee meeting.  Hope we can 

24           do that again this year.


                                                                   98

 1                  I have a follow-up on the ownership of 

 2           affordable housing and insurance.  In 

 3           November of 2022, DFS released a report on 

 4           affordable housing and insurance.  Since that 

 5           report has come out, have you received any 

 6           types of complaints or any feedback to your 

 7           agency related to the affordable housing and 

 8           insurance?

 9                  DFS SUPERINTENDENT HARRIS:  Yes, sir, 

10           we engaged quite a bit with housing advocates 

11           on the issue.

12                  ASSEMBLYMAN BLANKENBUSH:  And has the 

13           department identified any patterns or 

14           practices that reflect misconduct by 

15           insurers?  

16                  DFS SUPERINTENDENT HARRIS:  Sir, we 

17           did an initial data call to insurers and got 

18           quite a robust response.  

19                  Many of the insurers indicated that 

20           they don't ask about the presence of 

21           affordable or subsidized housing as part of 

22           their underwriting.  Some indicated that they 

23           do ask that question but that it doesn't 

24           necessarily impact their underwriting.  


                                                                   99

 1                  So that was just an initial data call 

 2           that we did after the report was issued.

 3                  ASSEMBLYMAN BLANKENBUSH:  So the 

 4           response by some insurance companies, even 

 5           though they ask the question, it doesn't 

 6           reflect their underwriting decisions?

 7                  DFS SUPERINTENDENT HARRIS:  It doesn't 

 8           reflect their underwriting, yes, sir. 

 9                  ASSEMBLYMAN BLANKENBUSH:  But some do?  

10                  DFS SUPERINTENDENT HARRIS:  But -- 

11           some ask the question, but it doesn't 

12           necessarily result in them not issuing 

13           insurance to the -- it does not -- I should 

14           say it does not result in them not issuing 

15           insurance to the property.

16                  ASSEMBLYMAN BLANKENBUSH:  What kind of 

17           enforcement -- what kind of enforcement 

18           mechanism or oversight is going to be put in 

19           place to oversee this?  

20                  DFS SUPERINTENDENT HARRIS:  So if this 

21           proposal is enacted, of course, we will 

22           examine accordingly to make sure insurers are 

23           not using this factor in underwriting.  

24                  And every time we go in to examine a 


                                                                   100

 1           company or our experts go in and look at the 

 2           books, interview executives, if we find that 

 3           they are improperly using this, we won't 

 4           hesitate to bring supervisory or enforcement 

 5           action.

 6                  ASSEMBLYMAN BLANKENBUSH:  Penalties?  

 7                  DFS SUPERINTENDENT HARRIS:  

 8           Potentially, yes, sir.

 9                  ASSEMBLYMAN BLANKENBUSH:  And who sets 

10           those penalties?  DFS or --  

11                  DFS SUPERINTENDENT HARRIS:  Sometimes 

12           they are set by the Legislature and in 

13           statute; sometimes they are administratively 

14           set.

15                  ASSEMBLYMAN BLANKENBUSH:  Because I've 

16           been in the insurance business most of my 

17           adult life -- retired now, but -- so no 

18           outside income -- so I -- my question, over 

19           the years I've had discussions with 

20           underwriters, I guess you could call them 

21           discussions.  I thought -- I thought 

22           particular -- particular businesses or 

23           property was a good fit for the company, and 

24           the company underwriter sometimes has 


                                                                   101

 1           disagreed with me, and so forth.  

 2                  But -- and over the years that I've 

 3           worked on this, I've had companies that would 

 4           pull out of certain markets because it was a 

 5           loss ratio for them.

 6                  And sitting here looking at this, I 

 7           can't imagine them not having an effect on 

 8           the availability and the affordability of 

 9           insurance.  I think that your answer just a 

10           little while ago is that you don't think 

11           that's going to be the case?  Or --  

12                  DFS SUPERINTENDENT HARRIS:  Sir, it's 

13           just -- it's hard for us to know.  Of course 

14           We can't tell insurers, to your point, who to 

15           underwrite and who not.  We can only tell 

16           them what factors may be unfairly 

17           discriminatory and that they're not permitted 

18           to engage in discriminatory conduct.  But of 

19           course a business will make its own 

20           determination, as you noted, as to who to 

21           underwrite and who not.  

22                  So whenever we prohibit a factor in 

23           underwriting it, it is a risk.

24                  ASSEMBLYMAN BLANKENBUSH:  I want to 


                                                                   102

 1           also follow up on the supplemental insurance 

 2           question.

 3                  The reason, the major reason I voted 

 4           no on this bill was the opt-out rather than 

 5           the opt-in.  So my understanding now is if I 

 6           was still in business and I was writing a 

 7           piece of property or life insurance, or 

 8           automobile insurance, if I asked the question 

 9           are you married, you're automatically in.

10                  Now, so how do you get out?  Could you 

11           do it at that same time when you're writing 

12           the -- when you're writing the application, 

13           could the insurance agent submit a piece of 

14           paper or something opting out at the same 

15           time that he submits for new business?

16                  DFS SUPERINTENDENT HARRIS:  So I'm 

17           cognizant of time on the clock, so we can 

18           follow up in writing.  But there will be the 

19           same declination form for people to opt out 

20           if they are defaulted in.

21                  ASSEMBLYMAN BLANKENBUSH:  Thank you.

22                  CHAIRWOMAN KRUEGER:  Thank you.

23                  Next is -- wait -- Senator -- so 

24           sorry.  Senator Zellnor Myrie.  Thank you.


                                                                   103

 1                  SENATOR MYRIE:  Thank you, 

 2           Madam Chair.  

 3                  My questions will be directed to 

 4           Commissioner McDonald.  But I'd be remiss if 

 5           I didn't join Chair Breslin in commending the 

 6           superintendent for her work at DFS and 

 7           particularly last year during the Signature 

 8           Bank crisis.  I think we should be investing 

 9           as many resources as possible to allow the 

10           department to continue that work.

11                  Commissioner McDonald, two years ago 

12           this Legislature passed a statute that 

13           required the department to issue a study on 

14           health inequities in Central Brooklyn and to 

15           also consider constructing new health 

16           facilities for women and children.  We 

17           inquired about the status of that report in 

18           October of last year.  You responded on 

19           October 17, 2023, saying that it would be 

20           complete by October.  It was not.  We checked 

21           back this January.  And you responded last 

22           year, March 7, 2023, to say that it would be 

23           completed by this month, January 2024.  

24                  There are eight days left in this 


                                                                   104

 1           month.  So my question is simple.  Where is 

 2           the report?

 3                  COMMISSIONER McDONALD:  I know exactly 

 4           where it is.  And it's coming soon.  I'm 

 5           sorry -- I'm sorry you don't have it.

 6                  I -- I -- I'm sorry you don't have it.  

 7           You should have it.  I'm just sorry you don't 

 8           have it.  But I know where it is, and it's 

 9           coming soon.

10                  SENATOR MYRIE:  Okay.  So we don't 

11           have the report on health inequities in 

12           Central Brooklyn.  We do not have the report 

13           on potentially new facilities for women and 

14           children.  We do not have the report on 

15           capital investments for regional perinatal 

16           centers like SUNY Downstate.  But in this 

17           budget, the Governor and SUNY have insisted 

18           on a transformation plan for SUNY Downstate 

19           in Central Brooklyn, where there are health 

20           inequities, where we need more services for 

21           women and children.  

22                  So my next question is, did SUNY 

23           inform you about this transformation plan?  

24           And if so, when?  


                                                                   105

 1                  COMMISSIONER McDONALD:  I learned 

 2           about SUNY's transformation plan in the 

 3           media.  So I don't have any more knowledge 

 4           about that than you do.  

 5                  I will tell you when you do see the 

 6           report, it's robust and it's got data 

 7           analysis, so it should be worth waiting for.  

 8           Again, I'm sorry we didn't get it on time to 

 9           you.

10                  SENATOR MYRIE:  Okay.  So I just want 

11           to be clear for the record, being mindful of 

12           time.  So we did not get the report in the 

13           statutorily required amount of time, and then 

14           the so-called transformation plan for 

15           Central Brooklyn was not even communicated to 

16           the commissioner of the Department of Health 

17           for the only state-run hospital in the City 

18           of New York.  I think that's unacceptable.

19                  Thank you, Madam Chair.

20                  CHAIRWOMAN KRUEGER:  Thank you.  

21                  Assembly.

22                  ASSEMBLYWOMAN PAULIN:  Thank you.

23                  The next up for us is Assemblymember 

24           McDonald.


                                                                   106

 1                  ASSEMBLYMAN McDONALD:  Thank you, 

 2           Madam Chair.  

 3                  My question's going to be towards DOH.  

 4           It's about maternity services.  As Senator 

 5           Ashby had mentioned, Burdett is proposed to 

 6           be closed in Troy.  There's 24 closed in the 

 7           last 15 years.  Maternity wards in general, 

 8           currently there's five -- Burdett, last week 

 9           Saint Catherine of Siena, Long Island.  

10                  The Governor has made some very I 

11           think meaningful proposals in the budget -- 

12           and I support them -- in regards to expanding 

13           maternal services.  And also my 

14           understanding, and Amir will correct me if 

15           I'm wrong, Medicaid rates, the rates for 

16           fee-for-service and managed care, back in 

17           October of last year -- in hospitals upstate 

18           at least -- are seeing a significant shift 

19           because of the Medicare wage index.  Which is 

20           going to help their overall health, but also 

21           have an impact because a lot of times fees 

22           base off the Medicare wage.  So those are 

23           facts.  It's not opinion, it's facts.

24                  Simultaneously, DOH has issued 


                                                                   107

 1           regulations for midwife-led birth centers 

 2           this past year.  Burdett is a midwife-focused 

 3           birth center.  Midwife-led birth centers 

 4           within a hospital would have the resources to 

 5           handle higher-risk situations if they 

 6           arise -- and I think are an ideal model and 

 7           something I believe should be statewide.  

 8           Personally, I think Burdett is the model we 

 9           should be shooting for.  

10                  However, Trinity Health, an 

11           out-of-state conglomerate worth billions of 

12           dollars, is looking to close Burdett, which I 

13           find to be problematic.

14                  Now, my question's not about Burdett.  

15           My question is when can we expect more on the 

16           midwife-led birth centers from DOH?  And just 

17           as importantly, as the department is looking 

18           at these closures in general, are they looked 

19           at retrospectively on the sustainability 

20           question or are they looked at prospectively 

21           on the sustainability issue?  

22                  COMMISSIONER McDONALD:  So I do expect 

23           midwife birthing centers to open in New York 

24           State in 2024.  You know, that goes through 


                                                                   108

 1           the Public Health and Planning Council.  I 

 2           expect that will happen.

 3                  One thing I think is really important, 

 4           though, is people not get ahead of the 

 5           department.  You mentioned some facilities 

 6           are talking about closing their maternity 

 7           units.  It doesn't mean -- we haven't made 

 8           decisions on this yet.  I just want to be 

 9           really clear:  Please don't get ahead of the 

10           department on this.  There's a process that 

11           people have to go through.  And I just don't 

12           think people should assume where the 

13           department's going to go.

14                  I think the midwife regulations we're 

15           working on are going to be helpful as well.

16                  And to your question about data, we 

17           look at data retrospectively and we do look 

18           at what is the prospective impact on the 

19           community.  I'm not speaking about any 

20           particular closure.

21                  But obviously, when someone's closing 

22           anything, anywhere in the state, we're very 

23           concerned about health equity and how it's 

24           going to impact the people who count on 


                                                                   109

 1           hospitals, emergency departments, whatever 

 2           we're talking about closing.

 3                  ASSEMBLYMAN McDONALD:  DOB has 

 4           proposed a $228 million cut to the Health 

 5           Home Program.  Does this include the 

 6           children's program?

 7                  MEDICAID DIRECTOR BASSIRI:  I don't 

 8           believe the proposed cut is of that 

 9           magnitude.  But we're happy to take that 

10           offline and get you more details about that.

11                  ASSEMBLYMAN McDONALD:  Thank you, 

12           Amir.

13                  ASSEMBLYWOMAN PAULIN:  Thank you.

14                  CHAIRWOMAN KRUEGER:  Thank you.

15                  Senator Borrello.

16                  SENATOR BORRELLO:  Thank you.

17                  First of all, thank you all for being 

18           here.  I have questions for all of you, but 

19           I'm going to start with the most pressing 

20           one, for you, Commissioner McDonald.  

21                  Your predecessor instituted Rule 213, 

22           a Department of Health regulation, perhaps -- 

23           without a doubt, actually, the most draconian 

24           rule ever to be put into health code in 


                                                                   110

 1           New York State or perhaps anywhere in the 

 2           United States.  It would allow any public 

 3           health official to forcibly remove someone 

 4           from their home and quarantine them.  It 

 5           included no due process and no proof that 

 6           those -- that that person's actually sick.  

 7           Something you'd see more in mainland China, 

 8           in Communist China, than you would in 

 9           New York State.

10                  That was overturned by the State 

11           Supreme Court on the grounds that it was 

12           unconstitutional.  I brought that lawsuit 

13           along with others.  And then, shamefully -- 

14           and incorrectly -- the Fourth Appellate 

15           Division overturned that because they said 

16           we, as state legislators, didn't have 

17           standing to bring a lawsuit on the separation 

18           of powers.  

19                  With that being said, that paves the 

20           way for you to be able to reinstitute 

21           Rule 213, or something similar to it.  Do you 

22           have any plans to do so?

23                  COMMISSIONER McDONALD:  I can't talk 

24           about active litigation here.  But I do want 


                                                                   111

 1           to talk a little bit about some things.

 2                  I think far too often we confuse the 

 3           terms "isolation" and "quarantine."  You said 

 4           we would remove someone from their home by 

 5           quarantine if they weren't sick.

 6                  SENATOR BORRELLO:  Yes, that's 

 7           correct.  There's no requirement they 

 8           actually be sick.

 9                  COMMISSIONER McDONALD:  No, I 

10           understand.  That's the very definition of 

11           quarantine:  You were exposed to something.  

12           I just want to make sure you understand, 

13           because too often you get this confused.  If 

14           you're ill, you isolate the ill, you 

15           quarantine the exposed.

16                  Having said that, there's active 

17           litigation on that issue.  I can't get into 

18           it in great -- as much detail as I'd like --

19                  SENATOR BORRELLO:  But we already have 

20           a rule -- we already have a law in place for 

21           70 years that covered -- that included 

22           due process and other constitutional 

23           protections.

24                  This was a copy-and-paste of Assembly 


                                                                   112

 1           Bill 416 by Nick Perry, which never went 

 2           anywhere, which was the basis for our 

 3           lawsuit.

 4                  So the question is simple.  Yes or no, 

 5           do you plan to reinstitute Rule 213 or not?

 6                  COMMISSIONER McDONALD:  I don't have 

 7           any plans at the moment to reinstitute that.

 8                  SENATOR BORRELLO:  Okay, that's good.

 9                  I would suggest that you and the 

10           Governor do not do that.  It is perhaps the 

11           worst Department of Health ruling ever in the 

12           history of our nation.  And I would strongly 

13           suggest that you protect our constitutional 

14           freedoms by not doing that.

15                  Thank you very much.  I'm going to 

16           move on now to the Medicaid commissioner, if 

17           I can.  How much time -- 48 seconds.

18                  Nonemergency medical transportation 

19           has been a costly boondoggle that has 

20           benefited these brokers to the tune of 

21           millions of dollars.  More than two years ago 

22           the Medicaid Redesign Team said we need to 

23           throw it out; our Comptroller said it's 

24           wasting millions of dollars; and yet we 


                                                                   113

 1           haven't seen any reforms.

 2                  Can you just quickly speak to what 

 3           you're doing to ensure that we're not paying 

 4           taxi drivers more than we're paying doctors 

 5           and nursing homes to care for our elderly.

 6                  MEDICAID DIRECTOR BASSIRI:  Yeah, 

 7           sure, thanks for the question.  And in the 

 8           time remaining I would say we have 

 9           implemented a statewide transportation broker 

10           earlier this fiscal year.  It is being 

11           expanded for the Managed Long Term 

12           Care Program in a couple of months.  But that 

13           protest of the comptroller's office was 

14           resolved, and we were -- we did move forward 

15           with a statewide contract.  So we are getting 

16           livery rates, Senator.

17                  SENATOR BORRELLO:  Thank you.

18                  ASSEMBLYWOMAN PAULIN:  Thank you.  

19                  CHAIRWOMAN KRUEGER:  Thank you.  

20                  Assembly.

21                  ASSEMBLYWOMAN PAULIN:  Before I -- 

22           we've been joined by actually two members 

23           prior that I failed to mention -- sorry -- 

24           Assemblymembers Walsh and Blumencranz, and 


                                                                   114

 1           more recently Jo Anne Simon.

 2                  The next Assemblymember is 

 3           Assemblymember Bendett.  

 4                  ASSEMBLYMAN BENDETT:  All right, thank 

 5           you.  Thank you for being here.

 6                  There's an $810 million state share 

 7           Medicaid funding gap for nursing homes, and 

 8           more than 6,000 beds have been taken offline 

 9           over the past six years.  Medicaid members 

10           who are in need of care for nursing home 

11           placements remain backed up in the hospital 

12           or have to be placed in facilities outside of 

13           their communities, causing family members to 

14           drive hours for a visit.

15                  Despite this, the Governor's budget 

16           really decimates the nursing home industry.  

17           With billions of dollars in reserves, why 

18           would the Governor cut nursing homes?  

19                  MEDICAID DIRECTOR BASSIRI:  Thanks for  

20           the question, Assemblymember.  

21                  I don't think there's as wide of a cut 

22           as being perceived.  I was mentioning in one 

23           of my earlier responses part of the reduction 

24           is unallocated state subsidy support for 


                                                                   115

 1           nursing homes.  In the past two years we've 

 2           had $100 million to issue to nursing homes; 

 3           only $22 million each year has been expended, 

 4           between 10 or nine nursing homes.  

 5                  So it's not necessarily a cut per se, 

 6           but it is a better reduction than would be to 

 7           cut services.  So it's unallocated spending 

 8           which is the primary focus of that reduction.

 9                  ASSEMBLYMAN BENDETT:  And how many 

10           nursing homes do you think will close if 

11           these cuts go through?  

12                  MEDICAID DIRECTOR BASSIRI:  I do -- 

13           don't know that I can answer that.  But I 

14           don't anticipate any will result -- will 

15           close as a result of these reductions.

16                  ASSEMBLYMAN BENDETT:  Okay, thank you.  

17                  The Governor's budget freezes the NH 

18           opening rate at January 2024 levels.  Last 

19           year's budget included a 7.5 percent Medicaid 

20           rate increase.  Only 6.5 percent was provided 

21           in the rates.

22                  Does this freeze mean that NHs, 

23           nursing homes, will not receive the 

24           additional 1 percent that was approved last 


                                                                   116

 1           year?  And if so, the Medicaid score card 

 2           does not reflect this savings account.

 3                  MEDICAID DIRECTOR BASSIRI:  So two 

 4           separate issues.

 5                  So the 7.5 percent rate increase from 

 6           last year is still under federal review and 

 7           approval.  The state moved forward and issued 

 8           6.5 percent to the nursing homes, and when we 

 9           get the federal approval they will get the 

10           additional percentage point.

11                  The freeze is a separate issue.  That 

12           is something we do not have an option to 

13           address.  And it's because the way we 

14           calculate acuity in the nursing home, which 

15           is a factor in the payment, is done by some 

16           federal assessments.  We draw down on the 

17           federal assessments.  They're changing their 

18           methodology and they're using a different 

19           assessment, called the Patient-Driven 

20           Monitoring Program, and that is a different 

21           assessment.  

22                  So the freeze is temporarily, until we 

23           are able to align to the new federal 

24           implementation.  But it's something we don't 


                                                                   117

 1           have an option on.

 2                  ASSEMBLYMAN BENDETT:  All right, thank 

 3           you very much.

 4                  CHAIRWOMAN KRUEGER:  Thank you.  

 5                  Senator John Liu.

 6                  SENATOR LIU:  (Mic issue.)  Thank you, 

 7           Senator Breslin, for the tech assistance.  

 8                  And thank you, Madam Chair.  And thank 

 9           our commissioners and their colleagues for 

10           testifying.

11                  You know, I'm looking at the testimony 

12           between Commissioner McDonald and 

13           Superintendent Harris, and it would appear 

14           that DFS is like a perfect agency.  Right?  

15           You've got this long list of accomplishments, 

16           2023.  

17                  I guess my first question is, is there 

18           anything that DFS hasn't done?  Or anything 

19           that you -- that Superintendent Harris feels 

20           that DFS could improve upon?

21                  DFS SUPERINTENDENT HARRIS:  There are 

22           always things that we could do better, 

23           Senator.

24                  SENATOR LIU:  Like what?


                                                                   118

 1                  DFS SUPERINTENDENT HARRIS:  Any number 

 2           of things, sir.

 3                  SENATOR LIU:  Just name one.

 4                  DFS SUPERINTENDENT HARRIS:  We could 

 5           always have more staff so that we can move 

 6           more quickly through the backlog.  For 

 7           instance, we've put in place 60-day lists 

 8           because of the backlogs that we have on many 

 9           of our filings.  

10                  As a result of those 60-day lists, 

11           we've moved through 11,000 old filings in the 

12           past year.  But I wish we could move more 

13           quickly.  And for that, we are working very 

14           hard to increase our staffing.

15                  SENATOR LIU:  Well, you actually cite 

16           that as an accomplishment.  I'm asking -- 

17           actually asking you what can be improved, 

18           what was not an accomplishment.  

19                  DFS SUPERINTENDENT HARRIS:  Well, 

20           there's still quite a lot of backlogs around 

21           the agency, sir.

22                  SENATOR LIU:  Okay.  So you can't 

23           think of anything that you could improve 

24           upon.


                                                                   119

 1                  The $163 million returned to consumers 

 2           and healthcare providers, would you happen to 

 3           have a breakdown between consumers and 

 4           healthcare providers?  $163 million is a lot.  

 5           Is it mostly to consumers?  Or is it mostly 

 6           to healthcare providers?  What's the rough 

 7           breakdown?  

 8                  DFS SUPERINTENDENT HARRIS:  I don't 

 9           have that with me, sir, but I'm happy to 

10           provide it to you. 

11                  SENATOR LIU:  My conjecture will be 

12           that that would be mostly to healthcare 

13           providers.

14                  DFS SUPERINTENDENT HARRIS:  That may 

15           be the case, sir.  I'm happy to come back to 

16           you with that information.

17                  SENATOR LIU:  That would be the case.  

18           Okay.  So the consumer protection aspect of 

19           DFS, you know, seems to always take a back 

20           seat to I guess larger, more glamorous 

21           issues.  I mean, your testimony says the -- 

22           that DFS was at the center of preventing a 

23           global financial meltdown.

24                  DFS SUPERINTENDENT HARRIS:  Yes, sir.


                                                                   120

 1                  SENATOR LIU:  And that was because of 

 2           the closure of Signature Bank?  

 3                  DFS SUPERINTENDENT HARRIS:  And the 

 4           ripple effects to European institutions that 

 5           we also regulate.  

 6                  SENATOR LIU:  Who closed Signature 

 7           Bank?  DFS?

 8                  DFS SUPERINTENDENT HARRIS:  Yes.

 9                  SENATOR LIU:  I guess the FDIC likes 

10           to claim credit for that as well.  Are they 

11           wrong?

12                  DFS SUPERINTENDENT HARRIS:  Sir, DFS 

13           closed -- no, absolutely not.  The way the 

14           mechanics work is DFS closes and appoints the 

15           FDIC as receiver.  And that's what we did in 

16           this case, sir.

17                  SENATOR LIU:  Okay.  Wow, I closed 

18           quick.

19                  CHAIRWOMAN KRUEGER:  I know.  Sorry 

20           about that.  Thank you.

21                  Assembly.  

22                  SENATOR LIU:  Thank you.

23                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

24           Lunsford.


                                                                   121

 1                  ASSEMBLYWOMAN LUNSFORD:  Thank you 

 2           very much.  

 3                  My question will be for 

 4           Commissioner McDonald.

 5                  I see in the Governor's budget that 

 6           there is an increase for Early Intervention.  

 7           I know you share my passion in this area.  I 

 8           see a 5 percent increase statewide and a 

 9           4 percent rate modifier for rural and 

10           underserved areas.  So I have two questions.  

11                  The first, is this entire increase 

12           funded by the 1115 waiver funding?  And two, 

13           how are you determining what an underserved 

14           area is when, for the most part, the entire 

15           state is underserved through EI services?  

16                  COMMISSIONER McDONALD:  Yeah, so it's 

17           not funded by the 1115 waiver.  It's funded a 

18           different way, through Medicaid in the 

19           traditional way we fund Early Intervention.  

20           Underserved areas is based on access to care, 

21           and it's mostly rural areas of the state -- 

22           your part of the state, quite honestly, where 

23           you're from.

24                  So yeah, Early Intervention's very 


                                                                   122

 1           important.  You know, getting any investment 

 2           this year, in a year that's this challenging, 

 3           is a big deal.  Very thankful that the 

 4           Governor allowed us to do this.

 5                  ASSEMBLYWOMAN LUNSFORD:  I appreciate 

 6           that.  And I know that you've been a strong 

 7           advocate in this area.

 8                  Still on EI, I see that there is a -- 

 9           this rate increase is just for in-person 

10           services.  Is that correct?  

11                  COMMISSIONER McDONALD:  That's right.

12                  ASSEMBLYWOMAN LUNSFORD:  So that means 

13           that there wouldn't even be a 5 percent 

14           increase for teleservices.

15                  COMMISSIONER McDONALD:  Right.

16                  ASSEMBLYWOMAN LUNSFORD:  So in some of 

17           our rural areas that are the most 

18           underserved, while telehealth is not ideal, 

19           it is truly the only mechanism for access.  

20           What are we going to do to help these areas 

21           increase when there isn't even an in-person 

22           provider to access the rate modifier?  

23                  COMMISSIONER McDONALD:  No, I agree.  

24           I'm concerned about it as well.  You know, I 


                                                                   123

 1           think we just have to be honest about this 

 2           year's budget.  We're -- just getting this 

 3           increase was a lot of work to get it, quite 

 4           frankly.  I'm very thankful to my team and 

 5           the Governor for getting it done.  

 6                  I think with -- if we get more 

 7           providers, period -- and I don't know if this 

 8           increase alone will do that.  But we need 

 9           more providers, period.  Quite frankly the 

10           rates are the issue.  I'm concerned about our 

11           timeliness of care in New York.  I'm worried 

12           about how long it takes us to get people in.  

13                  You know, one of the things I remember 

14           when I visited the Rochester delegation was 

15           they had a mom come in who gave just a 

16           wonderful, honest description of how hard it 

17           was to get access to care, and her child aged 

18           out before they could get care.  

19                  I just don't want to see that happen 

20           in New York.  So I'm worried about it as 

21           well, but we weren't able to do that increase 

22           either.

23                  ASSEMBLYWOMAN LUNSFORD:  I'm trying to 

24           squeeze in a quick question about CDPAP.  I 


                                                                   124

 1           see that there is an elimination of the wage 

 2           parity.  And that's wage parity for home 

 3           health workers, correct?  

 4                  MEDICAID DIRECTOR BASSIRI:  Yes, that 

 5           is correct.

 6                  ASSEMBLYWOMAN LUNSFORD:  So that 

 7           decrease represents an almost $3 cut in the 

 8           city and an almost $2 cut in upstate.  Which 

 9           completely eliminates the $2 raise we put in 

10           two years ago.  You're shaking your head.

11                  MEDICAID DIRECTOR BASSIRI:  Well, it's 

12           not upstate.  It's -- wage parity for home 

13           care workers is downstate and New York City, 

14           Nassau, Suffolk and Westchester.  

15                  ASSEMBLYWOMAN LUNSFORD:  So 

16           exclusively.

17                  MEDICAID DIRECTOR BASSIRI:  Correct.

18                  ASSEMBLYWOMAN LUNSFORD:  So you're 

19           just eliminating their wage increase from two 

20           years ago.  

21                  MEDICAID DIRECTOR BASSIRI:  No, they 

22           are still going -- this will have no bearing 

23           on their ability to get the $3 increase that 

24           was instituted a couple of years ago.


                                                                   125

 1                  ASSEMBLYWOMAN LUNSFORD:  All right.  

 2           I'm out of time.  Thank you very much.

 3                  CHAIRWOMAN KRUEGER:  (Mic off.)  Thank 

 4           you.  Excuse me.  Thank you.  

 5                  I believe the next is Senator Brouk.

 6                  SENATOR BROUK:  Thank you so much.

 7                  And hi, everyone.  Thanks for your 

 8           time today.

 9                  This isn't a -- very quick at the top, 

10           it's not a question but just something that 

11           is a growing concern.  I think it's been 

12           mentioned many times about Medicaid 

13           reimbursement rates, and we're looking at our 

14           nursing homes.  In Rochester we just had the 

15           single most patients seen at one of our 

16           hospitals in its history, and there's over a 

17           hundred people who are ready for discharge 

18           and can't because we don't have the beds.

19                  So I urge you -- you know, if you're 

20           waiting for the emergency, the crisis, we're 

21           in it.  And I hope that we'll see more to 

22           come in the following negotiations.

23                  But I want to turn my attention to 

24           doula care.  Obviously very exciting that 


                                                                   126

 1           January 1st, the Medicaid reimbursement rate 

 2           went into effect.  Thank you, Commissioner, 

 3           for all the work that you put into that. 

 4                  I'm wondering a couple of things.  You 

 5           know, as we looked at other states who have 

 6           done this before us, we've kind of been able 

 7           to learn from their mistakes.  Notably in 

 8           California, they did the same thing that we 

 9           did.  Their reimbursement rate was a little 

10           bit lower than ours, and they've learned that 

11           no one will actually enroll because it's 

12           actually not a living wage and they've 

13           actually more than doubled the rate that 

14           they're doing for doula care.

15                  What has New York learned from other 

16           states, and what are you looking at in terms 

17           of making sure ours is successful?

18                  COMMISSIONER McDONALD:  So we did 

19           increase our reimbursement rate quite a bit.  

20           I mean, and I have talked to doulas.  I was 

21           out meeting common doulas in Western New York 

22           this year.  You know, they were optimistic 

23           that this rate would work.  I think it will 

24           work upstate and downstate.


                                                                   127

 1                  And by the way, just want to highlight 

 2           again that I think allowing me to do a signed 

 3           standing order so any birthing person can 

 4           access a doula would be a really nice thing 

 5           to do for people.

 6                  SENATOR BROUK:  Agreed.  Commissioner, 

 7           I'm just going to interrupt quickly, because 

 8           yes, it increased from the pilot, which was 

 9           like 800-something dollars a birth.  That 

10           wasn't sustainable at all.

11                  COMMISSIONER McDONALD:  Right.

12                  SENATOR BROUK:  But it should be noted 

13           we didn't get to the 1930 that the overall 

14           doula community in New York State had asked 

15           for.  Right?

16                  COMMISSIONER McDONALD:  Right.

17                  SENATOR BROUK:  And so I'm glad to see 

18           the standing order come into place; hopefully 

19           that will help.  

20                  When would that actually go into 

21           place?

22                  COMMISSIONER McDONALD:  The standing 

23           order?

24                  SENATOR BROUK:  Yeah, the standing 


                                                                   128

 1           order.

 2                  COMMISSIONER McDONALD:  I can't do a 

 3           standing order till you good people let me do 

 4           a standing order.  If you'd let me do it, 

 5           I'll do it really quickly.

 6                  SENATOR BROUK:  So if it passes in the 

 7           budget --

 8                  MEDICAID DIRECTOR BASSIRI:  Yes.

 9                  COMMISSIONER McDONALD:  If you pass it 

10           in the budget -- I will have my team start 

11           drafting it, because I love your enthusiasm 

12           on this.

13                  SENATOR BROUK:  Love that.

14                  Okay, in my last 50 seconds -- I think 

15           this is going to go to the Medicaid director.  

16           Speaking of things I'm enthusiastic about 

17           that haven't happened yet, the state talked 

18           about the plan to put a State Plan Amendment 

19           to expand Medicaid services for behavioral 

20           health services in schools.  And we talked 

21           about that at the end of last year.

22                  My question is, we know that things 

23           like vaccinations, vision screenings, other 

24           preventative health measures, are much needed 


                                                                   129

 1           in schools as well.  Why not expand that SPA 

 2           to actually include other types of medical 

 3           services and not just behavioral health?  

 4                  MEDICAID DIRECTOR BASSIRI:  You know, 

 5           we've -- and thank you for the question, 

 6           Senator.  You've been a champion of that, the 

 7           School Supportive Health Services Program.  

 8                  I think we've been fighting very hard 

 9           with the Center for Medicare and Medicaid 

10           Services to get the initial expansion.  We 

11           have received the guidance to go further.  I 

12           think the reason we've held off is really 

13           feedback from the districts and not everyone 

14           being in the same place.  So we want to do 

15           the first part right --

16                  ASSEMBLYWOMAN PAULIN:  Thank you very 

17           much.

18                  CHAIRWOMAN KRUEGER:  Thank you.

19                  Assembly.

20                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

21           Gandolfo.

22                  ASSEMBLYMAN GANDOLFO:  Thank you, 

23           Chairwoman.  And thank you all for being here 

24           today.  


                                                                   130

 1                  My question is going to be toward DOH, 

 2           specifically regarding the Medicaid waiver, 

 3           which will invest 7.5 billion over three 

 4           years in our state's health and social care 

 5           systems, including what appears to be a 

 6           $451 million investment into the -- 

 7           investment of state funds appropriated in 

 8           this year's Executive Budget.  

 9                  Will any of this investment address 

10           the needs of New York's rising population of 

11           older adults on Medicaid, the vast majority 

12           of which are dually eligible for Medicare and 

13           Medicaid?  

14                  MEDICAID DIRECTOR BASSIRI:  So there 

15           will be benefits for older New Yorkers on 

16           Medicaid, although it's not as direct as some 

17           of the other investments in the waiver.  But 

18           specifically, you know, we're doing a lot of 

19           career pathways training and workforce 

20           development that will include nursing titles 

21           and other mental health practitioners that 

22           will serve Medicaid beneficiaries, including 

23           older adults, specifically nursing homes and 

24           those in the community.  


                                                                   131

 1                  But in our conversations with CMS 

 2           there was much more of a focus on not 

 3           necessarily the non-elderly, but they felt 

 4           like we've done a lot through the American 

 5           Rescue Plan Act and the investments in home 

 6           and community services, which is north of 

 7           $5 billion, that there was a bigger focus on 

 8           just delivery system reform and a focus on 

 9           children's health, as evidenced by some of 

10           the investments in the waiver. 

11                  ASSEMBLYMAN GANDOLFO:  Thank you.  

12                  And the waiver also invests 

13           $3.2 billion in health-related social needs 

14           services over the next three years targeted 

15           to Medicaid high-utilizers, individuals 

16           experiencing SUD, serious mental illness, 

17           intellectual and developmental disabilities, 

18           or homelessness, pregnant and postpartum 

19           persons, criminal justice- and juvenile 

20           justice-involved populations, and children.  

21                  Will older adults in need of 

22           long-term-care services who are not 

23           experiencing these conditions benefit from 

24           these services at all?  


                                                                   132

 1                  MEDICAID DIRECTOR BASSIRI:  Well, they 

 2           will be eligible to, because they'll meet the 

 3           criteria necessary.  However, you know, we do 

 4           have some investments in the Managed Long 

 5           Term Care Program, specifically in care 

 6           management, that include some of those 

 7           services, including Meals on Wheels and some 

 8           nutritional services, which would be eligible 

 9           for funding under the waiver and continue 

10           with the demonstration.  

11                  ASSEMBLYMAN GANDOLFO:  Okay, thank 

12           you.  And what about individuals who are 

13           dually eligible for Medicare and Medicaid and 

14           therefore would not receive medical or 

15           hospital services through Medicaid?  Would 

16           they benefit from the services as well?  

17                  MEDICAID DIRECTOR BASSIRI:  All 

18           Medicaid members, regardless, will get Level 

19           1 services, which we're defining as case 

20           management and health-related social needs.  

21           So they will get screened for their social 

22           risk factors and demographics information and 

23           be connected to any state and federal support 

24           services if they're not eligible for the 


                                                                   133

 1           higher-level services.

 2                  ASSEMBLYMAN GANDOLFO:  Okay.  Thank 

 3           you very much.  That concludes my time.

 4                  CHAIRWOMAN KRUEGER:  Thank you.

 5                  Senator Stec.

 6                  SENATOR STEC:  Thank you.  

 7                  Good morning.  In 180 seconds I'd love 

 8           to ask a question of Department of Health 

 9           regarding nursing homes, specifically vacant 

10           wings due to inability to hire staff or meet 

11           staffing ratios.  I've got constituents that 

12           are putting loved ones in nursing homes two 

13           or three hours away.  Medicaid reimbursement 

14           rates simply have not been keeping up over 

15           the decades.  We did a little bit last year, 

16           but it's not keeping up with inflation.  And 

17           I'm hearing my nursing homes tell me that 

18           they're in peril of closing.  So I'm very 

19           concerned about that.  

20                  Unfortunately, I can't ask about that.  

21           I need to ask a question of Superintendent 

22           Harris regarding Medicare Advantage plans.  

23           Over the last few weeks my office has called 

24           and emailed your office a few times trying to 


                                                                   134

 1           get an answer.  We still haven't gotten an 

 2           answer.  There are potentially tens of 

 3           thousands of policyholders in the capital 

 4           region, so myself and many of my colleagues 

 5           up here are affected by this, and I've gotten 

 6           calls on it.  

 7                  Recently Albany Med, Saratoga 

 8           Hospital, Glens Falls Hospital, and Columbia 

 9           Memorial Heath reviewed their relationship 

10           with two plans, Wellcare and Humana, and 

11           decided to terminate them.  I have two 

12           questions.  And we're in the open enrollment 

13           period now, so that's why this is 

14           time-sensitive.  It's late January, and the 

15           open enrollment period ends at the end of 

16           March.  And I've got constituents calling me.

17                  The two questions.  Are business 

18           practices of Medicare Advantage plan 

19           providers monitored and reviewed by DFS?  And 

20           if they're not acting appropriately, are 

21           there repercussions?  

22                  And the second question, and more 

23           pressing, are these insurance companies 

24           required to notify their policyholders that 


                                                                   135

 1           certain healthcare organizations are no 

 2           longer participating with their plans?  

 3           healthcare providers are notifying 

 4           individuals in their system -- Glens Falls 

 5           Hospital has notified 6,000 people that they 

 6           serve.  But their concern is people that 

 7           aren't currently on their radar in their 

 8           system are going to be finding out and 

 9           potentially surprised that they thought they 

10           had coverage at the local hospital and they 

11           don't.

12                  So I'm very concerned about that and, 

13           again, the open enrollment window.  So if you 

14           could answer those two questions, please.  

15                  DFS SUPERINTENDENT HARRIS:  Yeah, I 

16           will do my best to do so expeditiously and 

17           then, of course, follow up in writing.

18                  With respect to the contract disputes, 

19           we do not have jurisdiction over those 

20           contract disputes between insurance companies 

21           and providers.  We try very hard to use our 

22           soft powers to encourage them to continue 

23           working together --

24                  SENATOR STEC:  Who does?  Who does 


                                                                   136

 1           have jurisdiction, then?  The Attorney 

 2           General?  

 3                  DFS SUPERINTENDENT HARRIS:  I'd have 

 4           to come back to you on that.  But usually 

 5           these are private contractual negotiations, 

 6           and so they're at their leisure to either 

 7           come to an agreement or not.

 8                  What I will say is there are 

 9           notification requirements for consumers.  

10           There are also cooling off requirements.  So 

11           a consumer has to be able to continue for 

12           60 days to get the care from their provider, 

13           even after the contract has expired.  And in 

14           the case of cancer patients or postpartum 

15           care, there are extended windows for cancer, 

16           90 days, and through postpartum care.

17                  SENATOR STEC:  Thank you.

18                  ASSEMBLYWOMAN PAULIN:  Thank you.  

19                  CHAIRWOMAN KRUEGER:  Thank you.  

20           Senator Rachel May.

21                  ASSEMBLYWOMAN PAULIN:  No, I think 

22           we're --

23                  CHAIRWOMAN KRUEGER:  Oh, that's right, 

24           excuse me.  That was Senator Stec.


                                                                   137

 1                  Assembly, excuse me.  

 2                  ASSEMBLYWOMAN PAULIN:  Thank you.  

 3                  Assemblymember González-Rojas.

 4                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Okay.  

 5           All right.  Thank you so much.  

 6                  Thank you, Commissioner, for being 

 7           here.  Thank you all.

 8                  The U.S. Centers for Medicare & 

 9           Medicaid Services has confirmed that we can 

10           use the 1332 waiver for the pass-through 

11           funding to fund health insurance coverage for 

12           individuals not authorized to be here.  It 

13           would save us $500 million in Medicaid 

14           spending.  We know DOH received nearly 2,000 

15           comments from labor, individuals, advocates, 

16           et cetera, and the vast majority have 

17           supported the use of this waiver to cover our 

18           undocumented community.

19                  As you know, this would save us 

20           $500 million in state costs in Medicaid.  And 

21           a recent analysis by CSS anticipates that 

22           even with the expansions included in the 

23           testimony for the 1332 waiver, we can still 

24           cover 150,000 immigrants and still have 


                                                                   138

 1           $790 million to spare over the five-year 

 2           waiver period.

 3                  So the Governor talked about doing 

 4           this back in 2022.  We didn't get it done.  

 5           2023, haven't gotten it done.  So here we 

 6           are.  So can you talk about why this 

 7           population hasn't been included in the 1332 

 8           waiver?  

 9                  COMMISSIONER McDONALD:  Yes.  We are 

10           covering people 65 and older starting 

11           January 1st this year, which is a good thing.  

12           I expect to hear from --

13                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  And 

14           pregnant people.

15                  COMMISSIONER McDONALD:  Sorry?

16                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  And 

17           pregnant people.

18                  COMMISSIONER McDONALD:  And people who 

19           are pregnant.  

20                  And I also expect, with the 1332 

21           waiver -- that I expect approval this week -- 

22           we'll be adding the Deferred Action for 

23           Childhood Arrival population as well this 

24           year.


                                                                   139

 1                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

 2           you for that.

 3                  COMMISSIONER McDONALD:  You know, 

 4           obviously as the State Health Commissioner I 

 5           want everyone to be insured.  I do.  You 

 6           know, it just is -- it's a social determinant 

 7           of health.  So I understand the gravity of 

 8           the issue.  You know, just as we look at the 

 9           money -- I've gotten different numbers, so it 

10           just isn't there because of budgetary 

11           reasons, is what I'm told.  

12                  I don't have a better answer than that 

13           for you.

14                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  We're 

15           going to continue to advocate for this 

16           coverage because, again, we'd be saving our 

17           Medicaid dollars.  

18                  One quick other question.  I'm 

19           actually really thrilled to see that my bill 

20           with Senator Brouk, A8164, to provide 

21           continual coverage for children enrolled in 

22           Medicaid and S-CHIP, would be included. 

23                  There is a discrepancy.  Our bill 

24           ensures that folks that might need to switch 


                                                                   140

 1           from S-CHIP to Medicaid can do so.  But we 

 2           don't see any language in -- can you speak to 

 3           that?

 4                  MEDICAID DIRECTOR BASSIRI:  Yeah.  We 

 5           don't need any legislative language to be 

 6           able to effectuate that change.  That happens 

 7           today.  It's seamless, the member doesn't 

 8           even see it.  We do it all on the back end.  

 9           And that would continue under this waiver 

10           amendment, with continuous eligibility.

11                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  And 

12           actually, just a last thing on -- a follow-up 

13           on Assemblymember Lunsford's question.  I've 

14           got data that a $2.54 cut in wages to 

15           benefits to home care workers, that's about a 

16           12 percent cut.  And that puts their 

17           compensation at the lowest rate.  I guess you 

18           can't answer that.  But we do really want to 

19           hear the response to that.

20                  MEDICAID DIRECTOR BASSIRI:  We can 

21           respond in writing.  We don't see that 

22           magnitude of cut.

23                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

24           you.  


                                                                   141

 1                  CHAIRWOMAN KRUEGER:  Next is the 

 2           Health chair, Senator Rivera, 10 minutes. 

 3                  SENATOR RIVERA:  Hello.  How you all 

 4           doing?  All right, I'm going to do a lot of 

 5           follow-up because I've been -- as you know, I 

 6           kind of lean back and kind of see how things 

 7           are going.

 8                  First of all, following up on Senator 

 9           Myrie's question about the report, 

10           Commissioner, you say you know where it is.  

11           Is it like in a -- like on top of your desk 

12           or in a drawer or something?

13                  COMMISSIONER McDONALD:  No.  No.

14                  SENATOR RIVERA:  Could you go get it?  

15           What's happening?

16                  COMMISSIONER McDONALD:  I know where 

17           it is.  But it's one of those things that --

18                  SENATOR RIVERA:  Where is -- so if you 

19           know where it is, why is it not here right 

20           now?

21                  COMMISSIONER McDONALD:  It's not just 

22           the Department of Health that has to 

23           complete -- completely finish the report, 

24           so ...


                                                                   142

 1                  SENATOR RIVERA:  Okay.  So wherever it 

 2           is, could you like tell your people to get it 

 3           here?

 4                  COMMISSIONER McDONALD:  I would love 

 5           to give it to you.  I'd love to have it for 

 6           you.  You know, I like Senator Myrie, I want 

 7           to have everybody have what they want, I 

 8           really do.  I would love to get it to you.

 9                  SENATOR RIVERA:  Gotcha.  If you know 

10           where it is, please.  And to the universe --

11                  COMMISSIONER McDONALD:  It's not me 

12           that's been holding it up.

13                  SENATOR RIVERA:  -- wherever it is.  

14           But we need it.

15                  COMMISSIONER McDONALD:  I know.

16                  SENATOR RIVERA:  Particularly because, 

17           as Senator Myrie was saying, this whole 

18           notion that -- and obviously we're going to 

19           follow up with SUNY when they come up, when 

20           they come over here, to talk about this 

21           transformation and what have you.  

22                  The fact that this report has not 

23           been -- you know, you found out that they 

24           were going to do this like in the middle -- 


                                                                   143

 1           you found out in the media.  All this stuff, 

 2           it's a little nuts.  And the fact that this 

 3           report is not with us, so we don't know as 

 4           far as the inequalities that exist there, and 

 5           whether the changes are actually going to 

 6           address these inequalities, it's kind of 

 7           important.

 8                  So please make sure you --

 9                  COMMISSIONER McDONALD:  I understand.  

10           Totally agree with you.

11                  SENATOR RIVERA:  Gotcha.

12                  Number two.  Why do the rates that you 

13           folks -- that are being developed and 

14           regularly approved by the state's actuary 

15           differ so greatly from the actual costs that 

16           providers are reporting to us?

17                  COMMISSIONER McDONALD:  I'm sorry, 

18           what?

19                  SENATOR RIVERA:  You've got a face 

20           like "that's not true."

21                  COMMISSIONER McDONALD:  No, I didn't 

22           understand the question, I'm sorry.

23                  SENATOR RIVERA:  I will ask again.  

24           Why do the rates that are being developed and 


                                                                   144

 1           regularly approved by the state's actuary 

 2           differ so greatly from the actual costs that 

 3           providers are reporting to us?  Has your data 

 4           shown that there's decrease -- that the costs 

 5           are decreasing for providers?

 6                  MEDICAID DIRECTOR BASSIRI:  Well, it 

 7           depends on the service, Senator.  And I think 

 8           it's really two sets of information.  The 

 9           actuary does set the rates, they're 

10           actuarially sound.  That's what we pay the 

11           health plans on a per-member, per-month 

12           basis.  The health plans pay providers based 

13           on their direct contracts with those 

14           providers, and then providers will pay their 

15           workers and any other costs they incur to run 

16           their business.

17                  But what we're providing to you, I 

18           assume, in the actuarial rates, is what we 

19           pay the health plans.

20                  SENATOR RIVERA:  All right.  Because 

21           it -- because there was -- a couple of years 

22           ago, when we were in this room, we were 

23           talking about the fact that the budget was 

24           going in a positive direction as opposed to 


                                                                   145

 1           the decade before that.  Last year we can see 

 2           kind of the same thing.

 3                  This year, can't do that.  Kind of 

 4           turning back.  And some of the cuts -- and 

 5           we're going to get to those in a second -- 

 6           are more than a little bit disappointing, 

 7           particularly because I want to follow up on 

 8           what Senator -- I'm sorry, Assemblymember 

 9           González-Rojas was talking about as far as 

10           coverage for all.

11                  If y'all are coming over here -- and 

12           you said these are tough choices, we always 

13           have to make tough choices during budgets.  

14           But I really need to understand this.  And I 

15           don't think I'm going to get an answer -- 

16           spoiler.  But are y'all really seriously 

17           telling us that we don't have -- that we -- 

18           the money that -- we have to do cuts, 

19           including these unallocated cuts, which are a 

20           little -- which is another weird thing that 

21           we'll get to in a second -- and that you're 

22           not pursuing $500 million from the federal 

23           government and almost $800 million left over 

24           for things that don't have to do with 


                                                                   146

 1           coverage for undocumented folks, that you 

 2           could do -- that you could use for other 

 3           types of coverage that is allowed.

 4                  Why you ain't doin' that?

 5                  I need a good answer.  It wasn't a 

 6           good answer before.

 7                  COMMISSIONER McDONALD:  Oh, I answered 

 8           as best I could, my friend.  I understand 

 9           your frustration.  I share your frustration, 

10           you know -- I mean, quite frankly, in working 

11           within what we have here to offer today.

12                  SENATOR RIVERA:  All right --

13                  COMMISSIONER McDONALD:  I'm happy to 

14           work through the budget process and see what 

15           we can do.

16                  SENATOR RIVERA:  Gotcha.

17                  Amir, you got anything?

18                  MEDICAID DIRECTOR BASSIRI:  The only 

19           thing I would say, Senator, is just 

20           technically, because the amendment is not yet 

21           approved and we're waiting for the approval, 

22           we can't change that pending amendment.  So 

23           technically it couldn't be applied for till a 

24           later date.


                                                                   147

 1                  SENATOR RIVERA:  Again -- sorry -- not 

 2           a good answer.  Particularly since the 

 3           federal government last year told us 

 4           explicitly -- when we asked them, they sent 

 5           us a letter -- I don't know if you got it.  I 

 6           got it -- that said explicitly that we could 

 7           do this.  And yet y'all are not doin' it.  

 8           And yet you're coming here to us to tell us 

 9           that we've got to make these cuts, which -- 

10           not really cuts -- we'll get to that.  But 

11           they're not really cuts.  And you've got 

12           $500 million at least that you're just 

13           leaving in the air.  That's -- it's 

14           {unintelligible}.  And so I'm not happy about 

15           that, but okay.

16                  Moving on.  Where am I?  So three, 

17           four -- all right, so to follow up on 

18           Assemblymember Lunsford's point, so can you 

19           confirm here, related to -- so CDPAP.  Can 

20           you confirm here that the intent is to 

21           eliminate the minimum wage protections as 

22           well for these workers?  And additionally, is 

23           there a concern that while we are in the 

24           middle of a healthcare workforce crisis, that 


                                                                   148

 1           reducing the wages will actually worsen this 

 2           situation?

 3                  MEDICAID DIRECTOR BASSIRI:  Can you 

 4           repeat the first part of the question, 

 5           Senator?

 6                  SENATOR RIVERA:  So there is -- there 

 7           is wage parity, we're talking about wage 

 8           parity for CDPAP workers.  So number one, can 

 9           you confirm that the intent here is to 

10           eliminate the minimum wage protections as 

11           well for these workers?

12                  MEDICAID DIRECTOR BASSIRI:  No.  No.

13                  SENATOR RIVERA:  Oh, that's not it?

14                  MEDICAID DIRECTOR BASSIRI:  No.  That 

15           is not.  The intent is simply --

16                  SENATOR RIVERA:  Okay, then you need 

17           to look at the language, because it's kind of 

18           where it goes.

19                  MEDICAID DIRECTOR BASSIRI:  -- 

20           technical.  I think that was identified the 

21           other evening, and it will be addressed in 

22           the technical amendments.

23                  SENATOR RIVERA:  Okay, so you do 

24           acknowledge that y'all need to fix that.


                                                                   149

 1                  MEDICAID DIRECTOR BASSIRI:  I'm not an 

 2           attorney, but yes, I would acknowledge that 

 3           it needs to be.

 4                  SENATOR RIVERA:  Thank you.  And also, 

 5           additionally, do you -- is there a concern 

 6           that we're -- again, we've talked about the 

 7           healthcare workforce crisis, you know, 

 8           endlessly.  Does this not make it worse, 

 9           because you're paying these folks less?

10                  MEDICAID DIRECTOR BASSIRI:  I think 

11           that it -- there's certainly a workforce 

12           crisis.  I think this Governor has made 

13           unprecedented investments, as has the 

14           Legislature, in the home care workforce 

15           specifically.  Job growth in the home care 

16           sector continued to be the fastest-growing 

17           sector of the healthcare workforce.

18                  SENATOR RIVERA:  That might not be -- 

19           that might not continue that much because 

20           these unallocated cuts that we're going to --

21                  I just got to work on the time, bro --

22                  (Overtalk.)

23                  SENATOR RIVERA:  I understand, but 

24           we -- we will continue to have these 


                                                                   150

 1           conversations also in private.  But since 

 2           we're having them here, and I only have four 

 3           minutes left, let's get to this next one.

 4                  This one is really a head-scratcher.  

 5           And again, this budget is very different in 

 6           so many ways.  Like instead of a two-years 

 7           allocation you do a one-year allocation.  And 

 8           then these unallocated cuts stuff.  Bro, are 

 9           you seriously saying that what you're doing 

10           is just saying to people, Okay, we're going 

11           to have to cut off either your pinky or your 

12           pinky toe, so you just have to be the hand on 

13           the machete as we cut?  That's what you're 

14           saying?

15                  COMMISSIONER McDONALD:  Not at all, 

16           no.

17                  SENATOR RIVERA:  That's not it?

18                  COMMISSIONER McDONALD:  No, not at 

19           all.

20                  SENATOR RIVERA:  Okay, so explain it 

21           to me.

22                  COMMISSIONER McDONALD:  No, so what 

23           we're saying is the Governor's asking you to 

24           work with her to find cuts that work and that 


                                                                   151

 1           are less painful.  And quite frankly, you 

 2           know, you know Blake Washington like I do; I 

 3           trust his numbers.  They're difficult 

 4           numbers.  If we went to a two-year budget, 

 5           the cuts would have been worse this year.  He 

 6           went to a one-year budget to help us.

 7                  SENATOR RIVERA:  Which brings me back 

 8           to -- which brings me back to what I said 

 9           just earlier.  The fact that you're leaving 

10           almost $500 million on the table is even more 

11           frustrating.

12                  COMMISSIONER McDONALD:  I understand.

13                  SENATOR RIVERA:  So whoever it is -- 

14           if it's not y'all, if it's someone in the DOB 

15           and, you know, one of these days, hopefully, 

16           we've got the DOB sitting right there.  If 

17           there's somebody over there, whomever it is, 

18           bro, like you're saying these unallocated 

19           cuts -- which, again, I've never seen this 

20           before.  You always come to us and say, we're 

21           gonna cut these for savings, that word that 

22           y'all use, cut savings.  It's cuts.

23                  So you do the cuts or the savings, and 

24           then we fight with you to figure out which -- 


                                                                   152

 1           in this case, you're saying like, Well, 

 2           you're gonna have to help us, where we 

 3           gonna -- we're gonna chop.  Somebody said to 

 4           me, it's like being the caterer at your own 

 5           funeral.  That's basically what this is 

 6           saying.

 7                  COMMISSIONER McDONALD:  It's also like 

 8           partnership, too.  That's another way of 

 9           looking at it.

10                  SENATOR RIVERA:  But there's 

11           $400 million that you're doing here, right, 

12           200 and -- 200 in Medicaid, 200 in --

13                  COMMISSIONER McDONALD:  Yeah.  Yup.

14                  SENATOR RIVERA:  And again, there's -- 

15           because all money's fungible, right?  You 

16           could get this 450 million that would 

17           actually help you address that, which might 

18           make some money available elsewhere you might 

19           be -- so just a little nutty.

20                  Two more minutes.  All right, don't 

21           worry, you won't have to deal with me that 

22           much longer.  Okay.  

23                  Okay, are you planning on implementing 

24           the ADL requirements that have been 


                                                                   153

 1           suspended?

 2                  COMMISSIONER McDONALD:  I lost the 

 3           audio on that.  Planning what requirements?

 4                  SENATOR RIVERA:  You got it?  The ADL.

 5                  MEDICAID DIRECTOR BASSIRI:  Yeah, I 

 6           got this one.

 7                  Yes, we are.  It is state law, and we 

 8           will be implementing that change.  It's 

 9           assumed in the financial plan and in our 

10           forecasts.

11                  SENATOR RIVERA:  Do you have the -- 

12           what are the updated fiscal projections?

13                  MEDICAID DIRECTOR BASSIRI:  We don't 

14           have an updated fiscal projection at this 

15           time.  It needs to be based on the actual 

16           assessments that members complete, and that 

17           was currently finished in November/December.  

18           So we're looking at it, but no updated fiscal 

19           at this time.  We don't anticipate it being 

20           different.

21                  SENATOR RIVERA:  All right.  So just, 

22           again, one and a half minutes and I'm 

23           probably -- I'm going to be done before that.

24                  But this -- you obviously can tell I'm 


                                                                   154

 1           a little frustrated.  We were going -- we 

 2           were doing so well.  In all honesty, we were 

 3           going in a positive direction.  This seems 

 4           like it's a turn back.  Even though you're 

 5           all trying to put a good face on it.

 6                  And particularly there's some concerns 

 7           here, because there's money on the table that 

 8           we could go get.  And this is without -- this 

 9           is without counting on the raising the taxes 

10           on the wealthy, which I'm going to be 

11           bothering some other people about, not y'all.  

12           But just within the confines of what you 

13           need -- what you decide and what you impact 

14           directly, coverage for undocumented folks -- 

15           which by the way, according to your own 

16           numbers, if I'm not mistaken, last year was 

17           what, $860 million of emergency Medicaid?  

18                  Is that correct?

19                  MEDICAID DIRECTOR BASSIRI:  Yeah.

20                  SENATOR RIVERA:  So it's $860 million 

21           that we're already spending because we've got 

22           people who are uncovered who are going to 

23           emergency -- so like you got -- you got some 

24           clarification for me?


                                                                   155

 1                  MEDICAID DIRECTOR BASSIRI:  Just that 

 2           that is the state and the federal share of 

 3           emergency Medicaid.

 4                  SENATOR RIVERA:  Oh, so it's only 

 5           $400 and some-odd million.  Okay, thank you.

 6                  MEDICAID DIRECTOR BASSIRI:  Or it was 

 7           last year, yeah.

 8                  SENATOR RIVERA:  Four hundred-some-odd 

 9           million dollars that is both for the state 

10           and for the localities.  And we could 

11           actually be addressing that.  And again, 

12           because money's fungible, a lot of this stuff 

13           could actually help us to deal with some of 

14           the cuts that you're proposing here.

15                  We're going to have a lot of 

16           conversations over the next couple of weeks 

17           and months.  We're starting early.  Kind of 

18           disappointing; there's a lot of stuff that 

19           I'm seeing here.  And I'm certainly going to 

20           follow up.  But I've got another five 

21           seconds, so I should just linger and just say 

22           like, So, how are you thinking about the 

23           Knicks?  Oh, here we go.

24                  (Time clock sounds; laughter.)


                                                                   156

 1                  CHAIRWOMAN KRUEGER:  Well done, 

 2           Senator Rivera.

 3                  Assemblymember.

 4                  ASSEMBLYWOMAN PAULIN:  Thank you.  

 5                  Assemblymember Gray.  Push.

 6                  ASSEMBLYMAN GRAY:  There we go.  There 

 7           we go.  Thank you very much, Madam 

 8           Chairwoman.  

 9                  And thank you, ladies and gentlemen, 

10           for being with us today.  So it's clear that 

11           we've heard the -- and it's no surprise, the 

12           healthcare industry is in a dire position.  

13           Doesn't matter if it's nursing homes, 

14           hospitals, EMS service.  Seventy-five percent 

15           of our hospitals are operating with negative 

16           margins.  Forty percent are relying on VAP or 

17           VAPAP for supplemental funding.

18                  Is it prudent to be cutting VAPAP at 

19           this time?  

20                  MEDICAID DIRECTOR BASSIRI:  Is it 

21           prudent to be cutting VAPAP at this time.  I 

22           think we have to -- you know, the level of 

23           subsidies that the state has incurred for 

24           financially distressed hospitals is growing 


                                                                   157

 1           at an exponential rate.  We're currently at 

 2           around three or so billion dollars.  We did 

 3           get federal funding through the 1115 waiver, 

 4           which was a very challenging thing to do 

 5           because we are at every payment limit that 

 6           the federal government has put in place for 

 7           hospitals.  

 8                  So I think we have to live within the 

 9           resources we have.  And we continue to make 

10           sure hospitals are getting what they need to 

11           provide essential services for the community.

12                  ASSEMBLYMAN GRAY:  So the VAPAP is a 

13           one-to-one -- right, is it a one-to-one 

14           match?  Are we leaving money on the table?

15                  MEDICAID DIRECTOR BASSIRI:  VAPAP is 

16           zero federal match.

17                  ASSEMBLYMAN GRAY:  Zero federal match, 

18           okay.

19                  MEDICAID DIRECTOR BASSIRI:  VAP has a 

20           federal match, but it's subject to federal 

21           payment limits, one specifically known as the 

22           upper payment limit, which we are currently 

23           at.

24                  ASSEMBLYMAN GRAY:  Okay.  Medicaid 


                                                                   158

 1           rates.  I mean, there's nothing proposed in 

 2           this, no increase is proposed.  And last year 

 3           there -- I mean, the facilities are cost -- 

 4           you know, staffing shortages; we have, you 

 5           know, cost increases that they're facing and 

 6           reimbursements not keeping pace with that.

 7                  Where are we going to go with it?

 8                  COMMISSIONER McDONALD:  Yeah, I mean, 

 9           we did make a historic increase last year, as 

10           you noted.  

11                  I think one of the ways to look at 

12           this, though, for nursing homes and hospitals 

13           is, you know, you can increase rates, but the 

14           other thing you do is find ways to reduce 

15           costs.  If you look at our scope of practice 

16           proposals, we all should want hospitals and 

17           nursing homes to have less costs.  I mean, if 

18           you're going to let a certified medication 

19           aide work in a nursing home, that's going to 

20           help everybody.  Medical assistant to give a 

21           vaccine, that helps everybody.  

22                  Look at the licensure compacts.  

23           They're really going to help everybody.  

24           Hospitals are still paying a lot of money for 


                                                                   159

 1           agency nurses.  That's something that we need 

 2           to own, that it's not in our best interests 

 3           for anybody.  Finding methods to reduce 

 4           hospital costs are very important to all of 

 5           us.  And I'm willing to work with hospitals 

 6           on any idea they have to reduce costs.  And I 

 7           think there's methods out there where we can 

 8           do that, and I think there's things out there 

 9           that we can work on together.  

10                  ASSEMBLYMAN GRAY:  And so what are we 

11           going to address agency or contract nursing 

12           or travel nurses in that regard?  Because 

13           that's what they're relying on right now, and 

14           it's been an exorbitant cost to them.

15                  COMMISSIONER McDONALD:  Yeah, we did 

16           get the authority last year to do -- to 

17           register them.  We have registered them.  A 

18           report's coming soon, it will be out before 

19           you know it.  It's also one of those things 

20           where this is still a very big expense for 

21           hospitals.  H+H in particular is paying a lot 

22           for this.

23                  ASSEMBLYMAN GRAY:  Thank you.

24                  CHAIRWOMAN KRUEGER:  Thank you.  


                                                                   160

 1                  Next is Senator Rachel May.

 2                  SENATOR MAY:  Thank you, Madam Chair.  

 3                  And thank you all for being here to 

 4           testify.

 5                  Commissioner, I want to start by 

 6           thanking you for your attention to the Native 

 7           health clinics that -- which were neglected 

 8           for so long.  And I have many constituents 

 9           who are grateful for the -- for your 

10           attention and the increased support in the 

11           budget.

12                  I also have a lot of constituents who 

13           are worried about Upstate University Hospital 

14           and its future.  And given that it's losing 

15           its support for the debt service -- I hope 

16           you're aware of that -- that we are also -- 

17           the Medicaid gap is only going to grow.  And 

18           the -- they receive zero operating support 

19           from the state while serving dozens of 

20           counties with essential care.  I wonder what 

21           your vision is for the future of that 

22           hospital.

23                  COMMISSIONER McDONALD:  Yeah, Upstate 

24           Medical Center is very important.  They 


                                                                   161

 1           provide care to a lot of people -- not just 

 2           tertiary care, but quaternary care.  They're 

 3           very important to that part of New York.  

 4                  You know, I met with Dr. Dewan, I went 

 5           out there and visited them.  I have concerns 

 6           about their physical plant, as he does as 

 7           well, and I think they're looking for 

 8           resources to estimate where they need to go 

 9           for the future, and I think that's very 

10           important.  

11                  I think they're going to be in the 

12           future of New York, and I'd like to see them 

13           something that we try to help and move 

14           forward with.  But they do have needs.  I'm 

15           addressing them as best I can here.  I don't 

16           mean to not give you specifics; I just -- I 

17           understand their concerns, and I agree with 

18           Dr. Dewan.  I'm concerned as well.

19                  SENATOR MAY:  All right, thank you.  

20                  On lead pipes -- I was gone for half 

21           an hour, so I don't know if you talked about 

22           this yet -- but we asked for $50 million last 

23           year.  DOH I think has spent 30 million, 

24           which is estimated to be about 1 percent of 


                                                                   162

 1           the need statewide for getting rid of the 

 2           lead pipes and lead service lines.

 3                  What is your plan?

 4                  COMMISSIONER McDONALD:  I think we 

 5           have 115 million this year.  The Governor 

 6           just announced yesterday projects across the 

 7           state, by the way, as well.

 8                  And we're replacing lead service 

 9           lines -- I think one of the big projects 

10           actually was in Rochester in particular.  So 

11           I think we have a nice system going to 

12           releasing the money.  There's more federal 

13           money coming for the next several years.  

14           We're not going to replace all the lead 

15           service lines, but I like the investment I 

16           saw yesterday and I think you'll see more 

17           coming as the years go on.

18                  SENATOR MAY:  Okay.  Thank you.  

19                  And then on nursing homes, just on the 

20           Medicaid gap there.  How many beds do you 

21           anticipate will close because of the gap that 

22           we have?  And should we have our constituents 

23           call you?  Because they're calling us on a 

24           daily basis looking for some help with 


                                                                   163

 1           long-term care.

 2                  COMMISSIONER McDONALD:  Well, 

 3           constituents contact the department all the 

 4           time, and their messages are welcome.  We're 

 5           happy to hear them.  

 6                  And I think with nursing homes in 

 7           particular, we have to look at how we can 

 8           help with scope of practice and licensure 

 9           compacts to help them.  I think that's 

10           something we can all agree we need to help 

11           reduce costs on in particular.  

12                  SENATOR MAY:  Okay.  Thank you.

13                  CHAIRWOMAN KRUEGER:  Thank you.  

14                  So because we've had you here for two 

15           and a half hours -- and we have more -- we're 

16           going to allow everyone to take a 15-minute 

17           break till ten after 1:00 to do with whatever 

18           you -- ten after 12:00, oh, my goodness.  

19           Sorry, everyone.  All right, ten after 12:00, 

20           to do whatever people might need to do during 

21           those minutes.  Thank you.

22                  (A brief recess was taken from 11:56 a.m. 

23           to 12:11 p.m.)

24                  ASSEMBLYWOMAN PAULIN:  Is 


                                                                   164

 1           Assemblymember Walker here?  No.  Alex Bores?  

 2           Khaleel Anderson?  Jenifer Rajkumar?  No.  

 3           Karines Reyes?  Okay.  Anna Kelles?  Jonathan 

 4           Jacobson?  Boy, that bathroom break took care 

 5           of a lot more than just -- 

 6                  (Laughter.)

 7                  ASSEMBLYWOMAN PAULIN:  Jo Anne Simon.  

 8           There we go.

 9                  (Off the record.)  

10                  ASSEMBLYWOMAN SIMON:  Okay, there we 

11           go.  Thank you.  This is what happens if you 

12           come back on time.  Right?  

13                  So thank you for your testimony.  And 

14           I only have three minutes, so I have a couple 

15           of quick questions I'd like to outline, and 

16           then the -- and that is, you know, one of the 

17           responses about cuts to nursing homes, about 

18           unallocated state subsidies.  And my question 

19           is, why are they unallocated?  

20                  The other point I wanted to -- if 

21           somebody could really clarify for me how it 

22           is that you can have this wage parity with 

23           the CDPAP program and how it will not harm 

24           both the workers, discourage people from 


                                                                   165

 1           joining the workforce, and lead to a lack of 

 2           care.

 3                  And then the other question I have is 

 4           the school-based health clinics.  The 

 5           Governor has proposed school-based mental 

 6           health centers in any school.  Having lost 

 7           five school-based health clinics which 

 8           happened to be administered by Downstate, I 

 9           have real questions about how we are going to 

10           have the money and the wherewithal to 

11           actually do these school-based mental health 

12           centers.  And I also don't want to lose 

13           school-based health clinics, not to mention I 

14           don't want to lose Downstate.  

15                  So thank you.

16                  MEDICAID DIRECTOR BASSIRI:  Thank you, 

17           Assemblymember.  I'll start with the first 

18           question on the nursing homes, why is it 

19           unallocated.  

20                  You know, I think that's a question 

21           that we should hear from the nursing home 

22           industry.  They -- there is an application 

23           process to receive VAPAP or state-only 

24           funding.  They have to submit, they have to 


                                                                   166

 1           meet, you know, financial distress criteria, 

 2           days cash on hand -- 

 3                  ASSEMBLYWOMAN SIMON:  Could you be a 

 4           little closer to the microphone?  I'm having 

 5           trouble hearing.  

 6                  MEDICAID DIRECTOR BASSIRI:  Sure.  

 7                  So I can't necessarily answer 

 8           definitively as to why they are not applying 

 9           or where they're applying and not meeting the 

10           criteria.  But I'm sure we'll hear from them 

11           later on.  

12                  We have awarded 10 nursing homes 

13           through that funding.  And that's been 

14           consistent for two years.  So given the 

15           budget challenges, it seemed like a more 

16           prudent use, reserving unallocated funds, 

17           than trying to reduce services.

18                  Your next question was related to the 

19           wage parity reduction?

20                  ASSEMBLYWOMAN SIMON:  Yeah, how does 

21           that work?  I don't understand your answers 

22           from before.

23                  MEDICAID DIRECTOR BASSIRI:  You know, 

24           wage parity was put in place in 2017, and 


                                                                   167

 1           really intended to level the playing field 

 2           between the CDPAS personal aides and LHCSA 

 3           personal aides.  And since that time we've 

 4           learned a lot about the program.  It's become 

 5           clear that CDPAS aides are eligible for 

 6           health insurance benefits, or some of them 

 7           are, especially with the expansion in the 

 8           Essential Plan, the Qualified Health Plan.  

 9                  But we do know that many of the 

10           workers are receiving that benefit through 

11           base wages and not benefits.  And we've made 

12           a tremendous number of investments in base 

13           wages, including indexing the minimum wage to 

14           inflation permanently.

15                  ASSEMBLYWOMAN PAULIN:  Thank you.

16                  CHAIRWOMAN KRUEGER:  Thank you.

17                  Next is ranker for Finance Senator Tom 

18           O'Mara, five minutes.

19                  SENATOR O'MARA:  Thank you, Senator.

20                  Good afternoon.  Thank you for your 

21           responses today so far.

22                  With regards to the migrant crisis in 

23           New York City that we read about every day, 

24           and all these cuts to Medicaid we're talking 


                                                                   168

 1           about, can you explain to us what the impact 

 2           of the migrant situation is on the Medicaid 

 3           program in New York?  How many of those are 

 4           eligible or ineligible?

 5                  COMMISSIONER McDONALD:  So some 

 6           members who are migrants are eligible for the 

 7           Essential Plan.  And we do have assisters who 

 8           actively help them get the Essential Plan.  

 9           So we do try to enroll as many people as 

10           possible.

11                  In addition, just to highlight another 

12           issue, there is about $25 million in this 

13           budget to help with making sure people are 

14           screened for tuberculosis and get vaccines 

15           before they get insurance.  That's additional 

16           money that's put forward to help address 

17           those issues as people arrive.

18                  As far as Medicaid goes, my 

19           understanding from Medicaid is they're 

20           eligible for Emergency Medicaid if they need 

21           it.  

22                  You can supplement (inaudible).

23                  MEDICAID DIRECTOR BASSIRI:  Yeah, it 

24           will really depend on the individual's 


                                                                   169

 1           status, documentation status upon entry into 

 2           the country.  If they are undocumented, they 

 3           are eligible for Emergency Medicaid, which is 

 4           life-threatening or critical condition 

 5           inpatient services.  And then as Dr. McDonald 

 6           said, if they do have -- if they are asylees 

 7           or asylum seekers and are working and have 

 8           work authorization, they would be enrolled in 

 9           the Essential Plan.  So no Medicaid costs.

10                  SENATOR O'MARA:  But you don't have 

11           numbers of how many migrants are enrolled in 

12           the Essential Plan as opposed to getting 

13           Emergency Medicaid?  

14                  MEDICAID DIRECTOR BASSIRI:  I don't 

15           have them in front of me.  And it's a little 

16           harder to answer that than it may seem.  But 

17           it's certainly something we can get back to 

18           you on in writing.

19                  SENATOR O'MARA:  Yeah, well, you know, 

20           with all the discussion about the financial 

21           impacts of this migrant crisis, particularly 

22           in New York City, you know, we should have a 

23           handle on that and know what the impact, what 

24           the cost is and really, you know, what we 


                                                                   170

 1           should be asking the federal government and 

 2           President Biden to supply to New York State 

 3           to cover these expenses.

 4                  MEDICAID DIRECTOR BASSIRI:  And I 

 5           think some of those expenses are well beyond 

 6           Medicaid and costs that New York City has had 

 7           to incur for other social supports and 

 8           housing services.

 9                  SENATOR O'MARA:  Moving on a little 

10           bit to hospitals and Medicaid, it's been 

11           consistently reported that Medicaid is 

12           underpaying hospitals by about 30 percent for 

13           the cost of supplying those medical services.  

14           Do you agree with that number?  

15                  And what is the state looking at doing 

16           with regards to making hospitals whole for 

17           providing those services?  

18                  MEDICAID DIRECTOR BASSIRI:  I haven't 

19           looked at the numbers closely enough.  I know 

20           they reference a 70 percent -- I think that's 

21           as a percentage of their cost.  We do have 

22           sort of rules and the federal government has 

23           rules that dictate what Medicaid can 

24           reimburse hospitals for services.  We are at 


                                                                   171

 1           those limits, meaning we cannot pay them any 

 2           more while continuing to receive federal 

 3           financial participation on those payments.  

 4           Which is why you've seen such a large 

 5           increase in our state-only Medicaid payments, 

 6           because we're -- we can't get federal match 

 7           anymore. 

 8                  So I think there's certainly some 

 9           alignment on the numbers, but we've done a 

10           number of things and invested in those 

11           reimbursement rates through state-directed 

12           payments and other payment vehicles.  

13           Unfortunately, we are just running out of 

14           options to get federal match, which is 

15           important.  We have done that -- 

16                  SENATOR O'MARA:  Are there discussions 

17           going on with the feds to deal with that 

18           inequity?  

19                  MEDICAID DIRECTOR BASSIRI:  There 

20           absolutely are.  It's something we spent a 

21           considerable amount of time negotiating with 

22           them as far as our 1115 waiver.  So they are 

23           agreeing to provide federal match, even 

24           though we are above those limits for those 


                                                                   172

 1           hospitals.  Which is not the ideal scenario, 

 2           but it is an acknowledgment, I think, on 

 3           their part that more needs to be done to 

 4           support those institutions.

 5                  SENATOR O'MARA:  Getting back to the 

 6           migrants for the last few seconds I have, 

 7           what is the impact on hospitals or other 

 8           healthcare providers providing services to 

 9           uninsured or ineligible migrants or illegal 

10           immigrants?  

11                  MEDICAID DIRECTOR BASSIRI:  I think 

12           there are -- to the extent they are 

13           uninsured, they would be getting Medicaid -- 

14           I'm sorry, undocumented, they would be 

15           getting Medicaid reimbursement.  But many are 

16           eligible for the Essential Plan and are 

17           receiving reimbursement from the 

18           Essential Plan which is higher, significantly 

19           higher, than the Medicaid rate.

20                  SENATOR O'MARA:  Thank you.

21                  CHAIRWOMAN KRUEGER:  Thank you.  

22                  Assembly.

23                  ASSEMBLYWOMAN PAULIN:  Thank you.  

24                  Alex Bores.


                                                                   173

 1                  ASSEMBLYMAN BORES:  Thank you, 

 2           Madam Chair.  Thank you all for being here.  

 3                  Commissioner McDonald, I'm actually 

 4           going to ask you the same two questions I 

 5           asked you last year, with some updates.  The 

 6           first is you've talked about licensure 

 7           compacts.  There's also interstate data 

 8           sharing compacts that the federal 

 9           government's prioritizing to prevent growth 

10           in diseases.  I know we participate in many 

11           of them.  Last year I asked about norovirus 

12           and NoroSTAT.  Since that time, Colorado's 

13           added in.  Any updates on that, or are there 

14           initiatives to share data across state lines? 

15                  COMMISSIONER McDONALD:  As far as I 

16           know, we are sharing data on that, but I'll 

17           get back to you to be a hundred percent sure.  

18           Because we like sharing data.  It's obviously 

19           in everyone's best interest to work together 

20           with that.

21                  ASSEMBLYMAN BORES:  Cool.  The CDC 

22           doesn't list New York.  I hope they're wrong.  

23           But would love for you --

24                  COMMISSIONER McDONALD:  I'll 


                                                                   174

 1           double-check on it.  I thought we did, but 

 2           let me double-check.  

 3                  ASSEMBLYMAN BORES:  Cool.  And if you 

 4           could just follow up in writing with sort of 

 5           where we are sharing data, that would be 

 6           really helpful.

 7                  COMMISSIONER McDONALD:  Sure.

 8                  ASSEMBLYMAN BORES:  And then the 

 9           second is last year's budget put a strong 

10           priority on fighting future pandemics and 

11           investing in strengthening of vaccines.  

12           There's some of that in here, right, the 

13           testing of HIV and hepatitis, et cetera, but 

14           certainly not as much.  

15                  You spoke really passionately last 

16           year about how you wanted to spread more in 

17           fighting future pandemics, and vaccines.  I'd 

18           love it if you could just update on kind of 

19           where that's reflected, or are those 

20           initiatives really cut?

21                  COMMISSIONER McDONALD:  Yeah, I mean 

22           the federal government's taken a lot of lead 

23           in this.  I mean, one of the things I hear 

24           from the federal partners is for a new virus 


                                                                   175

 1           they expect to have a test within -- their 

 2           words, not mine -- 10 days.  And they expect 

 3           to have vaccines available within like 

 4           90 days, which to me is -- their words, not 

 5           mine -- which is quite remarkable.

 6                  And I think one of the things you 

 7           notice is we're much better supplied with 

 8           personal protective equipment.  And, you 

 9           know, remember at the beginning of the 

10           pandemic, that was just one of those things 

11           where we just weren't ready.  No state was, 

12           because no one saw how much of a need that 

13           was going to be.  

14                  You know, obviously the public health 

15           department is much better prepared, because 

16           we lived through it, but we're also much 

17           better staffed, thank you very much.  You 

18           know, we are in a much better place than we 

19           were last year.  Last year we had barely 

20           broken even in '22.  This year I have 

21           hundreds of more team members on my team that 

22           I'm very excited about.  And we're actually 

23           now at pre-pandemic levels, and we have more 

24           positions that we're hiring, and we really 


                                                                   176

 1           like the momentum that we have at the 

 2           department.  

 3                  ASSEMBLYMAN BORES:  Wonderful.  And 

 4           could you just comment specifically on the 

 5           Division of Vaccine Excellence?  

 6                  COMMISSIONER McDONALD:  Yes.  So I'm 

 7           thrilled with that here.  So we have a new 

 8           leader in that area, which is good.  We're 

 9           hiring more staff for that.  Really looking 

10           ahead, we address things like vaccine 

11           confidence.  How do we get it, just quick, 

12           frankly more available?  And, you know, I 

13           think one of the things you saw this year 

14           was, hey, the COVID vaccine transition to the 

15           commercial market, it was helpful for us to 

16           have team members to explain to people how 

17           that was going to happen, to make that as, 

18           you know, smooth as it could be.

19                  It was bumpier in other states than it 

20           was here.  We were pretty good at getting 

21           information out.  And Medicaid, thank you 

22           very much, did a great job at getting it 

23           covered.  We had our team members, our 

24           Medicaid members covered quicker than 


                                                                   177

 1           commercial players, which I really appreciate 

 2           my team doing that. 

 3                  ASSEMBLYMAN BORES:  Thank you.

 4                  ASSEMBLYWOMAN PAULIN:  Senate.

 5                  CHAIRWOMAN KRUEGER:  Thank you.

 6                  Senator Lea Webb.

 7                  SENATOR WEBB:  Thank you, Chair. 

 8                  So my question is -- actually, 

 9           questions are directed to the commissioner.  

10                  So with regards to reproductive 

11           health, I appreciate the increase in funding 

12           for reproductive health center security 

13           grants.  And so what I didn't see in the 

14           increase was direct support for providers.  

15           And I know this was an issue that we brought 

16           up last year.  And so -- and the Executive 

17           proposal did not include that, to increase be 

18           Medicaid reimbursement to cover the actual 

19           cost of medication abortion.  

20                  So my question is, how does the 

21           department expect that those services can 

22           continue when providers are not being 

23           reimbursed for their true costs?  So that's 

24           one question.


                                                                   178

 1                  And then my other pertains to the 

 2           HPNAP/Nourish NY program.  I want to lend my 

 3           voice to this.  This is an important -- these 

 4           are two important programs to address food 

 5           insecurity.  However, what was troubling is 

 6           that Nourish NY is not a true replacement.  

 7           And so with the proposal on the table, how 

 8           does this proposal address these issues?  

 9           I'll start there.

10                  MEDICAID DIRECTOR BASSIRI:  Thank you 

11           for the question, Senator.  I'll answer the 

12           first one with respect to the abortion 

13           services.  Though we did make an investment 

14           last year -- it was a two-year investment to 

15           increase the reimbursement -- it is very 

16           complicated given the federal rules on 

17           financial federal match and just generally 

18           targeting the funding in such a way that we 

19           get it to the right providers.

20                  We did get some feedback from a few 

21           outside groups and are thinking about 

22           alternatives to expand on what we did last 

23           year.  But it has been a major undertaking to 

24           implement last year's investment, and we 


                                                                   179

 1           would hope we can build on that in further 

 2           discussions.

 3                  COMMISSIONER McDONALD:  And then I -- 

 4           can you repeat the question about Nourish NY 

 5           and Hunger Prevention and Nutrition 

 6           Assistance Program again, please?  

 7                  SENATOR WEBB:  So last year, you know, 

 8           those programs were essentially kind of 

 9           combined, and that was a problem for a lot of 

10           us who serve rural areas, especially dealing 

11           with food insecurity.

12                  So my question is, how does a new 

13           proposal, if there is one, address these 

14           issues with those two programs?

15                  COMMISSIONER McDONALD:  Yeah.  I mean, 

16           it went through a competitive procurement.  I 

17           know everybody wasn't pleased with the 

18           results of that, but it's a competitive 

19           procurement.  I mean, we did 390 million 

20           emergency meals last year.  As far as I know, 

21           the program did work.  I mean, we fed a lot 

22           of people.  And our plan this year is to 

23           continue with the same.  I don't know of any 

24           new investment.  


                                                                   180

 1                  Obviously I'm concerned about food 

 2           insecurity too, though.  You know, it's a big 

 3           issue.  But we're trying to support as many 

 4           people as we can with this.

 5                  SENATOR WEBB:  Okay.  And then my 

 6           follow-up deals with maternal health.  What 

 7           actions is the Department of Health going to 

 8           take to address unnecessary C-sections?  I 

 9           know the Governor included this in her 

10           budget.  We also advanced legislation 

11           yesterday in the responses to that.  And we 

12           can also talk offline as well.  I know --

13                  COMMISSIONER McDONALD:  There is a 

14           significant investment incentivizing 

15           hospitals to reduce their C-section rate by 1 

16           percent.  We give them money.

17                  ASSEMBLYWOMAN PAULIN:  As much as I 

18           want to hear a more expanded answer, we have 

19           to move on.  

20                  Assemblymember Walsh.

21                  ASSEMBLYWOMAN WALSH:  Thank you, 

22           Chairwoman.  And good afternoon.  

23                  As New York State continues to express 

24           its desire to increase health equity for all 


                                                                   181

 1           residents, there continues to be one 

 2           population that does not get the opportunity 

 3           to participate.  There's only one clinic in 

 4           the Capital Region, Center Healthcare, a 

 5           division of the Center for Disability 

 6           Services in Albany, that is fully accessible 

 7           and has true integrated care under one roof, 

 8           including primary care, dental care.  And 

 9           that's especially important now that 600 

10           individuals are on a waitlist for service 

11           after St. Peter's closed their dental clinic.  

12           Neurology, psychiatry, physical, occupational 

13           and speech therapy, sidewalk social work 

14           counseling, and physical medicine.  Many of 

15           these services are not available in community 

16           practices due to the complex nature of the 

17           patients, time required to treat, including 

18           in some instances a Hoyer Lift to safely 

19           transfer in and out of a wheelchair, and 

20           assistance to undress and dress, and the 

21           increased staff that's necessary due to 

22           behavior such as a minimum of one dental 

23           assistant and up to three assistants, in 

24           addition to the dentist or hygienist, for any 


                                                                   182

 1           dental work being performed.

 2                  Emergency rooms and urgent care 

 3           centers have turned into basic healthcare for 

 4           individuals with I/DD because of the lack of 

 5           access to services and the transportation to 

 6           get to and from an appointment for someone in 

 7           a wheelchair in the community.  

 8                  The center's health and dental clinic 

 9           has not had a rate increase in 17 years, 

10           while the hospital-based clinics have had 

11           routine cost-of-living adjustments approved 

12           by the Legislature, including last year at 

13           7 percent, only to have a local hospital 

14           close their dental clinic this past summer, 

15           as I mentioned.  

16                  Emergency rooms are not the answer for 

17           individuals with I/DD or autism.  They are 

18           crowded, they're loud, and they're 

19           short-staffed.  The individuals served at the 

20           center are often nonverbal, which creates 

21           additional challenges in an emergency room or 

22           urgent care center, often resulting in 

23           unnecessary testing and cost.  

24                  I know you visited, Commissioner, the 


                                                                   183

 1           center recently, as I did.

 2                  The question:  How will New York 

 3           support health equity and health services for 

 4           individuals with I/DD in clinics like the 

 5           Center Healthcare, which is not eligible for 

 6           Federally Qualified Health Center funding?  

 7                  These clinics are crucial to the 

 8           future of healthcare for individuals with 

 9           disabilities, and they cannot be expected to 

10           continue to serve this population on a rate 

11           that's been frozen for 17 years.  

12                  How will New York, with current state 

13           budget funds and the new 1115 waiver, make a 

14           commitment to properly support individuals 

15           with disabilities in a proper setting like 

16           the Center Healthcare for basic healthcare 

17           and dental service?  What we have today is 

18           not health equity, and it's discrimination, 

19           and I think New York has got to do better.  

20                  And in the little remaining time, I 

21           would appreciate your thoughts on that.

22                  COMMISSIONER McDONALD:  I -- you made 

23           a lot of great points.  I think you made a 

24           lot of really good points.  There actually is 


                                                                   184

 1           a pretty substantial increase in this budget.  

 2           It was a pretty important investment, I 

 3           think.  

 4                  And I think you're absolutely right to 

 5           call out.  People with disabilities are a 

 6           vulnerable population, and health equity 

 7           matters a lot.  I couldn't agree with you 

 8           more.  There's a health disparity.  The 

 9           increased investment should help to address 

10           that.

11                  ASSEMBLYWOMAN PAULIN:  Senate.

12                  CHAIRWOMAN KRUEGER:  Thank you.  Thank 

13           you very much.  

14                  Next is Senator Gounardes.

15                  SENATOR GOUNARDES:  Thank you, 

16           Senator Krueger.

17                  Good I guess afternoon, Commissioners, 

18           everyone.  

19                  I want to pick up on a theme that was 

20           started a little bit earlier by my colleague 

21           Senator Hinchey, and that's to talk about 

22           some of our financially distressed hospitals, 

23           the safety net hospitals in particular.  I'm 

24           here on -- this is my sixth budget cycle.  I 


                                                                   185

 1           feel like every year we talk about a safety 

 2           net stabilization fund, the safety net, you 

 3           know, fix, a temporary fix.  It's 500 million 

 4           here, 600 million there.  We're going to 

 5           divert New York City sales tax to shore up 

 6           our hospitals.  Every year it's a Band-Aid, 

 7           and every year it's crisis to crisis to 

 8           crisis.  

 9                  What if anything is being advanced in 

10           this budget to shift us away from that 

11           perpetual crisis mode towards a more 

12           sustainable funding for our safety net and 

13           financially distressed institutions?  

14                  COMMISSIONER McDONALD:  Right.  You're 

15           exactly right.  Every year it's the same 

16           thing, right?  We cannot buy ourselves out of 

17           this issue.  I couldn't agree with you more.  

18                  And I think this is really, really why 

19           it's important to look at how do we help 

20           hospitals reduce costs, how do we help 

21           nursing homes reduce costs.  Some of that is 

22           in the scope of practice changes we talked 

23           about.  

24                  Yes, there is money in the 1115 


                                                                   186

 1           waiver.  Yes, we have money for them as well.  

 2           But I think we need to look at ways we can 

 3           help hospitals reduce costs.  Agency nurses 

 4           are still a substantial cost for hospitals.  

 5           But I think you need to go back to are there 

 6           other things we're asking hospitals to do 

 7           that are a cost to them that we can relieve 

 8           from them.  

 9                  I'm happy to work with hospitals to 

10           put data together to help improve their 

11           throughput and make sure this is something 

12           that is sustainable.  But we really need a 

13           substantial path for hospital finances, and 

14           it's not -- the answer isn't just adding more 

15           money every year.

16                  Amir, do you want to add to that?

17                  MEDICAID DIRECTOR BASSIRI:  I just 

18           wanted to add that the 1115 waiver that 

19           Dr. McDonald mentioned is certainly a 

20           long-term investment.  It is not a Band-Aid.  

21                  And while there are only a subset of 

22           safety net hospitals that would be eligible 

23           for enhanced funding, it is tied to a broader 

24           federal model that includes all payers, not 


                                                                   187

 1           just Medicaid, and has a number of 

 2           flexibilities that would be attractive to a 

 3           hospital and helpful in addressing this 

 4           long-term, longstanding issue.

 5                  SENATOR GOUNARDES:  I hope that I'm 

 6           not here next year asking a similar version 

 7           of the same question.  I suspect that until 

 8           we actually change the structure of how we 

 9           finance healthcare, we're never going to get 

10           to a truly more sustainable system.

11                  You mentioned hospital spending, 

12           hospital costs.  Over the last decade-plus, 

13           hospital costs have increased by about 

14           90 percent, far outpacing other sectors of 

15           the healthcare industry.  What are we doing 

16           to kind of drive down some of those costs?  

17           And at the same time those costs are rising, 

18           some of the big corporate hospital chains are 

19           posting profits of a billion-plus.  So 

20           something other than that is not adding up.  

21           And what are we doing to rightsize the 

22           equations there?

23                  COMMISSIONER McDONALD:  The largest 

24           driver of hospital costs is labor costs.  And 


                                                                   188

 1           that's still -- agency labor.  And that's 

 2           still a pretty big impact.  And I think, you 

 3           know, we just need to find ways for hospitals 

 4           to help them reduce their costs.  This is 

 5           where a lot of the licensure compact stuff 

 6           we're talking about -- it's important to 

 7           think about the scope of practice changes 

 8           we're talking about too.  There's long-term 

 9           solutions there.  I hope people just 

10           entertain them and look at them closely.  But 

11           I think we need help with labor.

12                  SENATOR GOUNARDES:  Thank you.  

13                  ASSEMBLYWOMAN PAULIN:  Thank you.  

14                  Assemblymember Mikulin.

15                  ASSEMBLYMAN MIKULIN:  Just a few 

16           questions.  

17                  With the rise in fentanyl deaths, 

18           Narcan is needed more and more.  It is my 

19           understanding that the Department of Health 

20           purchases Narcan from only one source when 

21           generic supplies exist.  Why?

22                  ACTING EX. DEP. COMMISSIONER MORNE:  

23           Thank you.  So yes, the purchase of naloxone 

24           or Narcan has been with a single source.  We 


                                                                   189

 1           maintain a contract with that particular 

 2           contractor.  We have, as a result, have been 

 3           able to distribute thousands of kits across 

 4           New York State in order to advance and save 

 5           lives.

 6                  ASSEMBLYMAN MIKULIN:  Is there any 

 7           plan to extend it and put it out to bid so 

 8           that there's more than one contractor we're 

 9           purchasing it from?

10                  ACTING EX. DEP. COMMISSIONER MORNE:  

11           Yes.  As we continue to move forward and as 

12           we continue to advance the availability of 

13           different types of models related to 

14           naloxone, certainly we will look at that.

15                  ASSEMBLYMAN MIKULIN:  And following up 

16           on actually something my colleague said, in 

17           my district I have a public benefits 

18           corporation called NUMC that will be running 

19           out of money shortly.  It's my understanding 

20           that funding, especially from the state, has 

21           been limited over the years.  What are we 

22           going to be doing to help?

23                  COMMISSIONER McDONALD:  I lost some of 

24           your audio.  You said there's a -- do you 


                                                                   190

 1           have a healthcare facility that's running out 

 2           of money, is that what your question is?

 3                  ASSEMBLYMAN MIKULIN:  Yes.

 4                  COMMISSIONER McDONALD:  Yeah, so 

 5           there's a process for them to apply to the 

 6           department to see what funding we can offer 

 7           to people and see what's available.  

 8                  ASSEMBLYMAN MIKULIN:  They -- they 

 9           did.

10                  COMMISSIONER McDONALD:  Is it a 

11           hospital?

12                  ASSEMBLYMAN MIKULIN:  Yes, it is a 

13           hospital.

14                  COMMISSIONER McDONALD:  And then it 

15           just has to walk through the process.  I 

16           can't specifically address any particular 

17           facility now, but I can have my staff look 

18           into it.  And since they're listening, I'm 

19           sure they already are right now.

20                  ASSEMBLYMAN MIKULIN:  Okay, so we can 

21           maybe set up a meeting and they can reach on 

22           out to you?

23                  COMMISSIONER McDONALD:  I'm sure my 

24           staff just heard what you asked, and I'm sure 


                                                                   191

 1           they're looking into it and they'll get back 

 2           to you about what we're doing with them.  

 3           Does that sound fair?

 4                  ASSEMBLYMAN MIKULIN:  Thank you.

 5                  COMMISSIONER McDONALD:  You're 

 6           welcome.  

 7                  CHAIRWOMAN KRUEGER:  Senator Rhoads.

 8                  SENATOR RHOADS:  Thank you so much, 

 9           Chairwoman.  

10                  And I actually share that hospital in 

11           my district with my Assembly colleague, 

12           Assemblyman Mikulin.  So I would be very 

13           interested in that answer, Commissioner.  So 

14           thank you very much.

15                  Just -- you mentioned that 

16           hospitals are having difficulty making ends 

17           meet.  And one of the things that I wanted to 

18           address was medical debt.  In the Governor's 

19           proposal she wants to increase the Hospital 

20           Financial Assistance Program to cover now 

21           400 percent of the federal poverty level.  In 

22           addition, she wants to increase -- or 

23           decrease, rather, the gross monthly income 

24           threshold from 10 percent to 5 percent and 


                                                                   192

 1           reduce the interest rate to 2 percent on 

 2           medical debt.  

 3                  What's the estimated financial impact 

 4           to hospitals due to the Governor's proposed 

 5           changes to hospital financing?  

 6                  COMMISSIONER McDONALD:  You know, I 

 7           don't know the exact number, but I think it's 

 8           rather minimal.  When you look at who we're 

 9           actually getting medical debt from, it's some 

10           of the poorest New Yorkers.  

11                  And this is one of those things where 

12           suing people for medical debt hasn't 

13           generally been that effective.  I think 

14           they're recovering generally 14 cents on the 

15           dollar anyways here.  And really a lot of 

16           what this is about is trying not to create a 

17           financial barrier we don't need to.  You 

18           know, not necessarily demanding a credit card 

19           preauthorized before you get healthcare, but 

20           not suing people.  

21                  And there's some nice changes here so 

22           SUNY doesn't have to be suing people.  I 

23           don't know that they want to be as well.  But 

24           it was interesting how SUNY is one of the 


                                                                   193

 1           largest litigators of medical debt.  

 2                  I'll see if I can get you the exact 

 3           number from my staff on how much money this 

 4           is going to actually impact hospitals.  My 

 5           understanding, it wasn't that much.

 6                  SENATOR RHOADS:  And was there any 

 7           consideration given specifically to 

 8           safety-net hospitals with respect to that, 

 9           since they treat primarily an indigent 

10           population?  

11                  COMMISSIONER McDONALD:  Yeah, I don't 

12           know that safety-net hospitals are the ones 

13           who are actually really influenced by medical 

14           debt.  I think that's one of those things 

15           where, you know, a lot of their patients have 

16           Medicaid and have other insurance issues as 

17           well.  

18                  I mean, I share your concern about our 

19           hospitals; I want to help them to stay whole.  

20           But I don't think this is one of those things 

21           where it's going to be as big a cost driver.

22                  SENATOR RHOADS:  Well, just a -- would 

23           a proposal such as this necessarily result in 

24           higher medical costs for individuals who do 


                                                                   194

 1           have the capacity to pay, because hospitals 

 2           are trying to make up a shortfall for what 

 3           they can't collect from other patients?  

 4                  COMMISSIONER McDONALD:  So when you're 

 5           collecting money from people who are either 

 6           uninsured or underinsured, you know, they 

 7           have to negotiate rates here.  

 8                  Sometimes people who are underinsured 

 9           or uninsured, by the way, are paying a lot 

10           more money than someone who's insured because 

11           they don't have the power of an insurance 

12           company to negotiate for them.  And sometimes 

13           the difference is stunning.  You know, 

14           sometimes the cost that, you know, the 

15           insurance company pays -- you see this on 

16           your explanation of benefits -- it's 10 or 

17           15 cents on the dollar, and the hospital's 

18           happy to get that from the insurance company.  

19                  Oh, it's not true for every expense a 

20           hospital gets.  But I think this gets back to 

21           just sort of parity, and it's really an 

22           equity issue.  We're taking -- you know, this 

23           is really a proposal to stop taking, you 

24           know, advantage of some of the poorer 


                                                                   195

 1           New Yorkers, quite frankly, because that's 

 2           the population that's affected by this.  

 3           Medical bankruptcy isn't pleasant for anyone.

 4                  SENATOR RHOADS:  I would appreciate 

 5           seeing those statistics.  Thank you, 

 6           Commissioner.

 7                  CHAIRWOMAN KRUEGER:  Thank you.

 8                  Assembly?  

 9                  ASSEMBLYWOMAN PAULIN:  Yes.  

10           Assemblymember Latrice Walker.

11                  ASSEMBLYWOMAN WALKER:  (Mic issue.)  

12           Awesome.  I guess your muscles are stronger.

13                  (Laughter.)

14                  ASSEMBLYWOMAN WALKER:  Good afternoon.  

15                  So we have heard a number of times 

16           about SUNY Downstate potentially either being 

17           downsized and/or closing.  In light of the 

18           fact that SUNY Downstate and many other 

19           hospitals such as those under the 

20           One Brooklyn Health program -- it would be 

21           interesting to hear what the federal Medicaid 

22           waiver dollars -- or how many of them are 

23           going to be utilized in order to support 

24           public benefit corporations and hospitals who 


                                                                   196

 1           are safety-net hospitals, such as those under 

 2           One Brooklyn Health and Downstate.

 3                  MEDICAID DIRECTOR BASSIRI:  Thank you 

 4           for the question, Assemblymember.

 5                  There is significant funding in the 

 6           waiver, $550 million annually, for 

 7           financially distressed hospitals, but private 

 8           financially distressed hospitals.  It does 

 9           not include public hospitals.  And this was 

10           something we advocated for, but the federal 

11           government held firm in that public hospitals 

12           have access to other means of Medicaid 

13           financing through intergovernmental transfers 

14           and changes to the Disproportionate Share 

15           Hospital payments, whereas private voluntary 

16           hospitals do not.

17                  So that is the reason why it is 

18           limited to only private hospitals, the 

19           550 million.  

20                  ASSEMBLYWOMAN WALKER:  Correct.  But 

21           isn't hospitals such as Brookdale Hospital, 

22           Interfaith, Kingsbrook -- aren't those 

23           considered private hospitals but just provide 

24           public benefits simply because most of the 


                                                                   197

 1           constituents or utilizers of those hospitals 

 2           are people who are on Medicaid?  Who we know 

 3           many of those hospitals are in distress 

 4           because there is a network adequacy issue, 

 5           where doctors are being underpaid through 

 6           their reimbursement rates.  

 7                  And so why don't they have access to 

 8           the dollars?  

 9                  MEDICAID DIRECTOR BASSIRI:  I may have 

10           misunderstood your question.  But I can tell 

11           you, One Brooklyn Health is absolutely 

12           eligible for the 1115 waiver, as are other 

13           safety-net hospitals in Brooklyn, the Bronx 

14           and Queens.

15                  ASSEMBLYWOMAN WALKER:  Well, one of -- 

16           so there's a serious issue with respect to 

17           lower reimbursement rates that providers 

18           receive without recourse.  

19                  And so I'd be interested in hearing at 

20           what point would DFS and DOH consider a lack 

21           of network adequacy a public health crisis 

22           and intervene by regulating the reimbursement 

23           rates between payer and providers.  

24                  DFS SUPERINTENDENT HARRIS:  My muscles 


                                                                   198

 1           aren't working too.

 2                  Thank you for the question.  In terms 

 3           of reimbursement rates on the mental health 

 4           side, of course the Governor has proposed 

 5           that for several clinics, that commercial 

 6           providers start to reimburse at the Medicaid 

 7           rate or the Medicare rate.

 8                  With respect to network adequacy 

 9           generally, DFS has just proposed a regulation 

10           for mental health providers in particular 

11           requiring that the first appointment be given 

12           within 10 days if there isn't -- I'm happy to 

13           provide more in writing, ma'am.

14                  ASSEMBLYWOMAN WALKER:  Awesome, thank 

15           you.

16                  CHAIRWOMAN KRUEGER:  I was busy 

17           adjusting mics, sorry.

18                  We are at Senator Hoylman-Sigal.

19                  SENATOR HOYLMAN-SIGAL:  Thank you, 

20           Madam Chair.  Good to see you all.

21                  I wanted to bring up the issue of 

22           Paxlovid, which I know you're familiar with, 

23           Commissioner.  In November of last year, 

24           Pfizer and the federal government announced 


                                                                   199

 1           that Paxlovid, which has been shown to reduce 

 2           serious illness of COVID-19 by 89 percent, 

 3           was transitioning to the commercial market.  

 4           And since then, the market price of these 

 5           treatments has exceeded $1500.  And even some 

 6           people with insurance are seeing copays or 

 7           carveouts that are footing them with steep 

 8           bills for these life-saving medications.  

 9                  I wanted to let you know that I've 

10           introduced a bill today to require all 

11           insurance providers in New York State, 

12           including Medicaid, to provide coverage for 

13           COVID-19 therapeutics that are approved by 

14           the FDA.  

15                  Do you agree that New Yorkers should 

16           be forgoing life-saving treatments like this 

17           because of cost?  

18                  COMMISSIONER McDONALD:  No.  I mean, I 

19           don't agree with that.  How about being just 

20           straightforward like that.  Of course not.  I 

21           want every New Yorker to have access to the 

22           medicine they need to get better.  

23                  I'll tell you, when I had COVID last 

24           July, within 22 hours of taking Paxlovid I 


                                                                   200

 1           could tell I was heading in the right 

 2           direction.  And I was miserable with my 

 3           COVID.  I don't ever remember being that 

 4           sick, and I was as updated with the vaccines 

 5           as you could be.  So I was still thankful to 

 6           have it.  

 7                  But it's weird to me how expensive it 

 8           is, really weird.

 9                  SENATOR HOYLMAN-SIGAL:  Is there 

10           anything in this budget that would address 

11           those kind of costs?  

12                  COMMISSIONER McDONALD:  It's covered 

13           by Medicaid.  So Medicaid does cover 

14           Paxlovid, as we cover every other 

15           FDA-approved medicine.  So that's how we 

16           address that.

17                  SENATOR HOYLMAN-SIGAL:  Thank you.  

18                  And then I wanted to also ask about 

19           gun safety.  We passed legislation last year 

20           that would allow for Medicaid reimbursement 

21           for hospital-based gun violence prevention 

22           programs, an approach that studies show that 

23           reduces gun death in communities.

24                  I wanted to know if either the 


                                                                   201

 1           superintendent or the commissioner know 

 2           whether you've applied for approval of an 

 3           amendment to the State Medicaid Plan, as 

 4           required by the legislation.  That 

 5           application was due, I believe, in 

 6           mid-November.

 7                  MEDICAID DIRECTOR BASSIRI:  Yes, we 

 8           did file that, Senator.  And it is under 

 9           review with the federal government.  

10                  In the interim, we are processing 

11           enrollments for community health workers who 

12           are employed by either community-based 

13           organizations, hospitals or partners of 

14           hospitals to do that hospital-based 

15           intervention prevention programming.  It's 

16           primarily through outreach and working with 

17           community members from peer support 

18           navigators, so.

19                  SENATOR HOYLMAN-SIGAL:  And there's 

20           one more part of that.  You're supposed to 

21           approve an accrediting body to review and 

22           approve training and certification programs 

23           for these violence prevention professionals.  

24           That approval was due I think just a couple 


                                                                   202

 1           of days ago.

 2                  MEDICAID DIRECTOR BASSIRI:  We don't 

 3           have that.  I will follow up with you on that 

 4           in writing.

 5                  SENATOR HOYLMAN-SIGAL:  Thank you very 

 6           much.

 7                  CHAIRWOMAN KRUEGER:  Thank you.  

 8                  Assembly.

 9                  ASSEMBLYWOMAN PAULIN:  Thank you.  

10                  Khaleel Anderson, is he here?  Okay.  

11           Jenifer Rajkumar, is she here?

12                  ASSEMBLYWOMAN RAJKUMAR:  Yes.

13                  ASSEMBLYWOMAN PAULIN:  Okay, good. 

14                  ASSEMBLYWOMAN RAJKUMAR:  Thank you.

15                  Thank you, Commissioner McDonald.  And 

16           as a pediatrician, I'm sure you will like 

17           this topic, which I think you alluded to in 

18           your opening.

19                  In July 2023, I introduced the Keep 

20           Kids Covered Act, which would allow 600,000 

21           children enrolled in Medicaid to stay on it 

22           continuously until age six, regardless of 

23           change in eligibility and without 

24           redetermination.  


                                                                   203

 1                  Children on Medicaid are more likely, 

 2           as you know, to have a regular provider, to 

 3           get routine medical care, and even complete 

 4           high school and college.  

 5                  And Senator Hoylman-Sigal, I'm proud 

 6           to say, is sponsoring it in the Senate.  

 7                  So if we pass our bill, will we have 

 8           your support to apply for the necessary 

 9           federal Section 1115 waiver?

10                  COMMISSIONER McDONALD:  I think we're 

11           doing that anyways, aren't we?

12                  MEDICAID DIRECTOR BASSIRI:  We are.  

13           And actually, that is public.  At this point 

14           we put in the federal public notice, and 

15           there's legislation in the budget, and we're 

16           proposing the financing is connected to our 

17           recently approved 1115 waiver.  So we're very 

18           excited about that.

19                  ASSEMBLYWOMAN RAJKUMAR:  Fantastic.  

20           Well, if you do it faster than us, even 

21           better.

22                  So my next question is about cannabis 

23           shops.  I have introduced the Smoke Out Act, 

24           and my legislation will empower local law 


                                                                   204

 1           enforcement to shutter illegal smoke shops 

 2           that are selling unregulated cannabis.  

 3                  A random sampling of their cannabis 

 4           products actually found that 40 percent 

 5           contain dangerous contaminants such as 

 6           E. coli, salmonella, lead, and pesticides.  

 7           None met the safety standards of New York 

 8           State's legal cannabis market.  

 9                  So my question for you is would you 

10           say that these illegal smoke shops are a 

11           threat to public health that needs to be 

12           addressed?

13                  ACTING EX. DEP. COMMISSIONER MORNE:  

14           Thank you for that question.  

15                  First let me just acknowledge that 

16           certainly cannabis management within New York 

17           State is overseen by the Office of Cannabis 

18           Management.  That said, the Department of 

19           Health does work in partnership and is 

20           responsible for the public health impact.  

21                  We are working collaboratively with 

22           the Office of Cannabis Management as well as 

23           other partners in looking at what we can do 

24           to ensure the safety and wellness of 


                                                                   205

 1           New Yorkers who may in fact be impacted by 

 2           these illegal smoke shops, as you referenced. 

 3                  ASSEMBLYWOMAN RAJKUMAR:  So you would 

 4           agree that the illegal smoke shops are a 

 5           danger to public health?

 6                  ACTING EX. DEP. COMMISSIONER MORNE:  

 7           Yes, we would certainly agree.  Which is the 

 8           whole intention behind looking at adult-use 

 9           cannabis and creating spaces in which there 

10           can be regulated as well as safe access.

11                  ASSEMBLYWOMAN RAJKUMAR:  Great.  Well, 

12           thank you for your work in partnership on it.  

13           I hope that we can close all 36,000 illegal 

14           smoke shops across the state because they're 

15           such a threat to health.

16                  Thank you.

17                  CHAIRWOMAN KRUEGER:  Thank you.  

18                  Senator Comrie.

19                  SENATOR COMRIE:  Here we go.  Here we 

20           go.  

21                  Good morning.  Somebody said wow?  

22           Good morning, Commissioners.  I wanted to ask 

23           a couple of questions, which I will do them 

24           quickly.


                                                                   206

 1                  Last year myself and Assemblyman Aubry 

 2           put out a bill to deal with the underbedding 

 3           in Southeast Queens, which has been long 

 4           documented and long discussed -- I'm over 

 5           here.  

 6                  (Laughter.)

 7                  SENATOR COMRIE:  And DOH didn't 

 8           support the -- the need for making sure that 

 9           we could have more hospitalization, hospitals 

10           built in Queens, throughout Queens.  Queens 

11           has been determined to be underbedded from a 

12           study released 25 years ago that was done by 

13           the state, and we still haven't had any 

14           resolution to that.  

15                  Can you explain why DOH did not 

16           support the bills S5172, Assembly 5970?

17                  COMMISSIONER McDONALD:  Let me just 

18           offer to get back to you with that.

19                  SENATOR COMRIE:  That's -- at some 

20           point we have to have some understanding of 

21           it.

22                  How do you understand hospitalization 

23           usage, and what protocols do you do to 

24           determine it?  


                                                                   207

 1                  COMMISSIONER McDONALD:  Based on 

 2           population, resources, time to get to a 

 3           hospital, time to get to an emergency 

 4           department, type of service offered, 

 5           diversity of service offered, how many 

 6           people, you know, can actually get 

 7           throughput, what their bed status is, how 

 8           many people are in the beds, how long it 

 9           takes for people to get out.  These are just 

10           some of the variables that come to mind.

11                  SENATOR COMRIE:  Okay, thank you.  

12                  And then also to -- I would hope that 

13           we could find some way to come up with an 

14           assessment without starting to do a 

15           million-dollar study to understand 

16           hospitalization, since you have all those 

17           statistics at hand already, and to make sure 

18           that we can have some new hospitals built in 

19           Queens.

20                  Just another issue, CDPAP and the 

21           fiscal intermediaries and the issue of the 

22           contract.  Can you give us an update on where 

23           we are with that new contract?  

24                  MEDICAID DIRECTOR BASSIRI:  Thank you 


                                                                   208

 1           for the question, Senator.  

 2                  I assume you're referring to the 

 3           request for offering.  And unfortunately, 

 4           there's pending -- there's active litigation 

 5           and I'm unable to provide an update at this 

 6           time.

 7                  SENATOR COMRIE:  We went from worse to 

 8           worst.

 9                  (Laughter.)

10                  SENATOR COMRIE:  So dealing with 

11           the -- I'll just follow up on, instead of 

12           Paxlovid, the lack of ability for pharmacies 

13           and folk to be able to get Ozempic in for 

14           people that actually need it because of the 

15           burdening -- folks that are taking it that 

16           don't need it.  

17                  Is there a state response to working 

18           on folks that are suffering from diabetes 

19           that can't get those medications?

20                  ASSEMBLYWOMAN PAULIN:  Thank you.  

21                  CHAIRWOMAN KRUEGER:  Thank you.  

22           You'll have to get back to Senator Comrie 

23           afterwards.  I think again, on that probably 

24           very long list now of things you need to get 


                                                                   209

 1           back to us on, add that to the list.

 2                  Thank you.

 3                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

 4           Reyes.

 5                  ASSEMBLYWOMAN REYES:  Just got to 

 6           press really hard.  Okay.  

 7                  I will preface -- this is for DOH.  I 

 8           will preface my question by saying, one, that 

 9           New York has 1.4 million children 

10           Medicaid-eligible, and that 25 states have 

11           already submitted their State Plan Amendment 

12           to CMS.  So you were asked earlier by 

13           Senator Brouk about the State Plan Amendment 

14           being submitted to CMS and our concern that 

15           your SPA is too narrow in scope and doesn't 

16           include services such as dental, optical and 

17           other forms of care.

18                  I'm also concerned that there are few 

19           mental health professionals in schools that 

20           are actually licensed to bill Medicaid.  And 

21           clinicians like school psychologists who have 

22           been in schools providing services for years 

23           are not included in this current SPA.  

24                  Why not submit a more broad State Plan 


                                                                   210

 1           Amendment to CMS?  And how will you address 

 2           the need to add school-based mental health 

 3           professionals to those able to bill Medicaid 

 4           so that the expansion will actually help meet 

 5           the growing mental health crisis in 

 6           children's mental health needs?  

 7                  MEDICAID DIRECTOR BASSIRI:  Thank you 

 8           for the question, Assemblymember Reyes.  And 

 9           I know you're a huge champion on this 

10           initiative, and it's been great working with 

11           you on this thus far.  

12                  What I would say is it's been a long 

13           haul to get where we are with the state plan 

14           that is before the Center for Medicare & 

15           Medicaid Services.  Since that submission, 

16           there was a recent guidance put out that 

17           allows for, you know, the broader services 

18           that you're alluding to that you're 

19           interested in us seeking.  And I think based 

20           on our work with the schools themselves, and 

21           the districts, I think we are cognizant of 

22           the undertaking that the current state plan 

23           allows for, with the data sharing and the 

24           infrastructure to actually bill.  


                                                                   211

 1                  So it's not that we don't want to go 

 2           for more additional services, including those 

 3           mental health services.  We're just trying to 

 4           take the right approach, given that we're not 

 5           going to get from zero to 60 overnight.  And 

 6           it is a large undertaking to implement, what 

 7           we've worked on together.  

 8                  ASSEMBLYWOMAN REYES:  Yeah, I would 

 9           just add that the guidance from CMS was 

10           changed like 2014.  This isn't like new 

11           guidelines.  Right?  And there have been 

12           states that have had significant time to do 

13           this.  We could have -- I've been talking 

14           about this for like three years now.

15                  But you did say that there were some 

16           school districts that weren't on board with 

17           the change.  I was just wondering how you --

18                  MEDICAID DIRECTOR BASSIRI:  I wouldn't 

19           say that they are not on board.  I think 

20           there's a large infrastructure that is needed 

21           to be able to bill Medicaid for the services 

22           that are incurred for those students, and the 

23           data exchange to make sure that they are 

24           Medicaid-eligible students.


                                                                   212

 1                  ASSEMBLYWOMAN REYES:  Absolutely.  And 

 2           I would add that once we're able to do that, 

 3           we will also be able to access matching 

 4           dollars from Medicaid.  And I think that 

 5           would offset some of that cost and that 

 6           buildout.

 7                  My last question -- and I don't have a 

 8           lot of time -- how does DOH plan to achieve 

 9           the additional unidentified $400 million in 

10           Medicaid savings in the budget, the 

11           200 million in general and 200 million in 

12           long-term care?  

13                  MEDICAID DIRECTOR BASSIRI:  If you're 

14           asking what the specific proposals are to 

15           achieve that savings, we don't have them 

16           predetermined at this time.  It's something I 

17           think we envision working with the 

18           legislative staff and legislators with as we 

19           go through the budget process.

20                  ASSEMBLYWOMAN REYES:  I guess to be 

21           continued.  Thank you.

22                  MEDICAID DIRECTOR BASSIRI:  Yes.

23                  CHAIRWOMAN KRUEGER:  Thank you.  So I 

24           believe I'm the last Senator, just for 


                                                                   213

 1           keeping track.  

 2                  And I have 10 minutes as the chair.  

 3           Thank you.

 4                  All right, I have a variety of 

 5           questions.  Let's start with something that's 

 6           already come up a number of times but for 

 7           different hospitals.  So we've already heard 

 8           about the concerns about SUNY.  Senator 

 9           Comrie just asked questions about how do you 

10           evaluate -- I know in my district -- it's not 

11           exactly my district, but it's four Senators' 

12           districts in Manhattan -- we're very 

13           concerned about Mount Sinai's closing of Beth 

14           Israel without seeming to go through 

15           appropriate procedure.  We've met with you, 

16           Commissioner, and you actually put a 

17           cease-and-desist for them, but apparently 

18           they're ignoring it and just doing what 

19           they're doing anyway.  So I'm very concerned 

20           about that, that they view a couple of 

21           thousand dollars a day of penalty isn't worth 

22           their listening.

23                  So when you were just asked how do you 

24           assess whether there's need for a hospital 


                                                                   214

 1           not to close or even a hospital to be open, 

 2           you sort of ran through a list.  Is that in 

 3           writing somewhere, is there a regulation that 

 4           we can look to to understand?  Because for 

 5           example, SUNY Downstate is Brooklyn.  Beth 

 6           Israel/Mount Sinai is probably the last large 

 7           hospital in the southern part of Manhattan.  

 8           We know that they take a huge number of their 

 9           patients from Brooklyn, but now we're going 

10           to have another Brooklyn hospital closing.  

11                  So is there something we can all look 

12           at and so that we know how we evaluate 

13           their -- or how you're evaluating?  

14                  COMMISSIONER McDONALD:  The department 

15           has broad authority to assess this through 

16           all the different tools we have.  And it 

17           comes to the department first.  If the 

18           decision isn't to the liking of the hospital, 

19           they can appeal to the Public Health and 

20           Planning Council, who can then make a 

21           recommendation back to me.  

22                  I don't know if there's something 

23           specific in writing.  I know we have broad 

24           authority here.  I'll just have the team get 


                                                                   215

 1           back to you with what actually our authority 

 2           is.  I did talk to our legal team about this 

 3           last week in particular, and I'm told we have 

 4           very broad authority here.  

 5                  And this is part of why when I just 

 6           say to people I really think it's important 

 7           hospitals not get ahead of the department, I 

 8           think that's really important for them to do.  

 9                  I also think that I can't comment on 

10           any particular regulatory action going on.  

11           But, you know, if people have concerns about 

12           something, they should let us know.  I said 

13           earlier I actually read every email.  I don't 

14           respond to everything, but you'd be surprised 

15           how fast I process information.  But I do 

16           read every email we get, and I do forward it 

17           to people in the department to do things 

18           about it.  And I'm not specifically calling 

19           out one hospital, but I'm kind of aware of 

20           what's going on in the state.

21                  CHAIRWOMAN KRUEGER:  Thank you.  

22                  So the Governor puts into her budget 

23           again this year the creation of a data 

24           warehouse, which now is specifying will be to 


                                                                   216

 1           analyze maternal outcomes.  She's put that 

 2           money in the budget multiple years.  Did 

 3           anything happen so far?  Is there any 

 4           development of a data warehouse that's in 

 5           process?  Because originally it was for more 

 6           kinds of data than just maternal outcomes, 

 7           but I think the language this year is a data 

 8           warehouse for maternal outcomes.  What's the 

 9           story here?

10                  COMMISSIONER McDONALD:  So there's a 

11           lot going on with maternal health.  There's a 

12           lot going on with maternal mortality.  I 

13           don't know specifically what you're referring 

14           to with the data warehouse, so I'm going to 

15           have to get back to you on that one. 

16                  CHAIRWOMAN KRUEGER:  Okay.  She's 

17           putting money in for the building of a data 

18           warehouse.  I don't quite know what that 

19           means either yet.  But I'm still trying to 

20           figure our when there's a Cloud, why you need 

21           a warehouse.  But never mind, that's a 

22           different question.

23                  All right.  So the Medical Indemnity 

24           Fund, MIF.  That was set up under the Cuomo 


                                                                   217

 1           administration.  It's for children who are 

 2           born with serious disabilities and, rather 

 3           than going through the medical malpractice 

 4           court system, there was a different setup.  

 5           And the fourth quarter report for '22 is the 

 6           last one published, so I think we're a year 

 7           behind.  And I'm looking for the new data, 

 8           but most relevantly, in the fourth quarter 

 9           report from '22 the estimate of the 

10           assets-to-expense ratio was expected to 

11           exceed 80 percent by the end of the second 

12           quarter of '23.  So that would be over six 

13           months ago now.  And it referenced closing 

14           down the fund and not letting any other 

15           patients in when they literally were running 

16           out of money. 

17                  I need to understand, are we putting 

18           new money in?  Have we stopped accepting more 

19           children?  We have a legal obligation to the 

20           children that are in the fund for the rest of 

21           their lives.  What's happening?  

22                  MEDICAID DIRECTOR BASSIRI:  Thank you 

23           for the question, Senator.  

24                  We have not stopped enrollment.  And 


                                                                   218

 1           if we did, we would be -- we would notify you 

 2           as well as others, per the regulation of the 

 3           program.  

 4                  But we are continuing to see higher 

 5           enrollment month over month and expenses 

 6           month over month.  As you know very well, 

 7           individuals who are in the MIF have the 

 8           lifetime benefit.  They are living longer.  

 9           They're -- we have continued the commercial 

10           rates or the change that was made to 

11           reimbursements since 2017, which has really 

12           put pressure on the allocation for the MIF.  

13                  There's no new investment at this time 

14           to support the MIF.  But it's something we'd 

15           be very open to working with you on, knowing 

16           the current trends and the trajectory of the 

17           program.  

18                  CHAIRWOMAN KRUEGER:  Well, if I 

19           remember reading the other -- the previous 

20           reports, you should very soon be actually out 

21           of money.  So what's going to happen here?  

22           Where are you supposed to get the money?  

23           because we need to pay for those kids even if 

24           we don't accept any more into the program.


                                                                   219

 1                  MEDICAID DIRECTOR BASSIRI:  I think 

 2           there's an understanding in the -- from the 

 3           Executive and the Division of Budget that 

 4           more money may be needed, and we look forward 

 5           to working with you on ways to get that level 

 6           of support to the MIF.

 7                  CHAIRWOMAN KRUEGER:  So there's a 

 8           30-day amendment time frame for the Governor.  

 9           I hope that there's someone listening there 

10           on the second floor and that they will go 

11           ahead and put the money in.  Because I don't 

12           know about anyone else, but I don't want to 

13           wake up one day and learn that you don't have 

14           any money in that fund and you have 

15           desperately ill children who were promised 

16           lifetime care and we don't have any more 

17           money for them.  

18                  I take this very seriously, and I 

19           think you do also.

20                  MEDICAID DIRECTOR BASSIRI:  As do I.  

21           We're on the same page.

22                  CHAIRWOMAN KRUEGER:  Okay.  Thank you.  

23                  Okay, we had a conversation with some 

24           people from Department of Health a few months 


                                                                   220

 1           ago about the importance of providing more 

 2           training for doctors and physician assistants 

 3           and nurse practitioners in reproductive 

 4           healthcare services, that there was a 

 5           shortage of providers in the state.  And I 

 6           had made a proposal to the Governor's office 

 7           with some of my colleagues for an investment 

 8           in expanded training services for people who 

 9           it's in scope of practice, they're already 

10           licensed, but they've never had the training 

11           to provide some of the care procedures, 

12           disproportionately in second and third 

13           trimester and they need to be in hospitals.  

14                  I didn't see any proposal like that in 

15           the budget.  Is it there and I just missed 

16           it?  

17                  COMMISSIONER McDONALD:  I didn't see 

18           one in there either.  I'll get back to you, 

19           though, and find out if there isn't one in 

20           there.  I'll talk to my team.

21                  CHAIRWOMAN KRUEGER:  Okay.  Thank you.

22                  Okay, sorry.  A number of people 

23           brought up the discussion about the 

24           long-term-care providers and the amount of 


                                                                   221

 1           money being spent on the agencies as opposed 

 2           to the actual service providers.  And there 

 3           was even some recent data -- sorry, it came 

 4           out in a couple of op-eds, I think one 

 5           yesterday -- that the state is paying MLTCs 

 6           $4500 per consumer for each month, regardless 

 7           of whether that's actually going -- or a 

 8           significant percentage of that is actually 

 9           going to home care workers.  

10                  And a concern that home care hours 

11           approved were in the lowest hour categories, 

12           even though we are paying these middlemen 

13           agencies enormous amounts of money.  A number 

14           of advocacy groups, I think that will be 

15           testifying later today, if somebody stays and 

16           listens, will be arguing that this is a total 

17           misuse of the limited funds we know we have, 

18           and that we should be rethinking completely 

19           this model and putting more money into the 

20           actual payment of workers because we have a 

21           desperate shortage both of the number of 

22           workers and the pay is still -- seems very 

23           inadequate to get people to want to do this 

24           work, and yet we're spending an enormous 


                                                                   222

 1           amount of money on the middlemen agencies.  

 2                  Has your department been discussing 

 3           any of these proposals at all?

 4                  MEDICAID DIRECTOR BASSIRI:  We -- we 

 5           have seen some of the legislative bills that 

 6           have passed and are still reviewing those.  

 7           But I would say it's not as simple as one 

 8           would think.  And there are a range of 

 9           considerations with respect to modifying that 

10           program.  And we have the same concern that I 

11           think you expressed with cherry-picking of 

12           members who may not need the level of 

13           services that the premium currently assumes.

14                  I think we've talked about this in the 

15           past and have some proposals to address it.  

16           But it is something we're concerned about.  

17           But I don't know that we have a position on 

18           the legislation you're describing and whether 

19           we agree with the estimates that -- tied to 

20           that proposal.

21                  CHAIRWOMAN KRUEGER:  Yeah, I don't 

22           know about the estimates either.  I would 

23           just argue that then you should do the 

24           research and come up with your own 


                                                                   223

 1           projections on the numbers.

 2                  But I do think that when you look at 

 3           the breakout of the dollars being spent on 

 4           the, quote, unquote, agencies versus the 

 5           workers, something's wrong.

 6                  MEDICAID DIRECTOR BASSIRI:  One thing, 

 7           just in the last 10 seconds, is we did pass 

 8           together legislation to do more reporting 

 9           both on the payer and the provider side.

10                  CHAIRWOMAN KRUEGER:  Yes.  Yes.

11                  MEDICAID DIRECTOR BASSIRI:  And so we 

12           are implementing that and look forward to 

13           getting that information when it's ready.

14                  CHAIRWOMAN KRUEGER:  Thank you.

15                  Technically I have three more minutes, 

16           but I'm going to wait to see if there's more 

17           people going first.

18                  ASSEMBLYWOMAN PAULIN:  Okay.

19                  CHAIRWOMAN KRUEGER:  Thank you very 

20           much.  My time is up.

21                  ASSEMBLYWOMAN PAULIN:  We have more 

22           Assemblymembers.  

23                  Next is Anna Kelles.

24                  ASSEMBLYWOMAN KELLES:  So I just 


                                                                   224

 1           wanted to make first a comment following up 

 2           on the MIF question.  My understanding is 

 3           that the funding was supposed to originally 

 4           come from hospital assessments, but that 

 5           funding has been going into the HCRA, which 

 6           is lumped in with a whole bunch of other 

 7           funds, which makes it really difficult to 

 8           follow and track and make sure the money goes 

 9           to the right place.  

10                  So I can follow up with you, but I'd 

11           really love to hear how that is being handled 

12           to make sure that it's going to the right 

13           place and it's still coming from the 

14           hospitals.  My understanding is we haven't 

15           actually collected money from the hospitals 

16           in years.

17                  MEDICAID DIRECTOR BASSIRI:  That's not 

18           my understanding.  There is an assessment 

19           that is imposed on hospitals specifically 

20           that funds the appropriation for the MIF.  A 

21           lot of our taxes go through HCRA, so that 

22           doesn't necessarily mean that it's not being 

23           applied.  It is.

24                  ASSEMBLYWOMAN KELLES:  Okay.  


                                                                   225

 1                  Another question.  In March of 2024, 

 2           the list of vital tasks that we use for 

 3           determining someone's eligibility for managed 

 4           home care is going to reduce down to seven.  

 5           A lot of the things that are being removed 

 6           are tasks that really do identify limitations 

 7           in cognitive and physical disabilities.  And 

 8           I'm curious if that's being reevaluated, 

 9           given that the managed long-term care is 

10           certainly -- or home care -- is certainly 

11           much more cost-effective than someone being 

12           in a home.

13                  MEDICAID DIRECTOR BASSIRI:  Can you 

14           repeat the question?  I don't -- I didn't --  

15                  ASSEMBLYWOMAN KELLES:  So there is a 

16           list of vital tasks that are used to 

17           determine whether or not someone is eligible 

18           for home care, managed home care.  And that 

19           list was reevaluated and it's being reduced 

20           from 22 tasks down to seven tasks.  

21                  And my question is, given that that is 

22           much more cost-effective than someone being 

23           in a -- you know, in assisted living or a 

24           home, a nursing home, are we reevaluating 


                                                                   226

 1           this?  Since it's going to go into effect in 

 2           March of this year.

 3                  MEDICAID DIRECTOR BASSIRI:  I think 

 4           we'll have to take this one offline.  I think 

 5           you may be talking about a separate issue 

 6           with respect to eligibility.

 7                  ASSEMBLYWOMAN KELLES:  Happy to take 

 8           that offline.

 9                  Last question, given my time.  This 

10           past November the Drinking Water Quality 

11           Council recommended 23 PFAS chemicals to be 

12           designated as PFAS chemicals -- or as 

13           emerging contaminants.  And that would 

14           require statewide drinking water testing and 

15           notifications.  

16                  I'm curious when that is expected to 

17           come out, and if it's expected to come out 

18           before the budget, since it may have an 

19           impact, of course, on our budget.

20                  COMMISSIONER McDONALD:  It's -- yes, 

21           that happened.  We do listen to the Drinking 

22           Water Council.  I expect that that happened.  

23           I don't know the expected timeline.  It will 

24           be coming in the coming months, but it has to 


                                                                   227

 1           go through the regulatory process, is my 

 2           understanding.

 3                  ASSEMBLYWOMAN KELLES:  But we should 

 4           expect that to come out and they should -- 

 5           they will be identified and put in as 

 6           emerging contaminants.

 7                  COMMISSIONER McDONALD:  Right.  Yes.  

 8           It is my expectation -- some of this will 

 9           depend, too, on what we hear from the federal 

10           government as well.  Remember, the 

11           Environmental Protection Agency is doing 

12           their own list as well, and we plan on 

13           listening to that and then updating our list 

14           based on that.

15                  ASSEMBLYWOMAN KELLES:  Thank you.  

16                  ASSEMBLYWOMAN PAULIN:  Thank you very 

17           much.  

18                  Next on the Assembly list is Jonathan 

19           Jacobson.  

20                  ASSEMBLYMAN JACOBSON:  Thank you, 

21           Madam Chair.  

22                  I have three questions.  I've got to 

23           go quickly; we don't have a lot of time.  

24                  To Superintendent Harris, a lot of 


                                                                   228

 1           people are getting flooded all the time in 

 2           their homes, and they call their insurance 

 3           agent and they find out they got -- they 

 4           don't have coverage because wind-driven rain 

 5           is not covered.  It's never been discussed 

 6           with them.  

 7                  I would just hope that you could set 

 8           up new rules and regulations so there's more 

 9           disclosure on what is in a homeowner's policy 

10           and even a renter's policy, and to have some 

11           more evaluation because when someone's doing 

12           a closing they're looking to save every 

13           nickel, because it's costing them more than 

14           they thought, but that they should know what 

15           the risk/reward is on getting flood insurance 

16           or additional coverage.  

17                  So I'm wondering if we could do that.  

18                  DFS SUPERINTENDENT HARRIS:  

19           Absolutely, sir.  It's a very important 

20           issue.  And I'll note that we are providing a 

21           briefing for all members of the Legislature 

22           on Thursday around homeowner's insurance, 

23           flood, and climate change.  

24                  We do have rules around continuing 


                                                                   229

 1           education requirements for brokers and how 

 2           they must speak to homeowners about what's 

 3           contained in their insurance --

 4                  ASSEMBLYMAN JACOBSON:  I look forward 

 5           to new, stronger rules to make sure there's 

 6           more disclosure.

 7                  To Director Bassiri, it seems like 

 8           we're penny-wise and pound-foolish when it 

 9           comes to Medicaid spending for home health 

10           aides.  Because it's very hard to get the 

11           workers.  If we don't get the workers, 

12           they're going to the nursing homes, and the 

13           nursing home is the most expensive place for 

14           anybody to be taken care of.  

15                  So we've got to change it.  It can't 

16           look like it's just a budget item for this 

17           year; you've got to look more longer term.

18                  Do you think perhaps there could be a 

19           change of thinking on this?  

20                  MEDICAID DIRECTOR BASSIRI:  I mean, I 

21           think we're always looking to be more 

22           creative and innovative.  You know, 

23           Governor Hochul has made a tremendous 

24           investment in the home care worker wages and 


                                                                   230

 1           workforce, not just over the past couple of 

 2           years, but prospectively indexing that 

 3           increase to inflation and -- 

 4                  (Overtalk.)

 5                  MEDICAID DIRECTOR BASSIRI:  -- minimum 

 6           wage.  

 7                  ASSEMBLYMAN JACOBSON:  I've got to go 

 8           to my next question.  I hope that's a yes -- 

 9                  MEDICAID DIRECTOR BASSIRI:  Yes.

10                  ASSEMBLYMAN JACOBSON:  -- I'm not 

11           sure.  But I hope that's a yes.

12                  To Commissioner McDonald.  In the 

13           Hudson Valley, which I represent, the average 

14           time to get served, for want of a better 

15           term -- to be treated in a hospital is 

16           163 minutes.  At Vassar Brothers Hospital in 

17           Poughkeepsie, it's another 90 minutes -- 

18           250 minutes.  So that means it's better to go 

19           travel a half-hour or 25 minutes to Newburgh 

20           or Kingston to get treated.  

21                  How can we allow such long wait times 

22           like this?  Because it's -- you're not 

23           getting -- you're not getting treated.

24                  COMMISSIONER McDONALD:  I can't answer 


                                                                   231

 1           that in a second.

 2                  (Laughter.)

 3                  COMMISSIONER McDONALD:  We'll get back 

 4           to you, my friend.  We'll get back to you.

 5                  ASSEMBLYMAN JACOBSON:  All right.  

 6                  ASSEMBLYMAN WEPRIN:  Saved by the 

 7           bell.  

 8                  COMMISSIONER McDONALD:  I'm happy to 

 9           answer it if you guys -- it's your time 

10           limit, not mine.

11                  ASSEMBLYWOMAN PAULIN:  Next on the 

12           list is Khaleel Anderson.

13                  ASSEMBLYMAN ANDERSON:  (Mic issues.)  

14           Okay, there we go.  All right.  Thank you so 

15           much, Madam Chair, for allowing me a moment 

16           to just ask some questions. 

17                  It's good to see all of our 

18           commissioners here today.  Thank you, 

19           Commissioner McDonald, for in your opening 

20           remarks mentioning your trip to my district.  

21           I trust that you got to see some of the 

22           things we need to work on at our healthcare 

23           institutions across our state, including the 

24           parts of Queens that are distressed.  And 


                                                                   232

 1           hopefully we'll get you to come, 

 2           Superintendent Harris, to the district.  As 

 3           you know, we are a banking desert, and it's 

 4           really important to visit.

 5                  So my question first -- and I know my 

 6           time is short -- is for Commissioner 

 7           McDonald, and then I'll go over to 

 8           Superintendent Harris.  One of the things I 

 9           mentioned to you on that tour last year was 

10           the need for funding resources and a 

11           set-aside for hospitals that are 

12           geographically isolated.  I think I kicked 

13           this in your ear, among the other things we 

14           talked about.  

15                  And this is not something that is a 

16           phenomenon to my peninsula community in 

17           Southeast Queens, but this is stuff we're 

18           seeing in the North Country, other parts of 

19           the state.

20                  So I'm just wondering if there is an 

21           angle or a space in this budget to look at 

22           additional resources for geographically 

23           isolated hospitals.

24                  COMMISSIONER McDONALD:  Yes, so I 


                                                                   233

 1           really enjoyed my visit a lot.  I learned a 

 2           lot about Queens.  It was great to meet you 

 3           and others down there.  It was wonderful just 

 4           to see the healthcare situation down there.

 5                  You know, that '15 waiver does offer 

 6           some help in this regard, though.  And I 

 7           think this gets to one of those issues where 

 8           a lot of what the 1115 waiver is about is 

 9           when I say health equity, it's about getting 

10           the healthcare part of this to the people who 

11           need it the most and trying to deal with some 

12           of this isolation.  

13                  Because you're right.  Your area is 

14           different, and there is a uniqueness to it, 

15           but I think the 1115 waiver could be helpful 

16           in that regard.

17                  ASSEMBLYMAN ANDERSON:  Excellent.  I'm 

18           interested in following up with your folks to 

19           figure out how the fee waiver can be used to 

20           help support geographically isolated 

21           hospitals.  Because it's one thing when you 

22           have distressed hospitals, but then there's 

23           geographically isolated hospitals.  So we're 

24           looking forward to follow up on that.


                                                                   234

 1                  Superintendent, it's always good to 

 2           see you.  My first question -- and you know 

 3           I've been working really hard on the issue of 

 4           captive insurance.  And I noticed that -- 

 5           and, you know, we've been working on this 

 6           bill for a long time in figuring out how to 

 7           keep insurance providers who are in the state 

 8           providing that insurance and providing 

 9           support for those who need it.

10                  So I'm wondering if you can let me 

11           know if there's a cost associated with 

12           implementing captive insurances, including 

13           the one that was passed by the Legislature 

14           and implemented by the Executive last year in 

15           Ithaca.

16                  DFS SUPERINTENDENT HARRIS:  Yeah, so 

17           there are including $100 million in reserve 

18           requirements that are required for captives 

19           in the State of New York.  But always happy 

20           to talk offline or reply in writing about 

21           additional requirements that we have to make 

22           sure captive insurers are safe and sound.

23                  ASSEMBLYMAN ANDERSON:  So there's a 

24           $100 million price tag generally for a 


                                                                   235

 1           captive in general?

 2                  DFS SUPERINTENDENT HARRIS:  Yes.

 3                  ASSEMBLYMAN ANDERSON:  Okay, so we'll 

 4           follow up.  Thank you.  

 5                  ASSEMBLYWOMAN PAULIN:  Thank you very 

 6           much.  I'm on now for -- oh, no, Pam Hunter.

 7                  ASSEMBLYWOMAN HUNTER:  Yes, good 

 8           afternoon.  

 9                  This probably is for 

10           Commissioner McDonald.  

11                  I think we all are aware that there's 

12           an emergency room and healthcare crisis.  And 

13           just to set the stage a little bit, the 

14           traveling nurses who are getting paid 

15           exponentially more than someone who lives 

16           literally across the street from them -- and 

17           I note that there's a bill to try to take 

18           care of that, but that is a significant 

19           issue.  And I know you were talking about 

20           cutting spending, but we have to find a way 

21           to get that done.  

22                  So where I live in Central New York, 

23           there's a nursing home that has two days' 

24           cash on hand.  And I need to go to his county 


                                                                   236

 1           (to Assemblyman Jacobson), because we have 

 2           people waiting in the emergency room for 

 3           eight hours without even being seen.  So 

 4           apparently they must be doing something right 

 5           down there.  

 6                  But there's beds available but aren't 

 7           open.  In one of our nursing homes, the roof 

 8           actually collapsed, with patients, residents 

 9           in the nursing home.  A resident actually 

10           left through a window, and the people didn't 

11           even know in the nursing home that the person 

12           was gone.

13                  And then there's been conversations 

14           that, you know, really a health system has to 

15           be bankrupt before the Department of Health 

16           steps in.  So I guess I'm asking, how can -- 

17           if you can answer the question -- how can we 

18           alleviate this eight-hour wait time in the 

19           emergency room?  Because it's not just people 

20           not having primary care visits in order for 

21           them to go to, and it's not just a WellNow 

22           issue.

23                  And you spoke about talking with 

24           healthcare facilities about better finances 


                                                                   237

 1           and cutting spending.  So can you just give a 

 2           couple examples of where do you think they 

 3           need to cut spending?  And I'll give you the 

 4           rest of my time.  

 5                  COMMISSIONER McDONALD:  So I think the 

 6           emergency department wait time, which is 

 7           something I really appreciate you both 

 8           bringing up here, is a multifactorial issue.  

 9           There's a lot going on in it.  

10                  Where hospitals and emergency 

11           departments need help is getting staffs.  So 

12           if you have licensure compacts, you actually 

13           get nurses from other states who will 

14           practice here.  That will help.  

15                  And, you know, I think getting people 

16           like physicians is also another license 

17           compact.  But there's other scope-of-practice 

18           changes like a PA not necessarily having to 

19           be supervised.  Because hospitals can find 

20           ways to do that.  This is so they can hire 

21           more staff.  

22                  But there's other issues as well that 

23           we're dealing with here with this whole, you 

24           know, emergency department wait issue.  Part 


                                                                   238

 1           of it's just, quite frankly, not just the 

 2           availability of qualified professionals, but 

 3           just, you know, the throughput in hospitals.  

 4                  Like one of the things hospitals are 

 5           struggling with is you have someone who's 

 6           ready to go home but they can't get them to 

 7           the next destination, whether it's a nursing 

 8           home or some other setting of care.

 9                  So I'm more than happy to help 

10           hospitals try to solve the throughput 

11           problem.  I think that's one of the biggest 

12           issues we have right now, is helping 

13           hospitals move patients through their system.  

14                  Hospitals have a hard job.  There's 

15           nothing in our culture like a hospital where 

16           anybody can show up with any problem and the 

17           hospital is expected to solve it --

18                  ASSEMBLYWOMAN HUNTER:  Do you have an 

19           example of cutting spending?

20                  COMMISSIONER McDONALD:  I just gave 

21           you several.  I talked about labor.  Labor is 

22           the biggest cost.  It's about helping 

23           hospitals not have to hire agency nurses.  

24           The agency nurse costs are excessive, very 


                                                                   239

 1           excessive.

 2                  ASSEMBLYWOMAN HUNTER:  Thank you.

 3                  ASSEMBLYWOMAN PAULIN:  Is Phara here?

 4                  ASSEMBLYWOMAN FORREST:  Yeah.

 5                  ASSEMBLYWOMAN PAULIN:  Next.

 6                  ASSEMBLYWOMAN FORREST:  Good 

 7           afternoon, everyone.  

 8                  Superintendent Harris, according to 

 9           the American Diabetes Association, 

10           attributable costs to diabetes in New York is 

11           7 billion in premature mortality costs, 

12           11.3 billion in lost productivity costs, and 

13           17.3 billion in medical costs.  That's 

14           $35 billion in cost to the state for diabetic 

15           costs.  

16                  So do you think that getting rid of 

17           insulin copays and allowing access to the 

18           life-preserving drug will save the state more 

19           money or -- more money than any infinitesimal 

20           rise in premiums, insurance premiums?  

21                  DFS SUPERINTENDENT HARRIS:  Ma'am, I 

22           do.  I think we expect about a .03 to .04 

23           premium increase from -- as a result of the 

24           Governor's proposal to take cost-sharing for 


                                                                   240

 1           insulin to zero.  And some studies from other 

 2           states, including Louisiana, show that when 

 3           you take the cost-sharing for chronic disease 

 4           medications to zero, you can save quite a bit 

 5           in overall costs as people become 

 6           increasingly compliant with their care 

 7           requirements.

 8                  ASSEMBLYWOMAN FORREST:  Thank you so 

 9           much, Superintendent Harris.  Because I look 

10           forward to seeing us really take a stab at 

11           that $35 billion cost.

12                  DFS SUPERINTENDENT HARRIS:  Likewise. 

13           Thank you.

14                  ASSEMBLYWOMAN FORREST:  My next 

15           question is to either Commissioner McDonald 

16           or Dr. Bassiri.

17                  As a Black mama and one who gave birth 

18           at a public hospital, maternal health is very 

19           important to me.  Safety-net hospitals are 

20           especially dependent on Medicaid, correct?  

21                  COMMISSIONER McDONALD:  Yes.

22                  ASSEMBLYWOMAN FORREST:  Okay.  And in 

23           New York City particularly, Black women are 

24           more likely to deliver at a safety-net 


                                                                   241

 1           hospital or public health hospital, is that 

 2           correct?  

 3                  COMMISSIONER McDONALD:  Yes.

 4                  ASSEMBLYWOMAN FORREST:  Okay.  So the 

 5           Governor in her budget wants to battle Black 

 6           maternal health and -- and -- also cut the 

 7           Medicaid budget by $1 billion.  So what will 

 8           be the impact on safety-net hospitals and, by 

 9           extension, the Black maternal health be -- 

10           what will be, you know, what the impact will 

11           be by cutting the Medicaid budget by 

12           $1 billion?  And do these cuts contradict her 

13           goal in helping Black mamas like me?  

14                  (Applause.)

15                  COMMISSIONER McDONALD:  So I'm not 

16           aware of a $1 billion cut.  There are 

17           substantial investments in maternal health.  

18                  The Birth Equity Improvement Program 

19           is something new the department started last 

20           year, but I think it's very helpful.  Seventy 

21           percent of the hospitals are participating, 

22           and it covers 76 percent of births.  

23                  The Birth Equity Improvement Project 

24           is really trying to get to antiracist 


                                                                   242

 1           messaging, addressing people's implicit bias, 

 2           giving people a chance to actually interact 

 3           and tell us, retell, what their birth was 

 4           like.  Did you have a respectful birth?  That 

 5           kind of thing is very important, that 

 6           feedback's important.  

 7                  There are investments going on -- the 

 8           Perinatal Collaborative as well.

 9                  ASSEMBLYWOMAN FORREST:  Okay.  Thank 

10           you so much, Commissioner.  We'll talk more 

11           about it later.

12                  ASSEMBLYWOMAN PAULIN:  Thank you.  

13                  So now I'm on the clock for 

14           10 minutes.  

15                  First question, getting back to the 

16           issue of C-sections and the proposal.  

17           Exactly what are the financial incentives?  

18           It says financial incentives -- I'm reading 

19           your testimony -- to get hospitals to reduce 

20           unnecessary C-section births.  So I wondered 

21           exactly what the proposal looks like.

22                  MEDICAID DIRECTOR BASSIRI:  Sure.  

23           Thank you, Chairperson.

24                  We are investing funding in a Quality 


                                                                   243

 1           Incentive Program that really evaluates based 

 2           on a subset of hospitals that have a minimum 

 3           number of deliveries with caesarean rates 

 4           that are above, you know, the average.  We 

 5           will provide incentive funding if they're 

 6           able to get those rates down to the statewide 

 7           average.  And if they're at the statewide 

 8           average, we will give them incentive funding 

 9           if they get 1 percentage point down.

10                  So it's really targeted to help them 

11           or give them the incentive to make up-front 

12           investments and programmatic and clinical 

13           changes to prevent caesarean deliveries 

14           overall, and to reduce their number as 

15           compared to themselves.  So they have to 

16           improve.  

17                  ASSEMBLYWOMAN PAULIN:  So I guess two 

18           follow-up questions.  This is -- every 

19           hospital is eligible if they fall into those 

20           categories.

21                  MEDICAID DIRECTOR BASSIRI:  No.  

22           Every -- the hospitals that are eligible are 

23           those -- I believe it's with a minimum of 

24           500 deliveries in managed care.  On an annual 


                                                                   244

 1           basis.  I think it's 500.  I can get back to 

 2           you to confirm.

 3                  ASSEMBLYWOMAN PAULIN:  So they're not 

 4           only Medicaid patients, they're across the 

 5           board?

 6                  MEDICAID DIRECTOR BASSIRI:  Well, they 

 7           actually are -- it is 500 deliveries for 

 8           Medicaid managed care.

 9                  ASSEMBLYWOMAN PAULIN:  So it's only 

10           for -- so the only reduction program is for 

11           those who are enrolled in Medicaid.

12                  MEDICAID DIRECTOR BASSIRI:  That is 

13           what we are measuring against, yes.  That's 

14           what we are paying on.  We're paying through 

15           Medicaid and we're measuring their percentage 

16           of Medicaid deliveries.

17                  ASSEMBLYWOMAN PAULIN:  So do we know 

18           or have we looked at the amount of C-sections 

19           outside of that population?  Is there any 

20           program to address those excessive numbers?

21                  MEDICAID DIRECTOR BASSIRI:  I think 

22           there are, and --

23                  COMMISSIONER McDONALD:  So there is a 

24           robust maternal health package in the 


                                                                   245

 1           Department of Health.  We do work with the 

 2           Perinatal Quality Collaborative.  That's many 

 3           hospitals that deliver birth -- to have 

 4           birthing hospitals in the state.  And they 

 5           focus on all these quality metrics.

 6                  One of them is decreasing C-section 

 7           rates, particularly for low-risk individuals.  

 8           So that's one example of how the Perinatal 

 9           Collaborative does work.  And they do work 

10           also that addresses mortality as well, and 

11           adverse outcomes as well.  They're trying to 

12           all work collaboratively together to do that.

13                  ASSEMBLYWOMAN PAULIN:  So are those 

14           financial incentives?

15                  COMMISSIONER McDONALD:  The Perinatal 

16           Collaborative gets an additional $700,000.  

17           But it's not a financial incentive.  It's 

18           work we do with them so the hospitals learn 

19           best practices and work together.

20                  And they've had success in the past.  

21           I mean, they've actually done things that 

22           have -- we created protocols that all the 

23           hospitals use to improve birth outcomes and 

24           maternal outcomes.


                                                                   246

 1                  ASSEMBLYWOMAN PAULIN:  With all due 

 2           respect, we're 49th out of 50 states for 

 3           primary C-sections, and that's a problem.  

 4           Across the board, not just Medicaid.  

 5           Although I would argue, evidenced by the 

 6           report that came out by the department a 

 7           couple of years ago, that, you know, Black 

 8           and brown pregnant people are more at risk 

 9           for C-sections.  So -- but they're not 

10           necessarily on Medicaid.  It's because of 

11           their race.

12                  COMMISSIONER McDONALD:  Right.  But 

13           the Birth Equity Improvement Program is 

14           working on that as well, because you're 

15           hitting on I think very important issues, 

16           which is some of the racial disparities.  

17           Which shouldn't exist.  Not just for the 

18           C-section rate, but for the maternal 

19           mortalities.  And that's why there's a 

20           multipronged approach.

21                  There's also the Maternal Mortality 

22           Review Board.

23                  ASSEMBLYWOMAN PAULIN:  I would just 

24           think we might do more.


                                                                   247

 1                  COMMISSIONER McDONALD:  Happy to do 

 2           more, and I'm open to your ideas.

 3                  ASSEMBLYWOMAN PAULIN:  I think we 

 4           talked about that a little bit yesterday, but 

 5           I think there needs to be financial 

 6           incentives across the board to increase 

 7           midwifery.  That was also in the report.  We 

 8           need to have financial incentives for all 

 9           hospitals that are, as you say, above 

10           average, to reduce the C-sections.  I don't 

11           know that it's limited simply by Medicaid.

12                  COMMISSIONER McDONALD:  Well, you 

13           know, we do pay midwives 95 percent of what 

14           we pay obstetricians.  But I'm open to other 

15           suggestions you have.

16                  ASSEMBLYWOMAN PAULIN:  I think we 

17           should perhaps, if we want more midwives in 

18           hospitals, think about paying midwives more.

19                  COMMISSIONER McDONALD:  Oh, that's 

20           interesting.  Okay.  So you want to pay 

21           midwives more than obstetricians.

22                  ASSEMBLYWOMAN PAULIN:  Perhaps.  But I 

23           do think that, you know, you need to drive 

24           the change.  And if you want to drive the 


                                                                   248

 1           change, it's dollars that does that.

 2                  So I'm going to move on because I only 

 3           have not that much time.  Procurement.  You 

 4           know, according to the report issued to the 

 5           Legislature a few days ago, there has been 

 6           mergers and acquisitions in the MLTC 

 7           resulting from the quality metrics that we 

 8           enacted last year.  Specifically, nine MLTCs 

 9           do not meet those metrics, and there have 

10           already been seven acquisitions to conform to 

11           those standards, and one plan has closed.

12                  What is the need to go forward with an 

13           additional procurement of all plan types when 

14           we have proven that implementing quality 

15           metrics can effectuate the same change?

16                  MEDICAID DIRECTOR BASSIRI:  Thank you 

17           for the question.  It's a good one.

18                  I don't think that there -- the intent 

19           behind the proposal to procure managed care 

20           plans is not necessarily to hit the specified 

21           number of plans.  Which is more attendant to 

22           what we did last year by changing the 

23           standards, as you said.  But there's a lot 

24           more we can do to increase competition in the 


                                                                   249

 1           market.  There are products in managed 

 2           long-term care that are available on a 

 3           statewide basis, which is why we still have 

 4           partially capitated long-term-care plans.  

 5                  And I think we would take everything 

 6           into consideration that has been done by the 

 7           plans that have stepped up and acquired other 

 8           plans and helped us implement this proposal, 

 9           into consideration with the evaluation, in a 

10           way that would mitigate or minimize any 

11           impact to providers and/or members.

12                  ASSEMBLYWOMAN PAULIN:  Thank you.

13                  You know, I'm tempted just to go back 

14           to C-sections for a moment because I feel 

15           like I have a forum to talk about it, and so 

16           I'm going to mention a few other things.

17                  We should be doing -- I know the 

18           department supports this more value-based as 

19           far as specifically birth-concerned, driving 

20           that a little more.  I know that we're doing 

21           some of that, but we should be doing more of 

22           it.

23                  We should be informing women -- I 

24           would suggest that physicians are not doing 


                                                                   250

 1           that.  You know, one staff member of mine, 

 2           for example, a former staff member, had five 

 3           pregnancies, was never told that she could 

 4           hemorrhage, did, on the table of her fifth 

 5           pregnancy, because no doctor had informed her 

 6           that having successive C-sections was a 

 7           problem.  Educated, smart woman, never 

 8           informed.  She probably would have not had 

 9           that baby if she had known.

10                  And also there needs to be a little 

11           more analysis by the department to determine 

12           what are the causal factors -- you know, you 

13           might want to collect data on that.  For 

14           example, you know, a lot of midwives, for 

15           example, would argue -- and I would agree -- 

16           that giving an epidural in the middle of 

17           someone's labor could -- could delay the 

18           birth and therefore cause a C-section.

19                  Is that what is happening in some of 

20           the places?  We don't know.  So if you just 

21           look at the number of C-sections without 

22           looking at the before, you don't get at the 

23           issue.

24                  So the department has to do more data 


                                                                   251

 1           collection, more analysis of the hospitals 

 2           that have excessive rates.  And if we really 

 3           want to combat, you know, the excessive 

 4           number of C-sections that we have in this 

 5           state compared to every other state but 

 6           one -- and as you pointed out, I don't know 

 7           that it's Florida, yesterday.  

 8                  But New York has to be better than 49.  

 9           We need to do a lot more to enhance the 

10           Governor's proposal.  So I'm looking forward 

11           to the 30-day amendments.

12                  So with that, okay.  Pharmacy 

13           questions.  The department is a year into -- 

14           last year, this was all about 340B and about 

15           saving money.  How does the actual savings 

16           look against the projections?

17                  MEDICAID DIRECTOR BASSIRI:  Thank you 

18           for the question.

19                  We are on track to achieve the savings 

20           we projected and enacted in last year's 

21           budget.  There's a little bit of a timing 

22           issue with the way that our federal and state 

23           supplemental rebates come in, but we will be 

24           able to provide an update on that as we get 


                                                                   252

 1           closer in the budget process.  We're going to 

 2           hit those targets.

 3                  ASSEMBLYWOMAN PAULIN:  Great.  

 4                  Pediatric nursing homes, as we know, 

 5           care for the most vulnerable and sickest 

 6           children.  And was there an intention to 

 7           include pediatric SNPs in the cut, or can we 

 8           exempt -- was there consideration, and I 

 9           think they are included.  Is there 

10           consideration to exempting them?

11                  MEDICAID DIRECTOR BASSIRI:  There are 

12           certainly considerations, and there was not 

13           any intention to make a targeted reduction to 

14           those pediatric nursing homes.

15                  There are some state plan issues with 

16           trying to exempt them.  But we will explore 

17           that.  And if possible, I think that's 

18           something that you could see in negotiations.

19                  But I would also say we have the young 

20           adult demonstration that we put forward that 

21           really does support young adults as they age 

22           into -- age above 21, to keep that pediatric 

23           rate, which is over a thousand dollars a day.

24                  ASSEMBLYWOMAN PAULIN:  So I'm going to 


                                                                   253

 1           come back for my three minutes.

 2                  CHAIRWOMAN KRUEGER:  Senator Gustavo 

 3           Rivera, three-minute time limit.

 4                  SENATOR RIVERA:  Don't worry, it will 

 5           be quick.

 6                  School-based health centers, there is 

 7           the managed care -- the carveout for managed 

 8           care expires on the 31st of this month.  I'll 

 9           continue to beat on my bill to ensure that 

10           they continue to be reimbursed at fee for 

11           service.  But I just want to know, for the 

12           record, what can providers expect for -- on 

13           April 1st for the rates?

14                  COMMISSIONER McDONALD:  There are 

15           investments in this budget for school-based 

16           health centers.  You know we did the 10 

17           percent increase last year, but there's a 

18           million dollars to restore our cut from 2017.  

19           There's 1.5 million in this budget to enhance 

20           oral healthcare.  And then there's a million 

21           dollars in there as well to help community -- 

22           community health workers in there.

23                  So there isn't any plan right now to 

24           move school-based health centers into managed 


                                                                   254

 1           care.

 2                  Did I get all of what you wanted 

 3           there?

 4                  SENATOR RIVERA:  Kind of, but I'll 

 5           follow up afterwards.

 6                  COMMISSIONER McDONALD:  Okay.

 7                  SENATOR RIVERA:  There's -- to follow 

 8           up something on 340B, there was -- there's 

 9           one part that still is under managed care, 

10           which is provider dispensing.  And -- but 

11           you're making some changes into it in this 

12           budget, if I'm not mistaken?  So there's an 

13           elimination of it for provider dispensing in 

14           this budget, is that not correct?

15                  MEDICAID DIRECTOR BASSIRI:  No, that 

16           is not correct.

17                  SENATOR RIVERA:  That is not correct.  

18           So you were --

19                  MEDICAID DIRECTOR BASSIRI:  Provider 

20           dispensing in Medicaid is dictated by very 

21           clear federal rules that require acquisition 

22           costs-based survey to establish a 

23           professional dispensing fee.  So we don't 

24           have the liberty of making changes to that 


                                                                   255

 1           component of the reimbursement without going 

 2           through a process.

 3                  SENATOR RIVERA:  Then I am obviously 

 4           misunderstanding a part of it.  I will follow 

 5           up.  Because it was my understanding, based 

 6           on the language that we saw, that there is a 

 7           proposal to eliminate 340B benefits under 

 8           managed care in -- for provider dispensing.  

 9           But if I'm mistaken, well, I messed up.  

10                  Moving on -- so we'll revisit that -- 

11           there was money that was approved by the feds 

12           back in July that has not flowed to the 

13           distressed hospitals yet.  Do we have a 

14           timeline on that?

15                  MEDICAID DIRECTOR BASSIRI:  I think -- 

16           yes.  I think you're referring to the 

17           state-directed payment.

18                  As you see in the budget, we do have 

19           some financial pressures due to the subsidies 

20           that we've advanced certain hospitals.  But I 

21           think that's something we're actively 

22           discussing and --

23                  SENATOR RIVERA:  So no timeline that 

24           you can tell me now?


                                                                   256

 1                  MEDICAID DIRECTOR BASSIRI:  There's no 

 2           timeline right now.

 3                  SENATOR RIVERA:  Gotcha.

 4                  And last -- and you might be surprised 

 5           by this, but I want to finish on a lighter 

 6           note.  And that is to say that the proposals 

 7           that the Governor has made on medical debt, 

 8           there's a bunch of them that I'm a very, very 

 9           big fan of.  As I've said many, many times, 

10           the idea that medical debt are two words that 

11           are next to each other is an obscene 

12           proposition.  That's why we need to pass the 

13           New York Health Act, but we'll get to that a 

14           little bit later.

15                  At least for now, there's a bunch of 

16           proposals here, and I'm very much looking 

17           forward to working with the Governor and the 

18           administration on getting many of these over 

19           the finish line, because it is incredibly 

20           important that we protect people from medical 

21           debt.

22                  And the Knicks are doing fantastic, 

23           man, 9 and 2 since they cinched Anunoby.  I'm 

24           telling you, now they open up the floor, it's 


                                                                   257

 1           a little bit different, you got - I mean, 

 2           Brunson is playing -- 

 3                  (Time clock sounding.)

 4                  SENATOR RIVERA:  Oh, don't worry about 

 5           it, it's fine.

 6                  MEDICAID DIRECTOR BASSIRI:  Thank you.

 7                  (Laughter.)

 8                  ASSEMBLYWOMAN PAULIN:  Yes, we have a 

 9           three-minute follow-up from our Insurance 

10           chair, David Weprin.

11                  ASSEMBLYMAN WEPRIN:  (Mic issue; 

12           inaudible.)  Okay, I'm on, I'm green. 

13                  Going back to supplemental spousal 

14           liability reform.  There is a sunset on that, 

15           I believe.  Why is that?

16                  DFS SUPERINTENDENT HARRIS:  So the 

17           sunset was part of the previous proposal, and 

18           so when these amendments were put forward in 

19           this year's budget, the sunset was there to 

20           match and make sure there wasn't a timing 

21           mismatch between the original proposal and 

22           the amendments that were just put forward.

23                  ASSEMBLYMAN WEPRIN:  Okay.  And the 

24           sunset is when?


                                                                   258

 1                  DFS SUPERINTENDENT HARRIS:  Sir, I 

 2           don't have that in front of me, but happy to 

 3           come back to you.

 4                  ASSEMBLYMAN WEPRIN:  Okay.  All right, 

 5           fine.

 6                  And you had mentioned with the insulin 

 7           zero copayment there would be about an 

 8           18 percent savings, is that the number?

 9                  DFS SUPERINTENDENT HARRIS:  So the 

10           study in Louisiana that looked at zero 

11           cost-sharing for medications for a number of 

12           chronic diseases showed up to an 18 percent 

13           savings across the board.  So insulin is 

14           certainly a big driver of that.  Diabetes is 

15           a big driver of that, as your colleague 

16           noted.  And those are some of the best 

17           studies we have on proposals like this one, 

18           sir.

19                  ASSEMBLYMAN WEPRIN:  Okay, and what 

20           would that -- what would that savings be put 

21           to?  Where would that -- what would you do 

22           with that savings?

23                  DFS SUPERINTENDENT HARRIS:  Oh, that 

24           is not my decision to make, sir.


                                                                   259

 1                  ASSEMBLYMAN WEPRIN:  Okay.  And how 

 2           much money are we talking?  What do you think 

 3           the dollar amount would be?

 4                  DFS SUPERINTENDENT HARRIS:  I don't 

 5           have the dollar amount.  It actually is a 

 6           savings, in the Louisiana study, across the 

 7           healthcare system.  So it would be -- 

 8           potentially with respect to overall insurance 

 9           premiums, cost containment, when we look at 

10           providers.  But we don't have a breakdown of 

11           how that savings was allocated across the 

12           state of Louisiana when they did the study on 

13           this.

14                  ASSEMBLYMAN WEPRIN:  Okay.  That's 

15           fine, yeah.

16                  ASSEMBLYWOMAN PAULIN:  Oh, I'm just 

17           going to follow up with a couple of other 

18           questions.  I think you guys are done, right?

19                  CHAIRWOMAN KRUEGER:  I have one 

20           minute, later.  After you.

21                  ASSEMBLYWOMAN PAULIN:  Okay.

22                  I guess I was struck by the -- how 

23           much it cost to close a hospital.  You know, 

24           the capital expenditures that are going to be 


                                                                   260

 1           needed for SUNY Downstate.  And I also was 

 2           just texted by one of my colleagues, it's the 

 3           only midwifery program in Brooklyn.  So I was 

 4           just going to mention it.

 5                  But it's a lot of money.  Not that 

 6           those improvements to outpatient don't need 

 7           to be done in all of that in order to shore 

 8           up the community, I get it.  But at the same 

 9           time there's a decrease in the capital for -- 

10           overall for hospitals.  And since the 

11           waiver's only going to address 12 hospitals, 

12           and we know we have 75 financially distressed 

13           and probably a lot more on the brink, you 

14           know, is that -- you know, for hospitals that 

15           could make their own improvements and 

16           increase their own outpatient, isn't that 

17           a -- you know, I guess I'm asking why.

18                  COMMISSIONER McDONALD:  I need the 

19           question in a way that I can understand a 

20           little better -- I'm not following you right 

21           now.

22                  ASSEMBLYWOMAN PAULIN:  So it seems to 

23           me that you need a lot of capital in order to 

24           close a hospital and transition them to 


                                                                   261

 1           outpatient vis-a-vis SUNY Downstate.  And yet 

 2           at the same time we have a lot of hospitals 

 3           that we're not really dealing with in the 

 4           budget because it's very expensive.

 5                  So why don't we increase -- why is the 

 6           capital decreased at a time when we know they 

 7           have to transition to more outpatient 

 8           universally across the board?

 9                  COMMISSIONER McDONALD:  I'm a little 

10           uncomfortable talking about Downstate 

11           specifically because quite frankly it just 

12           hit the news and it's in the regulatory 

13           process now.  So I don't want to specifically 

14           address that --

15                  ASSEMBLYWOMAN PAULIN:  Not -- I'm 

16           really not asking about Downstate.  I'm 

17           asking about the capital.

18                  COMMISSIONER McDONALD:  Fair enough.  

19           But let's talk about it, then.  

20                  What do you --

21                  MEDICAID DIRECTOR BASSIRI:  I don't 

22           know that there's necessarily been a 

23           reduction in hospital capital.  But there are 

24           new things that can be paid for with the 


                                                                   262

 1           hospital capital, including transformative 

 2           projects that may include, you know, 

 3           partnerships or things that are not 

 4           traditionally funded through our statewide 

 5           healthcare transformation programs.

 6                  But I don't think it's a reduction, 

 7           and we're happy to confirm that in writing 

 8           with you.  It's really another tool in the 

 9           toolbox to support, you know, safety-net 

10           hospitals and trying to redesign 

11           community-based care.

12                  ASSEMBLYWOMAN PAULIN:  And just one 

13           last thing.  Going back -- or going to what 

14           my counterpart in the Senate, Senator Gustavo 

15           Rivera, said about -- and also right here -- 

16           managed care is supposed to manage care.  You 

17           know, and I am -- again, a lot of groups are 

18           coming and saying, we want to go back to 

19           fee-for-service, thinking that's going to be 

20           a better system because care isn't being 

21           managed.  It's just being administered.

22                  And so I don't know if there's a hard 

23           look at what that reality is.  And this is 

24           the end.


                                                                   263

 1                  CHAIRWOMAN KRUEGER:  (Mic off.)  Thank 

 2           you.

 3                  I think I will be the last Senator 

 4           too.  (Inaudible.)  Oh, it's not on.  Thank 

 5           you.  

 6                  So I'm not saying you need to be able 

 7           to answer it now; we have no time.  But I 

 8           would love for you to come in and sit with me 

 9           and Gustavo Rivera and our staff and help us 

10           understand, when we pay for managed long-term 

11           care, how do the contracts work?  Do we pay X 

12           amount for the actual workers, Y amount for 

13           the managed care, Z amount for something 

14           else?  And do we pay different amounts based 

15           on the level of need per patient?  And who 

16           makes the decisions about how many hours per 

17           patient are being contracted for?  And if we 

18           get 10 hours, do we pay less than if we're 

19           getting 20 hours, or does the agency keep the 

20           difference if they're providing less number 

21           of hours?

22                  So you can't answer in two minutes, I 

23           know that.  But I would love to be able to 

24           sit down and try to help the Senate and the 


                                                                   264

 1           Assembly, if they like also, to get our arms 

 2           around what are we spending and on what 

 3           pieces of the puzzle.

 4                  MEDICAID DIRECTOR BASSIRI:  I would 

 5           love to do that with you.  Anytime.

 6                  CHAIRWOMAN KRUEGER:  Okay, thank you.

 7                  No, no more Knicks, I don't know 

 8           sports.  I'm going to give up my 1 minute and 

 9           37 seconds to close us down.  Thank you all.  

10           Pardon me?  Thank you all for your time with 

11           us today.  And you do have many questions 

12           already on your lists to answer, and we will 

13           do the follow-up on the math in long-term 

14           care Medicaid.  We'll find a time sooner than 

15           later.

16                  And I want to thank you all for your 

17           work every day and your time with us today.  

18           And I want everyone to -- if they're 

19           following these four people out to chase them 

20           down, bother them outside in the hallway, not 

21           here in the room, because we -- you might 

22           have noticed we're only going to Panel A, and 

23           we have pages of panels.

24                  So I would like the Greater New York 


                                                                   265

 1           Hospital Association, the Healthcare 

 2           Association of New York, and 1199 to join us 

 3           here.

 4                  (Applause.)

 5                  CHAIRWOMAN KRUEGER:  Okay.  Okay.  And 

 6           also, just because this happens every year, 

 7           we run later than everyone imagined we 

 8           would -- and so if you decide you have to 

 9           catch a train and go home before we're going 

10           to call you up at 9 o'clock tonight, we won't 

11           take offense.  Everyone's testimony is up 

12           online and it will stay there, available.  

13           And so just let somebody here in the front 

14           know if you're leaving so we're not trying to 

15           track you down six hours from now when you 

16           really decide that it was time to get on a 

17           train wherever.

18                  So thank you to the ending panelists, 

19           welcome the new panelists, and let's 

20           transition quietly.  Thank you. 

21                  Everyone take your conversations 

22           outside.  Not in here.  You can come back 

23           when you're done chatting.

24                  Okay, great.  So I see some of our 


                                                                   266

 1           panelists.  Where did the rest go?  Okay, 

 2           great.  Great.  And I guess we'll start in 

 3           the order that you're in, Ken Raske, then 

 4           Bea Grause, and then George Gresham.

 5                  And we do have new microphones.  And 

 6           if you weren't here earlier today, you don't 

 7           know yet; you have to push the button very 

 8           hard to get it to go from red to green just 

 9           when you're talking.  So just letting you 

10           know that.

11                  Okay, Ken, shall we start with you?

12                  MR. RASKE:  (Mic off; inaudible.)

13                  CHAIRWOMAN KRUEGER:  Absolutely.  We 

14           shall defer to Bea Grause.  Welcome.

15                  MS. GRAUSE:  Thank you.

16                  Good afternoon, Chairs Krueger, 

17           Paulin, and Rivera -- I don't know where they 

18           went.  Oh, there you go -- and other members 

19           of the Senate and Assembly.  Good afternoon.  

20           Thank you very much for the opportunity to 

21           testify.  

22                  You know, the ED backlogs, the unit 

23           closures, the lack of access to nursing home 

24           beds, the lack of access to home care -- many 


                                                                   267

 1           of the comments and questions that you raised 

 2           earlier today, they are all symptoms of a 

 3           failing financial infrastructure for New York 

 4           State.  Given our aging population, 

 5           healthcare workforce shortages, health 

 6           disparities and medical advances, we know we 

 7           have to come together to find new, 

 8           sustainable solutions to provide access to 

 9           improved health and to achieve and maintain 

10           affordability.  

11                  That is the backdrop that we are all 

12           operating -- that we all must consider 

13           eventually.  And there are no cheap, easy or 

14           quick solutions to it; it will take years.  

15           That is the long-term backdrop.

16                  But right now, this budget, we must 

17           focus on stabilizing the healthcare system 

18           that New Yorkers depend upon today.  I'm 

19           going to talk about two issues.  There 

20           certainly are many.  But the first one, 

21           obviously, is Medicaid.  

22                  Woefully inadequate Medicaid 

23           reimbursement has been and continues to be 

24           central to hospitals and nursing homes.  And 


                                                                   268

 1           the Governor and the Legislature must close 

 2           the Medicaid gap and make a significant 

 3           down payment this year.

 4                  Last year's Medicaid rate increases 

 5           were a good start, but the rate increases for 

 6           hospitals in particular was largely offset by 

 7           other reductions such as 340B, and for 

 8           nursing homes it was overshadowed by the 

 9           staffing requirements.

10                  These rate increases, the 7.5 and the 

11           6.5 percent, were also the first of 

12           significance in 15 years.  Fifteen years.  

13           And they in no way resolve the gap that is 

14           widening as labor costs, drug costs, supply 

15           and equipment costs continue to rise faster 

16           than inflation.

17                  The Executive Budget -- and you talked 

18           a lot about this this morning and early this 

19           afternoon -- the 1115 waiver also wholly 

20           fails to address the urgent need to stabilize 

21           all hospitals and nursing homes.  And again, 

22           the 1115 waiver is largely not addressing 

23           stabilization, which as one member said 

24           really is akin, for hospitals, to throughput.  


                                                                   269

 1                  In addition, the Executive Budget's 

 2           proposals, both defined and yet to be 

 3           defined, may in fact result in hospital and 

 4           nursing home funding being cut by 

 5           $1.3 billion.  And again, I urge the 

 6           Legislature to make a multiyear commitment to 

 7           close the Medicaid reimbursement gap and to 

 8           maintain and increase supportive funding.

 9                  Second, we must continue to build the 

10           workforce pipeline and bolster our current 

11           workforce.  Hospitals and nursing homes 

12           statewide face tremendous challenges 

13           recruiting for a wide variety of clinical and 

14           nonclinical roles, as we've talked about 

15           today.  HANYS supports many essential 

16           workforce proposals advanced by the Governor, 

17           including joining the interstate nursing and 

18           physician licensure compacts and enacting 

19           many critically needed scope of practice 

20           reforms.

21                  I'll conclude by urging you to oppose 

22           any harmful policies or funding cuts that 

23           further threaten provider sustainability, 

24           including the cuts proposed within the 


                                                                   270

 1           Executive Budget.  New Yorkers expect their 

 2           local hospitals and health systems to be 

 3           there when they need them -- and without your 

 4           support, they won't.   

 5                  Thank you.

 6                  CHAIRWOMAN KRUEGER:  Thank you.

 7                  Ken Raske, you want to go next?

 8                  MR. RASKE:  Yes, Madam Chairman, thank 

 9           you.  As always, a pleasure to see the 

10           {inaudible} group of individuals and esteemed 

11           legislators.

12                  Today is a very special day.  It 

13           represents a hallmark in healthcare policy 

14           formulation in New York State.  George 

15           Gresham, my partner and fellow proposer, is 

16           here today to ask for your help.  We need 

17           your help in establishing a very simple but 

18           very important policy position in healthcare 

19           in this state, and that is to eliminate, 

20           eliminate the disparities in Medicaid 

21           payment, to come up to at least paying the 

22           cost of care, and at the same time eliminate 

23           the disparities in healthcare indices in our 

24           communities of color.


                                                                   271

 1                  How simple of a request is that?  And 

 2           we look at that and we ask you, we are going 

 3           to work on that proposal over four years to 

 4           get it accomplished.  This is the equivalent 

 5           of going to the moon in a spacecraft, except 

 6           that this is accomplishable in our own 

 7           backyard.  And we need to do this for the 

 8           people of this state.  

 9                  We have gone to the executive branch, 

10           and we have made this proposal:  Let's work 

11           together and roll up our sleeves to do this.  

12           But as you can see, the budget that you have 

13           before you for consideration does not have 

14           one peep on this subject.  And that is a 

15           tragedy for this state.

16                  We have many, many issues of our 

17           hospitals in fiscal distress.  You can hear 

18           that.  You heard it from Bea.   You know 

19           about it from your communities.  And we also 

20           know that last year's budget -- you know what 

21           I call last year's budget from the Executive 

22           point of view?  An inconvenient truth.  Now, 

23           you maybe heard that before, an inconvenient 

24           truth.  What does it mean?  Yeah, they got 


                                                                   272

 1           7.5 percent increase in rates.  Except, Amy, 

 2           you know they wiped everything out with 340B 

 3           and with a cut that was involved in the 

 4           polls.  So what kind of arithmetic is that?  

 5           It's like 1.6 percent.  

 6                  So, ladies and gentlemen, we have the 

 7           side of right on our side as we present this 

 8           to you.

 9                  Finally, I would make the point, gee, 

10           how are you going to pay for it, Ken?  Well, 

11           the answer is, you're sitting on a mountain 

12           of cash, probably the most cash certainly in 

13           the history of this state, and probably in 

14           the United States.  And that cash is more 

15           than enough to cover the reserve requirements 

16           of all the entities that you're involved in.

17                  So let's use a smidgen of that cash to 

18           make a down payment, ladies and gentlemen, on 

19           this basic plan.

20                  CHAIRWOMAN KRUEGER:  Thank you, Ken.

21                  (Applause.)

22                  CHAIRWOMAN KRUEGER:  Thank you.  We 

23           would appreciate, actually, even when you 

24           agree with folks, if you just not applaud, 


                                                                   273

 1           because we can't keep going.  

 2                  This -- great, this is a great way to 

 3           show your appreciation.  Thank you.  Thank 

 4           you so much.

 5                  Next we have George Gresham from 1199.  

 6           Good afternoon.

 7                  MR. GRESHAM:  Thank you very much.

 8                  (Audience reaction.)

 9                  MR. GRESHAM:  I would say that it's a 

10           pleasure to be here and to see you, but the 

11           reason why I'm here is not a pleasure at all.  

12           In five minutes I'm going to try to tell you 

13           something that I hope will compel you to make 

14           changes in the proposed budget.

15                  You know, this is my 60th anniversary 

16           where my parents brought me from the South as 

17           a part of the Northern migration, to take me 

18           out of segregation and the world that I was 

19           living in down South.  And we made a lot of 

20           progress over the years, only to see some of 

21           that being reversed back.  

22                  What I want to talk about today is the 

23           Medicaid cuts.  When I was asked by the 

24           Greater New York Hospital Association to get 


                                                                   274

 1           involved in this conversation, when I looked 

 2           at the facts, I was like, this is not just 

 3           about balancing the budget, this is a civil 

 4           rights issue.

 5                  When you look at the reduction of 

 6           Medicaid when a person comes in, why does 

 7           that make sense to give them, the hospital, 

 8           30 percent less care, the hospitals and 

 9           nursing homes?  What does that mean to me?  

10           That means that the people that are being 

11           serviced are 30 percent less human.  How can 

12           you deny the fact that the communities that 

13           primarily are being faced with these cuts are 

14           the Black and brown communities.  How can we 

15           stand up and say that that's okay?

16                  It is outrageous when you look at 

17           COVID and what COVID came to visit upon us, 

18           where were the highest fatalities?  They were 

19           in the Black and brown communities.  Why? 

20           Because we are not the healthiest 

21           communities.  COVID was clearly survival of 

22           the fittest.

23                  How long are we going to go with this?  

24           This is racism, from my perspective.  I would 


                                                                   275

 1           hope that people understand that, that you 

 2           can see it, that you say New York is better 

 3           than this and that we're not going to 

 4           reimburse the hospitals 30 percent less for 

 5           taking care of the Black and brown community.  

 6           I'm going to raise my voice as loud and as 

 7           long as I can, because this is outrageous.  

 8           But I'm hoping that you're going to partner 

 9           with me.  And even if you were not aware of 

10           it before, that in the year 2024, this is 

11           absolutely unacceptable.

12                  MR. RASKE:  Thank you, George.

13                  (Audience reaction.)

14                  CHAIRWOMAN KRUEGER:  (Mic off.)  Thank 

15           you.  (Inaudible; modeling silent applause.)

16                  Thank you.  I think our first 

17           questioner is Zellnor Myrie.

18                  SENATOR MYRIE:  Thank you, 

19           Madam Chair.  

20                  And thank you for taking the time to 

21           testify before us today.

22                  I have one quick question.  Can you 

23           talk to us about what impact this has on the 

24           workers?  We talk a lot about the service to 


                                                                   276

 1           the community, we talk a lot about the 

 2           healthcare provision and the impact on the 

 3           patients.  But can you talk about how this 

 4           discrepancy has affected the workforce?  And 

 5           that's for the whole panel.

 6                  MR. GRESHAM:  Sure, I'm happy to talk 

 7           about the speed-up that it has caused the 

 8           workers.  For example, the safety-net 

 9           institutions, on any given day you can go 

10           into the emergency room and it looks like a 

11           war MASH unit.  People are talking care of 

12           patients on stretchers in the hallway.  That 

13           has a tremendous impact.  

14                  Think about during COVID when the 

15           workers did not even have PPEs.  They could 

16           not protect themselves.  They watched their 

17           families, they watched their coworkers die, 

18           and they were worried about taking diseases 

19           home to their families.  We cannot imagine 

20           how the workers had the courage to come in 

21           every day to fight.  

22                  And the resources that the hospitals 

23           get -- so in many of our communities, there 

24           aren't any clinics now.  The family physician 


                                                                   277

 1           is the emergency room.  And so in the more 

 2           affluent neighborhoods, when you would 

 3           present with a cold, more than likely you're 

 4           going to present with pneumonia by the time 

 5           you come through the emergency room.

 6                  This is -- is this really -- is this 

 7           the best that we can do?  Is this really what 

 8           we feel about our Black and brown and 

 9           low-income people?  Because low-income, 

10           Black, brown, green or yellow, if you don't 

11           have the means, you deserve quality 

12           healthcare.  Sixty years ago Dr. King said:  

13           "Of all the disparities that exist in this 

14           country, the most egregious is healthcare."

15                  I still have time?  I thought I saw a 

16           light go on there.

17                  MS. GRAUSE:  I'll just add quickly, I 

18           worked for 10 years as an emergency room 

19           nurse in a county hospital -- not in 

20           New York -- and I would say the impact on 

21           health workers really has less to do about 

22           the physical surroundings than it has to do 

23           with the frustrations and challenges of not 

24           being able to refer patients to the proper 


                                                                   278

 1           care setting.  So if they came in, they 

 2           didn't have a clinic to go to or there wasn't 

 3           a physical therapist that would take them.

 4                  So I think that frustration at not 

 5           being able to provide the care to patients is 

 6           really very wearing on healthcare workers.

 7                  CHAIRWOMAN KRUEGER:  (Mic off; 

 8           inaudible.)  Thank you.

 9                  Assembly.

10                  ASSEMBLYWOMAN PAULIN:  Yes, we have 

11           Assemblymember Josh Jensen, ranker on Health.

12                  ASSEMBLYMAN JENSEN:  Thank you very 

13           much, Chairwoman.

14                  When we're looking at our hospitals -- 

15           and kind of piggy-backing on some of the 

16           things that Commissioner McDonald said 

17           previously, talking about entering different 

18           compacts, expanding scope of practice -- as 

19           you look at, especially in Greater New York 

20           and in HANYS, your member hospitals, how 

21           critically important is it across the care 

22           continuum to ensure that we're rightsizing 

23           the workforce to meet the needs of all the 

24           patients who are entering into our nursing 


                                                                   279

 1           homes -- or in our hospitals, whether it's in 

 2           EDs, the acute care settings, surgical?

 3                  MR. RASKE:  I'd like to begin, sir.  

 4           Thank you.

 5                  There is nothing more important in the 

 6           healthcare community, and especially the 

 7           hospital community, than our workforce.  We 

 8           have the best and most committed and most 

 9           talented workers in the United States.  And I 

10           say to every one of them, God bless whatever 

11           they have done in their lives to get to 

12           achieve that status.

13                  And to go further, the best investment 

14           that we can make is in our workforce, for the 

15           future.  There are no bad ideas in workforce 

16           development.  Some are better than others, 

17           but there are no bad ideas.

18                  So as the community gets together, 

19           working with labor, so often as we do, we 

20           like to come up with ideas, present them to 

21           the legislative body, to the Congress at the 

22           federal level, for development of our 

23           workforce for the future.  And in that 

24           process, and in that process, we can assure 


                                                                   280

 1           the finest of patient care, sir.

 2                  MS. GRAUSE:  I would just add that I 

 3           think -- again, I think there are a lot of 

 4           good ideas.  The purpose of that is to -- 

 5           financially for hospitals is to expand 

 6           ability to recruit and retain, enlarge the 

 7           pipeline and enhance scope of practice so 

 8           that the costs of providing healthcare are 

 9           reduced.

10                  So again, in light of the financial 

11           crisis, you want to make sure that you're 

12           reducing expenses as much as you possibly can 

13           without compromising care.

14                  ASSEMBLYMAN JENSEN:  So would some of 

15           these proposed changes or ideas not just help 

16           reduce the reliance on agency staff as a 

17           critical component of the staffing needs, but 

18           also help to meet some of the mandated 

19           staffing ratios that the Legislature and the 

20           Executive had signed off on a couple of years 

21           ago?

22                  MR. RASKE:  Well, you know, the agency 

23           staff dependence is a real problem.  And -- 

24           and that is the goal of the hospital 


                                                                   281

 1           community, is to eliminate it in terms of our 

 2           dependence on it.  And the only way to do 

 3           that is to obviously invest in workforce 

 4           development, sir.

 5                  ASSEMBLYMAN JENSEN:  Very quickly, 

 6           would it make sense to possibly look at 

 7           geofencing where agency staff can work, so 

 8           they can't work in the same communities that 

 9           they live in?

10                  MR. RASKE:  Well, I think just in 

11           emergency situations is really what -- what 

12           you should depend on it.  But not as a 

13           continuum dependency as it is today in some 

14           communities.  Right, Bea? 

15                  Thank you.

16                  CHAIRWOMAN KRUEGER:  Thank you.

17                  Senator Gallivan, ranker, for five 

18           minutes.

19                  SENATOR GALLIVAN:  Thank you, 

20           Madam Chair.  Good afternoon.

21                  MS. GRAUSE:  Good afternoon.

22                  SENATOR GALLIVAN:  Appreciate, as 

23           always, you guys being here, and your 

24           testimony.


                                                                   282

 1                  I think you've made it very clear, 

 2           your thoughts, and I think we've heard your 

 3           thoughts and biggest concern, of course, is 

 4           the Medicaid reimbursement gap, so I won't 

 5           focus on that.  But there are some specific 

 6           proposals -- well, they're specific with the 

 7           words but not necessarily specific with 

 8           details -- proposals in the Governor's budget 

 9           regarding increased financial assistance by 

10           hospitals, and addressing medical debt that 

11           no doubt will have an effect on hospitals.

12                  So whoever feels most appropriate to 

13           answer:  What impact will those proposals 

14           have on hospitals?

15                  MS. GRAUSE:  I think, as the 

16           commissioner said, the -- we have not done 

17           any financial analysis on what the impact on 

18           hospitals would be, and I know that the 

19           commissioner did testify that they assumed 

20           that it would not be major.  We don't know 

21           the answer to that.  

22                  It does, I think -- behind your 

23           question, Senator, is a question of who pays.  

24           And what happens if -- in the instance if 


                                                                   283

 1           there is yet another reason why 

 2           reimbursement -- why hospitals are not 

 3           receiving reimbursement that they need.

 4                  So I think that it isn't -- it is a 

 5           question of what the impact's going to be.  

 6           We just have not done that analysis.

 7                  MR. RASKE:  Lookit, I'm going to be a 

 8           little bit more clear.  

 9                  This budget stinks.  And I can tell 

10           you why.  It stinks because it's built on a 

11           shaky foundation, the foundation of which has 

12           this disparity, and perpetuates it.  Even 

13           worse, if you adopted this budget, it 

14           wouldn't perpetuate the 30 percent, it would 

15           increase it and make it worse.

16                  So therein lies what the real problem 

17           is.  The investment, the objective that 1199 

18           or the Greater New York Hospital Association 

19           or our colleagues at HANYS are talking about 

20           is very simple.  Let's eliminate the 

21           disparity over four years, let's work 

22           together, roll up our sleeves, and we can do 

23           it and, in the process of doing it, eliminate 

24           the healthcare disparities in our communities 


                                                                   284

 1           of color. 

 2                  My God, how much more simple than that 

 3           can it be than to do that and say, Amen.

 4                  (Audience response of "Amen.")

 5                  CHAIRWOMAN KRUEGER:  Remember --

 6                  SENATOR GALLIVAN:  I think I'm good.  

 7           I think I know the answer to the rest of my 

 8           questions.  But thank you.

 9                  CHAIRWOMAN KRUEGER:  That it?

10                  SENATOR GALLIVAN:  I'm good, yes.

11                  CHAIRWOMAN KRUEGER:  Okay, thank you.

12                  Assembly.

13                  ASSEMBLYWOMAN PAULIN:  Thank you.

14                  Assemblymember Bores.

15                  ASSEMBLYMAN BORES:  Thank you for 

16           being here.  And thank you for fighting to 

17           close this gap this strongly and this 

18           passionately.

19                  I want to help sort of dispel some of 

20           the arguments we hear against this, so if you 

21           can just help with some of those.  We want to 

22           be able to match the costs that hospitals 

23           have that some people say those costs are not 

24           being contained appropriately, that instead 


                                                                   285

 1           hospitals are just investing in fancy rooms 

 2           and all of that.  Do you have a sense of how 

 3           much hospital costs are going up from 

 4           improving facilities or things that are more 

 5           luxurious?

 6                  MR. RASKE:  We have a really good 

 7           idea.  The hospital costs have increased 

 8           substantially in the last decade, and not 

 9           offset by any revenue increases that come 

10           close to it.

11                  It is for that reason, in the 

12           Governor's --

13                  ASSEMBLYMAN BORES:  I just want to be 

14           precise, if you followed the --

15                  MR. RASKE:  No, no, in the Governor's 

16           State of the State the Governor said clearly 

17           that 42 percent of the hospitals in 2021 were 

18           losing money.  If she would have done the 

19           same calculations --

20                  ASSEMBLYMAN BORES:  I don't mean to 

21           interrupt, but I just have three minutes.  

22           The question is, how much of the increased 

23           costs are investing in fancier facilities?  

24           Do you have a rough sense of that?


                                                                   286

 1                  MR. GRESHAM:  Well, let me just say 

 2           this, first of all.  You're not talking about 

 3           all of New York when you talk about that.  In 

 4           the safety nets, there is no increase.  There 

 5           is no fancy goddamn equipment.  It is people 

 6           that are suffering because of their zip 

 7           code -- 

 8                  ASSEMBLYMAN BORES:  Thank you.  That's 

 9           what I was looking for.  Thank you.

10                  And so would you say that it's now 

11           become, say, standard in hospitals to have 

12           single-occupancy beds and that that's driving 

13           the cost?  Is that what you see?

14                  MR. GRESHAM:  Yes, sir.

15                  ASSEMBLYMAN BORES:  Okay.  Has it 

16           become standard to have sort of the larger 

17           emergency room departments that are not 

18           behind curtains or et cetera?

19                  MR. GRESHAM:  Obvious.  I invite 

20           anyone to visit any safety-net hospital ER on 

21           any given day and then the answer will be 

22           obvious.  This is not humane treatment that 

23           people are receiving.

24                  ASSEMBLYMAN BORES:  Sorry, you're 


                                                                   287

 1           saying that standard hospitals now -- the 

 2           standard is to have single occupancy but 

 3           we're not getting to see that in safety nets, 

 4           right?  That's the disparity that we're 

 5           talking about?  I just want to clarify.

 6                  MR. GRESHAM:  I'm not sure if --

 7                  ASSEMBLYMAN BORES:  Hospitals have 

 8           historically have had double-occupancy rooms.  

 9           There's now been more and more of a move, 

10           especially in fancy ones, of single 

11           occupancy.  Are you saying that that is now 

12           standard?  Is that driving costs?  

13                  I'm just trying to get at what's 

14           driving --

15                  MS. GRAUSE:  I think without capital 

16           you -- what -- I think another way to say 

17           what you're saying is that hospitals without 

18           access to capital and with inadequate 

19           reimbursement cannot upgrade their facilities 

20           in the way that others can.  And that results 

21           in double-occupancy --

22                  MR. RASKE:  The one thing you should 

23           know about this budget is this budget goes 

24           backwards on safety-net hospitals, on top of 


                                                                   288

 1           what we are talking about.  It actually is a 

 2           retrenchment on the contribution even with 

 3           the federal waiver.  Even with.  It's like a 

 4           bait-and-switch.

 5                  ASSEMBLYWOMAN PAULIN:  Thank you.

 6                  ASSEMBLYMAN BORES:  Thanks.

 7                  ASSEMBLYWOMAN PAULIN:  Senator Comrie.

 8                  SENATOR COMRIE:  Yes, thank you.

 9                  I have a similar question, but I just 

10           want to ask another question first.

11                  Do you have an understanding of the 

12           hospitals' capacity for New York State and 

13           how the Berger report, which was 25 years 

14           ago, talked about under-bedding?  And we were 

15           trying to get a bill passed earlier, I heard, 

16           to understand what the policies and practices 

17           for opening up new hospitals or -- because we 

18           have a series of hospitals that are being 

19           opened in northern Mid-Manhattan, but nothing 

20           being done to save existing hospitals.  

21                  And also in Queens, where we are 

22           severely underbedded, to open hospitals -- 

23           especially in Southeast Queens, which is a 

24           safety-net area, we only have one hospital in 


                                                                   289

 1           Southern Queens that is doing all of the 

 2           work.  It's in danger of closing too.  

 3                  The second floor talked about they 

 4           would have to do a million-dollar study to 

 5           ascertain those numbers.  Don't you have 

 6           those numbers on a regular basis that you can 

 7           show people or show the state to prove where 

 8           we need hospitals and resources now?

 9                  MR. RASKE:  We can slice and dice any 

10           bit of information, sir, for you that you 

11           would like.  We can give by service areas, we 

12           can do beds.  Beds is just a proxy, because 

13           the medical care system has advanced so much 

14           in the decades that certainly I've been 

15           involved in it, that beds is not necessarily 

16           a good measure for a lot of communities of 

17           availability of good healthcare services.

18                  You take, for example, I'm having an 

19           outpatient procedure and surgery next -- this 

20           upcoming Thursday.  Ten years ago that very 

21           same procedure that's going to be done on me 

22           was done on an inpatient basis.  So there is 

23           this great change that is going on, sir.

24                  But we can give you whatever you wish 


                                                                   290

 1           in terms of information.  I know that's from 

 2           Bea, it's from us.  We -- certainly our 

 3           colleagues at 1199 feel the same way.  

 4           whatever you need, sir, we could provide you.

 5                  SENATOR COMRIE:  Thank you.  And we 

 6           also need to make sure --

 7                  MR. RASKE:  And all your colleagues as 

 8           well.

 9                  SENATOR COMRIE:  Right.  Well, thank 

10           you all for being here.  And the issue of 

11           Medicaid reimbursement is major, as -- I 

12           recently had some work done as well, and to 

13           see that Medicaid is only paying 10 cents on 

14           the dollar is ridiculous.  The rates are 

15           ridiculous.  I hope that we can get Medicare 

16           equality -- Medicaid equality.  We did it for 

17           the Campaign for Fiscal Equity for schools; 

18           we can get this done within four years.

19                  So thank you.

20                  MS. GRAUSE:  Thank you, Senator.

21                  MR. RASKE:  Thank you, sir.

22                  CHAIRWOMAN KRUEGER:  Thank you, 

23           Senator Comrie.  You still have 26 -- oh, no, 

24           you don't.  You had 26 seconds and you've 


                                                                   291

 1           lost them.

 2                  (Laughter.)

 3                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

 4           Gandolfo.

 5                  ASSEMBLYMAN GANDOLFO:  All right, 

 6           there we go.  My question is going to be 

 7           directed at HANYS, first and foremost.

 8                  The Executive -- you reference that 

 9           the budget could reduce funding to hospitals 

10           and nursing homes by almost 1.3 billion.  The 

11           Executive is suggesting that there are 

12           greater investments.  Can you explain your 

13           concerns?  And this is my main question, so 

14           take all the time you need.

15                  MS. GRAUSE:  Sure.  I think the 

16           commissioner said that the -- that they have 

17           invested $984 million.  That's actually a cut 

18           from previous years.  And I think that's part 

19           of the 1.3 billion total that we believe is a 

20           cut in this budget.  As Ken was saying, it's 

21           a step backward.  It's the 200 million in 

22           long-term-care spending, the 200 million in 

23           Medicaid.  Gross that up to add the 

24           federal -- the loss of federal matching 


                                                                   292

 1           funds, that's $800 million.  And then you 

 2           take the reduction of VAPAP spending; they 

 3           diverted half to go into the 1115 waiver and 

 4           get matched, then they put the other 275 back 

 5           into the General Fund.  

 6                  And so that totals the cut to 

 7           hospitals.

 8                  ASSEMBLYMAN GANDOLFO:  Okay.  And 

 9           what's the impact of a cut like that on the 

10           ground?  How would that impact the average 

11           nursing home or hospital that you represent?

12                  MS. GRAUSE:  Well, no margin, no 

13           mission, right?   

14                  You know, and I think that the ability 

15           now -- we have 5600 fewer nursing home beds 

16           than we did in 2019.  That is in large part 

17           due to the inability for not-for-profit 

18           nursing homes to be able to hire workers and, 

19           with the current reimbursement rate, actually 

20           have a margin.

21                  So the cut just makes that harder.

22                  ASSEMBLYMAN GANDOLFO:  All right, 

23           great.  Thank you very much.

24                  MS. GRAUSE:  Sure.


                                                                   293

 1                  ASSEMBLYMAN GANDOLFO:  And that's it 

 2           for me, Chair.

 3                  CHAIRWOMAN KRUEGER:  Thank you very 

 4           much.

 5                  The next is Pam Helming.

 6                  SENATOR HELMING:  Thank you.  

 7                  I want to say thank you to our 

 8           panelists for your testimony today.  

 9                  And George, if it's okay, sir, I want 

10           to give you a special thank you for your 

11           passion.  And I want to ask you to consider 

12           adding on what people in my district, which 

13           is primarily rural, what they're facing, the 

14           challenges they're facing.  Because it's very 

15           similar to what you have shared.

16                  We don't have urgent care centers in 

17           many areas of my district.  We don't have 

18           primary care physicians in some of our areas.  

19           As a matter of fact, this past summer right 

20           before school was going to start, in Naples, 

21           New York, the only primary care physician 

22           they had lost his position.  Our kids trying 

23           to get immunizations to start school, there 

24           was no one to help with that.  People who -- 


                                                                   294

 1           high school kids who wanted to play sports, 

 2           there was no one to do those mandated 

 3           physicals.  People who needed heart 

 4           medications, who needed diabetes treatments, 

 5           there was no one there to help them.

 6                  In addition, our Federally Qualified 

 7           Healthcare Centers, they're cutting hours, 

 8           they're cutting services because they can't 

 9           make it work financially because of the 

10           reimbursement rates.

11                  And our emergency rooms -- which we 

12           don't have hospitals in every county, but the 

13           ones we do, some of them are saying:  Don't 

14           come here, we're full, we can't take anyone.  

15                  So we're in just as dire positions as 

16           the communities that you talked about.  So 

17           feel free to add us to your conversations 

18           that you're having.  

19                  Just wanted to turn for a moment -- I 

20           have to say for me personally, the last panel 

21           that we had when we asked questions about the 

22           budget and what's in there to right the ship, 

23           to turn things around so people could get 

24           access to the life-saving treatments and the 


                                                                   295

 1           care that they need, I didn't have a whole 

 2           lot of confidence that there was anything 

 3           that was truly meaningful.  There are some 

 4           good workforce development initiatives, but 

 5           they're going to take a long time for us to 

 6           get there.

 7                  One of the Assemblywomen asked the 

 8           commissioner about what's in the budget to 

 9           save our hospitals and our nursing homes, and 

10           what I took away from that is that we're 

11           going to save money with the workforce 

12           proposals.  Again, that's going to take time.

13                  I -- I just am looking for, from the 

14           three of you, any of you, in your opinion, is 

15           this really going to save our hospitals?  

16           Like what can we do right now?  Because 

17           sometimes I feel like in Albany we use the 

18           word "crisis" too much.  But it is a crisis.  

19           What are we going to do?  What can we do?

20                  MR. GRESHAM:  It absolutely is a 

21           crisis.  And when I speak of the Black and 

22           brown community, I say the low-income and 

23           Black and brown community.  So I feel your 

24           pain.  I understand what that feels like.  


                                                                   296

 1                  Everyone deserves good-quality 

 2           healthcare.  And to begin, it's not hard math 

 3           to say we are going to pay 100 percent of 

 4           care.  How is an institution supposed to 

 5           survive when they provide care and there's a 

 6           30 percent deduction for that cost of care?  

 7           How are they supposed to provide good-quality 

 8           care, no matter where they are?

 9                  CHAIRWOMAN KRUEGER:  Thank you.

10                  Next up, Assembly.

11                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

12           Hunter.

13                  ASSEMBLYWOMAN HUNTER:  Good afternoon.

14                  I'm going to follow up on the question 

15           that I had made to the commissioner that I 

16           don't feel was answered.  And so specifically 

17           I painted a picture of what it looks like 

18           where I live, in Central New York, with the 

19           hospitals that represent my community.  And I 

20           do have a safety-net hospital, that it 

21           is abysmal, you know, how long people wait.  

22           And it is true that people are not getting 

23           the care that they need.

24                  And I understand that we are in a 


                                                                   297

 1           staffing crisis.  And it is a crisis.  We can 

 2           keep saying the word because we need to keep 

 3           saying it, because it's real.

 4                  But knowing that, we have these 

 5           traveling nurses and they're talking about 

 6           this expense, but they can't get rid of them 

 7           because there aren't the backfill of staff on 

 8           hand.

 9                  So aside from staffing, because it 

10           really means that a hospital has to go 

11           bankrupt in order for the department to come 

12           in, and then they say "Give us your books and 

13           we're going to cut spending."  So until you 

14           get to the point -- and I have a nursing home 

15           that has two days' cash on hand.  I need 

16           specifics.  Give me something specific other 

17           than staffing that says if we cut X, this 

18           will save a hospital money and, P.S., main 

19           point, not cut quality of care.  Give me some 

20           examples, please.

21                  MR. RASKE:  I can't give you an 

22           example, except I could tell you that if you 

23           adopt this budget, it's going to get worse.  

24           And I'll tell you why it's going to.  If you 


                                                                   298

 1           take a look at the budget that was presented 

 2           by the Governor, you take a look at it, when 

 3           they got into the healthcare section it 

 4           happens to be -- and one of our figures, I 

 5           believe on page 4 of our testimony, but it's 

 6           irrelevant -- what you'll see is unmet need.  

 7           And the Governor's budget actually increased 

 8           this year.

 9                  So the safety-net money that you need 

10           is actually decreasing relative to the --

11                  ASSEMBLYWOMAN HUNTER:  But we keep 

12           hearing the conversation of cutting --

13                  MR. RASKE:  But they're not doing it.

14                  ASSEMBLYWOMAN HUNTER:  We keep hearing 

15           the conversation of cutting spending, and 

16           they will come -- if you get into dire enough 

17           shape, they will come, they will open your 

18           books, and they will say:  This is where you 

19           need to cut.

20                  And I would like to know in advance, 

21           before they come, before we are indigent, 

22           before we are in a situation where somebody 

23           has to stay eight hours in a hallway, 

24           10 hours in a hallway, or not even get care 


                                                                   299

 1           at all -- what can a hospital do today in 

 2           order to stop or put a little bandage on this 

 3           crisis that we're in right now?

 4                  MR. RASKE:  The degradation of 

 5           services, Member of the Assembly, is really 

 6           what you're crying for.  You're saying, What 

 7           can we do?

 8                  And what George and I are saying, and 

 9           we're pleading with you, look at them -- 

10           we're hitting the wall.  We are hitting the 

11           wall.  But it's now that we can actually do 

12           something about it.  Let's set some 

13           high-minded goals for a change.  Let's not 

14           deal with the Band-Aids that you're talking 

15           about.  Let's deal with tackling the root 

16           cause of this problem.  And we know what it 

17           is.

18                  And all we're doing is asking you to 

19           help us in that journey.  That's all we're 

20           asking you to do.  So let's work together.  

21           I'd love to work with you.  And George would 

22           as well, and Bea as well.  Lookit, we're the 

23           same people.  We're -- one day we're --

24                  CHAIRWOMAN KRUEGER:  Ken, I have to 


                                                                   300

 1           cut you off.

 2                  MR. RASKE:  One day we're going to be 

 3           patients.

 4                  CHAIRWOMAN KRUEGER:  Thank you.  We 

 5           get your point, but we're going to let 

 6           another question be asked.  Okay?

 7                  Senator Webb.

 8                  SENATOR WEBB:  Thank you.

 9                  Thank you, everyone on the panel, for 

10           being here.

11                  My question is for you, George.  You 

12           know, I'm looking at your testimony.  One of 

13           the things I wanted to lift up is the 

14           proposed COLA for health and human service 

15           workers.  And I know this was something that 

16           all of us in the Legislature were pushing for 

17           more in last year's budget, and now what's 

18           been proposed in this budget is 1.5.  And so 

19           I know in your testimony you lifted up that 

20           we need to be at 3.2 percent to match 

21           inflation.

22                  Could you expound upon what people are 

23           experiencing from what we did last year to 

24           this year as it pertains to this?


                                                                   301

 1                  MR. GRESHAM:  Yeah.  You know, one of 

 2           the things that we said was -- well, let me 

 3           go back.  The Governor, when I met with her 

 4           and said, I want to hear it from you before I 

 5           put it out there:  "Is there really a 

 6           $1.87 billion surplus?"  And she acknowledged 

 7           that there was.  And I said -- she said:  

 8           "But I want to save that for a rainy day."  

 9           Those were her words, not mine.

10                  I said, I don't know what community 

11           you live in, but where I live, a hurricane is 

12           not a rainy day.  

13                  Out there, we said if that budget goes 

14           through, then services will -- hospitals will 

15           close.  Well, Beth Israel is now closing.  

16           We've seen Kings -- Kings --

17                  MS. GRAUSE:  Downstate.

18                  MR. GRESHAM:  Downstate.  And Brooklyn 

19           again, and part of One Brooklyn Health 

20           System.  

21                  Kingsbrook.  We've seen these 

22           hospitals close as predicted.  And it's only 

23           going to get worse.  That's the problem.  

24                  And we're taking a situation -- I'm 


                                                                   302

 1           highly offended because I've never imagined 

 2           any governor would see that healthcare 

 3           deserves to be cut for a rainy day.  If you 

 4           ask me what the consequences are, human 

 5           lives.  Maybe human lives that are not as 

 6           valuable to some as others.  And I'm not 

 7           going to sit here -- listen, the first nine 

 8           years of my life I was legally treated as a 

 9           second-class citizen.  That's something you 

10           don't forget ever in your life again.

11                  And for here, in 2024, I have to 

12           believe that my five grandchildren may be 

13           treated the same way?  I'm going to do all 

14           that I can to get the elected officials that 

15           understand what this is going through and how 

16           cruel and how inhuman it is.

17                  So what are we?  Seventy percent 

18           human, is that what it is?  Because that's 

19           all you're willing to pay for our care.  And 

20           we are really going to sit around -- and I'm 

21           appealing to old people of good nature, this 

22           is not right.  And I can tell you right now, 

23           if I have to lay down in the middle of the 

24           street until the cows come home, I guess, I'm 


                                                                   303

 1           willing to do whatever's necessary.  Because 

 2           the lives are at stake here.  This is not -- 

 3           this is not an academic, you know, debate 

 4           here.

 5                  ASSEMBLYWOMAN PAULIN:  Thank you.

 6                  Next is Assemblymember Latrice Walker.

 7                  ASSEMBLYWOMAN WALKER:  Good afternoon.

 8                  I've heard a lot today about workforce 

 9           development.  And one of the things that I 

10           remembered about the federal Medicaid waiver 

11           is that there are significant dollars which 

12           get spent towards workforce development.

13                  Of the $7.5 billion in the present 

14           Medicaid waiver, how much of that is being 

15           dedicated to workforce development?

16                  MS. GRAUSE:  I think it's about 

17           700 million.  I want to say 684.  But I -- I 

18           would have to check.

19                  ASSEMBLYWOMAN WALKER:  Okay, thank 

20           you.  

21                  Now, with respect to the closure of 

22           hospitals, whether they be safety-net 

23           hospitals such as those in One Brooklyn 

24           Health, or Downstate Hospital, do you know 


                                                                   304

 1           how much of those resources will be going to 

 2           these types of safety net hospitals?

 3                  MR. GRESHAM:  The allocation of that, 

 4           there's -- let me set the stage for you, 

 5           please.  There's $550 million that are 

 6           available for safety-net funding.  And it is 

 7           available, but given the varying criteria, 

 8           to -- basically for downstate counties.  And 

 9           that would be Bronx, Brooklyn, Queens and 

10           Westchester, interestingly enough.

11                  So as a significant player and 

12           important part of the healthcare community in 

13           Brooklyn, One Brooklyn would be part of it, 

14           part of that allocation.

15                  But herein lies the part of the 

16           difficulty, if I can add.  You will see in 

17           this budget last year's commitment for 

18           safety-net hospitals of $500 million was 

19           taken away.  So here's what you got -- and 

20           this is why I say this budget stinks.  You 

21           put in -- you put in 550 from the federal 

22           government and then you take away 500.  So 

23           you tell me what the number is going to be.  

24           Beats the hell out of me.  I don't know.


                                                                   305

 1                  ASSEMBLYWOMAN WALKER:  Well, sounds 

 2           like the old bait-and-switch.

 3                  Secondly, I would also add that we 

 4           should look at the Medicaid reimbursement 

 5           rate as a public health crisis and call it 

 6           for what it is.

 7                  MR. GRESHAM:  That's right.

 8                  ASSEMBLYWOMAN WALKER:  And lastly, I 

 9           just would like to say, is there any sort of 

10           conversation with respect to workforce 

11           housing as a part of sort of workforce 

12           development resources, from your 

13           conversations with the second floor?

14                  MS. GRAUSE:  There -- there -- I'm not 

15           aware of any.  I do know that many hospitals 

16           actually do -- have engaged in providing 

17           housing for their healthcare workers.

18                  MR. GRESHAM:  But part of the waiver 

19           is to address some of that issue, the social 

20           needs, and how much of that could be diverted 

21           I -- is not answerable by us.

22                  But I do believe that there is some 

23           attention to that within this waiver.

24                  ASSEMBLYWOMAN WALKER:  Thank you.


                                                                   306

 1                  ASSEMBLYWOMAN PAULIN:  Thank you.

 2                  Senator Gustavo Rivera.

 3                  SENATOR RIVERA:  Thank you.

 4                  Hey, folks.  It's good to see you.

 5                  ASSEMBLYWOMAN PAULIN:  For 10 minutes.  

 6           Ten minutes.  Thank you.

 7                  SENATOR RIVERA:  All right.  Thank you 

 8           for being here today.  First of all, just for 

 9           the record, it's a battle that many of us 

10           have been waging for quite a long time, the 

11           notion that those institutions that serve the 

12           most vulnerable are the ones that are the 

13           least funded has always been the case, 

14           certainly for as long as I've been here.  And 

15           I'm very glad to see that we're -- that we're 

16           stating it clearly and that we're talking 

17           about the impact that it is having on real 

18           people every single day.

19                  I'll also underline the utter 

20           frustration that Assemblymember Hunter was 

21           expressing earlier, which I share, because as 

22           I've been here -- so I've been here 13 years; 

23           I've been the chair for six, I believe.  And 

24           I have consistently gotten calls from 


                                                                   307

 1           hospitals like on a rotating basis, on a 

 2           rolling basis, it always happens, when they 

 3           go like, hey, just so you know, we are six 

 4           months out from being in the red.  Or a 

 5           couple of months out from being in the red.  

 6           And this is not something that is a surprise 

 7           to the state.  Right?  

 8                  And so it seems to me -- this is 

 9           directly to Assemblymember Hunter, just to 

10           kind of let you know.  It seems to me very 

11           clearly that the way that this has been -- 

12           okay, so I do get three.  Okay, what have 

13           you.  I'll make it quickly, because I do want 

14           to ask you one question about the unallocated 

15           cuts.  But just to state it for the record, 

16           the state unfortunately seems to operate the 

17           way that they -- the way that they do this is 

18           that they just let it happen.  They don't 

19           commit to long-term investments.  Instead, 

20           they just figure that they're going to have 

21           expenditures eventually.  You know, and oh, 

22           they're going to fall off the cliff or about 

23           to fall off the cliff, then we'll bring you 

24           back.


                                                                   308

 1                  And I'll just say -- and obviously you 

 2           can provide all sorts of evidence and all my 

 3           colleagues can do the same.  And I'm telling 

 4           the state:  Remember my list.  Whether it's 

 5           the folks who are here or the Governor on the 

 6           second floor, folks, this is not the way to 

 7           run a healthcare system.  Please, we have to 

 8           talk about how these places stabilize 

 9           themselves.  I'm not even talking about 

10           thriving, I'm talking about being able to 

11           stabilize themselves.  And if you pay them 

12           accordingly to what they actually do on a 

13           daily basis, they can actually stabilize 

14           themselves. 

15                  The one question I have for you folks, 

16           since I have so little time, have you ever 

17           seen this whole unallocated cuts thing, this 

18           notion -- and, you know, I was kind of doing 

19           a little joke earlier, but this notion that 

20           there is a -- that they're asking you to 

21           choose which limb you're going to cut off, 

22           because it's -- you're getting help.  You're 

23           saying, Well, we both cut it off at the same 

24           time, so it hurts less.  


                                                                   309

 1                  Have you ever heard of that?  And what 

 2           is your sense about what that actually means?

 3                  MS. GRAUSE:  Well, I think they're 

 4           buying time.  

 5                  So yes, I have heard of it.  And I 

 6           think that they are -- haven't yet figured 

 7           that out and maybe hoping they're going to 

 8           get some wisdom from the one-house budgets 

 9           coming back from you.

10                  MR. GRESHAM:  You know, it's -- 

11           sometimes the answer is right under your 

12           nose.  And -- and, you know, we live in a 

13           very complicated healthcare system, but 

14           George and I have wanted to make this as 

15           clear as possible.  The solution is right 

16           before you.  Let's pay the cost of the care 

17           and stop fooling around.  That's all we're 

18           asking for.  Pay the price of the care that 

19           we presented.  And a lot of your problems 

20           will go away.

21                  ASSEMBLYWOMAN PAULIN:  Thank you.

22                  Assemblymember Ed Ra, for three 

23           minutes.  We all get three minutes, rules 

24           change.


                                                                   310

 1                  (Laughter.)

 2                  ASSEMBLYMAN RA:  Thank you, 

 3           Madam Chair.

 4                  For HANYS, I was just looking through 

 5           testimony you submitted, and part of it has, 

 6           you know, this chart and in particular it 

 7           gets into, as one of the global concerns, 

 8           capital funding, and in particular the lack 

 9           of any new capital funding in this budget for 

10           healthcare providers.

11                  Just wondering if you can comment on 

12           that and how large the need really is out 

13           there for new capital dollars.

14                  MS. GRAUSE:  Sure, the need is 

15           enormous.  I think all of you understand that 

16           healthcare is evolving as we speak, becoming 

17           decentralized.  People are getting healthcare 

18           on their phones, they want healthcare in 

19           their community.  And those capital dollars 

20           are essential as we decentralize from an 

21           enterprise system that really is focused on 

22           inpatient to having care out in the 

23           community.  

24                  In addition, if you think -- if you 


                                                                   311

 1           understand that patient care drives 

 2           everything, and as we think about our aging 

 3           population, we have a population that is 

 4           going to need more cancer care, they're going 

 5           to need more care for neurodegenerative 

 6           conditions and as such.

 7                  And those types of outpatient are 

 8           actually very resource-intensive for both 

 9           drugs and equipment, to care for patients 

10           with chronic needs.  So every hospital has a 

11           need for capital, and cutting capital is a 

12           step backwards.

13                  ASSEMBLYMAN RA:  Thank you.

14                  CHAIRWOMAN KRUEGER:  Senator Webb.

15                  And I apologize having to run out.  

16           Chairs still get 10 minutes, just -- you 

17           already went?  Then Senator May.

18                  SENATOR MAY:  Thank you.  Yeah, hi, 

19           everybody.  And I'm sorry I missed your 

20           testimony, I just came for the questions. 

21                  But I asked the commissioner this 

22           morning about cuts to long-term care, like 

23           how many -- how many beds are we going to 

24           lose, how many facilities may have to close 


                                                                   312

 1           down.  I didn't really get an answer.  But I 

 2           guess I want to ask you all about the jobs 

 3           and what is the impact, do you think, on jobs 

 4           in that sector from the cuts that we're 

 5           seeing in this budget.

 6                  MS. GRAUSE:  It's getting more 

 7           difficult.  As I said before, there's 5600 

 8           fewer nursing home beds today than there were 

 9           in 2019.  And I think without an investment 

10           in nursing home care and without a reset on 

11           the regulations and the administrative 

12           requirements and fines, it is going to be 

13           extremely difficult for nursing homes to 

14           stand up operations and keep those operations 

15           up.

16                  So it's going to get worse unless 

17           action is taken now.

18                  SENATOR MAY:  And are you all tracking 

19           the impact on regional economies of this kind 

20           of deficit that we're running in critical 

21           facilities like this?

22                  MS. GRAUSE:  Well, I mean, I think 

23           you're obviously already paying attention to 

24           that.  Healthcare's 20 percent of the 


                                                                   313

 1           economy, and I think an anchor to every 

 2           community is healthcare.  And I know that 

 3           without -- without good healthcare, you do 

 4           not have businesses wanting to come in and 

 5           invest in those geographic areas.  And that's 

 6           particularly, as you know, very, very 

 7           prevalent in upstate New York.

 8                  SENATOR MAY:  Right.  And if there 

 9           aren't the facilities, then -- then families 

10           are stuck with doing the care a lot of the 

11           time for especially older people and may have 

12           to bow out of the workforce.  It's --

13                  MR. RASKE:  Senator, if I could just 

14           add -- unless, George, you want to add 

15           something?

16                  MR. GRESHAM:  Yeah.

17                  MR. RASKE:  I'll defer to George 

18           first.

19                  MR. GRESHAM:  Not only does it affect 

20           the economy.  I've said this to every 

21           Governor that I've worked with.  Healthcare 

22           to New York is like the auto industry was to 

23           Michigan.  If we continue to allow these 

24           hospitals to fail, not only are we going to 


                                                                   314

 1           lose the economy that it brings in, but we're 

 2           going to lose the surgeons that people travel 

 3           from all around the world to come and get the 

 4           care from New York.  And they're not going to 

 5           stay with a sinking ship.  Their skills are 

 6           not comparable out there in the medical 

 7           field, and they'll leave and they'll go to 

 8           Cleveland Clinic, they'll go to anywhere 

 9           where they can continue a robust practice.

10                  So we have a lot to lose, and it 

11           just -- it's -- it is beyond comparison.

12                  ASSEMBLYWOMAN PAULIN:  Thank you.  

13                  SENATOR MAY:  Thank you.

14                  CHAIRWOMAN KRUEGER:  Thank you.

15                  MR. GRESHAM:  You're welcome.

16                  ASSEMBLYWOMAN PAULIN:  Jessica 

17           González-Rojas.

18                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  These 

19           buttons are tricky.

20                  Thank you all for being here.

21                  I'm curious if the cost to emergency 

22           Medicaid also experiences this 30 percent 

23           gap.  Do you know the state spends about 

24           $500 million in emergency Medicaid for a 


                                                                   315

 1           community that could be covered by the 1332 

 2           waiver and use federal funds to cover their 

 3           healthcare?

 4                  MR. GRESHAM:  The whole healthcare 

 5           community supports any opportunity we have to 

 6           make sure that the burden of healthcare is 

 7           picked up appropriately by the federal 

 8           government.  

 9                  And it's interesting -- and if I can 

10           go back to our proposal, George's and my 

11           proposal as relates to closing the gap, on 

12           the hospital side of things the feds now pay 

13           close to 60 percent of the bill.  So the 

14           investment that you make is leveraged by the 

15           federal government's writ by a multiple, 

16           which is really significant.

17                  I think that that is -- should be part 

18           of the calculus that you look at as you 

19           entertain development of adopting our 

20           proposal within this budget.  The federal 

21           money that is leveraged is high.  And that's 

22           not true on the nursing home side.  There 

23           it's back to 50/50.  But the investment on 

24           the hospital side is significant, if that 


                                                                   316

 1           gets at some of the questions.

 2                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

 3           you so much.  And George, for you, I just 

 4           want to thank you and your union.  My mom is 

 5           1199, now a retiree.

 6                  But I want you to elucidate what the 

 7           inequity in Medicare {sic} cost and 

 8           coverage -- that that 30 percent gap, what 

 9           does that mean for our both current workers 

10           and future workers in the industry?

11                  MR. GRESHAM:  Well, what it means is 

12           that we'll have a loss of jobs, a loss of 

13           jobs as the hospital cuts services.  Those 

14           services were operated by staff.  Cutting 

15           services is cutting staff and is cutting 

16           health to the community.  Where the community 

17           may have been a short walk up to a clinic and 

18           get healthcare, now they can't, for example, 

19           leave.

20                  I didn't grow up welfare, I grew up 

21           very poor.  And so I was raised by Jacobi 

22           Hospital in the Bronx, but my mother could 

23           take me there for clinic appointments that 

24           don't exist in a lot of safety-net 


                                                                   317

 1           institutions.  Until you're ill enough to go 

 2           to the emergency room, you are out of luck.

 3                  I want to apologize, too, because you 

 4           may see me squirming around here.  It's not 

 5           that I want to touch somebody, it's that I am 

 6           suffering.  If anybody ever suffered through 

 7           sciatica, I'm having a super attack right 

 8           now.  But even sciatica could not -- was not 

 9           bad enough to stop me from coming here.  

10           Because I can't look at my members, I can't 

11           look at my community and say that I did all 

12           that I could because I let a sciatic pain get 

13           in the way of me begging you, I'm willing to 

14           beg --

15                  CHAIRWOMAN KRUEGER:  George, I'm 

16           sorry, I have to cut you off.

17                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

18           you.

19                  MR. GRESHAM:  I'm sorry you have to 

20           cut me off too.

21                  (Laughter.)

22                  CHAIRWOMAN KRUEGER:  I know.  We can 

23           agree on that.

24                  Samra Brouk.


                                                                   318

 1                  SENATOR BROUK:  Thank you so much.  

 2           And thank you all for being here today.

 3                  I just want to start where we just cut 

 4           off George to say, you know, I think both 

 5           today and throughout the year, you and your 

 6           members do such a good job to describe both 

 7           passionately but also very effectively the 

 8           realities of our healthcare system.  And 

 9           where I am in Rochester, you know, I say if 

10           you've had a procedure, if you stepped into a 

11           hospital or most healthcare facilities, think 

12           1199 member, because the only way that gets 

13           done is with you all.

14                  And so really this is for the whole 

15           panel, whoever wants to jump in.  But when we 

16           spoke with the commissioner and the Medicaid 

17           director earlier today, I described to them 

18           the fact that one of our hospitals in 

19           Rochester saw the most patients they ever 

20           have in history the other day, in one day.  

21           And that they had over a hundred people who 

22           were ready to be discharged but could not be 

23           because there were not enough nursing home 

24           beds.


                                                                   319

 1                  And so we are in a crisis situation, 

 2           there's no question.  And especially where we 

 3           are.  And, you know, I couldn't agree more, 

 4           we need to be increasing our Medicaid rates.  

 5           I think, you know, that's been a theme for 

 6           some of today.

 7                  But what I find troubling is that 

 8           often what we're told by agency -- you know, 

 9           by DOH, by the Medicaid office, is that the 

10           onus is on you all.  You need to make the 

11           cuts.  You need to figure out how you're 

12           going to recruit.

13                  And so I'd love to give I guess a 

14           minute and 25 seconds or so to share some of 

15           the things you are doing, because I think you 

16           are working within the system you have the 

17           best you can, whether it's about recruitment, 

18           whether it's about -- you know, locally, 

19           University of Rochester has free tuition for 

20           a nursing accelerator program.  But I know 

21           that there's things that are happening, and I 

22           think we all need to get a holistic view of 

23           the fact that you are implementing many of 

24           these things, but that it's still not enough.


                                                                   320

 1                  But what small successes have you 

 2           seen?

 3                  MS. GRAUSE:  Sure.  I think University 

 4           of Rochester, we've been working with them 

 5           for years, and certainly well aware how 

 6           challenging both it is for UR and Rochester 

 7           Regional in that particular area.

 8                  They are doing everything possible.  

 9           Rochester really leads the country and has 

10           for decades in terms of their ability and 

11           their infrastructure to work with other 

12           community providers to make sure that there 

13           is capacity, both pre-hospital and 

14           post-hospital.  So they're doing all of the 

15           right things.

16                  I think the challenge that they face 

17           is that the demand of patients who are coming 

18           into their emergency room is continuing to 

19           increase with an aging -- with an aging 

20           population.  And then the -- in the -- in 

21           particular, the nursing home shortage in the 

22           Rochester area and Western New York is 

23           particularly severe.  I think about 2,000 of 

24           those 5600 beds that I was talking about is 


                                                                   321

 1           in that Rochester area.  So there's a real 

 2           lack of capacity.  And they can't just 

 3           materialize that capacity overnight.

 4                  SENATOR BROUK:  Thank you.

 5                  CHAIRWOMAN KRUEGER:  Assembly.

 6                  ASSEMBLYWOMAN PAULIN:  Before I 

 7           continue, Assemblymember Meeks, welcome.  

 8                  Jo Anne Simon is next.

 9                  (Off the record.)

10                  ASSEMBLYWOMAN SIMON:  We have these 

11           new microphones, and they're sticky.

12                  So thank you for your testimony and 

13           for identifying some issues.  

14                  I have a couple of questions that I'd 

15           like to ask.  Do you have a sense of the 

16           difference in the impact of the failure to 

17           increase the Medicaid reimbursement rate, the 

18           difference in how it impacts for-profit 

19           versus not-for-profit nursing homes?  Because 

20           we're losing our not-for-profit nursing homes 

21           and I know mine is really struggling 

22           mightily.

23                  And then the issue about this failure 

24           to address the wage parity issue in a 


                                                                   322

 1           constructive way could end up actually 

 2           leading to more people needing nursing home 

 3           care because the CDPAP program, if they're 

 4           not able to have people actually working in 

 5           that program, it's going to lead to more need 

 6           for more admissions.

 7                  And then also if you have data on the 

 8           deterioration of physical plant.  We hear 

 9           that because there's been no money, hospitals 

10           aren't able to invest.  This primarily 

11           affects the safety net hospitals, and how 

12           that exacerbates that situation.  If you have 

13           a sense of that, I'd appreciate it.

14                  MS. GRAUSE:  I'll start with the last 

15           question first.  

16                  I think the capital needs for 

17           safety-net hospitals are, I would say, both 

18           longer-standing and deeper.  You know, I 

19           think they need new boilers, they need -- you 

20           know, they need a new water system, so they 

21           need more basic infrastructure upgrades, I 

22           think, than other facilities.  So it's not 

23           just building a new outpatient wing, for 

24           example -- or outpatient clinic.  So I think 


                                                                   323

 1           it's a lot more basic needs on top of trying 

 2           to modernize their facility to meet the needs 

 3           of their community.

 4                  I think on the nursing home issue I 

 5           would suggest talking to Jim Clyne from 

 6           LeadingAge.  I think they may have a better 

 7           answer.  I don't have the distinction between 

 8           for-profit and not-for-profit.

 9                  ASSEMBLYWOMAN SIMON:  Thank you.

10                  MR. RASKE:  Madam Chair, if I could 

11           comment, please.  I want to say that at a 

12           recent board meeting at Greater New York 

13           Hospital Association I turned to my chairman 

14           and I said, "I want you to know that George 

15           Gresham is my personal hero."

16                  Ladies and gentlemen, you can see that 

17           George is under a great deal of stress here, 

18           and I think maybe this matter should come to 

19           some sort of conclusion.  Because I love him 

20           dearly, and I don't want to see him going 

21           through this pain.

22                  CHAIRWOMAN KRUEGER:  I believe the 

23           Senate is over.  Just double-checking on the 

24           Assembly.  


                                                                   324

 1                  I'm sorry, we're not over, there's no 

 2           more Senators to ask questions, let me 

 3           clarify.  We're here, we're strong, we're not 

 4           going anywhere.

 5                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

 6           Khaleel Anderson.

 7                  ASSEMBLYMAN ANDERSON:  Thank you, 

 8           Chair Paulin, and thank you to all of the 

 9           panelists who are here today.  I know I 

10           missed your testimony, but I do have some 

11           pointed questions to ask.  Hopefully I have 

12           enough time to ask them.

13                  I mentioned to Commissioner McDonald 

14           earlier the piece of making sure that 

15           hospitals who are geographically isolated can 

16           benefit from some of the positive things that 

17           are in the Governor's Executive Budget as it 

18           relates to the different pots of money, 

19           including the 1115 waiver.

20                  So I'm wondering if Greater Hospital 

21           Association can answer what resourcing those 

22           hospitals that are geographically isolated 

23           would look like.

24                  MS. GRAUSE:  I'm not sure I understand 


                                                                   325

 1           your question, to be honest.  What do you 

 2           mean by geographically isolated?

 3                  ASSEMBLYMAN ANDERSON:  So I gave -- so 

 4           earlier last year Commissioner McDonald 

 5           visited my district, and I do -- there's a 

 6           hospital that is in my district that is far 

 7           away from the main land of Queens.  And so I 

 8           was wondering, when you have a type of 

 9           hospital like that, you know, there's a need 

10           for more resources for that hospital because 

11           it's serving a large region.  So I'm 

12           wondering if, you know, in these different 

13           pots of money that the Governor has proposed, 

14           including the 1115 waiver, is there a way 

15           that that would help move some of your member 

16           hospitals forward in that regard.

17                  MS. GRAUSE:  Yeah.  I mean, I think 

18           normally geographic isolation is, under 

19           federal law and state law, is really -- is a 

20           factor.  It's certainly a factor in 

21           certificate of need in terms of approving new 

22           services and new funding for services.

23                  So I think it's normally a factor.  I 

24           don't -- I'm not aware of anything in this 


                                                                   326

 1           budget that addresses the particular needs of 

 2           geographically isolated hospitals.  But Ken 

 3           maybe would know.

 4                  ASSEMBLYMAN ANDERSON:  Okay.  There 

 5           might be a way --  

 6                  MR. RASKE:  I can't add anything more 

 7           on that, though.

 8                  ASSEMBLYMAN ANDERSON:  Okay.  Next 

 9           question, really quickly.  When we're dealing 

10           with the distressed hospital fund, I know 

11           that there was some money set aside for 

12           distressed hospitals and through y'all's 

13           advocacy we're seeing that slowly come to 

14           fruition.  

15                  Is there an itemized list on what 

16           projects either were eligible or had moved 

17           forward from the first pot.

18                  And I think the second part of that 

19           question is this next cycle of money that's 

20           being papered over, I'm not sure if there's a 

21           target --

22                  MS. GRAUSE:  You mean the 

23           transformation dollars, the capital dollars?  

24           Are you talking about the capital --


                                                                   327

 1                  ASSEMBLYMAN ANDERSON:  The capital for 

 2           distressed -- yeah.  Do we know where that 

 3           is?

 4                  MS. GRAUSE:  There's a long queue.  I 

 5           don't know personally, but --

 6                  MR. RASKE:  The one thing that you 

 7           should understand is there's $1.5 billion in 

 8           the Governor's own budget of unmet need.  

 9           Unmet need.  That's going to be distributed 

10           across all the communities, and that's going 

11           to show up on your doorstep.

12                  ASSEMBLYMAN ANDERSON:  Thank you.

13                  And again, just thinking, as I close 

14           out, in my last few seconds I want to thank 

15           1199 for their advocacy.  George Gresham, 

16           it's good to see you here.  And thank you for 

17           your members being so active on the issues.

18                  ASSEMBLYWOMAN PAULIN:  Thank you very 

19           much.

20                  I think I'm the last one.  I just have 

21           one question.  Everybody's asked so many of 

22           the important questions.  Thank you, really, 

23           for being here and for your advocacy.

24                  The Governor has a proposal on medical 


                                                                   328

 1           debt.  I wondered if you've had a chance to 

 2           review it --

 3                  MR. RASKE:  We're evaluating it now.  

 4           We don't have a position on it at this point.  

 5           Obviously we are very concerned about -- some 

 6           of our hospitals actually go pretty far in 

 7           the forgiveness of it.  But we're -- Chairman 

 8           Paulin, what we're trying to do is consensus 

 9           out of the community.  So I don't have an 

10           answer for you at this point.  And probably 

11           within a week or two I will.

12                  ASSEMBLYWOMAN PAULIN:  We want to 

13           specifically know any financial harm that 

14           might be done to any specific hospital 

15           vis-a-vis any specific one of the proposals.

16                  MR. RASKE:  Okay.  I think we'll give 

17           you a written proposal that -- an analysis 

18           that you can sink your teeth into.  Okay?  

19                  ASSEMBLYWOMAN PAULIN:  I think we all 

20           have a desire to do something.  So it would 

21           be great seeing us all work together to make 

22           sure that we get something done at the end of 

23           the day.

24                  MR. RASKE:  Absolutely.


                                                                   329

 1                  ASSEMBLYWOMAN PAULIN:  Thank you.

 2                  With that, I think that's it.

 3                  CHAIRWOMAN KRUEGER:  Thank you very 

 4           much.  Thank you for joining us today, panel.  

 5           We appreciate it.  Thank you.

 6                  We're going to ask you to leave.  

 7           Everyone take their conversations outside.  

 8           And we'll bring up the next panel, Panel B:  

 9           New York Health Foundation; Primary Care 

10           Development Corporation; and the Community 

11           Health Care Association of New York State.

12                  (Off the record.)

13                  ASSEMBLYWOMAN PAULIN:  Thank you.

14                  Who wants to go first?  Proceed.

15                  MR. SANDMAN:  Okay, thank you for the 

16           opportunity to testify.  I'm David Sandman, 

17           president and CEO of the New York Health 

18           Foundation.  We are a private, independent 

19           philanthropy dedicated to improving the 

20           health of all New Yorkers.

21                  I've submitted testimony on two 

22           crucial primary care issues:  Rebalancing our 

23           healthcare spending to emphasize primary 

24           care, and enhancing the role of medical 


                                                                   330

 1           assistants on primary care teams.  So I'll 

 2           just hit the key points here.

 3                  I'd like you to imagine that you found 

 4           a nickel on the floor this morning on your 

 5           way here, and ask you if you would stop to 

 6           pick it up.  And the answer's probably not.  

 7           It's too small, it's too little, it's too 

 8           insignificant.  But that small amount is 

 9           exactly how we value primary care.  We only 

10           spend about 5 to 7 cents of every healthcare 

11           dollar on primary care, and that's despite 

12           the fact that primary care has the best 

13           return on investment of any type of 

14           healthcare service.  There are mountains of 

15           evidence that tell us that.  It's the rare 

16           win/win that's associated with both better 

17           health outcomes and lower costs.

18                  So New York should devote a greater 

19           share of total health spending to primary and 

20           preventive care.  That does not require 

21           spending more; it requires spending in 

22           smarter and better ways.  And New York is 

23           behind the nation.  Primary care spending is 

24           less in New York than in the rest of the 


                                                                   331

 1           country, and it's been decreasing over the 

 2           past five years. 

 3                  At least a dozen other states have 

 4           rebalanced their healthcare spending to 

 5           emphasize primary care.

 6                  The Legislature gets it.  Here in New 

 7           York both houses previously passed bills to 

 8           establish a primary care reform study 

 9           commission, but they were vetoed by the 

10           Governor, who asserted then that we already 

11           know we underspend on primary care.  In this 

12           session, Senator Rivera, Assemblymember 

13           Paulin each introduced bills to require 

14           healthcare plans and payers to gradually have 

15           a minimum of 12.5 percent of their total 

16           expenditures on physical and mental health 

17           annually be for primary care.

18                  Investing in primary care is the 

19           fundamental way to both improve health and 

20           save money.

21                  Workforce.  We've talked about it a 

22           lot this morning.  We can also improve 

23           primary care access and address workforce 

24           shortages by elevating the role of medical 


                                                                   332

 1           assistants, or MAs.  MAs generally perform 

 2           administrative and very limited clinical 

 3           duties under the direction of a physician.  

 4                  But New York isn't making the most of 

 5           MAs.  For example, Connecticut, New Jersey, 

 6           they allow MAs to administer vaccinations, 

 7           and that's prohibited in New York.  The 

 8           proposed Executive Budget aims to bring us on 

 9           par with other states.  Permitting MAs to 

10           administer vaccinations under the supervision 

11           of a clinician will make a big difference and 

12           free up other clinicians to practice at the 

13           top of their license.

14                  ASSEMBLYWOMAN PAULIN:  Thank you very 

15           much.

16                  CHAIRWOMAN KRUEGER:  Thank you.

17                  ASSEMBLYWOMAN PAULIN:  Next.

18                  MS. GOLDBERG:  Thank you.  Thank you 

19           very much to Senator Krueger, to Chair Paulin 

20           and to Chair Rivera and the rest of the 

21           members of the committee for giving me the 

22           opportunity to testify today.  

23                  My name is Jordan Goldberg, and I'm 

24           the director of policy at the Primary Care 


                                                                   333

 1           Development Corporation.  We're a 

 2           nonprofit that offers capital financing, 

 3           expertise and policy advocacy to expand 

 4           access to primary care and advance health 

 5           equity in the communities that need it the 

 6           most.  And I want to say we're very grateful 

 7           for the Legislature's support for both PCDC 

 8           and primary care over the years.

 9                  As we just heard, primary care is 

10           critical.  It saves lives, it improves 

11           community and individual health.  It's 

12           critical to health equity.  And it has the 

13           uniqueness of being both able to lower 

14           healthcare costs and decrease disparities.  

15           At the same time, it gets 5 to 7 cents on 

16           every healthcare dollar, which is less than 

17           half of what experts think it should. 

18                  Many New Yorkers live in communities 

19           without adequate access to primary care as a 

20           result of this underinvestment.  There are 

21           some proposals in the Executive Budget and 

22           the 1115 waiver that we think will help to 

23           some degree with some of these things.  

24                  One particularly important proposal I 


                                                                   334

 1           wanted to draw attention to is the commitment 

 2           New York State has made to increasing 

 3           Medicaid rates to 80 percent of Medicare for 

 4           primary care, behavioral healthcare, and 

 5           obstetrics care.  This is critical because 

 6           research has shown that when you increase 

 7           Medicaid rates, you expand access and you 

 8           improve quality of care.

 9                  But PCDC really wants to urge the 

10           Legislature to ensure that those rate 

11           increases reach primary care providers -- all 

12           primary care providers -- who see Medicaid 

13           patients.  And that -- it actually gets to 

14           the practices as opposed to third parties or 

15           intermediaries.  

16                  One of the other biggest obstacles to 

17           primary care in New York is the lack of 

18           access to providers.  There's a shortage.  We 

19           all know this.  About 6.5 million New Yorkers 

20           live in areas where there is not enough 

21           primary care, and that's expected to grow in 

22           the next few years.  About 50 years ago, 

23           70 percent of physicians practiced in primary 

24           care; now it's 30 percent.  And more are 


                                                                   335

 1           leaving every day.  They're overwhelmed with 

 2           the administrative burdens, and there's not 

 3           enough time to see their patients.  And we 

 4           have other healthcare workers in primary care 

 5           leaving as well.

 6                  There are a couple of workforce 

 7           proposals in the budget and the 1115 waiver 

 8           that are targeted to primary care providers 

 9           who work with Medicaid patients.  We support 

10           those.  But we think that a more systemic 

11           answer is necessary, and David already 

12           mentioned this.  We think if New York State 

13           set a firm target of 12.5 percent spending on 

14           primary care out of total overall healthcare 

15           spending, and held private and public payers 

16           to that target, we would improve the 

17           situation in underserved populations.  

18                  Thankfully Assemblymember Paulin and 

19           Senator Rivera have introduced a bill that 

20           would do that, would require payers to 

21           measure their spending on primary care and 

22           increase it to 12.5 percent over time -- 

23           rebalancing, not spending more.

24                  Finally, in my last few seconds I just 


                                                                   336

 1           want to emphasize that PCDC is supportive of 

 2           all efforts to expand access to insurance 

 3           coverage, and particularly highlight the 

 4           proposal to have continuous Medicaid coverage 

 5           from zero to 6.  These are critical times in 

 6           a child's life when they need ongoing 

 7           preventive care that will impact their entire 

 8           life.

 9                  Thank you for your time.

10                  MS. DUHAN:  Good afternoon.  I'm Rose 

11           Duhan.  I'm the CEO of the Community Health 

12           Care Association of New York State.  We are 

13           the statewide association for community 

14           health centers, representing 75 member 

15           organizations that serve 2.3 million 

16           New Yorkers at over 800 sites statewide.

17                  On behalf of our members, I want to 

18           express gratitude to the Legislature for its 

19           unwavering support last year to ensure health 

20           center patients were protected from 

21           significant loss of access to services that 

22           would have resulted from the elimination of a 

23           340B drug discount savings when the pharmacy 

24           benefit was carved out of Medicaid managed 


                                                                   337

 1           care.  We understand funding is included in 

 2           the Governor's proposed budget, and we ask 

 3           the Legislature to continue to champion 

 4           health centers by ensuring the inclusion of 

 5           this critical funding.

 6                  The 340B funding restoration protected 

 7           community health centers from what would have 

 8           been a devastating loss of funding on top of 

 9           Medicaid reimbursement rates that have long 

10           been inadequate to cover the costs of care 

11           delivery.  As a down payment towards needed 

12           investment in health centers, we are 

13           requesting an increase in health center 

14           Medicaid rates in this year's budget.  Health 

15           centers have not had a significant investment 

16           in their Medicaid rates since the payment 

17           methodology was developed over 20 years ago, 

18           longer than any other provider type.  

19                  We ask that you insert the language in 

20           Senator Rivera's bill, S6959, and 

21           Assemblywoman Paulin's bill, A7560, into your 

22           budget legislation to update health center 

23           reimbursement rates and reflect current 

24           costs, so that community health centers can 


                                                                   338

 1           meet the demands of today's care models and 

 2           emerging public health crises.

 3                  We are grateful Senator Rivera's bill 

 4           was reported out of the Health Committee 

 5           yesterday.

 6                  CHCANYS further requests the 

 7           Legislature make permanent Medicaid 

 8           telehealth payment authorization and make a 

 9           technical amendment to existing statute.  

10           Under current rules, Medicaid pays health 

11           centers only one-third of the in-person 

12           reimbursement rate when providers and 

13           patients are both outside of the health 

14           center walls for a telehealth visit.  Because 

15           of this, health centers are at a competitive 

16           disadvantage in recruiting workforce, 

17           particularly for behavioral health providers 

18           that can work fully remotely in Article 31 

19           and 32 licensed facilities.  

20                  We ask the Legislature to include 

21           Assembly 7316 and Senate 6733 in the final 

22           budget, which would make the necessary 

23           technical correction.

24                  CHCANYS supports the Governor's scope 


                                                                   339

 1           of practice reforms -- as has been mentioned 

 2           already, specifically in the Governor's 

 3           proposal to allow providers to direct and 

 4           oversee medical assistants as vaccinators.  

 5           Doing so will ensure health center care teams 

 6           can work at the top of their licenses and 

 7           training while expanding access to needed 

 8           vaccines, which will keep New Yorkers 

 9           protected and advance the state's public 

10           health goals. 

11                  I refer you to our written testimony 

12           for further details and additional comments.

13                  Thank you for your time, and I'm happy 

14           to answer any questions.

15                  (Off the record.)

16                  CHAIRWOMAN KRUEGER:  Anybody have any 

17           questions?

18                  ASSEMBLYWOMAN PAULIN:  Do you have 

19           questions?

20                  All right.  Assemblymember Jensen.

21                  ASSEMBLYMAN JENSEN:  There we go.

22                  So when we talk about community 

23           health -- and I asked the question earlier of 

24           the Health commissioner and the Medicaid 


                                                                   340

 1           director about Medicaid reimbursement rates 

 2           for different areas of medical practice, and 

 3           certainly when you look at dental health in 

 4           our state.  

 5                  How critically important is the state 

 6           in prioritizing coverage and proper 

 7           reimbursement rates across the state to 

 8           ensure that regardless of urban, suburban, 

 9           rural, New Yorkers are actually getting the 

10           care they need across the continuum of care 

11           to ensure that we have healthy communities 

12           moving forward?

13                  MS. DUHAN:  Health coverage for 

14           everyone is critical in terms of ensuring 

15           access, and it's also critical for providers 

16           in terms of ensuring that there's -- ensuring 

17           their financial sustainability.  So something 

18           that we are certainly very supportive of is 

19           expansion of coverage.

20                  ASSEMBLYMAN JENSEN:  Okay.  And is 

21           that -- when you're looking at the expansion 

22           of coverage and certainly looking at -- not 

23           necessarily having the state pick up the 

24           entirety of that cost, but just making sure 


                                                                   341

 1           that we have the access and provider base, 

 2           correct?

 3                  MR. SANDMAN:  I believe you started 

 4           off with oral healthcare.  You know, that's 

 5           one of the most serious shortages that we 

 6           have.  I mean, there are counties where there 

 7           are virtually no dentists who accept 

 8           Medicaid.  You know, especially pediatric 

 9           dentists, you know, which hasn't really been 

10           talked about today.  There's actually been a 

11           new settlement that expands coverage for 

12           dental services like bridges and dentures and 

13           other interventional dentistry.  The problem 

14           is we have no dentists to provide those 

15           services to Medicaid beneficiaries.

16                  ASSEMBLYMAN JENSEN:  So I guess 

17           what -- and maybe this isn't your area of 

18           expertise, and I apologize if it's not.  But 

19           when we talk about that, when we talk about 

20           areas of the state where we don't have 

21           practitioners, whatever the case may be, I 

22           guess from your perspective -- whether it's, 

23           you know, primary care physicians or other 

24           community health providers -- I guess what is 


                                                                   342

 1           the solution that we're working with right 

 2           now for those communities?

 3                  MR. SANDMAN:  I would think it's a 

 4           broad public health intervention, such as 

 5           fluoride, hailed as one of the most important 

 6           public health interventions, you know, over 

 7           the last century by the CDC.  Yet there are 

 8           still counties in New York State that lack 

 9           fluoride.  And if you look at a map of 

10           Medicaid expenditures on dental care in 

11           counties with fluoride and those without, 

12           there's a huge gap there.

13                  ASSEMBLYMAN JENSEN:  Okay.

14                  MS. DUHAN:  And I would say that the 

15           workforce initiatives that the department is 

16           seeking are really important in terms of 

17           expanding that workforce, to make sure that 

18           there are healthcare providers that can 

19           provide care across the state.

20                  As has been mentioned, there's a 

21           severe shortage of dentists.  But as has also 

22           been mentioned, we've seen fewer and fewer 

23           people going into primary care, and so that 

24           really impacts access.  When there's no 


                                                                   343

 1           providers, it doesn't matter what you pay 

 2           them.

 3                  So we really want to make sure that 

 4           there's programs that are encouraging people 

 5           to go into primary care, that are encouraging 

 6           people to go into community dentistry, so 

 7           that there is a sufficient workforce.

 8                  ASSEMBLYMAN JENSEN:  Thank you.

 9                  CHAIRWOMAN KRUEGER:  Thank you.

10                  Senator Rachel May.

11                  SENATOR MAY:  Thank you.

12                  And thank you for your testimony.

13                  I don't know if this question is 

14           actually applicable, but I'm very interested 

15           in school-based health centers and community 

16           schools, and I'm wondering, are any of your 

17           organizations involved in that?  And what can 

18           we do through the budget or through 

19           legislation to make them stronger?

20                  MS. DUHAN:  Yes, absolutely, 

21           school-based health centers -- most of our 

22           community health centers also operate 

23           school-based health centers, and it's a 

24           critical point of access to care for children 


                                                                   344

 1           that would otherwise not be able to perhaps 

 2           see a provider, have their dental care needs 

 3           met, have their mental health needs met.

 4                  So they're incredibly important in 

 5           terms of the role that they play in the 

 6           healthcare system.  Continuing support for 

 7           school-based health centers is essential.  

 8           We're pleased to see that there is some 

 9           expansion of support for school-based health 

10           centers, and we certainly support that.

11                  MS. GOLDBERG:  And if I could just add 

12           that support for primary care across the 

13           board would also support the ability to 

14           school-based health centers to get the 

15           providers that they need and to be able to 

16           treat the patients and the kids that they 

17           see.  Because part of the shortage we're 

18           having is people just won't go into primary 

19           care anymore because of the burden on them, 

20           because of the insufficient pay, because of 

21           all the other issues.

22                  And so even if you have a school-based 

23           health center, if you can't staff it 

24           properly, it's not going to be able to 


                                                                   345

 1           support the schools.

 2                  SENATOR MAY:  So are there ways to, 

 3           say, raise the pay for primary care doctors 

 4           so more people will go into that profession?  

 5           Is that something you're thinking about?

 6                  MS. GOLDBERG:  What we believe is the 

 7           proposal that Assemblywoman Paulin and 

 8           Senator Rivera have offered, Assembly Bill 

 9           8592, Senate Bill 97 that you passed out of 

10           committee yesterday, would have -- it's going 

11           to have an impact over time.  It's not going 

12           to happen immediately.  

13                  But part of the -- it's been attrition 

14           over time as well, as people have left the 

15           profession.  We need to attract people by 

16           showing them that the state, that governments 

17           care about them, or care and are willing to 

18           put the money there.

19                  MS. DUHAN:  Certainly in terms of 

20           community health centers, having Medicaid 

21           rates be sufficient to be able to attract and 

22           retain workforce really makes a difference in 

23           making those providers available in community 

24           settings.


                                                                   346

 1                  SENATOR MAY:  And then I know there's 

 2           at least one school in Syracuse that has a 

 3           health center that's not just for the kids, 

 4           it's for the families as well.  And I'm 

 5           wondering if people are tracking the impact 

 6           of those kinds of innovations to make sure 

 7           that they're having the kind of impact we 

 8           hope they will.

 9                  MS. DUHAN:  Yeah, that's a good 

10           question.  We don't have the data on those 

11           community-based schools, and it's something 

12           that we could look into.  Although the 

13           department may have some more information.

14                  SENATOR MAY:  Thank you.

15                  CHAIRWOMAN KRUEGER:  Assembly.

16                  ASSEMBLYWOMAN PAULIN:  (Mic issue.)  

17           There's going to be a joke made about these 

18           things.

19                  Assemblymember Forrest.

20                  ASSEMBLYWOMAN FORREST:  Thank you.  

21                  Thank you so much for your 

22           testimonies.

23                  As an ambulatory care nurse, I 

24           understand and I've seen in my own experience 


                                                                   347

 1           the closure of diabetic clinics and then 

 2           replacements with bariatric surgical centers, 

 3           right?  I've seen people go to ED and spend 

 4           eight hours there and then get the Band-Aid, 

 5           only to wait three months out.  The last time 

 6           I was in the hospital I had to wait from July 

 7           to October to see a specialist for the care 

 8           that I needed.

 9                  What are some of the suggestions you 

10           have on prioritizing primary care?  I mean, 

11           the cost savings are enormous.  Bariatric 

12           surgery or diabetic clinic to help you?  I 

13           think it's quite clear to me, as the health 

14           practitioner, where the savings are.  But can 

15           you paint it for us as legislators what that 

16           could look like?

17                  MS. DUHAN:  Yeah, absolutely.  We 

18           agree a hundred percent that it's a much 

19           smarter investment to pay for prevention up 

20           front than to pay for care management, so 

21           that people are able to remain healthy so 

22           that we can avoid that expensive emergency 

23           room diversion.  And they can show that 

24           there's that investment in primary care that 


                                                                   348

 1           is really critical, making sure there's the 

 2           workforce so that when people come for care 

 3           there's providers that can see them.

 4                  MR. SANDMAN:  Diabetes is a manageable 

 5           chronic disease that if properly managed 

 6           should never result in an emergency 

 7           department visit or an admission.

 8                  You know, so we have to look at 

 9           primary healthcare and we also have to look 

10           at the behavioral aspects.  Access to an 

11           affordable, appropriate, nutritious diet, 

12           promoting food-as-medicine programs, 

13           promoting opportunities for physical activity 

14           are equally important to managing your 

15           diabetes as being in a clinic.

16                  ASSEMBLYWOMAN FORREST:  And, you know, 

17           just to say the days that I spend in the ICU 

18           bringing down a patient's blood sugar level, 

19           when that could be easily dealt with at home 

20           by just taking the insulin and going to the 

21           doctor, what, every three months or so?  But 

22           that DKA patient costs thousands of dollars 

23           in the ICU setting.

24                  MR. SANDMAN:  Blindness, amputations 


                                                                   349

 1           and worse.

 2                  MS. GOLDBERG:  And I would just add, 

 3           you know, PCDC is a community development 

 4           entity, and one of the things we do is invest 

 5           in creating new points of primary care 

 6           access.  And one of the problems in a lot of 

 7           places in the state is there are literally 

 8           no -- there's no place to go.  There's one 

 9           clinic that's -- it's very far away.

10                  And so one of the things -- this is a 

11           little bit to the side, but one of the things 

12           that we've encouraged is to use more of the 

13           Healthcare Transformation funds for primary 

14           care.  They were not, like, earmarked for 

15           primary care last year.  And that could be 

16           something that the Legislature could look at 

17           for this year.

18                  ASSEMBLYWOMAN FORREST:  Thank you so 

19           much.

20                  ASSEMBLYWOMAN PAULIN:  Senate.

21                  CHAIRWOMAN KRUEGER:  Thank you.

22                  Senator Pam Helming.

23                  SENATOR HELMING:  Thank you, 

24           Senator Krueger.


                                                                   350

 1                  Thank you for your testimony this 

 2           afternoon.  I apologize because I wasn't here 

 3           for the very beginning, so if you already 

 4           spoke about this, please cut me a little 

 5           slack.

 6                  But one of the things that I've heard 

 7           from one of my Federally Qualified Health 

 8           Centers is that in the Governor's proposed 

 9           budget there is an expansion of the billable 

10           providers -- but that that expansion, which 

11           would include like doulas, community health 

12           workers, certified substance use counselors 

13           and peer workers, isn't extended to the 

14           community health centers.

15                  Do you have any information on that or 

16           any thoughts on it?

17                  MS. DUHAN:  Yes, that's correct.  

18           Given the way that community health centers 

19           are paid, there are certain billable 

20           providers.  And so even if health centers 

21           hired doulas and community health workers, 

22           which many health centers have, there's no 

23           additional reimbursement for those services.

24                  So really wanting to look at how can 


                                                                   351

 1           we make sure that those services are really 

 2           adequately reimbursed to ensure that there is 

 3           the ability for community health centers to 

 4           financially sustain those services and to 

 5           make sure that there's access for patients.

 6                  SENATOR HELMING:  So that would be 

 7           part of your advocacy, to have that included 

 8           in the budget?

 9                  MS. DUHAN:  Yes, absolutely.  Yes.

10                  SENATOR HELMING:  Thank you.

11                  And then on the conversation about how 

12           do we attract more primary care physicians, 

13           maybe you heard me speak earlier about one 

14           big topic of discussion in our rural areas.

15                  In the budget proposal I noticed that 

16           there is the primary care medical malpractice 

17           section.  And the way I interpret it, and I 

18           think based on information I got this morning 

19           during the hearing, it's going to increase 

20           the cost of malpractice insurance for primary 

21           care physicians, who already pay more than 

22           anyone else in this nation.  I think the 

23           statistic I read was that we pay 68 percent 

24           more than the second state, which is 


                                                                   352

 1           Pennsylvania.

 2                  So given that, what are your thoughts 

 3           on increasing insurance costs to primary care 

 4           physicians?  Is that going to help us attract 

 5           more or detract?

 6                  MS. DUHAN:  Health centers have 

 7           certainly seen increases in costs across the 

 8           board in a number of areas, and that's one of 

 9           the challenges that they have in terms of 

10           rates that haven't increased over time.  That 

11           pertains to workforce, workforce labor costs 

12           that have increased, and other administrative 

13           costs.  So that is certainly a challenge.  

14                  I'm not familiar with that specific 

15           proposal, so I'd have to get back to you.

16                  SENATOR HELMING:  Okay, thank you.

17                  And just real quick, I'll toss this 

18           out there.  We've talked about a lot of the 

19           great scope-of-practice changes that are in 

20           the budget, workforce development initiatives 

21           that are all great things.  But to me, 

22           they're long term, and we need some 

23           short-term solutions.

24                  But one of the things I don't think I 


                                                                   353

 1           saw in the budget was anything about 

 2           expanding the scope for mental healthcare 

 3           providers, which I think is a big concern.

 4                  Do you have any thoughts on that?

 5                  MS. DUHAN:  We certainly want to make 

 6           sure that there's access to behavioral health 

 7           providers in the community, and something 

 8           that health centers have struggled with a 

 9           bit.  As I mentioned in terms of the 

10           telehealth fix, we're looking to ensure that 

11           there is access to behavioral health in 

12           health centers through telehealth.

13                  CHAIRWOMAN KRUEGER:  Assembly.  

14                  ASSEMBLYWOMAN PAULIN:  Thank you.

15                  Assemblymember González-Rojas.

16                  CHAIRWOMAN KRUEGER:  These microphones 

17           are a challenge.  

18                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Okay, 

19           got it.  Thank you so much.  

20                  This question is for Rose and the 

21           Community Health Care Association of New York 

22           State. 

23                  So faculty at both Rutgers and 

24           Columbia University published a recent study 


                                                                   354

 1           of about 45,000 individuals that suggests 

 2           that providing insurance to immigrants costs 

 3           the healthcare system approximately $3,800 

 4           per person per year, which is less than 

 5           one-half of the corresponding costs for 

 6           U.S.-born adults, which is estimated to be 

 7           about $9,428 per person per year.

 8                  Can you tell us more about the 

 9           benefits of the state providing this 

10           coverage?  I know the community health 

11           centers are the ones often absorbing the 

12           community center uninsured.  So can you talk 

13           a little bit about that?

14                  MS. DUHAN:  Yes, absolutely.

15                  As you noted, community health centers 

16           provide care regardless of people's insurance 

17           coverage or ability to pay.  So when people 

18           show up who are uninsured, health centers can 

19           provide care and then you have to financially 

20           ensure that they can cover those costs, we 

21           can cover those costs.

22                  The expanding coverage, we absolutely 

23           support expanding coverage to all New Yorkers 

24           regardless of their status.  And as was noted 


                                                                   355

 1           earlier, insurance coverage is a huge 

 2           indicator of access.  Health centers, 

 3           especially in certain areas, have seen a huge 

 4           increase influx of migrants, people who have 

 5           come up from Texas and from crossing the 

 6           border.  

 7                  And as was mentioned earlier, people 

 8           have different status in terms of what 

 9           they're eligible for, but for the most part 

10           those individuals do not have coverage.  And 

11           they have experienced significant trauma, 

12           they have significant needs.  Many people 

13           have not ever seen a doctor or a provider or 

14           nurse practitioner.  

15                  And so there's a lot of needs that 

16           they have, significant mental health needs.  

17           And in terms of children, providing vaccines, 

18           making sure they're ready for school.  So 

19           it's incredibly important that they can get 

20           access to care.

21                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

22           you so much.

23                  CHAIRWOMAN KRUEGER:  Thank you.

24                  I'm going to get us all those little 


                                                                   356

 1           balls that help strengthen your hands for the 

 2           budget hearings.

 3                  (Laughter.)

 4                  CHAIRWOMAN KRUEGER:  Sorry.

 5                  So on this question, a variation was 

 6           asked.  So since people don't want to seem to 

 7           go into primary care medicine for a variety 

 8           of reasons, do you think we should be 

 9           expanding the scope of practice for 

10           physicians assistants and nurse practitioners 

11           to be able to ensure that they're both 

12           trained and licensed correctly to provide 

13           primary care in settings where they really 

14           don't have the doctors?

15                  MS. DUHAN:  We believe that it's going 

16           to expand the primary care workforce.  We 

17           support it, because the workforce shortage is 

18           so critical.  We would like to see more 

19           enhancement of primary care physicians.  We 

20           also think that physicians assistants can 

21           serve at the top of their scope, and nurse 

22           practitioners have been incredibly valuable 

23           at health centers, so we certainly support 

24           those.


                                                                   357

 1                  MR. SANDMAN:  Yeah, I would add that I 

 2           don't think that they're substitutes for 

 3           physicians, but everybody supports the notion 

 4           that everybody should practice at the top of 

 5           their license.  Doctors should do what only 

 6           doctors are trained and ready to do.  Nurses 

 7           should do what only nurses are trained and 

 8           ready to do.  The same for PAs.  The same for 

 9           medical assistants, of course.

10                  Provider after provider in the field 

11           has said if the medical assistants could have 

12           just done immunizations, vaccines during 

13           COVID, it would have been a lifesaver.  I had 

14           my director of nursing doing vaccines all 

15           day.  That's not the best or appropriate use 

16           of my director of nursing.

17                  You know, this is -- scope of practice 

18           has historically been a third-rail issue here 

19           in Albany.  But, you know, a crisis is a bad 

20           thing to waste, and I think there's a 

21           receptivity, you know, to visiting those 

22           issues.  And there are some very intriguing 

23           proposals in the budget this year.

24                  MS. GOLDBERG:  I would also just add 


                                                                   358

 1           that almost all primary care providers, 

 2           whether they're PAs, NPs, physicians, RNs, 

 3           they're all burnt out because the structure 

 4           of the system is not supporting them.  And 

 5           what we really need to do is rebalance the 

 6           way we're paying for the care so we can have 

 7           full teams with community health workers, 

 8           with medical assistants who can do things 

 9           like vaccines but also with care 

10           coordinators.  Which you can't pay for the 

11           way that we pay for primary care today.

12                  If we move towards value-based payment 

13           and we had team-based care, all of the people 

14           who are providing the care would be less 

15           under stress.

16                  So I worry that if we just point to 

17           scope of practice and think that it's just a 

18           solution to just add more of one kind of 

19           provider, we're missing the picture that the 

20           whole system is under too much stress.

21                  CHAIRWOMAN KRUEGER:  And yet the 

22           shortage of people to work in the system 

23           certainly adds to the stress.  And I think I 

24           heard the answer before, people just don't 


                                                                   359

 1           want to even go into primary care medicine.  

 2                  Although I think the medical schools 

 3           will be testifying later, and I believe at 

 4           least one or two of the medical schools 

 5           downstate had said they were opening up 

 6           separate medical schools with a shorter time 

 7           frame specifically for primary care doctors.

 8                  Do you know whether any of those got 

 9           off the ground?

10                  MS. GOLDBERG:  I don't actually know.  

11           I'd love to find out more, though.

12                  CHAIRWOMAN KRUEGER:  Okay.  Stick 

13           around, because they'll be on another panel.

14                  Okay, thank you very much.

15                  Anyone else?

16                  ASSEMBLYWOMAN PAULIN:  Just me.

17                  Just one quick question to Rose.

18                  The capital needs of the community 

19           health centers, neighborhood health centers, 

20           talk about that.  Talk about what's in the 

21           budget, what's not in the budget, what the 

22           needs are out there, and what you're seeing.

23                  MS. DUHAN:  Sure.  Significant capital 

24           needs.  Many aging facilities, in terms of 


                                                                   360

 1           needed investment in IT and other kinds of 

 2           technology.  Significant infrastructure 

 3           needs.

 4                  As Jordan said, we would love to see a 

 5           set-aside in future capital or in current 

 6           capital allocations set aside for community 

 7           health.  That was not in the most recent 

 8           appropriation of that.  

 9                  But it's really a need that we see in 

10           terms of health centers wanting to expand.  

11           They know that there's more need out there 

12           than they're meeting now, and a lot of health 

13           centers are looking at some places where 

14           there are some primary care deserts and 

15           looking to expand.  But that capital need is 

16           critical to make sure they can build those 

17           facilities.

18                  ASSEMBLYWOMAN PAULIN:  Thank you.

19                  That's it.

20                  CHAIRWOMAN KRUEGER:  Well, then, thank 

21           you very much for your time and your 

22           testimony today.  Appreciate it.

23                  PANEL MEMBERS:  Thank you.

24                  CHAIRWOMAN KRUEGER:  Thank you.


                                                                   361

 1                  And as --

 2                  ASSEMBLYWOMAN PAULIN:  Panel C.

 3                  CHAIRWOMAN KRUEGER:  Yes.  Panel C, 

 4           for people who are following along with their 

 5           TV Guide sheet:  The New York Health Plan 

 6           Association; the New York State Coalition of 

 7           Public Health Plans; and Health Care for All 

 8           New York.

 9                  Oh, yeah, we have those ropes making 

10           it an extra challenge.  Sorry about that.

11                  And I feel that many people did take 

12           me up on my earlier statement that if you 

13           really need to get on a train and not stay 

14           here all night, you should just let us know, 

15           and we have your testimony.

16                  Maybe just everybody's taking a break 

17           outside.

18                  Okay, shall we start with Eric Linzer, 

19           then go to Erin Drinkwater, then to 

20           Mia Wagner?  Okay.  Eric?

21                  MR. LINZER:  Great.  Thank you.

22                  Thank you for the opportunity to 

23           testify on several provisions related to 

24           healthcare in the proposed FY '25 Executive 


                                                                   362

 1           Budget.  I'm Eric Linzer, president and CEO 

 2           of the New York Health Plan Association.

 3                  I'd like to highlight three items from 

 4           our written testimony.  First, our opposition 

 5           to the health plan rate cuts in Part H.  

 6           Second, our request to restore the funding 

 7           for the Medicaid Quality Incentive Program 

 8           that the Executive eliminated.  And third, 

 9           our opposition to the Medicaid managed care 

10           procurement in Part H.

11                  With regards to the health plan cut, 

12           Part H of the Executive Budget includes a 

13           provision to eliminate the 1 percent 

14           across-the-board administrative rate increase 

15           provided to Medicaid managed care plans in 

16           the current year.  This would result in a cut 

17           to plan rates of more than $400 million in 

18           the upcoming fiscal year.  And while we 

19           recognize that the budget challenges facing 

20           the state are significant, this is a 

21           significant cut that will make it more 

22           difficult for plans to make the investments 

23           necessary to fulfill the goals envisioned in 

24           the recently approved 1115 waiver that was 


                                                                   363

 1           discussed earlier today.  

 2                  Next, the Executive Budget would 

 3           completely eliminate the Quality Incentive 

 4           funding, totaling more than $223 million.  

 5           The QI program is an essential tool in 

 6           advancing quality for New York in Medicaid.  

 7           Health plans only receive this funding for 

 8           achieving results that meet or exceed state 

 9           metrics, and the funding helps to support a 

10           broad range of programs that health plans 

11           partner with providers and community 

12           organizations to improve health outcomes for 

13           underserved populations.

14                  Combined, these cuts total over 

15           $600 million and counter the efforts to 

16           advance health equity, reduce health 

17           disparities, and enhance coordination in 

18           New York, and we urge you to restore these 

19           cuts.

20                  With regard to the managed Medicaid 

21           procurement in Part H, this would direct the 

22           Department of Health to choose no fewer than 

23           two plans per product line in each region, 

24           with an effective date of October 1st of next 


                                                                   364

 1           year.  This year will effectively result in 

 2           the elimination of health plans from the 

 3           program, taking away options and disrupting 

 4           provider relationships for more than 

 5           5 million New Yorkers who rely on these plans 

 6           for their care.

 7                  And many of these individuals have 

 8           multiple health conditions that require 

 9           coordination of numerous services, including 

10           both physical health, mental healthcare, as 

11           well as help coordinating social services 

12           such as housing, employment, education, and 

13           food services.

14                  It's important to recognize that this 

15           procurement would take place in the midst of 

16           both the recertification of the public health 

17           emergency unwind as well as the significant 

18           investments the state's going to need to make 

19           related to the 1115 waiver.  And it's also 

20           important to note that two years ago the 

21           Legislature rejected this proposal, in large 

22           part because of the disruption that this 

23           would have for low-income Medicaid members in 

24           New York.  


                                                                   365

 1                  For all these reasons, we hope that 

 2           you'll reject this, and certainly appreciate 

 3           the opportunity to testify.

 4                  CHAIRWOMAN KRUEGER:  Thank you.  Wow, 

 5           perfect.  That was good.  

 6                  Can you beat him?

 7                  (Laughter.)

 8                  MS. DRINKWATER:  Good afternoon.  

 9           thank you for the opportunity to testify on 

10           behalf of the Coalition of New York State 

11           Public Health Plans, also known as the PHP 

12           Coalition, and the New York State Coalition 

13           of Managed Long Term Care Plans.  

14                  My name is Erin Drinkwater, and I'm 

15           the chief of government relations at 

16           MetroPlusHealth, a not-for-profit health plan 

17           fully owned by New York City Health + 

18           Hospitals, with more than 700,000 members in 

19           New York City.

20                  The PHP Coalition represents seven 

21           plans that collectively serve more than 

22           5.5 million New Yorkers enrolled in the 

23           state's government-sponsored healthcare 

24           programs.  


                                                                   366

 1                  The MLTC coalition includes 11 plans 

 2           serving approximately 165,000 individuals 

 3           with long-term-care needs in New York's 

 4           managed-care long-term-care partial 

 5           capitation program and the Medicaid Advantage 

 6           Plus program.

 7                  The coalition plans are committed 

 8           state partners.  Over the past year we played 

 9           and continue to play an important role in 

10           helping New Yorkers maintain their healthcare 

11           coverage as the COVID-19 public health 

12           emergency ended.  This involved close 

13           partnership with the Department of Health to 

14           support the redetermination of all Medicaid 

15           enrollees' eligibility and assist with 

16           changes in coverage.

17                  We look forward to continuing to work 

18           with the Department on the implementation of 

19           the state's 1115 waiver program to support 

20           the delivery of services addressing 

21           health-related social needs or social 

22           determinants of health.

23                  For all these reasons, we strongly 

24           support the Governor's efforts to provide 


                                                                   367

 1           continuous eligibility in Medicaid and CHP 

 2           for children zero to 6.  We are similarly 

 3           supportive of proposals to enhance 

 4           affordability of coverage in the Essential 

 5           Plan and Qualified Health Plan programs, as 

 6           well as much-needed investments in mental 

 7           health and maternal health.  

 8                  Coalition plans are eager to do more 

 9           in these areas, but we need the resources to 

10           do so.  To date, plans have largely relied on 

11           quality funding they receive when they meet 

12           certain metrics.  These programs, called the 

13           Medicare Managed Care and MLTC Quality 

14           Incentive programs, have been critical to 

15           funding investments in provider quality and 

16           community-based initiatives, initiatives that 

17           we know improve health outcomes for 

18           New York's most vulnerable populations.  

19                  But these funds are at risk.  Despite 

20           the positive impact, significant value 

21           created by the Medicaid Managed Care Quality 

22           Incentive Programs, and the Governor's own 

23           stated priorities to improve health and 

24           well-being of vulnerable populations and 


                                                                   368

 1           reduce health disparities, the state fiscal 

 2           year '25 Executive Budget proposed 

 3           eliminating all Medicaid quality funds.

 4                  Coalition plans are also concerned 

 5           about the Executive proposal to procure the 

 6           state's Medicaid Managed Care programs.  This 

 7           proposal, which was put forward and rejected 

 8           by both houses in the FY '23 budget, could 

 9           reduce plan choice for low-income New Yorkers 

10           and significantly disrupt enrollee coverage 

11           and care -- a risk that should not be taken 

12           lightly, given how vulnerable some of our 

13           enrollees are -- as well as negatively impact 

14           local economies, where plans and our provider 

15           partners are key employers.  

16                  There's also a concern that the 

17           procurement can have unintended consequences 

18           for nonprofit plans leaving the market.

19                  Thank you for the opportunity to 

20           testify.

21                  CHAIRWOMAN KRUEGER:  You only got half 

22           a letter breakoff for going --

23                  (Laughter.)

24                  CHAIRWOMAN KRUEGER:  How about you?  


                                                                   369

 1           Good afternoon.

 2                  MS. WAGNER:  Good afternoon.  My name 

 3           is Mia Wagner.  I'm here today to represent 

 4           Health Care for All New York, a statewide 

 5           campaign of over 170 organizations dedicated 

 6           to achieving quality affordable health 

 7           coverage for all New Yorkers.

 8                  The Executive Budget includes many 

 9           positive proposals that will help protect 

10           consumers from medical debt and enhance their 

11           ability to access affordable healthcare.  The 

12           campaign urges the Legislature to adopt said 

13           proposals in the budget and include reforms 

14           in five key issue areas.

15                  First, the Executive Budget includes 

16           several provisions to better protect 

17           New Yorkers from medical debt, including 

18           expansion of eligibility for hospital 

19           financial assistance up to 400 percent of the 

20           federal poverty level.  The coalition urges 

21           the Legislature to go further and expand 

22           eligibility up to 600 percent, as well as 

23           incorporate time-limited debt repayment plans 

24           as would occur if the Ounce of Prevention 


                                                                   370

 1           Act, S1366B and A6027A, were enacted.

 2                  The Executive Budget prohibits 

 3           hospitals from suing patients with incomes 

 4           below 400 percent of the federal poverty 

 5           level.  We strongly support this prohibition 

 6           and urge the Legislature to additionally 

 7           prohibit state-operated hospitals from suing 

 8           patients for medical debt by adopting the 

 9           provisions of the Stop SUNY Suing bill, A8170 

10           and S7778.

11                  Second, the Governor has included a 

12           nation-leading proposal to eliminate 

13           cost-sharing for insulin for state-regulated 

14           health plans.  According to the DOH, 

15           1.6 million New Yorkers have diabetes, of 

16           whom 538,000 use insulin.  The coalition 

17           strongly supports this proposal, as research 

18           shows that eliminating cost-sharing for 

19           chronic illnesses results in increased 

20           medicine adherence and overall healthcare 

21           system savings.

22                  Further, there are significant racial 

23           disparities and prevalence of mortality of 

24           diabetes in New York.  Improving access to 


                                                                   371

 1           insulin is an important step towards 

 2           improving health equity.

 3                  Third, the Executive Budget includes 

 4           guaranteed continuous public insurance 

 5           coverage for children up to age 6, a proposal 

 6           we strongly support.

 7                  Fourth, the Executive Budget includes 

 8           premium and cost-sharing subsidies for 

 9           qualified health plans using 1332 waiver 

10           pass-through funds.  We strongly encourage 

11           the Legislature to authorize these premium 

12           subsidies, in addition to using their 

13           remaining surplus funds to offer coverage to 

14           up to 150,000 low-income immigrants who are 

15           otherwise ineligible.

16                  The Governor's proposed cost-sharing 

17           subsidies will cost around $1.4 billion and 

18           coverage for low-income immigrants would cost 

19           an estimated $4.9 billion.  Together these 

20           provisions total $6.35 billion out of a 

21           $7.1 billion five-year surplus fund, leaving 

22           $790 million in surplus funding to spare.  

23           There are sufficient federal funds to cover 

24           both programs.


                                                                   372

 1                  Lastly, the Community Health Advocates 

 2           program helps New Yorkers navigate the 

 3           complex healthcare system by providing 

 4           individual assistance, outreach and education 

 5           to communities throughout the state.  In 

 6           fiscal year '23, their helpline experienced a 

 7           172 percent increase in calls.  However, the 

 8           program received an unexpected $468,000 

 9           funding cut last year. 

10                  The Governor's budget includes 

11           $3.5 million, and we urge the Legislature to 

12           allocate an additional $2 million to fully 

13           restore the program's funding to 

14           $5.5 million.

15                  Thank you again for the opportunity to 

16           testify.

17                  CHAIRWOMAN KRUEGER:  (Mic off.)

18                  Assembly.

19                  ASSEMBLYWOMAN PAULIN:  Do you have a 

20           question?

21                  ASSEMBLYMAN JENSEN:  Yes.  

22                  All right, thank you, Madam Chair.

23                  Mr. Linzer, I just want to follow up 

24           with something you talked about when you 


                                                                   373

 1           brought up the Medicaid managed care 

 2           procurement proposal.  

 3                  How would a competitive bid process 

 4           impact the managed care marketplace?

 5                  MR. LINZER:  Well, I think, you know, 

 6           a couple of ways.

 7                  You know, first, you know, there's the 

 8           potential that you could have plans that are 

 9           not chosen end up no longer being able to 

10           participate in the program.  You know, that 

11           would have a significant impact on the 

12           individual plan members, who would then have 

13           to choose a different plan.

14                  It's terribly disruptive when a plan 

15           ends up leaving the market or no longer is 

16           able to operate in the state.  And I wouldn't 

17           want to understate the significant disruption 

18           that that would cause for patients, 

19           particularly having to choose a new plan and 

20           whether or not that would then, you know, 

21           change relationships that they may have with 

22           particular providers.

23                  Second, from the delivery system, you 

24           know, that likewise is going to be very 


                                                                   374

 1           disruptive for hospitals, physicians, you 

 2           know, other providers, if -- you know, if a 

 3           plan is not chosen. 

 4                  And I think the third piece is that, 

 5           you know, as I mentioned in my testimony, at 

 6           a time when the state needs to make 

 7           significant investments both in continuing 

 8           the recertification as a result of the public 

 9           health unwind, and investments around the 

10           1115 waiver, having to undergo a 

11           procurement -- which is time-consuming, 

12           costly for both the state as well as for 

13           market participants -- you know, is not 

14           really the right investments that we ought to 

15           be making when we've got, you know, much 

16           bigger and much more significant challenges 

17           and investments that need to be made.

18                  ASSEMBLYMAN JENSEN:  So I'm going to 

19           take a guess at what the answer is, but do 

20           you agree with the Executive Budget proposal 

21           on what the projected saving estimate would 

22           be as a result of this proposal?

23                  MR. LINZER:  I mean, I think, you 

24           know, that's really to be determined.  I 


                                                                   375

 1           think the important thing to recognize is 

 2           that, you know, in a year when policymakers 

 3           such as yourselves are grappling with really 

 4           big challenges around potential, you know, 

 5           cuts to services, you know, not just for 

 6           health plans but certainly throughout the 

 7           delivery system, this proposal doesn't 

 8           generate any savings in the upcoming fiscal 

 9           year but is going to require significant 

10           investments among market participants to be 

11           prepared when an RFP or a procurement goes 

12           out into the market.

13                  ASSEMBLYMAN JENSEN:  And very quickly, 

14           you kind of touched on this, but how would 

15           care be impacted for the Medicaid members if 

16           this moves forward?

17                  MR. LINZER:  So, you know, you 

18           potentially have, you know, individuals who 

19           are in one plan and if their plan is not an 

20           entity that's picked, they have to transition 

21           to another plan.  And these are individuals, 

22           as I mentioned, who have, you know, 

23           complex -- oftentimes complex medical 

24           conditions.  Having to coordinate not just 


                                                                   376

 1           their care but social services and other 

 2           supports, you know, would require significant 

 3           undertaking for the provider, the plan, and 

 4           the patient.

 5                  ASSEMBLYWOMAN PAULIN:  Thank you.

 6                  CHAIRWOMAN KRUEGER:  Assembly.

 7                  ASSEMBLYWOMAN PAULIN:  You have no 

 8           more?

 9                  CHAIRWOMAN KRUEGER:  No, the Senate 

10           said no thank you.

11                  ASSEMBLYWOMAN PAULIN:  Okay, we have a 

12           few.

13                  Assemblymember Weprin.

14                  ASSEMBLYMAN WEPRIN:  Thank you all for 

15           your testimony and your work all year.

16                  What -- I'll address this to 

17           Ms. Drinkwater.  What type of work would be 

18           prevented, you know, by some of these cuts 

19           that are currently, you know, provided by 

20           MetroPlus and other companies along those 

21           lines?  What types of specific services would 

22           be directly affected?

23                  MS. DRINKWATER:  Thank you for that 

24           question, Assemblymember.


                                                                   377

 1                  One of the things that I'd like to 

 2           highlight in regards to the Quality funds is 

 3           some of the work that we do at MetroPlus 

 4           that's critical for closing health 

 5           disparities and closing outcome gaps.  These 

 6           dollars are used for our providers and 

 7           community based work, and one of the areas 

 8           that we are focused on at MetroPlus is really 

 9           using those dollars to address housing 

10           insecurity.

11                  We worked directly with Health + 

12           Hospitals, the Department of Homeless 

13           Services, and community-based providers in 

14           New York City with members of ours that are 

15           experiencing homelessness, to work with them 

16           to get them connected to housing and really 

17           follow them on that housing process, from 

18           completing their application, whether that be 

19           a supportive housing application or an 

20           affordable housing application, and then 

21           ultimately seeing that member get into 

22           housing.

23                  And the elimination of the Quality 

24           funds in the Governor's budget is very 


                                                                   378

 1           concerning.  We appreciate the Legislature's 

 2           restoration last year.  But each year coming 

 3           hat in hand for those dollars creates a lot 

 4           of instability in the program for our 

 5           providers and community-based organizations 

 6           who are trying to do this work to close those 

 7           outcome gaps for individuals who are on the 

 8           Medicaid plans.

 9                  ASSEMBLYMAN WEPRIN:  Okay, well, we'll 

10           be working on trying to do that again this 

11           year, I suspect.

12                  MS. DRINKWATER:  We appreciate it.

13                  ASSEMBLYMAN WEPRIN:  But don't go 

14           away.  Don't go on vacation.

15                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

16           Gandalfo.

17                  ASSEMBLYMAN GANDOLFO:  Thank you, 

18           Chairwoman, and thank you all for your 

19           testimony.  

20                  My questions are going to be for 

21           Mr. Linzer.

22                  In regard to the proposed 1 percent 

23           rate cut for plans that participate in 

24           Medicaid, how will that translate?  How will 


                                                                   379

 1           services be impacted by a $400 million cut?

 2                  MR. LINZER:  I mean, I think the 

 3           biggest thing has to do with similar to the 

 4           cuts that we're seeing in the QI program, are 

 5           the investments that plans are going to make 

 6           for things that might be beyond the typical 

 7           benefit.  So things like, you know, social 

 8           supports, transportation, you know, outreach.  

 9           You know, things that you would typically 

10           need some dollars to able to invest in just 

11           wouldn't be -- you know, aren't going to be 

12           possible as a result of that.

13                  And again, at a time when, you know, 

14           the focus and much of the conversation today 

15           from the state has been around steps that 

16           they want to take to, you know, address that 

17           equity, eliminate disparities in care -- much 

18           of this work, you know, gets done through 

19           health plans as partners with the state.  But 

20           with that -- you know, without sufficient 

21           dollars it makes it really difficult to make 

22           the necessary investments that will have a 

23           meaningful impact for providers and patients.

24                  ASSEMBLYMAN GANDOLFO:  Thank you.


                                                                   380

 1                  And with regard to the QI program, 

 2           what do plans currently spend on Quality pool 

 3           dollars now?

 4                  MR. LINZER:  The total amount's about 

 5           $223 million.  You know, full funding would 

 6           be about 268 million.  

 7                  As Erin mentioned, you know, this is 

 8           something, you know, every year the Executive 

 9           either reduces or eliminates.  We appreciate 

10           the fact that the Legislature has made -- you 

11           know, has supported this is on an ongoing 

12           basis.  

13                  But, you know, the types of things 

14           that get funded through the QI program, you 

15           know, things that we want to see happen even 

16           in the Medicaid program, you know, beyond 

17           sort of just going to the doctor.  But we're 

18           talking about things like preventative 

19           visits, you know, wellness checks.  You know, 

20           in the MLTC program, going into members' 

21           houses, making sure that they get, you know, 

22           their flu and pneumonia vaccines.  

23                  But also, you know, other things.  You 

24           know, we've got programs in the upstate 


                                                                   381

 1           region where we're working toward -- you 

 2           know, we've got plans and community partners 

 3           working to address housing insecurity, we've 

 4           got programs out on Long Island, plans and 

 5           providers and partnering to extend office 

 6           hours so that patients can get, you know, get 

 7           in and get the care that they need.  

 8                  So there's a wide array of different 

 9           programs that are going on across the state 

10           that only happen because of the QI dollars.  

11           And as Erin pointed out, it makes it really 

12           hard to have to -- you know, to do any kind 

13           of meaningful long-term planning.  If each 

14           year what you're facing is the prospect of 

15           cuts, what's the incentive for community 

16           groups and providers to want to partner on a 

17           long-term basis?

18                  ASSEMBLYMAN GANDOLFO:  All right.  

19           Thank you very much.

20                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

21           Jessica González-Rojas.

22                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  So I 

23           want to thank you all for your support of 

24           coverage for all.  And thank you, Mia, for 


                                                                   382

 1           talking about it.  I will ask a different 

 2           question.

 3                  Erin, I appreciate your support, 

 4           MetroPlus's support of the zero to 6 proposal 

 5           of continual enrollment.  I have a bill, 

 6           8146, and the Executive's proposal would 

 7           provide continual coverage for children in 

 8           Medicaid or who are enrolled in SCHP, not 

 9           just Medicaid.  Medicaid or SCHP, not just 

10           Medicaid.

11                  So can you -- can you share like 

12           what's the benefit of having just Medicaid or 

13           the Medicaid and SCHP option and why that's 

14           important?

15                  MS. DRINKWATER:  Thank you for the 

16           question.  We're, you know, very pleased to 

17           support this.  MetroPlus spoke a couple of 

18           weeks ago at your press conference, both for 

19           the Medicaid and CHP continuous coverage zero 

20           to 6. 

21                  The benefits, there's a handful.  And 

22           I think we learned from the COVID pandemic 

23           some real lessons in terms of the easements 

24           that were made as it related to the necessity 


                                                                   383

 1           for people to redetermine their eligibility 

 2           during the pandemic.  We saw, you know, 

 3           increased rates of coverage, we saw decreased 

 4           burden on individuals.  And the reason for 

 5           that was because we knew that medical care 

 6           and coverage was so necessary during that 

 7           pandemic.  And it would be a shame for us to 

 8           take those lessons and turn our back on that.

 9                  So knowing that children zero to 6 

10           are, you know, some of our most vulnerable 

11           New Yorkers, access to school-based care, 

12           vaccines, early interventions are all very 

13           important.  But it's not just for the child, 

14           their family, their caregiver, it also 

15           relates to the benefits to the state as it 

16           relates to the burden that this churn 

17           presents and related to administrative costs 

18           for the state, for the local social service 

19           departments, as well as the plans.

20                  So the benefits really far outweigh 

21           the cost, and we hope that we can get this 

22           across the finish line.

23                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Okay.  

24           Thank you so much.


                                                                   384

 1                  ASSEMBLYWOMAN PAULIN:  I believe 

 2           that's it.  So thank you very much, Panel C.

 3                  CHAIRWOMAN KRUEGER:  Thank you, 

 4           Panel C.

 5                  ASSEMBLYWOMAN PAULIN:  We're up to 

 6           Panel D.

 7                  CHAIRWOMAN KRUEGER:  Yes.  So Empire 

 8           Center, LeadingAge New York, Housing Works, 

 9           and the Center for Elder Law & Justice.  A 

10           nice, diverse set of topics.

11                  (Off the record.)

12                  CHAIRWOMAN KRUEGER:  And you need a 

13           very strong finger to press for red to green, 

14           just letting you know.

15                  And so let's just go down with 

16           Bill Hammond first, then Jim Clyne, then 

17           Charles King, then Lindsay Heckler.

18                  Hi, everyone.

19                  MR. HAMMOND:  So good afternoon.  I 

20           don't have to tell you, you've heard a lot of 

21           talk about crisis in New York State's 

22           healthcare system.  One witness after another 

23           has testified they're critically short of 

24           money, desperately short of staff, and they 


                                                                   385

 1           want Medicaid to come to the rescue.

 2                  I'm a data guy, so I feel like my 

 3           value added is to put some of that in 

 4           perspective.  I'll start with a statistic 

 5           you've probably heard before.  We spend more 

 6           per capita on Medicaid than any other state 

 7           in the country -- 70 percent more than the 

 8           national average.  And that number has been 

 9           growing pretty rapidly in the last few years:  

10           62 percent in three years.  That's probably 

11           an unprecedented amount for three years in 

12           New York's Medicaid program.

13                  We also spend more per capita on 

14           healthcare generally, public and private.  

15           And so if you think about it, the U.S. spends 

16           more than the rest of the world, this is 

17           probably one of the very richest healthcare 

18           systems there is.

19                  And then finally I'll just add that 

20           our healthcare workforce is bigger than it's 

21           ever been, and we have more healthcare 

22           workers per capita than any other state.

23                  So we have a lot of resources 

24           available to us, so the issue seems to be if 


                                                                   386

 1           there are shortages -- and I believe that 

 2           there shortages -- the issue seems to be a 

 3           question of allocation.  As David Sandman 

 4           said before, we should be spending smarter.

 5                  It's a tight budget year, so this is a 

 6           good time to think through those things, to 

 7           look for, to squeeze waste out of the system, 

 8           to spend not -- to spend smarter, not bigger, 

 9           and to reinvest savings where you'll get the 

10           most bang for the buck.

11                  One area that I would really like to 

12           highlight, where I do think there is a very 

13           small investment that can get great returns, 

14           and that would be creating a pandemic 

15           investigation commission.  

16                  There's a bill introduced by 

17           Assemblymember González-Rojas and Senator 

18           Salazar, I think it's an excellent bill and I 

19           think you should pass it.  And it would do an 

20           investigation of the pandemic so we can learn 

21           lessons and improve our public health 

22           response.  And it would also -- it would need 

23           some small amount of funding to operate.  I 

24           think that should be in the budget.


                                                                   387

 1                  If you're looking for other examples 

 2           of places where you might find savings, I 

 3           guess I have to be the skunk in the room and 

 4           point to the funding for distressed 

 5           hospitals.  Because some of these hospitals, 

 6           if you were assured that a few years of extra 

 7           help would turn them around and they'd stand 

 8           on their own feet, that would be one thing.  

 9           But some of these hospitals have been getting 

10           hundreds of millions of dollars a year, year 

11           after year, and they're not becoming any more 

12           financially viable.

13                  And that's money -- that's healthcare 

14           dollars that should be going to pay for care 

15           for patients and not going to subsidize an 

16           underutilized facility.

17                  So I know that's a very politically 

18           difficult subject, but that's an example of 

19           the kind of hard thinking that I think our 

20           healthcare system needs.  

21                  So thank you.

22                  CHAIRWOMAN KRUEGER:  Thank you.

23                  Okay, next is Jim Clyne.

24                  MR. CLYNE:  Thank you.


                                                                   388

 1                  I represent over 400 not-for-profit 

 2           and government long-term-care providers 

 3           across New York State.

 4                  Although the Governor acknowledges New 

 5           York's growing older population and rising 

 6           need for long-term care, her budget fails to 

 7           make the investment to address the dire need.  

 8           Not only does the budget proposal fail to 

 9           invest in desperately needed funds to ensure 

10           access to care for older New Yorkers, it 

11           imposes significant cuts.

12                  Even worse, only older adults and 

13           others who need long-term care are targeted 

14           for these deep cuts in the Governor's budget.

15                  The Executive Budget demands that 

16           older adults in long-term care bear the brunt 

17           of the Medicaid cuts.  In fact, the Executive 

18           Budget's Medicaid Scorecard shows 633 million 

19           state share reduction in Medicaid for 

20           long-term-care services.  The rest of the 

21           Medicaid budget only has a $112 million 

22           reduction.

23                  This is at a time when nursing homes 

24           are being paid 74 cents on the dollar for 


                                                                   389

 1           care.  We've done the math; the state does 

 2           not dispute this.  They know that they are 

 3           underfunding, yet they include no new dollars 

 4           for staff in nursing homes.

 5                  At the same time, we're being faced 

 6           with penalties for not having enough staff.  

 7           The result is my members have closed beds and 

 8           closed units.  That's why, in the Rochester 

 9           press, as the elected officials have already 

10           noted, there were 110 patients in one 

11           hospital waiting for nursing home care.

12                  I'd just like to touch on the VAPAP 

13           program.  It was interesting that the 

14           department said that it wasn't needed.  The 

15           only reason it's not needed is because they 

16           haven't used it.  Just in the last three 

17           years there's been 11 nursing homes that have 

18           closed; nine are not-for-profit.  And this is 

19           at the same time that the hospitals are 

20           desperate to get people discharged.

21                  I'm not going to be redundant on the 

22           long-term-care procurement process, but we've 

23           seen what happens when a long-term-care plan 

24           goes out of business -- just one plan going 


                                                                   390

 1           out of business -- and the resulting 

 2           difficulty in placing the people that they 

 3           serve.  Doing a procurement where you could 

 4           have 100,000 people with disabilities being 

 5           disrupted from their provider makes no sense 

 6           to us. 

 7                  And finally I just want to note that 

 8           on the adult day healthcare program, as a 

 9           result of the pandemic there are 115 that we 

10           had in the state; they are now -- most of 

11           them were shut down.  There's only 55 that 

12           are open.  In the borough of the Bronx there 

13           is one medical adult day program operating.  

14           This is a community program that helps people 

15           stay out of nursing homes, and something the 

16           state needs to invest in.

17                  Thanks.

18                  CHAIRWOMAN KRUEGER:  Thank you.

19                  Next, Charles King.

20                  MR. KING:  Thank you, Senator Krueger 

21           and Senator Rivera and Assemblymember Paulin, 

22           for inviting my testimony today.

23                  On a positive note, I want to commend 

24           the Governor for including in her budget a 


                                                                   391

 1           proposal that would streamline testing, 

 2           opt-out testing for HIV in emergency rooms 

 3           and primary care centers.  This is a really 

 4           critical step.  

 5                  And I want to acknowledge 

 6           Assemblymember Paulin, who introduced a bill 

 7           almost identical to what's in the budget in 

 8           the Assembly that passed in the Assembly 

 9           yesterday.  We're looking forward to seeing 

10           similar activity in the Senate.  

11                  I want to speak to expanding enhanced 

12           rental assistance to people living with HIV 

13           outside of New York City.  There are some 

14           2,500 households outside of New York City 

15           living with HIV who are presently homeless or 

16           unstably housed.  You can't take medication 

17           and adhere to treatment if you're unstably 

18           housed or homeless.  You all have passed a 

19           bill that the Governor has put forward five 

20           years in a row that has not housed a single 

21           household.  It's time to do something 

22           different.  We have repeatedly proposed -- 

23           put forward a proposal that would ensure that 

24           everyone who is homeless living with HIV has 


                                                                   392

 1           access to rental assistance.

 2                  I also want to commend you for your 

 3           comments throughout the day around universal 

 4           coverage, particularly for undocumented 

 5           immigrants.  You all have noted the savings 

 6           to the state.  I want to emphasize the impact 

 7           on consumers who are presently uninsured.

 8                  So right now in New York State one out 

 9           of five people is diagnosed with HIV 

10           simultaneous with receiving a diagnosis of 

11           AIDS.  That percentage is actually 

12           significantly higher for undocumented 

13           immigrants.  Why?  Because they don't go to 

14           primary care because they don't have health 

15           insurance.  They only go into a medical 

16           facility if they need urgent care.  They are 

17           not being tested, and consequently they only 

18           get tested for HIV when they have an 

19           AIDS-defining illness that takes them into 

20           the emergency room.  

21                  Similarly, they are not getting tested 

22           or treated for hepatitis C at the same rates 

23           as many other people.

24                  And then lastly, with my time running 


                                                                   393

 1           out, I urge your support for overdose 

 2           prevention centers.  We have reduced deaths 

 3           significantly from HIV for people who use 

 4           drugs, but we now have over 5,000 people 

 5           dying of drug overdoses in this state every 

 6           year.

 7                  Thank you.

 8                  CHAIRWOMAN KRUEGER:  Thank you.

 9                  Next.

10                  MS. HECKLER:  So thank you for the 

11           opportunity to be here today.  I'm with the 

12           Center for Elder Law & Justice.  We are a 

13           civil legal services organization that 

14           provides legal representation to older adults 

15           in Western New York.

16                  We were quite a bit disappointed, to 

17           put it mildly, at this budget.  With all of 

18           the work currently going on with the Master 

19           Plan for Aging and the soon-to-be-released- 

20           at-some-point Olmstead Plan, there is no 

21           investment in aging services and supports in 

22           this budget to help older adults age in place 

23           in their homes, which is the least 

24           integrative setting possible.  


                                                                   394

 1                  Other groups later on are going to 

 2           talk about home and community based services.  

 3           I wanted to use my time to briefly touch upon 

 4           assisted living residences and nursing homes.

 5                  The Governor again is proposing 

 6           quality measures for assisted living 

 7           residences.  We're not necessarily against 

 8           that.  We just think it needs to be expanded 

 9           across all types of adult-care facilities.  

10           So your adult homes, your enriched housing 

11           programs, your Medicaid ALPs.  Each level of 

12           care has its own services, needs and 

13           requirements and needs to have their own 

14           metrics.  

15                  Along those lines, we really urge the 

16           Legislature to push strongly by mandating 

17           inspection reports of assisted living and 

18           adult care facilities to be published online.

19                  One proposal we are strongly against 

20           is the Governor's proposal to allow assisted 

21           living residences to attain accreditation, 

22           and so long as they have that accreditation 

23           they do not have to be inspected by the 

24           Department of Health.  Accreditation must 


                                                                   395

 1           never be a substitute for oversight.  

 2                  So with that, Assemblymember Paulin, 

 3           you have an amended bill out there that we 

 4           would support that language over the 

 5           Executive's.

 6                  As my time runs out, I do want to 

 7           touch upon the Governor's proposal to stop 

 8           the EQUAL program.  So we strongly oppose 

 9           this proposal to discontinue the EQUAL 

10           program, because it does not make sense that 

11           the state would subsidize the cost for 

12           persons with dementia to remain in their 

13           special needs ALR -- which we fully support, 

14           it's aging in place -- but then pull away 

15           money to help the other older adults who are 

16           lower-income to have access to services and 

17           activities in their home, in adult homes.  

18           It's a bit ridiculous.

19                  Lastly, with the time, I do want to 

20           put out there we need to increase the 

21           personal needs allowance for persons living 

22           in nursing homes.  Fifty dollars a month?  

23           That is ridiculous.  What can you buy for $50 

24           a month?  I know that's not a hot topic in 


                                                                   396

 1           this year's budget, but if we're talking 

 2           about helping to empower older adults' 

 3           quality of life, increase that $50 to at 

 4           least $150.

 5                  Thank you.

 6                  CHAIRWOMAN KRUEGER:  Thank you.

 7                  Questions?  Well, I do, so I'll start, 

 8           thank you.

 9                  I guess Bill Hammond.

10                  MR. HAMMOND:  Yes.

11                  CHAIRWOMAN KRUEGER:  So when you talk 

12           about that we spend so much more money than 

13           anyone else and yet you also agree we don't 

14           have enough workers in various categories, 

15           what are we spending the money on?  Are we 

16           just spending it wrong?

17                  MR. HAMMOND:  Well, we have quite a 

18           few workers statewide, but it's -- again, 

19           it's not allocated as evenly as you would 

20           want it in an ideal world.  Downstate has way 

21           more workers per capita than upstate.  

22                  And some industries -- so Jim's 

23           industry is still way down in terms of 

24           employment since the pandemic.  Home care is 


                                                                   397

 1           way up.  Hospitals are a little bit up.  So 

 2           it's uneven.

 3                  Home care is the number-one example I 

 4           would give of an area where we spend a lot of 

 5           money.  I quote this statistic a lot:  We 

 6           spend as much -- as of a few years ago we 

 7           were spending as much on home care through 

 8           Medicaid almost as the other 49 states 

 9           combined.  So we have 6 percent of the 

10           population, and we have 45 plus percent of 

11           the Medicaid home care spending.  

12                  Now, I --

13                  CHAIRWOMAN KRUEGER:  I'm assuming -- 

14           okay, I have to be quick.  So I'm assuming 

15           you were listening when DOH was getting all 

16           kinds of questions from many of us, including 

17           on home care issues and the cost.  

18                  Do you agree with a number of people 

19           who argue we're putting a lot of money in 

20           home care into the administration through 

21           middle people, as opposed to actually 

22           spending it to pay workers to provide care?  

23           Have you done any work on that?

24                  MR. HAMMOND:  There is definitely 


                                                                   398

 1           money that goes into administration.  And I 

 2           have to say it doesn't seem like -- if that 

 3           spending on administration was helping to 

 4           contain the costs, if it was helping to slow 

 5           the enrollment, it would be -- it would be 

 6           earning its keep.  But it doesn't seem like 

 7           that's what's happening.

 8                  CHAIRWOMAN KRUEGER:  Thank you.

 9                  And then very quickly, Lindsay, about 

10           care and quality of care in nursing homes and 

11           assisted living.  So I'm writing a bill -- 

12           that probably everyone will yell at me 

13           about -- to add them to the Justice Center 

14           portfolio so that when there are complaints, 

15           that somebody is actually looking at them, as 

16           opposed to this sort of voluntary ombudsman 

17           system, which clearly doesn't have the 

18           authority or the teeth to do anything when 

19           they're discovering problems.  

20                  Do you have an opinion about that?

21                  MS. HECKLER:  I think it's an 

22           intriguing idea because I like pulling the 

23           potential civil action outside of the 

24           Department of Health because it's 


                                                                   399

 1           investigating its own policies, if you will.

 2                  I do caution, even though I don't have 

 3           a lot of experience with the Justice Center, 

 4           I have been hearing, with my colleagues who 

 5           work with residents within the OPWDD system, 

 6           that the Justice Center is not living up to 

 7           its full potential.

 8                  So I like the idea, but we need to 

 9           make sure the Justice Center is doing what it 

10           needs to be doing as well.

11                  CHAIRWOMAN KRUEGER:  Thank you.

12                  Thank you.

13                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

14           Jensen.

15                  ASSEMBLYMAN JENSEN:  Thank you, 

16           Chairwoman.

17                  Mr. Clyne, you brought up the VAPAP 

18           program.  Is the cut to VAPAP, is that 

19           included in the $200 million cut to the 

20           Medicaid long-term care?

21                  MR. CLYNE:  No, that's on top of it.

22                  ASSEMBLYMAN JENSEN:  So it's multiple 

23           cuts, not --

24                  MR. CLYNE:  Yeah.  There's a 


                                                                   400

 1           10 percent cut to capital, there's a 

 2           VAPAP cut, and then another $200 million on 

 3           top of it.

 4                  ASSEMBLYMAN JENSEN:  So what -- in 

 5           your understanding, what's the total cut?

 6                  MR. CLYNE:  To long-term care, not 

 7           to --

 8                  ASSEMBLYMAN JENSEN:  Yeah.

 9                  MR. CLYNE:  It's over $622 million 

10           state share.

11                  ASSEMBLYMAN JENSEN:  Okay.

12                  MR. CLYNE:  So over a billion dollars 

13           cut out of long-term care.

14                  ASSEMBLYMAN JENSEN:  I asked the 

15           commissioner, and I don't remember if it was 

16           the commissioner or the Medicaid director who 

17           answered the question, but in fiscal year '23 

18           in the enacted budget, $187 million in 

19           staffing assistance was allocated.  They 

20           believe that that money is going out the 

21           door.

22                  For your 400-plus members in 

23           LeadingAge, is that an accurate statement?

24                  MR. CLYNE:  Well, there's three pots 


                                                                   401

 1           of money.  There was originally $120 million 

 2           for staffing; none of that was spent.  

 3                  The next fiscal year there was 

 4           $187 million for staffing.  The last bit of 

 5           that money was just allocated.  

 6                  The next year there was $187 million 

 7           that had been appropriated the previous year.  

 8           That money got wrapped into the increase to 

 9           the rate last year.  So that money never 

10           existed and they never spent it.

11                  ASSEMBLYMAN JENSEN:  So as nursing 

12           homes are complying with the state's safe 

13           staffing mandates that were put in place, 

14           what is the current situation with your 

15           membership as it pertains to being able to 

16           meet those mandated numbers?  Kind of 

17           referencing to what Mr. Hammond said where 

18           you see upstate nursing home employment 

19           numbers lagging behind downstate.

20                  MR. CLYNE:  Yeah, the -- if you look 

21           at the two mandates that the Legislature 

22           passed, one was so we spend 70 percent of our 

23           funds on patient-facing care.  Forty percent 

24           of that had to be on direct care staff.  


                                                                   402

 1           Ninety-seven percent of my members meet that 

 2           standard.  So they're meeting the 70/40. 

 3                  Only -- only 44 percent of them can 

 4           meet the 3.5 hour mandate.  We are spending 

 5           the money where you have told us to spend it.  

 6           It's just not enough money.

 7                  ASSEMBLYMAN JENSEN:  So of the 

 8           facilities that are meeting the 3.5, 

 9           ballpark, how many do it through the use of 

10           agency staff rather than their own organic 

11           staff?

12                  MR. CLYNE:  Well, the ones that can 

13           pay better because they have more private 

14           pay, and maybe they have a higher case mix -- 

15           those are the really only two things that 

16           change the rate -- they can afford to pay the 

17           staff more.  So they're actually using less 

18           agency staff.

19                  ASSEMBLYMAN JENSEN:  But that's 

20           ensuring that the ones that have a higher 

21           Medicaid population in their census are 

22           paying a greater share --

23                  MR. CLYNE:  Exactly.

24                  ASSEMBLYMAN JENSEN:  -- but getting 


                                                                   403

 1           less reimbursement from the state.

 2                  MR. CLYNE:  Yeah.  Exactly.

 3                  ASSEMBLYMAN JENSEN:  And has the state 

 4           done anything to alleviate the administrative 

 5           burden through the HERDS survey requirements?

 6                  MR. CLYNE:  They did a brief relief.  

 7           But if you ask my members, it's not much, 

 8           because it's still 19 questions that give -- 

 9           junk data to them.

10                  ASSEMBLYMAN JENSEN:  Thank you.

11                  CHAIRWOMAN KRUEGER:  Thank you.

12                  Senator Gustavo Rivera.

13                  SENATOR RIVERA:  Bill, so you're 

14           suggesting -- and I want to dig a little bit 

15           deeper.  You are a data guy.  And I 

16           certainly -- and I certainly know that you -- 

17           that you come from a perspective that -- of a 

18           fiscally conservative mindset.  And I get 

19           that.  But you're suggesting that we should 

20           spend less in institutions that are falling 

21           apart, in many instances.

22                  In this case, for example, let's say 

23           St. Barnabas hospital.  St. Barnabas Health 

24           System is in the middle of Bronx, just south 


                                                                   404

 1           of my district.  It used to be in the core, 

 2           but now it's just south of my district.  

 3           Ninety-five percent of the people are 

 4           Medicaid patients, so they basically lose 

 5           money every time somebody goes there.  And 

 6           they have all sorts of capital improvements 

 7           that they're lagging behind, you know.  And 

 8           this is a story just -- all around the state.

 9                  So -- and they have to keep up their 

10           operational costs, because obviously they 

11           have employees that they have to pay, 

12           contracts that they have to meet, and they 

13           have capital needs consistently, many of 

14           them -- like, for example, an emergency room 

15           right now that is like out of date by more 

16           than a decade.  And that's a story of one 

17           institution.  We have many institutions 

18           around the state.

19                  It seems nonsensical to me what you're 

20           saying.  Not from the perspective of being 

21           a -- of this whole conservative person, which 

22           obviously you are, so you just believe 

23           spending less money is better.  But what 

24           we're trying to say, and certainly what I've 


                                                                   405

 1           been saying for a long time, is that given 

 2           the -- paying them better, as far as the 

 3           Medicaid rate is concerned, means that they 

 4           don't have to come to the state when they're 

 5           going off a cliff.  Which happens constantly.  

 6           And we spend more money when they're almost 

 7           off a cliff.  And that's a constant thing.  

 8                  So help me understand what you're 

 9           suggesting that we do here to fix this.

10                  MR. HAMMOND:  I would agree with you 

11           that the situation is nonsensical, in the 

12           sense that the numbers -- I'm not making 

13           these numbers up.  These -- these --

14                  SENATOR RIVERA:  And I'm not saying 

15           you are.  I'm not saying you are.

16                  MR. HAMMOND:  These are the dollar 

17           amounts that we're spending, and this is the 

18           size of our population.  And yet -- I'm not 

19           familiar with the details at St. Barnabas, 

20           but I am familiar with the fact that we have 

21           some of the worst average hospital quality 

22           ratings in the country.  We're, you know, 

23           consistently at the bottom of all the report 

24           cards.


                                                                   406

 1                  And we have other problems such as the 

 2           ones you outlined.  I don't know whether 

 3           St. Barnabas is getting the operating 

 4           subsidies.  I don't know what their -- what 

 5           percentage of capacity they're operating at.

 6                  One kind of structural thing that 

 7           would help is if you had more people who 

 8           weren't on Medicaid, more people who were in 

 9           commercial insurance.  Which, as everybody 

10           knows, pays higher rates.

11                  We've had a policy in this state for a 

12           generation now of expanding Medicaid further 

13           and further up the income chain.  More than 

14           half of the people on Medicaid right now live 

15           above the poverty level.  That's -- I mean, 

16           it was originally designed to be a safety net 

17           for a relatively small --

18                  SENATOR RIVERA:  A later conversation, 

19           because there's two seconds.  We need to pass 

20           the New York Health Act.  That's it.  That's 

21           the basic fix.

22                  MR. HAMMOND:  My time has --

23                  SENATOR RIVERA:  But we'll debate some 

24           more.


                                                                   407

 1                  ASSEMBLYWOMAN PAULIN:  Yes, Assembly.

 2                  Assemblymember Bores.

 3                  ASSEMBLYMAN BORES:  Thank you, 

 4           Madam Chair.

 5                  Bill, in your testimony in 2022 and in 

 6           2023 you talked about spending that you did 

 7           like, which was on public health and 

 8           preventing pandemics at the Wadsworth Center.  

 9                  Do you stand by that?  Do you think 

10           there's more spending needed there?

11                  MR. HAMMOND:  I don't feel like we 

12           have a good handle on what our public health 

13           budget is.  It's such an afterthought.  It's 

14           not even lined out in the --

15                  ASSEMBLYMAN BORES:  Let's say 

16           Wadsworth in particular, in that lab.

17                  MR. HAMMOND:  I'm sorry?

18                  ASSEMBLYMAN BORES:  Wadsworth in 

19           particular, in that lab.

20                  MR. HAMMOND:  You know, I haven't had 

21           a chance to look at what their number is this 

22           year.  They're about to put a lot of money 

23           into capital at the Wadsworth Lab.  I think 

24           it's over a billion dollars.


                                                                   408

 1                  But if -- I looked at the staffing in 

 2           this year's budget, and it was flat.

 3                  ASSEMBLYMAN BORES:  Okay.  Get back 

 4           with your opinion on that.  We'd love that.

 5                  And then Lindsay, in your written 

 6           testimony you mentioned the problem with 

 7           discontinuing wage parity.  And you didn't 

 8           really get to do that in your verbal, but I'd 

 9           love to -- if you could just talk about it.  

10           I know that's not directly related, but since 

11           you brought it up, what you think the impact 

12           of that could be.

13                  MS. HECKLER:  Yeah, that impacts 

14           downstate New York, not Western New York.

15                  ASSEMBLYMAN BORES:  Totally.

16                  MS. HECKLER:  It just does not seem to 

17           make sense.  It seems to take away wage 

18           increases that were hard fought for.  And 

19           quite frankly the only way to rectify that 

20           would be to pass Fair Pay for Home Care.

21                  ASSEMBLYMAN BORES:  Great.  Thank you.

22                  CHAIRWOMAN KRUEGER:  Senator Rachel 

23           May.

24                  SENATOR MAY:  Yeah, thank you.


                                                                   409

 1                  Lindsay, I just wanted to ask you a 

 2           little bit because you didn't say anything 

 3           about racial disparities in care, in 

 4           long-term care.  And I'm just wondering what 

 5           the data are showing.  Are any of the 

 6           measures we have taken up until this point 

 7           making a difference?  Is this something we 

 8           can do more?

 9                  MS. HECKLER:  I think it's definitely 

10           something we can do more.  

11                  In a very small study done with our 

12           office, so it's not published, our hypothesis 

13           that persons of color were more going to be 

14           admitted and resident in sub -- extremely 

15           subpar nursing homes was accurate.  And these 

16           certain nursing homes in Erie County are the 

17           ones that have been bought out from 

18           out-of-state operators who made active 

19           determinations to not invest.  They've been 

20           underperforming for years, and nothing has 

21           changed.

22                  So something needs to be done to do 

23           targeted investments to make sure these 

24           individuals, these people, are getting access 


                                                                   410

 1           to safe and quality care and, quite frankly, 

 2           getting back out into the community.  Because 

 3           we have a lot of folks that I have seen 

 4           personally in nursing homes in these 

 5           underperforming facilities who don't need to 

 6           be there.  But they don't have access to the 

 7           services to get them out.

 8                  I think the state could be doing more 

 9           datawise, looking at race, ethnicity, 

10           disability status in the nursing home data 

11           and see who is coming into these specific 

12           facilities.  

13                  Along those lines, some operators are 

14           doing the right thing by not continuing to 

15           admit more residents when they're 

16           short-staffed.  

17                  But these nursing homes, from my 

18           observations, continue to admit more 

19           residents and more residents.  That's a 

20           problem, and there needs to be targeted 

21           investigations and actions on those 

22           operators.

23                  SENATOR MAY:  Thank you.

24                  And for Charles, also about how well 


                                                                   411

 1           we are doing or badly we are doing about 

 2           public health in senior housing and whether 

 3           it's lead exposure -- I know that's -- we 

 4           don't worry about that as much with seniors.  

 5           But some of the other -- the water quality 

 6           issues, a number of other things about that 

 7           housing, the healthiness of housing for our 

 8           seniors.

 9                  MR. KING:  So, I'm sorry, we don't do 

10           senior housing per se.  We primarily focus on 

11           housing people with HIV and very low-income 

12           housing.

13                  I will say that there is a growing 

14           need for senior supported housing for people 

15           who are living with HIV.  More than 

16           50 percent -- actually, more than 60 percent 

17           of the population is now over 50.

18                  SENATOR MAY:  Okay.  Thank you.  I 

19           apologize.

20                  MR. KING:  That's all right.

21                  CHAIRWOMAN KRUEGER:  Thank you.

22                  Assembly.

23                  ASSEMBLYWOMAN PAULIN:  Before we go 

24           on, I'm just going to announce we have one 


                                                                   412

 1           special guest that I just want to bring 

 2           everyone's attention to, and that is former 

 3           Mets pitcher Bartolo Colon is right to my 

 4           right, your left.  You can wave.

 5                  (Applause.)

 6                  ASSEMBLYWOMAN PAULIN:  I won't 

 7           mention, because it's a hearing, what your 

 8           nickname is.

 9                  (Laughter.)

10                  ASSEMBLYWOMAN PAULIN:  And joined by 

11           Assemblymember Amanda Septimo.

12                  So if anybody wants a photo, they can 

13           sneak out to that side for a few minutes.  

14           And I assume there's -- bring your cellphone, 

15           I don't know if there's a cameraman out 

16           there, camerawoman.

17                  And the next question person is -- 

18           Assembly side, right?  Did we do Democrat or 

19           Republican last?  Ah.  So then it's 

20           Assemblyman Gandolfo.

21                  ASSEMBLYMAN GANDOLFO:  Thank you, 

22           Chairwoman.

23                  Mr. Hammond, I am very happy that you 

24           brought up the need to investigate and 


                                                                   413

 1           analyze New York's pandemic response.  I seem 

 2           to remember that the Governor announced that 

 3           there was an ongoing review and investigation 

 4           of New York's pandemic response.  Are you 

 5           aware if that has produced any public 

 6           results?

 7                  MR. HAMMOND:  We're still waiting for 

 8           a report back.  It was assigned to a 

 9           consulting group called the Olson Group out 

10           of suburban Washington, D.C.  I think it's 

11           4-something million dollars.  And it was 

12           going to take a year, and it started -- I 

13           think we might be -- I've lost track of when 

14           it's due.

15                  My point about that would be that 

16           this -- this group is answerable to the 

17           Governor and to her cabinet, not directly to 

18           the public.  This group does not have special 

19           subpoena power, so it doesn't have guaranteed 

20           access to witnesses or documents.  And it has 

21           no mechanism for having a public hearing.

22                  I think this was the worst natural 

23           disaster in modern history in New York State.  

24           It deserves -- and the state mechanisms that 


                                                                   414

 1           were supposed to be protecting us had a lot 

 2           of trouble managing.  And by some measures, 

 3           we had the worst outcomes during that first 

 4           six weeks of anywhere in the world.

 5                  So I think it warrants the whole 

 6           government to get involved, the public to get 

 7           involved.  It warrants bringing in outside 

 8           experts.  And that's what 

 9           Ms. González-Rojas's bill would do.

10                  ASSEMBLYMAN GANDOLFO:  And just 

11           building off of that, I know the legislation, 

12           it brought a response, which is the 

13           Reimagining Long Term Care Task Force.  

14                  To date, are you aware if that task 

15           force has met?

16                  MR. HAMMOND:  No, I'm sorry, I'm not 

17           aware.

18                  ASSEMBLYMAN GANDOLFO:  Yeah, as far as 

19           I know, that task force still has not met, 

20           and it was the purported response to --

21                  MR. HAMMOND:  There is a long-term- 

22           care panel that is meeting, though, right?

23                  MR. CLYNE:  Yeah, the Master Plan on 

24           Aging process is going through.  But that has 


                                                                   415

 1           been so far an unsuccessful process, we 

 2           think.

 3                  ASSEMBLYMAN GANDOLFO:  Okay.  

 4           Appreciate it.  And I have to agree, we need 

 5           a full and thorough review with subpoena 

 6           power that is not tainted by potential 

 7           conflicts of interest.

 8                  So thank you very much.

 9                  CHAIRWOMAN KRUEGER:  Thank you.

10                  Assemblywoman González-Rojas.  Perfect 

11           timing for you.

12                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Okay.  

13           Thank you so much.

14                  Thank you, Mr. Hammond, for raising 

15           the COVID-19 Commission bill.  Assemblymember 

16           Gandolfo just kind of stole my thunder, but I 

17           did want you to underscore, really, the 

18           differences between the study that was 

19           commissioned by the Governor's team and the 

20           bill, if you could just make those 

21           {inaudible} -- point out the differences.

22                  MR. HAMMOND:  I'm sort of interested 

23           to see what this consulting group comes up 

24           with, but it's a consulting group.  We -- the 


                                                                   416

 1           state commissions reports like this all the 

 2           time, and they end up in a drawer.  I'm 

 3           hoping this is something more than that.

 4                  But as I say, they -- they don't have 

 5           subpoena power so if -- say, for example, a 

 6           former governor or somebody like that doesn't 

 7           want to cooperate, they're not going to be 

 8           able to force that.

 9                  They -- it doesn't have a mechanism 

10           for holding public hearings, so it can't 

11           solicit public input.  But also it can't like 

12           report directly to the public.  It's going to 

13           submit the report to I believe the Emergency 

14           Services commissioner.  The Governor says 

15           she'll make it public, but often reports get 

16           massaged before they come out.

17                  I just think this needs to be much 

18           more transparent, it needs to be more 

19           powerful, more persuasive.  And that's not to 

20           say I think the Health Department and the 

21           rest of the administration needs to be 

22           involved.  They need to buy into it.  And I 

23           don't -- I also -- I don't think it should be 

24           about blaming.  I think it should be about 


                                                                   417

 1           being constructive and finding systemic 

 2           reforms that will protect the public health.

 3                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Great.  

 4           Thank you for your partnership on this.

 5                  And Mr. King, I do want to thank you 

 6           for humanizing the people who are impacted by 

 7           HIV and AIDS and the undocumented community 

 8           that is disproportionately impacted often 

 9           without that care.  So thank you for raising 

10           that.

11                  I do want to ask you about 

12           rest-of-state housing.  Besides funding, what 

13           else can we do?  We are in a housing crisis.  

14           There's urgency.  But if you can share in 

15           50 seconds any other steps we can do towards 

16           achieving rest-of-state housing.

17                  MR. KING:  So, you know, right now 

18           Enhanced Rental Assistance outside of 

19           New York for people with HIV is capped at 

20           $480.  You tell me where in New York State 

21           someone can find an apartment for $480.

22                  What our proposal would do is it would 

23           cap rental assistance at 110 percent of the 

24           fair market rent for any particular 


                                                                   418

 1           jurisdiction.  

 2                  Localities do not like having to 

 3           contribute to this.  The state's -- the bill 

 4           that has been passed five times over requires 

 5           them to pay half the cost.  This would put 

 6           the full cost on the state, capping the 

 7           tenant's contribution at 30 percent of their 

 8           income.

 9                  This has been very successful, housing 

10           37,000 households in New York City.  We just 

11           need to house 2,500 households in the rest of 

12           the state.

13                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

14           you.

15                  CHAIRWOMAN KRUEGER:  Thank you.

16                  ASSEMBLYWOMAN PAULIN:  Yes, thank you.

17                  Next is Assemblymember Ra.

18                  ASSEMBLYMAN RA:  Thank you, 

19           Madam Chair.

20                  Mr. Hammond, I'm just wondering if you 

21           have any thoughts on the procurement, the 

22           managed care procurement proposal in the 

23           Executive Budget.

24                  MR. HAMMOND:  I mean, I've heard both 


                                                                   419

 1           pros and cons.  I'm still trying to figure 

 2           out exactly how it would work and what it 

 3           would mean.

 4                  I mean, in principle it's always good 

 5           when the state can be careful about how it 

 6           purchases things and contracts out.  I was 

 7           starting to read the report that was done 

 8           which indicated that the market seems to be 

 9           over-fragmented.  There's a few plans that 

10           are really small, and maybe it would be 

11           better if we didn't have those.

12                  But I don't have a strong position on 

13           it.

14                  ASSEMBLYMAN RA:  Thank you.

15                  Yeah, we're all trying to digest the 

16           report.  Obviously it's difficult when it 

17           comes out so close to the hearing.  I think 

18           you have a little experience with that -- 

19           with that particular agency, though.

20                  So thank you for being here, and thank 

21           all of you for coming today.

22                  ASSEMBLYWOMAN PAULIN:  Okay, we have 

23           two more -- well, three more.

24                  Assemblymember Jo Anne Simon.


                                                                   420

 1                  ASSEMBLYWOMAN SIMON:  There we go.

 2                  So, Mr. Clyne, I had a question that I 

 3           had asked an earlier witness -- I don't know 

 4           whether you heard that question, but I'll 

 5           sort of repeat it.  And that is the failure 

 6           to increase Medicaid reimbursement rates 

 7           affects both for-profit and not-for-profit 

 8           nursing homes.

 9                  My question is, what is that 

10           differential in impact?  It seems to me it 

11           might affect the not-for-profits more 

12           significantly.

13                  MR. CLYNE:  Well, I think it affects 

14           both.  But I can tell you what's happening to 

15           not-for-profit and government facilities, and 

16           that's 75 of them have closed or been sold in 

17           the last nine years.

18                  So we used to have over 250 

19           not-for-profit and government nursing homes, 

20           and they have closed or sold to a for-profit.

21                  ASSEMBLYWOMAN SIMON:  And the other 

22           question that I had asked, because -- about 

23           this issue about the unallocated subsidies.  

24           And I had asked why were they unallocated, 


                                                                   421

 1           and he didn't seem to have an answer for 

 2           that.

 3                  So my question is, do you know why 

 4           they have been unallocated?  Is it something 

 5           in an application process that becomes a 

 6           barrier?  And/or, if you know, where's the 

 7           money?

 8                  MR. CLYNE:  Well, there's an 

 9           application process and many of my members 

10           have gone through it.  Sometimes they don't 

11           hear anything and they're still waiting.  And 

12           I know some cases where applications have 

13           been not approved.  Including one in 

14           Rochester, which made no sense to me.  We've 

15           been talking about the inability to get 

16           people discharged out of a hospital in 

17           Rochester, but the department did not want to 

18           help a not-for-profit merge with another 

19           not-for-profit in Monroe County.

20                  Yeah, I don't know why.  It made no 

21           sense to us.

22                  The process is very opaque.  We 

23           don't -- we can't really see into it.  We 

24           just know members are applying and not 


                                                                   422

 1           hearing about it.

 2                  ASSEMBLYWOMAN SIMON:  Do you get some 

 3           sort of response telling you why it didn't 

 4           get approved?

 5                  MR. CLYNE:  You get a response 

 6           sometimes.  But again, we have many 

 7           applications that people are just waiting on.  

 8           Which is why it's strange they're saying 

 9           they're cutting it because it's not being 

10           used.  But it's not being used because 

11           they're not using it.

12                  And as I just said, 75 places have 

13           closed or been sold.  You know, they could 

14           have used some of that money for that.

15                  ASSEMBLYWOMAN SIMON:  Do you know what 

16           the average time is before you hear back 

17           after making an application for those funds?

18                  MR. CLYNE:  I don't think there is an 

19           average time.  Again, it's all anecdotal.

20                  Sometimes they -- I'll give them 

21           credit, there's a few times they've acted 

22           fast when I think they saw an emergency.  

23           Maybe they thought it was a political issue 

24           or something.


                                                                   423

 1                  But in general, it's been quite a 

 2           lengthy process.

 3                  ASSEMBLYWOMAN SIMON:  Okay.  Thank you 

 4           very much.

 5                  ASSEMBLYWOMAN PAULIN:  Yes.  

 6           Assemblymember Forrest.

 7                  ASSEMBLYWOMAN FORREST:  (Inaudible.)

 8                  ASSEMBLYWOMAN SIMON:  Oh, thank you.  

 9           Then me.  So -- unless there's somebody else 

10           that I didn't recognize.

11                  Okay, I have a question for Jim and 

12           one for Lindsay.

13                  So for Jim, what would you recommend 

14           for this year's budget in order to address 

15           some of the concerns that you have talked 

16           about?

17                  MR. CLYNE:  We are seeking a two-year 

18           phase-in to fill the gap.  It's $810 million.  

19           We are looking for 510 million this year.

20                  We appreciate the add that happened 

21           last year.  It was a large add.  But the 

22           reality of the market is it had a very 

23           limited impact.  Four hundred beds came back 

24           online as a result, and you still saw places 


                                                                   424

 1           closing.

 2                  One facility in Jamestown that's been 

 3           serving people for over a hundred years 

 4           closed -- or put in an application, they 

 5           haven't actually closed yet.  

 6                  So there needs to be a substantial 

 7           investment or you're going to see more 

 8           problems like you're seeing in Rochester 

 9           right now, which is they can't discharge 

10           people and the ERs are backing up.

11                  I just spent -- my -- I had a relative 

12           36 hours in an ER here in the Capital 

13           District.  It's just -- all the facilities do 

14           not have enough -- the ability to discharge 

15           people.

16                  ASSEMBLYWOMAN PAULIN:  Thank you.

17                  And Lindsay, what specifically would 

18           you recommend for investment in aging 

19           services?

20                  MS. HECKLER:  It has to be 

21           multipronged.  First, we need to really 

22           support our caregivers, both informal -- so 

23           your family caregivers -- but also your paid.  

24           Because without a workforce that's paid a 


                                                                   425

 1           living wage so they can actually own their 

 2           home, buy their groceries, pay for gas, 

 3           vehicles, you're not going to have any 

 4           workers.

 5                  We have had clients who have been 

 6           denied for increased hours or had their home 

 7           care hours cut who told us, Don't pursue the 

 8           case because, well, at least someone shows up 

 9           for five hours a week.

10                  We need strong investment in the 

11           workforce and the housing, quite frankly.

12                  ASSEMBLYWOMAN PAULIN:  Since I have a 

13           little time, Bill.  So what is the -- you're 

14           saying we are -- we are spending so much more 

15           than other places.  Is it labor costs?  Is 

16           it, as you pointed out, you know, workers in 

17           some areas but not others?

18                  Like what is your, you know, in 

19           31 seconds or less, you know, what -- what is 

20           the problem that you see?

21                  MR. HAMMOND:  With respect to 

22           Medicaid?  

23                  ASSEMBLYWOMAN PAULIN:  Mm-hmm.

24                  MR. HAMMOND:  Well, we have high 


                                                                   426

 1           enrollment and we have high -- we have a 

 2           broad array of benefits and we have high 

 3           spending per enrollee.  So it's the 

 4           combination of all those three.

 5                  ASSEMBLYWOMAN PAULIN:  So what would 

 6           you eliminate?

 7                  MR. HAMMOND:  I mean, as I said 

 8           before, I think one goal should be to shrink 

 9           the rolls.  We'd like to have more people in 

10           commercial insurance self-supporting.

11                  ASSEMBLYWOMAN PAULIN:  That's it.

12                  CHAIRWOMAN KRUEGER:  Actually we had 

13           one more Senator slide in, sorry.

14                  Senator Ashby.

15                  SENATOR ASHBY:  Thank you, 

16           Madam Chair.

17                  Mr. Clyne, in regards to the stopgap 

18           increase, a topic that's been coming up over 

19           the last year, and really for I think the 

20           greater part of a decade, is rebasing.  And, 

21           you know, we see this push for it each year 

22           and then we see it put out of the limelight.  

23           And then it comes up again.

24                  Does this concern you at all?  Do you 


                                                                   427

 1           think this is something that we should -- we 

 2           need to continue to strive for?  Do you think 

 3           that it would be a longer-term solution than 

 4           just continuously fighting for an increase 

 5           each year?

 6                  MR. CLYNE:  Well, the system should be 

 7           rebased, because then the money would be 

 8           going to the places that have the cost.  And 

 9           the state, in discussions with them, they are 

10           talking about rebasing and moving to a new 

11           system of how you review the needs of the 

12           residents that we serve.

13                  The problem is you can rebase with no 

14           money.  If you rebase and don't put money 

15           into the system, all you're going to do is 

16           move the money around the system.  There's 

17           still going to be a giant deficit.

18                  So they need to rebase so the money 

19           goes to the right places, but they have to 

20           add money to the system.  New dollars have to 

21           go in.

22                  SENATOR ASHBY:  Would you see that as 

23           an investment that could potentially save 

24           money?


                                                                   428

 1                  MR. CLYNE:  State -- it'll be matched 

 2           by the federal government, so -- through the 

 3           Medicaid system.

 4                  SENATOR ASHBY:  So when we talk about 

 5           long-term reducing the costs and scale of 

 6           Medicaid, it could potentially do so.

 7                  MR. CLYNE:  Well, no, it'll cost a 

 8           little bit more.  But, you know, my members 

 9           work all the time to get people out of 

10           nursing homes and there's lots of 

11           alternatives in New York on the 

12           community-based side to get people 

13           discharged.  But there is a group of people 

14           that need to have nursing home care; it's 

15           just unavoidable.

16                  And as far as the costs of care, I 

17           mean the one thing that we see on the nursing 

18           home side is it's expensive to do business 

19           downstate, everything is more expensive down 

20           there.  And the workforce is completely 

21           unionized.  So that's the difference between 

22           us and other states on the nursing home side.

23                  If you go to some of those other 

24           states, it's way cheaper to do business and 


                                                                   429

 1           they don't have a unionized workforce.

 2                  SENATOR ASHBY:  And they usually have 

 3           a cost to where they rebase every three to 

 4           five years.

 5                  MR. CLYNE:  Most states rebase every 

 6           couple of years, yes.  We are definitely an 

 7           outlier.  We haven't rebased since 2007.

 8                  SENATOR ASHBY:  Correct.  Thanks.

 9                  CHAIRWOMAN KRUEGER:  Thank you.

10                  I think that's the last of the 

11           questions for this panel.  Thank you very 

12           much for being here with us.  

13                  MR. CLYNE:  Thank you.

14                  CHAIRWOMAN KRUEGER:  Appreciate it.

15                  And our next panel is Panel E:  

16           New York State Association of County Health 

17           Officials; New York State Health Facilities 

18           Association; Community Pharmacy Association; 

19           and the Nassau Health Care Corporation.  

20  E               So let's just go down as you were 

21           listed on the sheet.  So first, Dr. Irina 

22           Gelman, then Stephan Hanse, then Michael 

23           Duteau, and then Megan Ryan.

24                  Good after -- it's still afternoon, 


                                                                   430

 1           right?  Yes, still afternoon.  Good 

 2           afternoon.

 3                  DR. GELMAN:  Thank you very much.

 4                  Good afternoon and thank you for this 

 5           opportunity to present testimony today.

 6                  My name is Dr. Irina Gelman, and I 

 7           serve as the commissioner of the Nassau 

 8           County Department of Health.  I am here today 

 9           testifying as president of the New York State 

10           Association of County Health Officials, which 

11           represents all 58 local health departments in 

12           New York State.

13                  Public health officials understand 

14           that lean times require strict application of 

15           two key budgeting measures:  Impact and 

16           value.  We must ask, Where will our 

17           investment of limited public funds be most 

18           impactful?  And how can we ensure the 

19           taxpayer is getting value from that 

20           investment?

21                  Every dollar we invest in public 

22           health has an extraordinary impact on 

23           preventing illnesses and reducing 

24           expenditures associated with the medical and 


                                                                   431

 1           clinical necessary to treat those illnesses.  

 2           Evidence clearly shows an ounce of prevention 

 3           is worth a pound of cure.  Local Health 

 4           Departments serve as the first line of 

 5           defense for population-based prevention 

 6           strategies, including communicable and 

 7           chronic disease response, community outreach, 

 8           food and water safety, environmental health 

 9           services, emergency preparedness, and so much 

10           more.

11                  Our challenges in public health are 

12           considerable.  Key among our issues is the 

13           ongoing historic depletion of our public 

14           health workforce.  Many elements within the 

15           proposed budget would exacerbate this crisis 

16           by reducing funding in key public health 

17           programs and increasing statutory obligations 

18           that are not funded.  More unfunded mandates.

19                  There are several elements of the 

20           executive proposal that we support, including 

21           to changes to how we combat hepatitis B and 

22           C, HIV and syphilis; expansion of 

23           professional immunizers; new tools to address 

24           infant mortality; and efforts to address the 


                                                                   432

 1           overdose epidemic.  

 2                  Other elements of the Executive 

 3           proposal will further strain local public 

 4           health infrastructure and must be 

 5           reconsidered.  Those include inadequate 

 6           funding provided to implement our lead 

 7           poisoning prevention laws.  Funds to fight 

 8           rabies and tick-borne illnesses have been 

 9           completely eliminated from the budget.  

10           Funding for HIV/AIDS prevention, cancer 

11           screenings, tobacco prevention and other 

12           programs are also reduced.

13                  The Governor's initiative to expand 

14           access to swimming does not fund local health 

15           departments who in most cases are directly 

16           responsible for ensuring the safety of these 

17           facilities.  We urge the Legislature to 

18           restore these programs.  

19                  Further, we hope the state will 

20           embrace the goals of the 1115 waiver by 

21           finding ways to better partner with local 

22           Health Departments to achieve our collective 

23           goals around health equity and reducing 

24           health disparities.


                                                                   433

 1                  The Early Intervention program for 

 2           children with special health needs has been 

 3           challenged by provider shortages, growing 

 4           provider waitlists, and underfunding.  While 

 5           we support the provider rate increase 

 6           outlined in this proposal, this solution is 

 7           not enough to truly help the families 

 8           impacted by this program.  We urge the 

 9           Legislature to help us by ensuring funds owed 

10           to counties through the Early Intervention 

11           covered lives assessment enacted in 2021 are 

12           released to us as intended in the original 

13           legislation.  

14                  There's more details available in my 

15           written testimony.  I thank you.

16                  MR. HANSE:  Good afternoon.  My name 

17           is Stephen Hanse, and I have the privilege of 

18           serving as president and CEO of the New York 

19           State Health Facilities Association and the 

20           New York State Center for Assisted Living.

21                  The theme of my written testimony is 

22           where have we been, where are we now, and 

23           where are we going.

24                  Starting with where we have been, for 


                                                                   434

 1           the past 15 years the State of New York has 

 2           disinvested in the most vulnerable 

 3           population, the seniors who rely on Medicaid 

 4           for their long-term-care needs.  These past 

 5           years of disinvestment, coupled with the 

 6           statewide healthcare staffing shortages and 

 7           unrealistic 3.5 hour staffing mandate, have 

 8           led to a long-term-care crisis.  New York's 

 9           long-term-care crisis is rippling across the 

10           healthcare continuum, contributing to backups 

11           in hospital discharges to nursing homes and 

12           compromising access to essential care.

13                  Where are we now?  Today the statewide 

14           average Medicaid reimbursement rate covers 

15           only 74 percent of costs, resulting in a 

16           reimbursement rate of $11.45 per hour for 

17           24-hour skilled nursing care.  This rate is 

18           well below the state's minimum wage, 

19           resulting in the ability of providers to 

20           compete in today's labor market for essential 

21           direct care workers.

22                  Moreover, nursing homes are now faced 

23           with the unrealistic requirements of the 

24           3.5-hour staffing mandate.  A staggering 478 


                                                                   435

 1           out of 610 nursing homes statewide are 

 2           currently unable to comply with the state's 

 3           unrealistic 3.5-hour staffing mandate due to 

 4           severe labor shortages.

 5                  The Executive Budget proposes to cut 

 6           the capital component of the Medicaid rate 

 7           for skilled nursing facilities by 10 percent.  

 8           The Executive Budget also seeks to cut at 

 9           least 200 million from the long-term-care 

10           sector, reversing most of last year's 

11           progress on top of the VAPAP cuts.

12                  What we need now are not cuts but a 

13           commitment by the state to stop the failed 

14           Medicaid disinvestment policies of the past 

15           and fully cover the costs of Medicaid 

16           residents in nursing homes and assisted 

17           living facilities.  To this end, it is 

18           critical that the state include a 510 million 

19           state-share investment in this year's 

20           State Budget and set in motion efforts to 

21           invest and rebase the nursing home Medicaid 

22           rate to truly effectuate the state's 

23           commitment to high-quality nursing home care 

24           and jobs.


                                                                   436

 1                  NYSHFA|NYSCAL strongly supports the 

 2           Governor's proposal to authorize medication 

 3           aides in nursing homes.

 4                  Where are we going?  The 

 5           long-term-care crisis in New York we are 

 6           facing can be understood looking backwards, 

 7           but it must be addressed going forward.  We 

 8           must act in the present.  We must aspire to 

 9           make decisions guided by the adage "To care 

10           for those who once cared for us is one of 

11           life's greatest honors."  To this end, 

12           New York must cover the full Medicaid cost of 

13           residents in nursing homes and assisted 

14           living facilities to fulfill its commitment 

15           to serve the state's growing aging 

16           population.

17                  Thank you.

18                  CHAIRWOMAN KRUEGER:  Thank you.

19                  Next?

20                  MR. DUTEAU:  Good afternoon, honorable 

21           chairs and members of the committees.  I'm 

22           Mike Duteau.  I'm a licensed pharmacist, and 

23           I'm president of the Community Pharmacy 

24           Association.  


                                                                   437

 1                  Thank you for the opportunity to 

 2           testify today and for your strong past 

 3           support of local community pharmacies.

 4                  I will summarize our positions 

 5           regarding the proposed health budget.  

 6                  First and foremost, we oppose the 

 7           Department of Health's proposal to require 

 8           pharmacies in Medicaid to submit annual cost 

 9           reports.  Currently 46 states, including 

10           New York, utilize NADAC, or national average 

11           drug acquisition cost, for Medicaid pricing, 

12           and approximately 95 percent of covered 

13           outpatient medications have NADAC values.  

14                  NADAC is a federal CMS survey that 

15           collects data from 60,000 pharmacies across 

16           the country, and the prices are updated 

17           weekly.  For any drugs that do lack a NADAC 

18           value, New York uses another nationally 

19           recognized benchmark known as WAC, or 

20           wholesale acquisition cost.  All covered 

21           outpatient prescription drugs currently have 

22           a WAC value.

23                  For pharmacies to take this on, for 

24           something that we already provide at a 


                                                                   438

 1           national level and is supplied to Medicaid, 

 2           would be a huge undertaking.  It would be 

 3           unnecessary, it would be duplicative, and it 

 4           would be extremely labor-intensive.

 5                  While discussing Medicaid, there's 

 6           also an urgent need to include New York State 

 7           OMIG audit reform in this budget.  For too 

 8           long OMIG's practices have been threatening 

 9           the financial viability of providers and 

10           programs serving those enrolled in Medicaid.  

11           Most often these practices are not targeting 

12           fraud, waste or abuse but, rather, clerical 

13           errors.  

14                  So, for example, a real-life current 

15           pharmacy was actually filling a prescription 

16           for a new patient.  Everything was correct.  

17           At the very end, the pharmacist had to 

18           manually enter an NPI number and incorrectly 

19           entered the last two digits of the NPI.  

20           Everything else was correct.  The right 

21           patient received the right medication at the 

22           right time.  Unfortunately, OMIG was able to 

23           extrapolate that into a six-figure 

24           recoupment.  


                                                                   439

 1                  That's not fraud, waste or abuse.  

 2           That's something that should be correctable.  

 3           We need this audit reform reintroduced in 

 4           this budget.

 5                  We also support the proposal to make 

 6           pharmacist COVID-19 and flu testing 

 7           permanent.  We also recommend expansion of 

 8           the testing.  Senator Rivera and 

 9           Assemblymember McDonald have introduced a 

10           bill that would do just that and include new 

11           tasks like RSV, strep A and hepatitis C.

12                  Finally, we support the proposal to 

13           expand pharmacist vaccine administration to 

14           include Mpox.  That just makes sense in our 

15           current environment.  Pharmacists are able to 

16           administer all CDC-recommended vaccinations 

17           for adults.

18                  We also support the proposal to allow 

19           unlicensed personnel like medical assistants 

20           and EMTs to give vaccines.  Currently today, 

21           under the PREP Act, pharmacy technicians can 

22           do this also.  We need to be included. 

23                  Thank you for your consideration.

24                  MS. RYAN:  Good afternoon.  I'm 


                                                                   440

 1           Meg Ryan, interim CEO and chief legal officer 

 2           of Nassau Health Care Corporation.  Thank you 

 3           for your time.

 4                  Nassau Health Care Corporation is the 

 5           public benefit corporation that was 

 6           established in 1999 by New York State 

 7           statute.  It oversees Nassau University 

 8           Medical Center, NUMC, the only public 

 9           safety-net hospital in Nassau County, that 

10           has 530 beds, is designated as a Level I 

11           trauma center, home of Long Island's only 

12           multichamber hyperbaric, and is a designated 

13           overflow center during natural disasters.  We 

14           also house the county's MedCom, EMS and 

15           Fire/Police Academy.  

16                  NHCC also oversees A. Holly Patterson, 

17           the skilled nursing home and rehabilitation 

18           facility, the only public nursing and rehab 

19           facility in Nassau County, which has 580 

20           beds.  NUMC oversees the inmate healthcare at 

21           Nassau's correctional facility, with two 

22           infirmaries.  Additionally, NHCC runs an 

23           ACGME residency program with 350 residents, 

24           educating our future medical professionals, 


                                                                   441

 1           which there is a global demand for.

 2                  NHCC co-operates federally qualified 

 3           health centers as well, as well as 

 4           school-based clinics.  Our employees are 

 5           New York State employees.  We currently have 

 6           3,640 employees:  66 percent of our staff are 

 7           female, 70 percent are minority.  We have 

 8           1,500 retirees enrolled in the New York State 

 9           Pension System currently.  

10                  NUMC and A. Holly Patterson render 

11           high-quality healthcare to all, regardless of 

12           a patient's legal status or their ability to 

13           pay.

14                  Our payer mix is 90 percent, it's 

15           90 percent Medicare/Medicaid, which means we 

16           are set up to have losses, and those losses 

17           must be offset by state funding.  

18                  Sixty-five percent of our patients are 

19           minority and female.  NHCC serves nearly 

20           260,000 patients annually, including 67,000 

21           emergency department patients.  NHCC is the 

22           only medical facility that provides quality 

23           healthcare to Nassau County's underserved 

24           communities.  


                                                                   442

 1                  NHCC was created by state statute for 

 2           the benefit of Nassau County and its 

 3           residents, and it has relied upon New York 

 4           State funding since its creation in 1999.  

 5           NHCC has lost New York State funding in the 

 6           total amount of $267,647,382 since 2020.  

 7           There's been a steady decline in funding year 

 8           after year.  We have submitted sustainability 

 9           plans, multiyear cash projections, and 

10           applied for grants, including VAPAPs, to 

11           New York State.

12                  I am respectfully requesting the 

13           restoration of funding for 2024 to ensure 

14           that we may continue providing the necessary 

15           healthcare our surrounding communities rely 

16           upon and deserve.

17                  Thank you for the committee's time 

18           today.  I appreciate it.  Thank you.  

19                  (Inaudible discussion.)

20                  SENATOR RHOADS:  Thank you so much, 

21           Madam Chair.

22                  First question is for Ms. Ryan.  I 

23           know you indicated that the hospital, or 

24           NuHealth, has actually lost $267 million 


                                                                   443

 1           since 2020 in funding.  What type of funding 

 2           was that?

 3                  MS. RYAN:  Sure.  That was through 

 4           DSRIP, through Essential Healthcare Provider 

 5           Support, statewide healthcare facility 

 6           transformation grants, grants, funding.  Also 

 7           VBP QIP grants.  And there's different grants 

 8           throughout the state.

 9                  SENATOR RHOADS:  Was there any 

10           explanation given as to why the hospital's 

11           been losing so much of the state funds that 

12           it relied upon since 1999?

13                  MS. RYAN:  We have not had a 

14           discussion as to why we had lost these funds.  

15           We are under NIFA control, and we are in 

16           constant communication with New York State 

17           DOH and NIFA weekly.  We have submitted our 

18           cash projections.  And, you know, our 

19           patients don't pay.  They're Medicaid and 

20           Medicare.

21                  SENATOR RHOADS:  Right.  And I notice 

22           that in the Governor's proposal there are a 

23           number of medical debt proposals that she's 

24           put out, including expanding -- including 


                                                                   444

 1           expanding the financial assistance program to 

 2           400 percent of the FPL.

 3                  Is there any idea of what an expansion 

 4           like that would actually cost Nassau 

 5           University Medical Center?

 6                  MS. RYAN:  We have not been in 

 7           discussions regarding that.

 8                  SENATOR RHOADS:  Okay.  And I know 

 9           that you indicated that the hospital's 

10           applied for VAPAP -- 

11                  MS. RYAN:  Correct.  

12                  SENATOR RHOADS:  -- funding.  When did 

13           that application go in?

14                  MS. RYAN:  Sure.  We started 

15           submitting last March.  We've submitted three 

16           VAPAP applications:  One for NUMC, in the 

17           amount of $120 million; a separate one for 

18           A. Holly Patterson, the nursing home, in the 

19           amount of 40 million; and then a special 

20           projects VAPAP in the amount of $46 million.

21                  SENATOR RHOADS:  We did have the 

22           Health commissioner here earlier, and we 

23           asked him about funding specifically for 

24           NUMC.  He said, "All they have to do is 


                                                                   445

 1           apply."  Well, you did apply.

 2                  MS. RYAN:  We've applied, we've had 

 3           discussions regarding the NUMC VAPAP where 

 4           they have asked us for more information.  But 

 5           as of yet we have not had any discussions 

 6           regarding any amount of funding being given 

 7           to NHCC, NUMC or A. Holly Patterson.

 8                  SENATOR RHOADS:  And that first 

 9           application went in --

10                  MS. RYAN:  March of 2023.

11                  SENATOR RHOADS:  So last March.

12                  MS. RYAN:  Yes.

13                  SENATOR RHOADS:  Okay.

14                  Thank you.

15                  CHAIRWOMAN KRUEGER:  Thank you.

16                  Assembly.

17                  ASSEMBLYWOMAN PAULIN:  Yes.

18                  Assemblymember Jensen.

19                  ASSEMBLYMAN JENSEN:  Thank you, 

20           Madam Chair.

21                  This is for Mr. Hanse.

22                  The Health commissioner talked about 

23           how their enforcement of the safe staffing 

24           mandate is now in effect, and penalties will 


                                                                   446

 1           start to be, um, adjudicated, for lack of a 

 2           better word.  Has there been any clarity that 

 3           you or your membership have received about 

 4           how these penalty fines may or may not be 

 5           reinvested into nursing homes or the nursing 

 6           home workforce?

 7                  MR. HANSE:  To date, no.  

 8                  So the state has finished the second 

 9           quarter of 2022.  As I indicated, 478 of the 

10           610 nursing homes cannot meet that staffing 

11           requirement due to the workforce crisis.  The 

12           Department of Health has the authority to 

13           issue a $2,000 per day fine.  We have 

14           requested of the Governor that any fines -- 

15           first of all, fines shouldn't be issued to 

16           providers who have done everything they can.  

17                  And the commissioner of Health has 

18           declared for 2022 all 62 counties of the 

19           State of New York are facing a healthcare 

20           workforce crisis.

21                  But we have requested of the Governor 

22           that if any fines are issued, they be totally 

23           redirected back into workforce recruitment 

24           efforts at nursing homes.


                                                                   447

 1                  ASSEMBLYMAN JENSEN:  Okay.  So how are 

 2           long-term-care providers currently handling 

 3           their worker shortage?  And where are you 

 4           seeing and hearing from your membership the 

 5           shortage is most being felt?  You know, is it 

 6           RNs, LPNs, CNAs, other support staff?

 7                  MR. HANSE:  Sure.  We're seeing it 

 8           across the state.  We're seeing significant 

 9           shortages upstate.  You heard earlier talking 

10           about Rochester, Western New York, the 

11           Adirondacks.  But we're seeing it throughout 

12           the state.

13                  And what we're seeing are LPNs leaving 

14           skilled nursing and going to hospitals.  

15           Hospitals can always pay more than nursing 

16           homes.  With 74 percent of our payer mix 

17           Medicaid, we can't afford to compete against 

18           the hospitals for those LPNs.  So what 

19           nursing homes are doing, they are limited 

20           admissions, they are closing units, they are 

21           hiring agency staff at exorbitant rates that 

22           are unsustainable.  

23                  So that's where they are right now.

24                  ASSEMBLYMAN JENSEN:  So with any 


                                                                   448

 1           increase in Medicaid funding for long-term 

 2           care, what's your belief on how that -- those 

 3           dollars should be divvied up to the 

 4           providers?  Is it based on geography, case 

 5           mix, quality levels?

 6                  MR. HANSE:  What we're proposing is 

 7           for the $510 million state share for this, to 

 8           bridge us to rebasing, that would allocate 

 9           $44 per provider per Medicaid day across the 

10           state.  So depending on what your Medicaid 

11           rate is, it would be an equitable increase, 

12           be a bigger percent.  If you had a lower 

13           Medicaid rate, it would be less if you had 

14           more.

15                  So basically it's a uniform across the 

16           state.

17                  ASSEMBLYMAN JENSEN:  Thank you.

18                  ASSEMBLYWOMAN PAULIN:  Thank you.  

19                  CHAIRWOMAN KRUEGER:  Assembly.

20                  ASSEMBLYWOMAN PAULIN:  Assembly.

21                  The next one is Nikki Lucas.  And 

22           welcome to the hearing.

23                  ASSEMBLYWOMAN LUCAS:  Good afternoon, 

24           or good evening to everyone.


                                                                   449

 1                  I think this one is for Mr. Hanse.

 2                  Could you share with me how much do 

 3           NAMI deductions contribute to nursing home 

 4           revenue?

 5                  MR. HANSE:  I'm sorry?  Could you say 

 6           that again?

 7                  ASSEMBLYWOMAN LUCAS:  The net 

 8           available monthly income that's deducted from 

 9           patients at nursing homes.

10                  MR. HANSE:  Oh, the NAMI, the net 

11           available --

12                  ASSEMBLYWOMAN LUCAS:  Yes.

13                  MR. HANSE:  How much it's --

14                  ASSEMBLYWOMAN LUCAS:  How much does 

15           that contribute to the overall nursing home 

16           revenue?  How does that contribute to overall 

17           revenue?

18                  MR. HANSE:  Sure.  That helps offset 

19           the cost of a Medicaid resident in a nursing 

20           home.

21                  ASSEMBLYWOMAN LUCAS:  And what 

22           percentage would you say contributes to the 

23           overall revenue?

24                  MR. HANSE:  I would have to -- I would 


                                                                   450

 1           have -- I'll circle back with you, 

 2           Assemblymember, and get you that number.

 3                  ASSEMBLYWOMAN LUCAS:  Would you say 

 4           that that is significant to the overall 

 5           revenue?  Because that should actually be 

 6           included in --

 7                  MR. HANSE:  I would not say it was 

 8           significant.  I would say it's not 

 9           significant.  But I'm going to go back and 

10           get that data for you.

11                  ASSEMBLYWOMAN LUCAS:  Okay.  I just 

12           thought, as part of the testimony, it should 

13           definitely be included, because it is part of 

14           revenue for the nursing homes.

15                  MR. HANSE:  Correct.

16                  ASSEMBLYWOMAN LUCAS:  And there has 

17           been some significant concerns around the 

18           calculations -- some being too high, some 

19           being too low.  But I'd be interested in 

20           making sure that that's included in the 

21           conversation and in the testimonies moving 

22           forward as well.

23                  But if you could get that information 

24           back to me, I'd greatly appreciate it.


                                                                   451

 1                  MR. HANSE:  Sure.  We run into 

 2           situations actually where unscrupulous family 

 3           members don't allow that money.  

 4                  So I'll get you all the information.

 5                  ASSEMBLYWOMAN LUCAS:  Thank you.  I 

 6           appreciate it.

 7                  MR. HANSE:  Sure.

 8                  ASSEMBLYWOMAN PAULIN:  Yes, 

 9           Assemblymember Mikulin.

10                  ASSEMBLYMAN MIKULIN:  Thank you so 

11           very much.

12                  These questions are going to be for 

13           Ms. Ryan.

14                  We were speaking regarding NUMC 

15           beforehand.  Can you just explain to me -- we 

16           were talking about the VAPAP.  Now you have 

17           applied, correct?

18                  MS. RYAN:  Yes, correct.

19                  ASSEMBLYMAN MIKULIN:  What has the 

20           process been like?

21                  MS. RYAN:  We had to file a state 

22           application.  We had to go back and forth, 

23           and they had more data that they requested.  

24           We submitted that, we had -- on the NUMC side 


                                                                   452

 1           we did have I think it was two phone calls 

 2           already, and that's on the NUMC side.  

 3                  On A. Holly Patterson, they requested 

 4           more data.  To my knowledge, we have not had 

 5           a discussion regarding the A. Holly Patterson 

 6           application.

 7                  ASSEMBLYMAN MIKULIN:  And how has the 

 8           response been from the Department of Health 

 9           from the state?

10                  MS. RYAN:  Well, we are cooperating 

11           with them.  And from my knowledge we are told 

12           that there are other hospitals that are in 

13           the same or worse situation, so it does not 

14           look hopeful on our side.

15                  ASSEMBLYMAN MIKULIN:  So there are 

16           many hospitals.  

17                  Now, how many people do you serve in 

18           Nassau County?

19                  MS. RYAN:  We have 260,000 visits, 

20           outpatient visits annually.  We have 67,000 

21           emergency visits annually.  We have 480 

22           residents in our nursing home right now.  We 

23           have 345 patients in the hospital right now.

24                  ASSEMBLYMAN MIKULIN:  And if you do 


                                                                   453

 1           not receive this money, what would you say 

 2           would happen?

 3                  MS. RYAN:  It's going to impact our 

 4           operations.  We're not going to be able to 

 5           continue our operations and continue to 

 6           provide this necessary healthcare to our 

 7           county residents.

 8                  ASSEMBLYMAN MIKULIN:  And is there any 

 9           other revenue streams?  Because you said most 

10           of it's from Medicare, Medicaid.

11                  MS. RYAN:  Well, we do collect that, 

12           and we are increasing our net collection 

13           patient revenue each month.  We brought in -- 

14           we've done a whole bunch of financial reforms 

15           since September.  We hired a consultant.  So 

16           we are seeing an increase in the net patient 

17           collections.  But again, the majority of our 

18           patients are uninsured and are not commercial 

19           payers.  So it's a payer mix.

20                  ASSEMBLYMAN MIKULIN:  So without state 

21           funding it's going to be extremely difficult 

22           in order for you to continue what --

23                  MS. RYAN:  It's a healthcare crisis 

24           without the state funding.  In Nassau.


                                                                   454

 1                  ASSEMBLYMAN MIKULIN:  So now we have 

 2           many employees and we have many people 

 3           served.  About how many people come in and, 

 4           let's say, are migrants or are people that 

 5           you have to serve but you don't receive any 

 6           money from the government for?

 7                  MS. RYAN:  Well, 90 percent of our 

 8           patients.  We do not turn anyone away, 

 9           regardless of their ability to pay or their 

10           legal status.  That's our mission.

11                  ASSEMBLYMAN MIKULIN:  So there are 

12           people that come in that you will receive 

13           absolutely nothing for.

14                  MS. RYAN:  Correct.  Correct.

15                  ASSEMBLYMAN MIKULIN:  And what is the 

16           projection -- so explain a little bit more 

17           how it's going to affect services.  What is 

18           it that you believe that you're going to have 

19           to cut?

20                  MS. RYAN:  So we're a Level I trauma 

21           center, we have first responders coming in 

22           all the time.  We are -- we have the burn 

23           unit, we have --

24                  ASSEMBLYWOMAN PAULIN:  Thank you.


                                                                   455

 1                  ASSEMBLYMAN MIKULIN:  Time's up, but 

 2           thank you very much.

 3                  ASSEMBLYWOMAN PAULIN:  The Assembly 

 4           can continue.  I think that's me.

 5                  So I have some questions about Nassau 

 6           as well, just to drill down just a little 

 7           bit.

 8                  MS. RYAN:  Sure.

 9                  ASSEMBLYWOMAN PAULIN:  So I know that 

10           the county pays for your non-federal share of 

11           DSH and that the state is paying off some of 

12           your pension payment.  You didn't refer to 

13           that.  Is that steady?

14                  MS. RYAN:  So the -- from my knowledge 

15           the county does not -- does not pay our DSH 

16           payment.  We put up our DSH payment, which 

17           we're waiting for the DSH to come in -- 

18           usually it's the end of January.  So we are 

19           awaiting that.  And that money will go to our 

20           pension payment that's due February 1st.

21                  ASSEMBLYWOMAN PAULIN:  So is that a 

22           change?  Did Nassau stop paying your 

23           non-federal share of DSH?

24                  MS. RYAN:  It's -- it has decreased 


                                                                   456

 1           since -- from federal cuts.  And again, in 

 2           1999 we became a state entity.

 3                  ASSEMBLYWOMAN PAULIN:  So part of this 

 4           is a county problem, right?

 5                  MS. RYAN:  No, I believe it's a state 

 6           problem.  I think it's everyone's problem.

 7                  (Overtalk.)

 8                  ASSEMBLYWOMAN PAULIN:  No, I 

 9           understand.  I understand.  

10                  But in terms of the absolute dollars, 

11           part of the decrease is because of the 

12           county's not paying the --

13                  MS. RYAN:  The data reflects it's 

14           definitely due to the state funding.  We 

15           receive $40 million from the county every 

16           year.

17                  ASSEMBLYWOMAN PAULIN:  So what -- I 

18           don't want -- I just want to understand it so 

19           we know how to help.  Right?

20                  MS. RYAN:  Sure.  Thank you.

21                  ASSEMBLYWOMAN PAULIN:  So the -- the 

22           VAPAP money, is that -- is that what you're 

23           worried about?  Like I'm not sure exactly 

24           what funding source specifically is being cut 


                                                                   457

 1           at the state level.

 2                  MS. RYAN:  All of them.

 3                  ASSEMBLYWOMAN PAULIN:  No, no, I 

 4           said -- if you could just name them and give 

 5           me the amounts?

 6                  MS. RYAN:  Sure.

 7                  ASSEMBLYWOMAN PAULIN:  Yeah.

 8                  MS. RYAN:  Yeah.  I mean, I submitted 

 9           this, it's my Exhibit A.  Yes, our DSH 

10           funding has been cut --

11                  ASSEMBLYWOMAN PAULIN:  DSH is not from 

12           the state, though.  That's from the county.  

13           So --

14                  MS. RYAN:  The DSRIP funding has been 

15           cut from the state since 2017.  Our CREP, the 

16           CREP funding from New York State has been 

17           cut.  The Essential Healthcare Provider 

18           Support Program has been cut.

19                  ASSEMBLYWOMAN PAULIN:  So is that in 

20           this year's budget?  Or you're saying that in 

21           the past few years --

22                  MS. RYAN:  I'm going back every year 

23           since 2017, every year.  In 2021, 2022 and 

24           2023, DSRIP and CREP just went away 


                                                                   458

 1           completely.  So --

 2                  ASSEMBLYWOMAN PAULIN:  So I guess what 

 3           I'm asking is in this budget, what's 

 4           different and changed that you're advocating 

 5           for for this budget?  I get that you've been 

 6           cut, as everybody else, right?

 7                  You know, so what is in this budget 

 8           that we would need to restore to bring you 

 9           back into last year's level?

10                  MS. RYAN:  Right.  I think we need a 

11           line item on the budget for Nassau Health 

12           Care Corporation as a New York State public 

13           benefit corporation, whether that's in 

14           conjunction with the other two public benefit 

15           healthcare corporations, Erie County Medical 

16           Center and Westchester Medical Center, which 

17           we have been in discussions with at, you 

18           know, local levels and above, at the state 

19           level.

20                  So that would be helpful, as also a 

21           determination of our VAPAP applications with 

22           funding from either of those avenues.  But I 

23           think we need to go on the budget as a line 

24           item.  I think the county deserves it.  


                                                                   459

 1                  ASSEMBLYWOMAN PAULIN:  Thank you.  I 

 2           just wanted to really understand it.  Thank 

 3           you.

 4                  MS. RYAN:  Thank you.

 5                  CHAIRWOMAN KRUEGER:  Thank you.

 6                  Anyone else?  Anyone else?

 7                  ASSEMBLYWOMAN PAULIN:  Anna Kelles.

 8                  ASSEMBLYWOMAN KELLES:  Thank you so 

 9           much for being here.  And my apologies if 

10           this has been asked before.

11                  I was specifically interested -- 

12           Michael, I'm -- yeah, thank you.  Could you 

13           talk to me a bit about the fiscal impact for 

14           you from pharmacy benefit managers?

15                  MR. DUTEAU:  Yeah, absolutely.

16                  So we fully support PBM reform.  You 

17           know, I think an easy way to quantify it 

18           right here is what happened with Medicaid, 

19           where we moved from managed care to 

20           fee-for-service.  And just by removing the 

21           pharmacy benefit managers from that process, 

22           pharmacies were losing much less money.

23                  ASSEMBLYWOMAN KELLES:  Like what 

24           percentage saved do you expect that we would 


                                                                   460

 1           see if we did this across the board?  

 2                  MR. DUTEAU:  That's hard to quantify.  

 3           I can get back to you with some real numbers.  

 4           But I know when we looked at the regulations 

 5           that were originally introduced, there would 

 6           be substantial positive impact for the 

 7           pharmacy industry and, more importantly, for 

 8           our patients.  Everywhere from a 

 9           reimbursement standpoint, at point of sale, 

10           to copay management and prior authorization 

11           management on the patient side.

12                  ASSEMBLYWOMAN KELLES:  And I've heard 

13           some concerns that the profit motives and 

14           priorities of the pharmacy benefit managers 

15           has led to crises for a lot of pharmacies 

16           staying open.  There's been closures.  I've 

17           seen many in my district.

18                  I'm curious what -- if you could tell 

19           us a little bit about that.

20                  MR. DUTEAU:  Yeah, that is absolutely 

21           accurate.  

22                  So there are numerous levers that the 

23           PBMs have been pulling that negatively 

24           financially impact pharmacies.  Medicare, 


                                                                   461

 1           which is a little bit outside of this 

 2           conversation, but they have DIR fees which 

 3           have been retroactive clawbacks.  They've had 

 4           other programs with similar levers where 

 5           pharmacies have actually filled the 

 6           prescription and then several months later 

 7           learned that they actually lost money -- on 

 8           not just the first fill, but each subsequent 

 9           refill.

10                  ASSEMBLYWOMAN KELLES:  If -- you know, 

11           of the reforms that you've seen, what do you 

12           think are the most effective ones, if you 

13           were going to make specific recommendations?

14                  MR. DUTEAU:  So I think obviously we 

15           need to start with, you know, licensure, 

16           registration, make sure that we have parity.  

17           Health plans are licensed, pharmacies are 

18           licensed, health systems are licensed.  The 

19           PBMs haven't been.  They've been able to 

20           operate behind this curtain that makes it 

21           hard not only to detect what's going on, but 

22           also to regulate and enforce those 

23           regulations.  So that's the starting point.

24                  And from there you look at fair market 


                                                                   462

 1           practices.  You know, what -- what's in the 

 2           best interests of the patient that allows the 

 3           pharmacist and other providers to really care 

 4           for that patient in a way that doesn't 

 5           negatively financially impact them.

 6                  ASSEMBLYWOMAN KELLES:  Great.  Thank 

 7           you so much.

 8                  MR. DUTEAU:  Thank you.

 9                  CHAIRWOMAN KRUEGER:  (Mic off) -- and 

10           release you, so to speak.  Of course you can 

11           stay and listen to more.

12                  And we are jumping to Panel F:  

13           Agencies for Children's Therapy Services; 

14           Children's Health home of Upstate New York; 

15           The Children's Agenda; 13thirty Cancer 

16           Connect; and Alliance of New York State 

17           YMCAs. 

18                  We might need a fifth chair, someone.  

19           Oh, thank you, Ian.

20                  Okay, why don't we just go in the 

21           order I just read your names under:  Agencies 

22           for Children's Therapy first, Scott Mesh. 

23                  You have to press the button down hard 

24           until you see the green light go on.  Push 


                                                                   463

 1           harder.  It requires serious pushing.

 2                  (Off the record.)

 3                  CHAIRWOMAN KRUEGER:  There we go.  

 4           Strong fingers, good.

 5                  MR. MESH:  So sorry.

 6                  CHAIRWOMAN KRUEGER:  That's okay.  If 

 7           you need a little time, we can jump to 

 8           someone else and come back.

 9                  MR. MESH:  I am ready.

10                  CHAIRWOMAN KRUEGER:  Okay, good.

11                  MR. MESH:  Thank you, Chairs Gustavo 

12           Rivera, Krueger, Weinstein, Paulin and 

13           committee members, for allowing me to testify 

14           today on behalf of the Agencies for 

15           Children's Therapy Services, ACTS, an 

16           association of 31 agencies providing Early 

17           Intervention services to 25,000 children, 

18           over a third of the EI children in New York 

19           State.  Members also provide pre-K, special 

20           ed and school-age special ed services.  

21                  I'm Scott Mesh, an ACTS board member.  

22           For the last 25 years I have co-owned and 

23           operated an Early Intervention agency, Los 

24           Niños Services, with Edita Diaz, school 


                                                                   464

 1           psychologist, serving New York City and 

 2           Westchester.

 3                  We thank you so much and are so 

 4           grateful to Senator Gustavo Rivera and 

 5           supporters for approving a Senate bill 

 6           yesterday to increase EI services 11 percent, 

 7           finally.  Please keep this simple and support 

 8           Senator Gustavo Rivera's bill.  It's critical 

 9           and urgent to get the overdue increase this 

10           year to avoid devastation of the EI program.  

11           Kids are not getting services, agencies are 

12           closing.  Perhaps these points will help 

13           secure increased reimbursement this year. 

14                  My overall message is simple:  

15           Houston -- I mean Albany -- we have a 

16           problem.  EI's been decimated, especially in 

17           recent years.  Two thousand teachers and 

18           therapists have left EI just in recent years.  

19           Over 50 percent of children don't get any or 

20           all EI services, according to a Comptroller's 

21           report two years ago.  And the situation is 

22           worse.  

23                  Commissioner McDonald commented this 

24           morning that many families get no services at 


                                                                   465

 1           all.  Commissioner McDonald gets it.  And as 

 2           he said, the low rate of pay to therapists 

 3           due to the low EI reimbursement rates, 

 4           without significant increases for many years, 

 5           is the main reason providers have left EI in 

 6           droves.

 7                  One of the largest agencies in 

 8           New York State that has operated for 

 9           30 years, has now closed in Westchester all 

10           Early Intervention services, just in the last 

11           couple of months.  That same agency has 

12           closed most of New York City services.  Our 

13           own program, serving 2,000 infants and 

14           toddlers, is now at financial risk.  Finally, 

15           a niece of ours, who graduated as a speech 

16           pathologist, was with us two years, and she 

17           just left us to earn $20,000 more at a 

18           hospital.  Preschool and special ed schools, 

19           clinics and hospitals pay much more.

20                  CHAIRWOMAN KRUEGER:  Thank you.  I 

21           have to cut you off.

22                  MR. MESH:  Thank you so much.

23                  CHAIRWOMAN KRUEGER:  Thank you.  We 

24           have everyone's full written testimony, even 


                                                                   466

 1           if you can't speed-read it.

 2                  Next?

 3                  MS. BRYL:  All right.  Good afternoon.  

 4           I'm Nicole Bryl, CEO of the Children's Health 

 5           Home of Upstate New York.  We also refer to 

 6           ourselves as CHHUNY.

 7                  I would like to thank the members of 

 8           the Senate and Assembly for the opportunity 

 9           to provide testimony today.

10                  I am here for one reason, and that is 

11           to request that the children's health homes 

12           be exempt from the proposed health home 

13           restructuring cost savings of $125 million.  

14           A cost savings of this magnitude, in addition 

15           to the $100 million in last year's enacted 

16           budget, will end the health home program for 

17           children in New York State.  We are confused 

18           as to what 30,000 children and families will 

19           do when these services go away.

20                  CHHUNY is a health home designated to 

21           serve only children and youth under the age 

22           of 21.  Our health home serves over 12,000 

23           members each month in 55 upstate counties 

24           through a network of over 80 care management 


                                                                   467

 1           agencies.

 2                  The population we serve primarily 

 3           consists of children and adolescents with 

 4           mental health conditions.  We also serve 

 5           children with developmental disabilities, 

 6           medical complexities, and social care needs.

 7                  We understand that there is a 

 8           significant Medicaid budget gap that needs to 

 9           be addressed, but decimating our program's 

10           funding without any plan in place is 

11           irrational, and the unintended consequences 

12           will result in more costly alternatives.  

13                  A full year of health home services 

14           for a child and family is far cheaper than an 

15           average four-day hospital stay, a 60-day 

16           residential program placement, foster care 

17           placement, or a permanent placement in a 

18           long-term-care facility for our medically 

19           complex children.  Not to mention these 

20           systems are already taxed in that capacity, 

21           as we've heard today.  

22                  Preventative care is more 

23           cost-effective and provides better outcomes 

24           for children and families.  


                                                                   468

 1                  Over the last seven years, care 

 2           management services for children have been 

 3           consolidated under the health home model to 

 4           streamline and simplify the children's system 

 5           of care.  OMH targeted case management in 

 6           2016, and then in 2019 six state waivers 

 7           through OMH, OCFS and OPWDD all consolidated 

 8           under the health home model.

 9                  We are the pathway to HCBS and CFTSS 

10           services for children with serious emotional 

11           disturbance.  We are the Early Intervention 

12           ongoing service coordinator for children who 

13           require the children's waiver and Early 

14           Intervention services.  And most recently we 

15           are the solution for OPWDD for children under 

16           the age of five, as it has become 

17           increasingly difficult to qualify for those 

18           services.  

19                  For our members, ED visits have 

20           decreased and patient stays have decreased, 

21           primary care visits and annual dental visits 

22           have increased.  We have worked closely with 

23           our managed care plans to close gaps in care 

24           and have been so successful that CHHUNY is 


                                                                   469

 1           the first health home to engage in a 

 2           risk-based contract for value-based care.

 3                  Without a plan in place at DOH to 

 4           implement this cost savings, we question how 

 5           the integration of health home services 

 6           within the overall children's system of care 

 7           will be addressed.  The result would not be a 

 8           restructuring but, rather, complete 

 9           destruction of a program and infrastructure 

10           we have worked so hard to optimize.

11                  Thank you for your time.

12                  ASSEMBLYWOMAN PAULIN:  Thank you very 

13           much.

14                  Next.  Children's Agenda?

15                  MS. HURLEY:  Thank you.  Sorry.

16                  Hi.  I apologize for that.  I wasn't 

17           tracking what order we were going in.

18                  So I'm Brigit Hurley from 

19           The Children's Agenda and the Kids Can't Wait 

20           Coalition.  I thank you for the opportunity 

21           to speak with you today.

22                  As you know, across the state infants 

23           and toddlers with developmental delays and 

24           disabilities are languishing, they're 


                                                                   470

 1           regressing, as they wait for EI services that 

 2           an evaluation has determined they need and 

 3           federal law says they have a right to.  They 

 4           wait and sometimes, as you've heard, don't 

 5           ever receive their services and they age out 

 6           of the program.

 7                  I'd like to share a few parent 

 8           testimonials with you.  A mother of a 

 9           3-year-old who waited months and months for 

10           EI services and only got one of the several 

11           that he was supposed to receive says:  

12           "Developmental milestones could have been met 

13           if the services were met in a timely manner.  

14           It's a federal right for services to be met 

15           in 30 days, so I don't understand why this 

16           isn't happening.  I just ask you and urge you 

17           to think of my son when he wasn't able to get 

18           his services for Early Intervention, and also 

19           countless other families in New York State 

20           who are still waiting for these crucial 

21           services, and how agonizing and frustrating 

22           it is when these are not able to be met."

23                  A mother of 5-year-old twins who 

24           benefited from Early Intervention services 


                                                                   471

 1           says:  "I am so passionate about these 

 2           services and fervently believe that my twins 

 3           are doing as well as they are because of the 

 4           work that their therapist did with them from 

 5           when they were only a couple of months old 

 6           all the way through when they were three.  We 

 7           put in the work.  We worked with the 

 8           therapists, and the twins are doing just 

 9           exceptionally, exceptionally well.  I can't 

10           imagine how it would have looked different if 

11           we had had to wait any longer than we did." 

12                  There's plenty of evidence that 

13           New York State's Early Intervention program 

14           is in dire need of significant investments.  

15           A couple of pieces of evidence:  The most 

16           common EI services are reimbursed now at a 

17           rate that is lower than they were in 1994.  

18           The percentage of families receiving services 

19           on time has dropped from 78.3 percent in 2014 

20           to 53.9 percent in 2022.  As of August 2023, 

21           at least 7,360 children were waiting for 

22           services, reflecting a 28 percent increase 

23           since 2022 and a 500 percent increase since 

24           2020.  


                                                                   472

 1                  The Kids Can't Wait Coalition is 

 2           pleased with the Executive Budget, that 

 3           includes a 5 percent rate increase for 

 4           in-person services and a 4 percent modifier 

 5           for services delivered in rural and 

 6           underserved areas.  It's a good start, but 

 7           it's not enough.

 8                  ASSEMBLYWOMAN PAULIN:  Thank you so 

 9           much.

10                  Next is Lauren Spiker.

11                  MS. SPIKER:  Good evening, and thank 

12           you for your continued attention after this 

13           very long day.  Today I actually hope to 

14           generate more questions than I have answers 

15           for.  I am Lauren Spiker, the founder of 

16           13thirty Cancer Connect, a nonprofit based in 

17           Rochester, New York, representing the 90,000 

18           teens and young adults who are diagnosed each 

19           year with cancer in the United States. 

20                  There's one young person every 6 

21           minutes who hears the words:  You have 

22           cancer.  Every 6 minutes a young life is 

23           interrupted, and for far too many that 

24           interruption is forever.  


                                                                   473

 1                  Twenty-three years ago our 19-year-old 

 2           daughter Melissa was one of those young 

 3           people.  Yesterday was her birthday.  Despite 

 4           two years of aggressive treatment, Melissa 

 5           lived an extraordinary albeit far too short 

 6           life.  I don't have nearly time enough to 

 7           describe her, so I'll skip ahead to just 

 8           three nights before she died.

 9                  Late that night I told her how proud I 

10           was of her and thanked her for all I had 

11           learned from her.  In response, she issued me 

12           a challenge which brings me here before you 

13           today:  "If you learned anything from me 

14           through all of this," she said, "do something 

15           with it, something to make a difference, to 

16           make things better."

17                  I founded 13thirty Cancer Connect to 

18           keep the promise I made that night.  And we 

19           are making a difference.  With two physical 

20           centers in Rochester and Syracuse, we help 

21           AYAs -- adolescents and young adults -- 

22           between the ages of 13 and 39 develop a new 

23           peer community of others who understand, who 

24           get it, something Melissa never had.  Our 


                                                                   474

 1           mobile wellness apps and virtual programs 

 2           help AYAs across the globe better manage the 

 3           debilitating effects of their cancer.  Our 

 4           clinician and educator workshops help 

 5           providers deliver more effective care, and 

 6           our advocate efforts heighten awareness of 

 7           the unique challenges facing this group.

 8                  But much more needs to be done, as the 

 9           incidence of early onset cancer is projected 

10           to rise by 31 percent by 2030.  

11                  Today, on behalf of the over 5500 

12           teens and young adults diagnosed each year in 

13           New York, I ask you to allocate funds to 

14           bridge the gap into which AYAs still fall.  

15           Specifically, funding is needed for AYA 

16           research, widespread public awareness 

17           campaigns, more effective continuity of care 

18           protocols, and additional community-based 

19           support services like those provided by 

20           13thirty.

21                  I urge consideration for changes 

22           regarding insurance coverage and 

23           reimbursement, educational and employment 

24           protections, expanded tax credits, and 


                                                                   475

 1           perhaps new health-related incentives.

 2                  For my organization, I ask for funding 

 3           for a project that we are in the middle of 

 4           coordinating services in our community.  

 5                  ASSEMBLYWOMAN PAULIN:  Thank you very 

 6           much.

 7                  (Overtalk.)

 8                  MS. SPIKER:  You're welcome.

 9                  ASSEMBLYWOMAN PAULIN:  Thank you.  

10                  Maggie Dickson?

11                  MS. DICKSON:  Good evening, 

12           Chairs Krueger, Paulin, and Rivera and 

13           esteemed members of the Legislature.  Thank 

14           you for the opportunity to testify before you 

15           today.  

16                  My name is Maggie Dickson, and I am 

17           the director of public policy at the Alliance 

18           of New York State YMCAs.  We represent 

19           36 YMCA associations and 140 YMCA branches 

20           across the state, to provide Ys with the 

21           resources necessary to make the greatest 

22           impact on their communities.  At the heart of 

23           community, you'll find your Y.

24                  We focus on empowering young people, 


                                                                   476

 1           improving health and well-being, and 

 2           inspiring action in and across communities.  

 3           The Y has a long history of deploying 

 4           programs and services to meet the needs of 

 5           communities, including childcare, afterschool 

 6           and out-of-school programs such as camp and 

 7           swim, sports and play opportunities, housing 

 8           for low-income individuals, and 

 9           evidence-based health interventions.

10                  The primary purpose of our testimony 

11           today is to highlight the role YMCAs play as 

12           a community-based partner.  In proposals 

13           included in the Executive Budget such as 

14           New York Swims and school-based mental health 

15           clinics, we emphasize the role YMCAs could 

16           play in robust implementation of the 

17           Governor's proposals.  CBOs would help to 

18           ensure every child has year-round access to 

19           programs.

20                  We are grateful to the Legislature for 

21           the $1 million line item we receive every 

22           year, which enables Ys to continue their 

23           community-based programs including childcare, 

24           water safety and public health initiatives.  


                                                                   477

 1           This year we are requesting a $4 million 

 2           increase for a total of $5 million to ensure 

 3           Ys can continue to support communities across 

 4           New York State.

 5                  Finally, previous panels have 

 6           discussed the cost of chronic disease and the 

 7           overwhelm hospitals are facing.  YMCAs 

 8           implement evidence-based chronic disease 

 9           prevention and health management programs -- 

10           which are listed in my written testimony -- 

11           and we look forward to partnering with other 

12           CBOs and assisting with social care service 

13           navigation and health-related social needs, 

14           in accordance with the 1115 Medicaid waiver, 

15           to achieve collective goals to reduce health 

16           disparities and improve health equity.

17                  The alliance appreciates the support 

18           of the New York State Legislature and looks 

19           forward to continuing to act as a partner.

20                  Thank you.

21                  CHAIRWOMAN KRUEGER:  (Mic off.)  We 

22           have Senator Samra Brouk.

23                  SENATOR BROUK:  Great.  Is it evening?  

24           Good evening.  Thank you all for your 


                                                                   478

 1           patience today.

 2                  I just -- you know, my Rochester folks 

 3           here, I have to just give a shout out and say 

 4           Lauren, you did an amazing job and I think we 

 5           all agree that your daughter would be very, 

 6           very proud of the way you represented that.  

 7           And I think it's a lot that we need to think 

 8           about in terms of where we can put some more 

 9           priorities and allocate some more funding 

10           especially for our young people.  So I just 

11           wanted to say thank you so much for making 

12           the trip.

13                  I also wanted to ask a question around 

14           the Early Intervention.  So I think I saw 

15           some of you in the audience; you spent some 

16           time listening today.  And, you know, when we 

17           brought this up to the DOH commissioner, he 

18           said we're lucky that there's an increase at 

19           all in a year like this year.

20                  And of course the first thing I 

21           thought of was, well, I don't know if we're 

22           lucky, because it's not exactly what we need.  

23           I think there needs to be more of a 

24           reimbursement rate increase.  But also 


                                                                   479

 1           there's the lack of consideration of what 

 2           this will cost down the line when we fail to 

 3           offer these Early Intervention services.  

 4                  So I would love for you -- and I open 

 5           this up to anyone up here around 

 6           Early Intervention -- to talk about the costs 

 7           that we end up inevitably incurring later 

 8           down the line when we fail to actually 

 9           provide these services to young people when 

10           they need them.

11                  MS. HURLEY:  So I don't have the 

12           numbers in front of me right now, but could 

13           get those to you around the cost of preschool 

14           special education and then K-12 special 

15           education.  But I can say that it's far more 

16           than the cost of a year or six months of EI 

17           that might prevent a child from needing those 

18           services.  

19                  And I think we also need to take into 

20           account what I'm hearing from preschool 

21           teachers and preschool special education 

22           teachers, is that children are coming to them 

23           with much greater needs, many of them because 

24           they have not had sufficient EI services.  So 


                                                                   480

 1           they're needing even more resources than they 

 2           might normally.  So we're -- it is 

 3           penny-wise, pound-foolish to not be funding 

 4           these services fully.

 5                  SENATOR BROUK:  Thank you.  

 6                  Want to add?

 7                  MR. MESH:  If I could just add, we pay 

 8           now or we pay much more later.  

 9                  I don't have stats to give you, but 

10           I'm a psychologist and I've evaluated many, 

11           many children.  I can think about one child 

12           who was severely autistic at age two and a 

13           half, and when the mom called me three years 

14           later, there were no signs of autism.  Kids 

15           do get better, and they can get a lot better 

16           with the help early.

17                  SENATOR BROUK:  Thank you all.  

18                  I'll give you those 20 seconds back.

19                  ASSEMBLYWOMAN PAULIN:  Thank you.  

20                  Assemblymember Rodneyse Bichotte 

21           Hermelyn.

22                  ASSEMBLYWOMAN BICHOTTE HERMELYN:  

23           Hello.  Thank you all for coming here today 

24           to testify and advocating on behalf of all of 


                                                                   481

 1           our children.  Thank you so much.

 2                  I am a new mom and I've also had 

 3           concerns in terms of the resources as it 

 4           relates to Early Intervention.  You know, 

 5           very often all of us, when we -- you know, 

 6           we've borne children into this world, 

 7           hospitals and then trying to get them 

 8           childcare, we just don't know what stage 

 9           they're in.  We don't even know where to get 

10           the resources, because the topic of 

11           Early Intervention is just not mentioned at 

12           all.

13                  And as we're talking about 

14           reimbursement, and my colleague Senator Brouk 

15           mentioned addressing the vital concerns about 

16           that, I had a question about the racial and 

17           geographic disparities as it relates to, you 

18           know, Early Intervention reimbursement and 

19           services.  

20                  Can you tell us a little bit more 

21           about that?  I know for me, literally I'm 

22           having my child be evaluated and I didn't 

23           even know to do or how to do it, it was just 

24           a referral.


                                                                   482

 1                  And so in my community, which is a 

 2           community that's majority Black and brown, 

 3           low income, the vast majority of the members 

 4           of my community just don't know anything 

 5           about Early Intervention.  So can you tell us 

 6           a little bit more about the racial 

 7           disparities as it relates to the 

 8           reimbursement?

 9                  MS. HURLEY:  Yes.  The Bureau of 

10           Early Intervention released a report in 

11           August of 2021 that described the data they 

12           had collected on racial disparities, and 

13           children of color are referred at lower rates 

14           and wait longer for services and are more 

15           likely to not receive services.  

16                  So it's an area of great concern of 

17           ours.  One of the things that we want to make 

18           sure is that the services are delivered 

19           in-person whenever that is appropriate for 

20           the child, which is most of the time.  And 

21           right now there are a lot of children, 

22           particularly children in certain areas of our 

23           metro areas, that have no opportunity to 

24           receive services in-person.  They're only 


                                                                   483

 1           offered telehealth, and part of that is 

 2           because providers, you know, preferring to 

 3           provide telehealth rather than travel into 

 4           some of the neighborhoods.  So there's 

 5           definitely disparities.

 6                  We are happy to see that the Executive 

 7           Budget includes a rate modifier that would 

 8           incentivize providers an additional 4 percent 

 9           on top of the 5 percent for underserved areas 

10           and rural areas, and we think that that will 

11           help.

12                  ASSEMBLYWOMAN BICHOTTE HERMELYN:  

13           Thank you.

14                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

15           Gandolfo.

16                  ASSEMBLYMAN GANDOLFO:  Thank you all 

17           for your testimony.  

18                  And Ms. Spiker, I thank you for 

19           sharing your story and what you're doing to 

20           honor your daughter's memory and your 

21           advocacy.  You know, we've seen in many 

22           different areas that the peer-to-peer kind of 

23           connection really does help people get 

24           through some tough times.  


                                                                   484

 1                  You were cut off a little bit during 

 2           your testimony about the capital -- some of 

 3           your capital needs.  Can you expand on that a 

 4           little bit, how we might be able to help?

 5                  MS. SPIKER:  Thank you for giving me a 

 6           few extra seconds.

 7                  One of the biggest problems that we 

 8           see with the kids we serve is their 

 9           challenges are so unique and they cross so 

10           many important transitions in their lifetime 

11           that services and programs for them are not 

12           coordinated.  They fall into lots of siloed 

13           pockets, and nobody really understands what 

14           their very unique challenges are, especially 

15           as they transition from pediatric to adult 

16           care.

17                  So one of the projects we are 

18           currently working on, in collaboration with 

19           University of Rochester Medical Center and 

20           Rochester Regional Health System, is to build 

21           a coordinated and comprehensive delivery of 

22           care service by which our AYAs and their 

23           caregivers would have access to providers who 

24           understand their very specific challenges.  


                                                                   485

 1           And for that, we have just started a 

 2           preliminary needs assessment, but I think 

 3           that is the biggest thing that I would ask 

 4           for from this body, is to help us fund a 

 5           widespread needs assessment.  Because we 

 6           really don't know what the unmet needs of our 

 7           adolescents and young adults in our 

 8           communities are, because we just have never 

 9           studied that.

10                  So this pilot program that we're 

11           starting in Rochester, I would love further 

12           support for.

13                  ASSEMBLYMAN GANDOLFO:  Thank you very 

14           much.

15                  ASSEMBLYWOMAN PAULIN:  Senator Cooney.

16                  SENATOR COONEY:  (Mic problems.)  

17           There we go.  There you go.  Thank you.  

18                  Brigit, thanks so much for making the 

19           trek here, and we appreciate all the work 

20           that The Children's Agenda has been doing.  

21           Wanted to focus in, of course, on my passion, 

22           which is the Child Tax Credit.  Last year we 

23           finally made that sensible change to make 

24           sure that children under the age of 4 were 


                                                                   486

 1           included in the tax credit.  

 2                  We're starting to hear some positive 

 3           things on the federal side.  We'll see.  But 

 4           hopefully you could share with us the impact 

 5           in upstate cities specifically, if we were 

 6           able to increase that benefit to families 

 7           with one or more children, what that would 

 8           look like in terms of their quality of life 

 9           in reducing poverty rates across the state.  

10                  MS. HURLEY:  Sure.  So we are -- The 

11           Children's Agenda is supporting the -- the 

12           broader tax credit that's now been introduced 

13           and are hoping that implementation of that 

14           will produce the effects that we've seen over 

15           and over again, both in Rochester and around 

16           the country and the world in terms of the 

17           increase in family well-being when they have 

18           an increase in income.

19                  So that's going to affect children's 

20           health, children's social-emotional 

21           well-being, and we are very hopeful that this 

22           year we'll be able to get even more 

23           significant gains in the tax credit for 

24           children and families.


                                                                   487

 1                  SENATOR COONEY:  And have there been 

 2           studies that have shown how families have 

 3           utilized those dollars?  I know that it's a 

 4           little bit awkward in terms of the fact that 

 5           it comes from a tax credit side versus, you 

 6           know, cash flow throughout the course of the 

 7           year.  But have you done research in terms of 

 8           how families have utilized that money?  Is it 

 9           for rent stabilization, is it for healthcare 

10           needs?  Could you comment on that briefly?

11                  MS. HURLEY:  Right, sure.

12                  So we had our own little experiment, 

13           really, in the United States, right, with the 

14           pandemic and the increase in the Child Tax 

15           Credit.  And what we know from that is that 

16           it was spent on food, it was spent on 

17           housing, it was spent on enrichment 

18           activities for children.  

19                  So it's exactly what you would imagine 

20           if you were given -- if you had a child and 

21           were given money for -- you know, to invest 

22           in your family.  Families invest it in what's 

23           best for their long-term health, the 

24           long-term health of their children.  So ...


                                                                   488

 1                  SENATOR COONEY:  Well, we're certainly 

 2           hoping that New York families will have that 

 3           opportunity this year.  So we thank you for 

 4           your support.

 5                  I yield back my time, Chair.

 6                  ASSEMBLYWOMAN PAULIN:  Thank you very 

 7           much.

 8                  Assemblymember Kelles.  Oh, Josh, I 

 9           keep looking at you -- sorry.

10                  ASSEMBLYMAN JENSEN:  It's all right.

11                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

12           Jensen.  I keep skipping him.

13                  ASSEMBLYWOMAN KELLES:  We look very 

14           similar.

15                  (Laughter.)

16                  ASSEMBLYMAN JENSEN:  Yeah, very 

17           similar.

18                  ASSEMBLYWOMAN PAULIN:  At this hour, 

19           you do.

20                  (Laughter.)

21                  ASSEMBLYMAN JENSEN:  My question is 

22           for Ms. Spiker.  In your oral testimony you 

23           talked about seeing an increased incidence of 

24           cancer for the AYA population.  What are the 


                                                                   489

 1           causes for that increase?  And what can be 

 2           done to mitigate those risks?

 3                  MS. SPIKER:  The first part to that 

 4           question is we really don't even have a clear 

 5           idea of what causes adolescent and young 

 6           adult cancer to begin with.

 7                  As for the increased incidence which 

 8           is projected, most of it is lifestyle causes, 

 9           diet, sedentary lifestyle, perhaps, 

10           environmental exposures.  Some of that 

11           projected increase could be because we have 

12           done a better job of early screening, so 

13           perhaps we are identifying some cancers 

14           earlier.

15                  But within those suspected causes 

16           there are lots of opportunities for public 

17           awareness, for the folks in our age group to 

18           be more aware of those kinds of challenges, 

19           for primary care physicians to better 

20           understand some of the late effects that 

21           challenge our kids even post-treatment.  So 

22           there are opportunities with regard to 

23           primary prevention, early detection, and then 

24           also survivorship issues that would hopefully 


                                                                   490

 1           try to mitigate some of those risks.

 2                  ASSEMBLYMAN JENSEN:  I know in 

 3           previous conversations you and I have had, 

 4           when we look at the care continuum and where 

 5           medical research is being conducted, there's 

 6           a focus on the youngest ages, the middle 

 7           ages, and elders, but yet there's a dearth of 

 8           medical research going on with the AYA 

 9           population.  

10                  Is that something that -- whether it's 

11           at the state level or working with our 

12           federal partners -- we should be encouraging 

13           greater amounts of research, especially as we 

14           see the increased incidence?

15                  MS. SPIKER:  Yeah, absolutely.  It 

16           wasn't until not too long ago that we thought 

17           about teenagers as being different from young 

18           children and young adults as being different 

19           from older adults.  So there's been very 

20           limited research with regard to the cancers 

21           that our kids get. 

22                  So there are great opportunities.  For 

23           us as a community-based organization, to 

24           partner with our academic research partners 


                                                                   491

 1           really I think has the best hope for us to 

 2           really get at what are some of the issues and 

 3           how can we best support this group.

 4                  So we would love support for 

 5           AYA-targeted research.

 6                  ASSEMBLYMAN JENSEN:  And certainly 

 7           right now your organization doesn't receive 

 8           any state funding for any of your operations.  

 9           Would even a little bit of allocation help to 

10           not just meet the needs of this population in 

11           Rochester and Syracuse but also set new 

12           goalposts for how we can affect this 

13           population for the better statewide?

14                  MS. SPIKER:  Yeah, absolutely.  I'm 

15           really new to this whole state funding 

16           process, so yeah, a little bit would go a 

17           long way.  Thank you.

18                  ASSEMBLYMAN JENSEN:  Thank you, 

19           Lauren.

20                  ASSEMBLYWOMAN PAULIN:  Now 

21           Assemblymember Anna Kelles.

22                  ASSEMBLYWOMAN KELLES:  Thank you.

23                  Thank you so much for all of the work 

24           that all of you are doing.  This is so 


                                                                   492

 1           important.  

 2                  EI I am particularly passionate about 

 3           because we do know, of course, child 

 4           development, brain development during the 

 5           first three years of life is -- you know, 

 6           sets the stage for the rest of our lives, 

 7           because that's when a lot of the synaptic 

 8           connections are being built, in that 

 9           zero-to-three period.  So, you know, 

10           incredibly important.  So thank you so much 

11           for that.

12                  One of the concerns that I have -- 

13           well, two things.  One, do we have a 

14           geographic layout of where kids are being 

15           served and where there are the greatest gaps 

16           in those who need it who are not currently 

17           being served who would be eligible for EI?  

18           Do you know, does that exist?  Has that map 

19           been created?

20                  MS. HURLEY:  I believe that exists 

21           within the Bureau of Early Intervention in 

22           the Department of Health.  It's not publicly 

23           available, because we asked for it.

24                  ASSEMBLYWOMAN KELLES:  That's why we 


                                                                   493

 1           haven't seen it.

 2                  MS. HURLEY:  Yes.  Yeah.

 3                  ASSEMBLYWOMAN KELLES:  All right, I 

 4           will ask for that.

 5                  That was one question that would give 

 6           a really good sense of how to target.

 7                  My second question is actually 

 8           continuity of care.  What I am seeing in my 

 9           district, there was a case that was just 

10           brought to me recently that was very 

11           disturbing, which is that even if kids are 

12           able to get EI, because of the different ways 

13           in which they are funded once they hit pre-K, 

14           because the EI is state but pre-K then shifts 

15           into both district and county -- and if it's 

16           just county, then the providers can't provide 

17           if they are in the school.  And in rural 

18           areas, they don't exist outside of the 

19           school.  So you end up with a tremendous lack 

20           of continuity of care.

21                  Have you seen -- with all of the 

22           children that you have in EI, have you been 

23           able to create a transition for them, or 

24           continuity of care?  Or are you seeing, as 


                                                                   494

 1           well as I am in my district, particularly in 

 2           rural areas, a tremendous disconnect where a 

 3           lot of them fall off, even of those who do 

 4           get EI?  So it's an extension question.

 5                  MS. HURLEY:  Right.

 6                  I don't want to speak as if I'm 

 7           knowledgeable about different areas of the 

 8           state and how those transitions happen.  I 

 9           can tell you that there are -- there is an 

10           issue, and I speak with families all the time 

11           who have trouble making the transition 

12           because you're going through the Department 

13           of Health to state to the education system.  

14           And there are families who have just, as you 

15           said, don't make it through.  Because you 

16           have to have an entire new evaluation 

17           addressing that.

18                  So there's -- yes, there's definitely 

19           an issue of transition, yeah.

20                  ASSEMBLYWOMAN KELLES:  I don't know if 

21           you had anything to add.

22                  MR. MESH:  The answer is yes, there's 

23           a lot of issues with transition, where 

24           New York City and Westchester absolutely 


                                                                   495

 1           needs more to be done to smooth them out.  

 2           All over the state.

 3                  ASSEMBLYWOMAN KELLES:  Great.  Thank 

 4           you.

 5                  CHAIRWOMAN KRUEGER:  Anyone else?  

 6                  ASSEMBLYWOMAN PAULIN:  Yes.  

 7           Assemblymember Ra.

 8                  ASSEMBLYMAN RA:  Thank you.  Thank you 

 9           all for your advocacy on behalf of our 

10           state's children.

11                  Ms. Spiker, I just -- you started to 

12           get into this with Mr. Gandolfo a little bit.  

13           But just, you know, the continuum of needs 

14           that this -- you know, a population like 

15           young adults with cancer have in terms of, 

16           you know, their education and their 

17           development socially, I'm sure mental health.  

18                  So what can the state be doing to help 

19           make sure that those needs are met with that 

20           population, in addition to obviously the 

21           obvious treating the illness, but there's all 

22           these other things that I'm sure they're 

23           missing in their development.

24                  MS. SPIKER:  One primary solution that 


                                                                   496

 1           would definitely help would be provider 

 2           education.  If we could do a better job of 

 3           educating the primary care physicians, both 

 4           pediatric and at the PCP level on the adult 

 5           side, of the very unique challenges facing 

 6           our teens and young adults, that would go a 

 7           long way to help as they transition through 

 8           different levels of care.

 9                  With regard to mental health in 

10           particular, I oftentimes will have, whenever 

11           our members say, you know, I really need some 

12           help because this is really hard -- and it's 

13           really hard when you're this age.  You know, 

14           you haven't got your life figured out to 

15           begin with, and everything gets turned 

16           upside-down and interrupted.

17                  I would like to be able to refer, 

18           through some sort of a coordinated network, 

19           as I spoke about earlier -- I would like to 

20           be able to refer our kids -- they're always 

21           kids to me -- to a mental health counselor 

22           who understood that kid's unique challenges.  

23           I would like to refer them to a primary care 

24           physician as a transition into survivorship 


                                                                   497

 1           care, to someone who is aware of the late 

 2           effects that they might suffer.

 3                  So provider education is one very, 

 4           very big area of need.

 5                  ASSEMBLYMAN RA:  In your written 

 6           testimony you talked about there's a I guess 

 7           increased likelihood for secondary cancers in 

 8           this population.  So where -- what is the 

 9           kind of -- like how should we be approaching 

10           that?  Is -- does there have to be more clear 

11           guidelines of what else these patients should 

12           be screened for after a certain amount of 

13           time, and --

14                  MS. SPIKER:  Yes.  And yes.

15                  There needs to be guidelines, there 

16           needs to be standards of care.  Like I said, 

17           until recently we really hadn't even -- there 

18           wasn't even a discipline called AYA oncology.  

19           So we really need to start from ground zero.  

20           Especially at the New York State level, we 

21           could really kind of set the pace for trying 

22           to identify and assess what are the needs and 

23           what should we be doing.

24                  So that task force that I suggested 


                                                                   498

 1           before would be a really great start.

 2                  ASSEMBLYMAN RA:  Thank you.

 3                  CHAIRWOMAN KRUEGER:  Any other 

 4           Assemblymembers?  Senators?

 5                  Okay, then we want to thank you very 

 6           much for being with us today.

 7                  Next is Panel G:  Medical Society of 

 8           the State of New York; New York State Nurses 

 9           Association; New York Society of PAs, 

10           physician assistants; Associated Medical 

11           Schools of New York; and CWA District 1. 

12                  So I think we do have five chairs.  

13           We'll let everybody get here.  And we will go 

14           in the order that we have called you up in.

15                  (Off the record.)

16                  CHAIRWOMAN KRUEGER:  And then for 

17           people who are still here to testify at the 

18           panel after this, Panel H, you might want to 

19           head down towards the front so we'll just 

20           move things along.

21                  Good evening, everyone.  And I guess 

22           we're calling on the Medical Society of 

23           New York first, Dr. Jerome Cohen.

24                  DR. COHEN:  Thank you.  


                                                                   499

 1                  Good afternoon.  I am Dr. Jerome 

 2           Cohen, senior attending gastroenterologist 

 3           for the Bassett Healthcare Network in 

 4           Cooperstown.  I am also president-elect for 

 5           MSSNY, which advocates for more than 20,000 

 6           physicians practicing across New York.  Thank 

 7           you for the opportunity to testify.  

 8                  Our written testimony highlights 

 9           several positive items in the budget to 

10           expand access to care, including investments 

11           in the patient-centered medical home program, 

12           further medical student loan repayment, 

13           telehealth payment parity, and expanded 

14           health insurance subsidies.

15                  However, our testimony also reflects 

16           strong concerns with other proposals 

17           counterproductive to maintaining patient 

18           access to community-based physician care, 

19           including eliminating MSSNY's Committee for 

20           Physicians' Health program, imposing 

21           $40 million in new costs on physicians for 

22           Excess Medical Liability Insurance coverage, 

23           and a series of proposals to remove physician 

24           oversight and collaboration.  


                                                                   500

 1                  Some of these proposals will actually 

 2           make it harder for physicians to remain in 

 3           practice to deliver patient care.

 4                  At a time when physician burnout is 

 5           continuing to rise, it is senseless to repeal 

 6           the Committee for Physicians' Health program.  

 7           This longstanding program has helped 

 8           thousands of physicians suffering from 

 9           behavioral health challenges or addiction, 

10           and has been routinely extended by the 

11           Legislature in five-year increments over the 

12           last several decades, including last year's 

13           extension of the program until 2028.  In 

14           fact, the Governor's initial budget proposal 

15           last year was for a 10-year extension.  

16                  It is important to note that CPH is 

17           not funded from general appropriations but by 

18           a $30 surcharge paid by physicians themselves 

19           in their biennial registration fee.

20                  We also urge the Legislature to again 

21           reject the proposed requirement that the 

22           15,000 physicians enrolled in the excess 

23           medical malpractice insurance program bear 50 

24           percent of the cost of these policies.  This 


                                                                   501

 1           would thrust nearly $40 million of new costs 

 2           on the backs of our community-based 

 3           physicians, many of whom are struggling to 

 4           stay in practice to deliver needed care, at a 

 5           time when they already face staggeringly high 

 6           liability premiums.

 7                  The end result is that many physicians 

 8           will simply forgo this coverage in order to 

 9           avoid these new costs.

10                  This proposal has been rejected in 

11           previous budgets because of its adverse 

12           impact on the patients who are ultimately the 

13           beneficiaries of this program.  

14                  Again, there are numerous concerning 

15           items in this budget that will reduce patient 

16           access to community-based physician care and 

17           remove important oversight and collaboration 

18           provided by physicians that better ensures 

19           patient safety.  We urge you to prioritize 

20           expanding access to skilled primary and 

21           specialty-care physicians instead of 

22           imperfect solutions that seek to replace 

23           them.

24                  Thank you.  Those are my remarks.  


                                                                   502

 1           Thank you.

 2                  CHAIRWOMAN KRUEGER:  (Mic off; 

 3           inaudible.)

 4                  MR. BELL:  Thank you.  Thank you for 

 5           the opportunity today to weigh in on the 

 6           budget.

 7                  NYSNA has three or four priorities in 

 8           terms of the budget:  Obviously, addressing 

 9           equity issues; expanding coverage; addressing 

10           the funding problems, especially of 

11           safety-net providers; and of course 

12           addressing the staffing crisis.  

13                  The budget has a lot of measures that 

14           take steps, positive steps in addressing some 

15           of those core concerns for NYSNA, but it 

16           doesn't go far enough.  Obviously we join in 

17           with the other unions and other providers who 

18           testified very eloquently and forcefully 

19           today about the need to increase -- to deal 

20           with the Medicaid gap, for example, 

21           particularly for safety nets.

22                  But I want to focus -- you know, and 

23           there are some positive measures to expand 

24           coverage.  Again, it doesn't go far enough.  


                                                                   503

 1           We would advocate that the state consider the 

 2           New York Health Act, which would address, I 

 3           think, not only universal coverage but also 

 4           quality of care and also the funding 

 5           problems.

 6                  But I want to spend the last minute 

 7           and a half that I have left focusing on the 

 8           staffing shortage issue.  And I want to 

 9           clarify right at the beginning that New York 

10           does not have, when it comes to RNs -- but I 

11           think this applies more broadly -- New York 

12           does not have a shortage of RNs.  

13                  What we have is a shortage of RNs who 

14           are willing to put up with the atrocious 

15           working conditions -- the lack of pay, the 

16           lack of respect, the mistreatment that they 

17           face on a daily basis, and the frustration 

18           that they can't do their jobs properly 

19           because they're understaffed.

20                  And I think the data is pretty clear 

21           on this.  And, you know, when you look, for 

22           example, at the number of active RN licenses 

23           in New York, in 19 -- I'm sorry, in 2018 

24           there are 305,000.  In July of 2023, there 


                                                                   504

 1           are 394,000.  That's a 30 percent increase in 

 2           active licenses over the last four or five 

 3           years.

 4                  The workforce, though, is pretty 

 5           stagnant.  It's only gone up by about 

 6           4 percent.  So what that tells us is that 

 7           nurses are coming in, they're getting 

 8           licensed, we have licensed nurses, but as 

 9           soon as they come into the workforce they go 

10           out the back door because they -- the high 

11           turnover rates, high levels of frustration, 

12           poor pay and benefits are all contributing to 

13           this.

14                  And, you know, at the end of the day 

15           the proposals, the two proposals that the 

16           Governor aims to address the issue, one is 

17           the Interstate Compact, which we've already 

18           been doing it for the last three years and it 

19           had absolutely no effect on the nursing 

20           workforce, right, during all the 

21           suspensions -- (time clock beeping).

22                  CHAIRWOMAN KRUEGER:  Sorry, we're 

23           going to move on.  Thank you.

24                  Next we have Edward Mathes.


                                                                   505

 1                  MR. MATHES:  I'm just going to break 

 2           away for a moment and echo what this 

 3           gentleman had to say.  My wife is a nurse, 

 4           and this is what I hear every day when she 

 5           comes home.

 6                  Good afternoon.  Thank you for having 

 7           me today.  My name is Ed Mathes.  I'm a 

 8           practicing PA in Rochester, New York, and I 

 9           currently serve as president of the New York 

10           State Society of PAs.  

11                  I would like to address the pressing 

12           issue, as everyone else has today, of the 

13           workforce shortage, but also advocate for 

14           crucial reforms that will enhance the role of 

15           PAs in addressing the challenge.  

16                  Governor Hochul, recognizing the vital 

17           roles PAs play in healthcare delivery, 

18           included provisions in her HMH bill that will 

19           allow PAs who have met a high standard of 

20           education, training and experience, to opt 

21           into -- not required, opt into working 

22           without the administrative construct of 

23           physician supervision in primary care 

24           settings and Article 28 facilities.


                                                                   506

 1                  It would also remove limitations on 

 2           the number of PAs a physician can supervise 

 3           in certain settings and clarify prescription 

 4           privileges and allow school districts to hire 

 5           PAs as directors of school health services.

 6                  The shortage of primary care 

 7           clinicians adversely affects patients 

 8           statewide, but it is felt more acutely in the 

 9           rural and marginalized communities of our 

10           state.  PAs offer a valuable and readily 

11           available source of highly educated 

12           clinicians with a long history of serving in 

13           these communities.  Under the auspices of 

14           Executive Orders 202 and 4, which removed 

15           physician supervision during the course of 

16           the pandemic, PAs showcased their ability to 

17           practice at the highest level, collaborating 

18           seamlessly with the entire healthcare team, 

19           including our physician colleagues.  This 

20           flexibility empowered PAs to meet challenges 

21           and provide high-quality, safe patient care 

22           in diverse settings under extreme conditions.  

23           It also allowed healthcare systems to more 

24           efficiently and effectively deploy PAs where 


                                                                   507

 1           they were needed the most, without the 

 2           administrative burdens associated with 

 3           identifying a supervising physician.

 4                  With the expiration of EO 4 in July, 

 5           all those obstacles were reinstated, creating 

 6           challenges for patients, PAs, and healthcare 

 7           institutions.  The number of phone calls I 

 8           get a week from PAs out in practice who are 

 9           meeting these is tremendous.

10                  New York hosts 30 PA programs and 

11           faces challenges in retaining graduates.  

12           Removing administrative barriers and allowing 

13           PAs to practice unencumbered by 

14           administrative rules that have not kept pace 

15           with the PA's evolving role in healthcare is 

16           crucial for recruitment and retention.

17                  In conclusion, Governor Hochul, 

18           recognizing the vital roles of PAs in 

19           healthcare, proposed reforms in her fiscal 

20           year 2024 budget that would remove barriers 

21           to providing safe, efficient and 

22           cost-effective care to New York's --

23                  ASSEMBLYWOMAN PAULIN:  Thank you very 

24           much.


                                                                   508

 1                  MR. MATHES:  Thank you.

 2                  ASSEMBLYWOMAN PAULIN:  Next is Medical 

 3           Schools.

 4                  MR. TEYAN:  Good evening to the chairs 

 5           and members.  Thank you for the opportunity 

 6           to testify this evening.

 7                  My name is Jonathan Teyan.  I'm the 

 8           CEO of the Associated Medical Schools of 

 9           New York and our sister organization, the 

10           New York State Academic Dental Centers.  

11           Collectively these two organizations 

12           represent and work on behalf of the medical 

13           and dental schools in the state.

14                  I really wanted to focus on two areas 

15           with my comments, one having to do with our 

16           physician workforce and the other having to 

17           do with our scientific workforce.

18                  We had a lot of very good conversation 

19           today about health equity and addressing 

20           health disparities, and I think rightly so.  

21           This is clearly an area, particularly coming 

22           out of the pandemic, which really uncovered 

23           and highlighted for many folks the need to 

24           address, you know, health disparities and the 


                                                                   509

 1           sort of uneven and unequal kinds of care that 

 2           many communities get.

 3                  And so I really wanted to focus on one 

 4           program that has worked exceptionally well in 

 5           helping to address this for many decades, and 

 6           that's the Diversity in Medicine Program.  

 7           This program's now -- we're in our 33rd year.  

 8           And I was really pleased to see that the 

 9           Executive, Governor Hochul, in her budget 

10           proposal has allocated $3.6 million for the 

11           Diversity in Medicine Program.  This is level 

12           funding from last year, but actually 

13           represents, over the last two years, 

14           effectively tripling the state's investment 

15           in this.

16                  And what these programs do is really 

17           provide a pathway for really talented 

18           students who have faced adversity on the path 

19           to medical school.  And so, you know, this 

20           may be socioeconomic disadvantage, this may 

21           be having come up through underresourced 

22           school districts, they may be 

23           first-generation college-goers, but they need 

24           supports.  And so these programs -- we now 


                                                                   510

 1           have 19 programs around the state supporting 

 2           more than 950 students to come into medical 

 3           school and eventually graduate and practice 

 4           medicine in New York State.

 5                  The Legislature has also been -- taken 

 6           the lead on funding the scholarship, 

 7           Diversity in Medicine Scholarship Program, 

 8           and increased funding last year to a 

 9           million dollars.  We are now supporting 

10           33 students with the equivalent of SUNY 

11           Medical School tuition.  

12                  So we really just want to personally 

13           thank the Governor for her investment and 

14           urge the Legislature to continue to invest in 

15           these programs.  

16                  And very briefly, with my 15 seconds, 

17           I would just highlight the importance of, 

18           again, our scientific workforce.  The 

19           Executive Budget actually did propose to 

20           eliminate the Empire Clinical Research 

21           Investigator Program, ECRIP.  We think it's a 

22           very valuable program which we'd like to see 

23           included in the enacted budget.

24                  ASSEMBLYWOMAN PAULIN:  Thank you very 


                                                                   511

 1           much.

 2                  CHAIRWOMAN KRUEGER:  Thank you.

 3                  CWA?

 4                  ASSEMBLYWOMAN PAULIN:  Last but not 

 5           least.

 6                  MS. MILLER:  Hi, everyone.  Good 

 7           evening.  Good to see all of you.  Thank you 

 8           so much for the opportunity to testify this 

 9           evening.  And going on over eight hours, I 

10           appreciate your attention.  

11                  My name is Rebecca Miller, I'm the 

12           New York State legislative and political 

13           director, and I am here on behalf of the 

14           15,000 healthcare workers that we represent 

15           in New York State, 65,000 members overall.  

16           Primarily in Western New York is our 

17           healthcare membership.  We're the largest 

18           union in Western New York, healthcare union.

19                  I'm here today -- we've heard about a 

20           number of issues, many of which are 

21           intersecting.  There's two I want to focus 

22           on.  The first is the significant 

23           underfunding of our hospitals.  I think we've 

24           heard it all day:  The healthcare system is 


                                                                   512

 1           broken, we need additional funding.  This is 

 2           true.  We agree.  But I want to come at it 

 3           from the perspective of the workforce.

 4                  And I want to echo my colleague from 

 5           NYSNA.  We are not dealing with a workforce 

 6           shortage.  We don't have a lack of bodies.  

 7           If you can get a traveler in for three times 

 8           the pay, a body is available.  But people 

 9           don't want these permanent jobs.  They are 

10           not willing to stay in these conditions 

11           because the jobs are very difficult.  They 

12           cause moral injury.  And it is extraordinary 

13           that we have a healthcare workforce in 

14           existence at all, given the conditions our 

15           members are forced to work in day after day.

16                  So when we talk about a workforce 

17           shortage, we often focus on the fact that 

18           there are vacancies, which leads us to think 

19           that these are hard-to-fill positions and 

20           that there are not enough workers.  But I 

21           want us to switch the framework to understand 

22           the conditions we're asking our healthcare 

23           workforce to work under, and think about what 

24           we can do there.


                                                                   513

 1                  This is a circular problem.  The 

 2           number-one issue forcing healthcare workers 

 3           away from the bedside, a job that folks go 

 4           into because they care and because they love 

 5           it -- is short-staffing.  And it's circular.  

 6           The more short-staffing, the less staff; the 

 7           less staff, the more short-staffing.  And so 

 8           there needs to be an immediate infusion of 

 9           cash to stabilize the workforce.  

10                  Unfortunately, the proposals needed 

11           are not included in the budget this year.  

12           There have been many attempts over the past 

13           few years to increase the workforce pipeline.  

14           This is great, we should keep investing in 

15           those programs -- loan forgiveness, for 

16           example.  But we need to add an immediate 

17           infusion to stabilize this workforce or 

18           you're going to continue to see that spiral 

19           downward.

20                  Part of this is driven by an economic 

21           incentive of hospitals that are not being 

22           reimbursed for care.  So if they don't have 

23           enough funding -- you heard it all day long.  

24           What did they say was the biggest cost?  


                                                                   514

 1           Labor.  So the incentive is to continue to 

 2           reduce labor, which reduces care.  Not good.

 3                  So what I would like to suggest today 

 4           is of course the full funding of Medicaid.  

 5           That 30 percent gap -- it needs to be closed.  

 6           It is the way to structurally fix this for 

 7           the long term so you're not constantly 

 8           putting in these one-time buckets of cash 

 9           like VAPAP.  Right?  These are things that 

10           are one-time infusions of cash.  We need 

11           something stable.

12                  In addition, there needs to be 

13           additional proposals that will work for the 

14           workforce.  Lots of ideas on this, but I only 

15           have seven seconds, so we could talk about it 

16           offline.  But thank you all so much.

17                  CHAIRWOMAN KRUEGER:  Thank you very 

18           much.

19                  Any Senators like to ask questions?  

20           Yes, I see an arm down there.  Is that 

21           Zellnor Myrie?

22                  SENATOR MYRIE:  Thank you, 

23           Madam Chair.  

24                  And thank you to the panel for your 


                                                                   515

 1           patience and endurance.  I know that it is 

 2           not easy to have the uncertainty of waiting 

 3           for many hours, so thank you for that.

 4                  I wanted to ask the medical schools -- 

 5           but firstly, thank you for the support of the 

 6           Diversity in Medicine Program.  I will give a 

 7           shout out to my brother Senator Bailey, who 

 8           has been a champion on this issue in our 

 9           conference.  

10                  I wonder if you have heard or if you 

11           personally hold any concerns about what we 

12           have seen out of the Supreme Court of the 

13           United States, and whether that will have any 

14           implication for the program, and subsequently 

15           if we should be acting as a result.

16                  MR. TEYAN:  Yeah, thank you for that, 

17           Senator.  So right, the Supreme Court 

18           decision in June of 2023 really changed the 

19           landscape for admissions in higher education.  

20           A little bit less concerning on the medical 

21           school side, because medical school 

22           admissions has really focused on holistic 

23           review for more than a decade now, which is 

24           looking at the totality of applicants and 


                                                                   516

 1           relying less on sort of checkbox kinds of 

 2           information.  

 3                  But I will say that we have been 

 4           looking and working on this intently for the 

 5           last six, seven months, on making sure that 

 6           the way we approach our Diversity in Medicine 

 7           programs and the way I think we collectively 

 8           approach making sure that we're providing 

 9           pathways for all sorts of folks into medical 

10           school is that we are being holistic, and 

11           we're looking at larger factors.  We're not 

12           simply looking at things like race and 

13           ethnicity, but we're considering the 

14           entire -- you know, the obstacles that 

15           students have overcome.  We're really looking 

16           for resilient students who have faced 

17           obstacles.  And that resiliency really is 

18           going to impact how they practice medicine.  

19                  So we've been working on that 

20           intently.  And I would say also that we have 

21           seen other states begin to scale back similar 

22           sorts of initiatives.  And I think we have an 

23           opportunity in New York to really sort of, 

24           you know, galvanize our position.  That we 


                                                                   517

 1           think that this is important, because this 

 2           really does result in better health outcomes 

 3           for New Yorkers when we have a diverse 

 4           physician and healthcare workforce.  

 5                  SENATOR MYRIE:  Thank you for that.  

 6           And I know I'm going to sound like a broken 

 7           record, but certainly SUNY Downstate in 

 8           Brooklyn that produces the most medical 

 9           professionals of color in the entire City of 

10           New York -- there's no other institution that 

11           trains more.  And so I think it's just 

12           incredibly important that we keep that 

13           context in mind.  

14                  And thank you again to the panel for 

15           your patience today.

16                  CHAIRWOMAN KRUEGER:  Thank you.  

17                  Assembly?  

18                  ASSEMBLYWOMAN PAULIN:  Assemblyman Ed 

19           Ra.

20                  ASSEMBLYMAN RA:  Good evening.  Thank 

21           you guys for waiting around.

22                  On the Diversity in Medicine 

23           Scholarship, you know, you talked about that 

24           million dollars providing -- I think you said 


                                                                   518

 1           33 students?

 2                  MR. TEYAN:  Correct, yes.

 3                  ASSEMBLYMAN RA:  So, you know, based 

 4           on your experience in this program over the 

 5           years, you know, what does that mean?  You 

 6           know, what types of things and where are 

 7           these students practicing?  I'm sure they're 

 8           having a great impact on, you know, our 

 9           state.

10                  MR. TEYAN:  Yeah.  So, you know, we 

11           have some data.  The program was actually 

12           launched in 2018, so many of the students are 

13           either in medical school or they're in 

14           residency, and so they're not -- we have a 

15           few students who are now -- well, they're not 

16           students anymore, but they're out practicing 

17           medicine.  

18                  But there's a commitment by everyone 

19           who receives this scholarship to stay in 

20           New York for at least two years and practice 

21           medicine in an underserved area.  

22                  And so we think this is really 

23           important.  The longer people stay in an area 

24           and -- you know, they start to put down 


                                                                   519

 1           roots.  Our goal here is we look at students 

 2           who are New Yorkers, they're domiciled in 

 3           New York.  We want students who are obviously 

 4           in medical school in New York.  We like them 

 5           to do residency in New York and then stay and 

 6           do this service commitment and then really 

 7           put down roots.  

 8                  So our long-term goal with this 

 9           program is that we are -- we're taking care 

10           of kind of the debt obligation that looms 

11           over so many students and affects their 

12           career decisions, and we're providing them 

13           with an opportunity to practice in shortage 

14           areas.  So we think this is a long-term 

15           investment in a home-grown physician 

16           workforce.

17                  ASSEMBLYMAN RA:  Excellent.  And you 

18           got into, right at the end, the Empire 

19           Clinical Research Investigator Program.  So 

20           if you can give us just a little bit 

21           more of -- you know, more about the program, 

22           the benefits that it provides and the reasons 

23           why we should be restoring it.

24                  MR. TEYAN:  Yeah.  So the ECRIP 


                                                                   520

 1           program, it supports young, early-career 

 2           physician scientists and gives them an 

 3           opportunity to really get, you know, deep 

 4           experience doing clinical research.  We think 

 5           that this has a long-term benefit in their 

 6           development.  

 7                  We -- you know, we see many physicians 

 8           who both practice, who do clinical work, but 

 9           they're also doing research throughout their 

10           careers.  And we think this has a tremendous 

11           benefit.  And we heard earlier the importance 

12           of having a, you know, scientific workforce 

13           in New York to address issues like cancer.  

14           You know, having a robust, you know, 

15           scientific workforce, you know, leads to 

16           better health outcomes, provides access to 

17           clinical trials for New Yorkers.  

18                  So this program is fairly small, 

19           $3.5 million, but very targeted, and we think 

20           is an important way of growing our scientific 

21           workforce.

22                  ASSEMBLYMAN RA:  Thank you.

23                  CHAIRWOMAN KRUEGER:  Thank you.  

24                  Any other Senators?  Then me.  Hi.


                                                                   521

 1                  So representing the medical schools.  

 2           So I had asked a question earlier, are we 

 3           doing anything to increase primary care 

 4           physicians being produced, so to speak, by 

 5           our medical schools?

 6                  MR. TEYAN:  Yes, I think you -- I 

 7           think you actually referenced the NYU 

 8           Grossman Long Island School of Medicine 

 9           earlier, which is a three-year program 

10           specifically for students who know they want 

11           to go into primary care.  This was launched 

12           in 2019, I think they enrolled their first 

13           class in 2019.  

14                  And it's a great way to both get 

15           students through medical school if they -- I 

16           mean, if they're very clear that this is the 

17           path they want to take.  It gets them through 

18           and into in the workforce sooner.  And 

19           programs like these -- there aren't very many 

20           of them.  This is a pretty innovative model.  

21           There are a couple around the country.  

22                  It also is a way of reducing student 

23           loan debt so that they can come out and 

24           practice primary care, which is not as 


                                                                   522

 1           lucrative as other types of specialties or 

 2           subspecialties.  And so having that loan 

 3           debt, you know, not hanging over them allows 

 4           them to go and practice primary care.  

 5                  And so that's a great -- a great 

 6           model.  And, you know, I think clearly a lot 

 7           of our institutions are very focused on 

 8           producing primary care physicians.

 9                  CHAIRWOMAN KRUEGER:  Thank you.  

10                  And I guess many people talked about 

11           nurses, and I thought that the data on the 

12           fact that we have more nurses than we've had, 

13           they just don't practice as nurses.  So I'm 

14           just curious with all of you, I'm always 

15           confused about this growth in the traveling 

16           nurse concept.  Because again, as you're 

17           pointing out, we actually have nurses.  And 

18           perhaps they don't want to do these jobs 

19           because they don't feel that they're being 

20           paid enough or treated correctly.  But we pay 

21           the traveling nurses much more, don't we?  Is 

22           that my understanding?  

23                  MR. BELL:  Yeah, the travelers' rates 

24           are two to three times more than a regular 


                                                                   523

 1           staff nurse.  

 2                  The other thing with, you know, the 

 3           compact proposal, I didn't quite get it out 

 4           in my three minutes.  But the compact is only 

 5           good for increasing the use of travelers, 

 6           because it allows people to come temporarily, 

 7           or it's good for outsourcing healthcare to 

 8           non-union, low-wage states through 

 9           telehealth.  It would allow Texas nurses to 

10           treat New York patients under contract with 

11           for-profit providers.  That's all the 

12           compact's going to do.  It's not going to 

13           have any impact at all on the actual problems 

14           people are having recruiting --

15                  CHAIRWOMAN KRUEGER:  So if we took 

16           that money -- oh, I'm sorry, I didn't mean to 

17           cut you off.  

18                  But if we took that money that we're 

19           paying -- what, two, two and a half times to 

20           traveling -- and we use that money instead to 

21           improve wages and conditions for what we hope 

22           are permanent unionized nurses in our world, 

23           wouldn't that work better?  

24                  MS. MILLER:  Yeah.  I think what 


                                                                   524

 1           you're pointing to is that there is a subset 

 2           of the healthcare workforce that is willing 

 3           to do these conditions -- you know, they see 

 4           the opportunity out there, you can do it for 

 5           three times more, why wouldn't I.  In 

 6           addition, you have a shorter -- a lot of the 

 7           reason they do it is for the shorter 

 8           temporary contracts.  

 9                  So yes, what you need is a model that 

10           stabilizes the workforce by using travelers 

11           until you're able to level out into a 

12           permanent staff.

13                  CHAIRWOMAN KRUEGER:  I have to cut you 

14           off.

15                  But again, everyone is welcome to give 

16           us more information after this hearing, and 

17           would be appreciated.  So thank you.  

18                  ASSEMBLYWOMAN PAULIN:  Thank you.  

19                  Assemblymember Jessica González-Rojas.  

20                  (Off the record.)

21                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  There 

22           we go.  Thank you all so much for your 

23           testimony.

24                  My question is both for Mr. Bell and 


                                                                   525

 1           Ms. Miller.  

 2                  Two things.  Mr. Bell, you were cut 

 3           off before you started talking more about the 

 4           interstate compact, so I do want to hear your 

 5           position on it.  And as well, Ms. Miller, any 

 6           thoughts?  I know it's in the budget and we 

 7           want to see -- I'd love to hear your 

 8           position.

 9                  And two, I'm curious how the safe 

10           staffing bill that we passed, I think 2021 or 

11           2022, has rolled out, has it impacted -- it 

12           sounds like conditions haven't been improved 

13           amongst the -- you know, the patient care and 

14           the overall stress in the job.

15                  So I'm just curious what was missing 

16           from that, or the rollout's been slow.  If 

17           you can share some feedback there.

18                  MS. MILLER:  I could start there.

19                  MR. BELL:  Go ahead.

20                  MS. MILLER:  So I will say that it's a 

21           new law.  It has a phased implementation.  

22           The last phase was actually making the 

23           staffing plans enforceable in 2023.  So this 

24           has been the first year that it's been in 


                                                                   526

 1           full effect.  I think, therefore, it's early 

 2           to tell.

 3                  I can tell you that there have been 

 4           some places that we have seen the theory of 

 5           the law, where you collaborate between 

 6           management and healthcare workers for 

 7           adequate staffing, work.  And there have been 

 8           a lot of places where it hasn't.

 9                  I think at this point we -- in 

10           November you may have seen CWA filed 

11           8,000 violations of the Clinical Staffing 

12           Committee law.  This is probably an absolute 

13           small fraction of the number of violations 

14           that occur every single day.  Including the 

15           sickest of the sickest in ICUs, with, instead 

16           of 1:2, you're talking 1:3, 1:4, 1:5.

17                  So -- and these are happening in 

18           hospitals that we would go to.  So, you know, 

19           in our areas, in our communities.  

20                  So I think it's a little early to tell 

21           on the efficacy of the law, that staffing is 

22           an enormous issue.  And I think what the 

23           state's role needs to be in that particular 

24           context is ensuring robust activist 


                                                                   527

 1           enforcement to make sure that law works.  

 2           There's still opportunity to do so, and 

 3           that's critical.

 4                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Okay.  

 5                  Mr. Bell?

 6                  MR. BELL:  Yeah, I would just add I 

 7           think it's very important, in looking at 

 8           the -- especially for nurses, which is 

 9           what -- you know, our perspective.  But in 

10           terms of the staffing issues, it's very 

11           important to take a page from the doctors and 

12           not do any more harm.  Right?  

13                  We have all these stressors on the 

14           workforce.  And a lot of what's in the budget 

15           is just going to add to it.  For example, the 

16           medication aides.  If you look at the text of 

17           that medicine aide proposal, forget about the 

18           patient care issues and other issues -- you 

19           know, the labor issues.  But look at the text 

20           of that and look at how many of the oversight 

21           functions fall on the nurse.  Right?  

22                  It's -- it's -- you know, they have to 

23           train them, they have to assess them, they're 

24           responsible -- they're legally liable for 


                                                                   528

 1           what those people do in terms of 

 2           administering the meds.  That's not 

 3           acceptable.  That just adds to the stressors.  

 4           And that adds to turnover.

 5                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

 6           you.  Thank you so much.

 7                  CHAIRWOMAN KRUEGER:  Okay.  Assembly?  

 8                  ASSEMBLYWOMAN PAULIN:  Yes.

 9                  Mr. Jensen.

10                  ASSEMBLYMAN JENSEN:  Thank you.  

11                  So this question is for whoever wants 

12           to answer it.  

13                  We've been talking about the nursing 

14           workforce.  And one of the things in talking 

15           to folks in the Rochester community is that, 

16           you know, we have to increase the nurse 

17           pipeline, but we're also seeing a lack of 

18           nurse educators.  Where can the state be more 

19           helpful in ensuring that we actually have the 

20           nursing educators to train the next 

21           generation of nurses?  Especially when you 

22           see nurses who are working in an acute-care 

23           setting are losing a substantial amount of 

24           income to leave that setting to go into 


                                                                   529

 1           education.  Is it increasing the 

 2           Senator Patty McGee Nursing Faculty 

 3           Scholarship?  What should the state be doing?

 4                  MR. BELL:  Yeah, I think there's a lot 

 5           -- we have a lot of concrete proposals and we 

 6           could certainly share some of them with you.

 7                  I think one of the issues with the 

 8           issue you're raising regarding educators, 

 9           first of all -- you know, for example, 

10           public-sector nurses who retire have an 

11           income cap.  They can't -- you know, they 

12           could be a crackerjack nurse; they can't go 

13           and teach because they'll have to stop their 

14           pension in order to take a full-time or a 

15           part-time teaching position.

16                  The other issue is, I think -- you 

17           know, flexibilities, right, in terms of 

18           allowing experienced nurses who may not have 

19           a master's to teach.  Because they've been 

20           doing it for 30 years and, you know, they 

21           know how to do it and they know how to teach 

22           it.

23                  So the other factor I think that you 

24           need to look at is not just the education 


                                                                   530

 1           pipeline in terms of the formal training, but 

 2           also the other side, the continuum of 

 3           training and, you know, maintaining and 

 4           increasing the workforce is cut into the 

 5           turnover rates once people have graduated 

 6           from school, and they take these jobs in the 

 7           hospitals and they burn out.  And you have, 

 8           you know, 50, 60, 70 percent turnover rates 

 9           in the first year.  

10                  That means mentorship programs, that 

11           means, you know, support to keep those nurses 

12           in that transition phase and -- you know, and 

13           also clinical placements, right?  Maybe 

14           looking at legislation to require hospitals 

15           and nursing schools that operate in the state 

16           to partner to provide clinical training spots 

17           so that we have the nurses who are still in 

18           school actually touching patients and getting 

19           some hands-on experience before they get 

20           thrown out onto the floors of their hospitals 

21           or their nursing homes.

22                  ASSEMBLYMAN JENSEN:  So we talked 

23           about burnout and we hear burnout a lot.  Are 

24           we seeing, with the introduction of BSN in 


                                                                   531

 1           10, where you have nurses who are actively 

 2           working yet having to fulfill that 

 3           educational requirement, having to do them 

 4           simultaneously and leading to even more 

 5           burnout than just the working environment?

 6                  MR. BELL:  Yeah, that's a factor too.  

 7           I mean, BSN in 10, you know, we had warned 

 8           about some of the repercussions of this on 

 9           the workforce, that it would add more 

10           burdens.  And that's sort of played out to 

11           some extent.

12                  ASSEMBLYMAN JENSEN:  Thank you.

13                  CHAIRWOMAN KRUEGER:  (Mic off; 

14           inaudible.)

15                  SENATOR WEBB:  Thank you to all of you 

16           on the panel.

17                  I just have two quick questions, one 

18           for NYSNA.

19                  So in looking at your testimony, I 

20           wanted to lift up specifically your concern 

21           that you raised about the Interstate Nurse 

22           Licensure Compact.  My understanding is that 

23           there's been some revisions to it.  So I 

24           wanted to know kind of where things stood 


                                                                   532

 1           with that.  

 2                  And then my second question is for 

 3           Rebecca, from CWA.  I wanted to get clarity 

 4           on the number of complaints that you've 

 5           mentioned involved with respect to the 

 6           Clinical Staffing Committee law.

 7                  MR. BELL:  Yeah, I'll -- just briefly 

 8           on the compact.  They did make a revision, I 

 9           believe, in the last year or so that 

10           interestingly requires a state -- if they 

11           move here to practice permanently, they have 

12           to reapply for an interstate license in the 

13           state to which they move.  So that's the one 

14           change they made.

15                  Before, you could just sort of hop 

16           around and you never had to change your 

17           primary state of license.

18                  But that, again, is really meaningless 

19           because at the end of the day the licensure 

20           compact for nursing -- and it's a little 

21           different for physicians.  But for nursing, 

22           you know, it basically will have no impact on 

23           the problems that we've heard described all 

24           day today.  It's just meaningless in terms of 


                                                                   533

 1           addressing the workforce crisis that exists 

 2           because people are leaving the profession, 

 3           leaving the bedside jobs.

 4                  And I'll turn it over to --

 5                  MS. MILLER:  We have 8,000 violations 

 6           that we filed.  That was for about four or 

 7           five months statewide.  

 8                  And like I said, that was about a 

 9           fraction.  And we have additional ones that 

10           are continuing through the committee process 

11           and will be filed subsequently.

12                  MR. BELL:  And if I could add just one 

13           comment on the compact -- this wasn't 

14           discussed very openly.  But it also gives 

15           Attorneys General, state nursing boards, and 

16           other potential, you know, elected officials 

17           in non -- you know, in other states, a foot 

18           in the door not only to our nursing practice 

19           and our nursing standards, but also to such 

20           things as access to abortion, contraceptives, 

21           things like that.  Which in Oklahoma or in 

22           Texas are illegal, and a fetus may have 

23           personhood status.  

24                  So that someone who performs an 


                                                                   534

 1           abortion under interstate license in 

 2           New York, are they liable to the foreign 

 3           jurisdiction stepping in and saying, you 

 4           know, you're -- you've violated Texas law and 

 5           we're going to bring disciplinary charges 

 6           against you and try to suspend your 

 7           interstate license because of what you did in 

 8           New York -- without having set foot or 

 9           practiced in Texas.  

10                  You're putting -- you're letting these 

11           foreign jurisdictions get their foot in the 

12           door on policy issues that they should not 

13           be -- that they should be not be involved in 

14           in our state.

15                  SENATOR WEBB:  Thank you.

16                  CHAIRWOMAN KRUEGER:  (Mic off.)  I had 

17           more questions of you but I'm not allowed to 

18           ask them, under our own rules.  So thank you 

19           all for being with us.  

20                  And we know how to find you, you know 

21           how to find us.  That's the best I can offer 

22           right now.  So thank you very much.

23                  And our next panel is American Cancer 

24           Society Cancer Action Network; Planned 


                                                                   535

 1           Parenthood Empire State Acts -- or Empire 

 2           State Fights Back, which is what I thought 

 3           the name should be; and Hospice and 

 4           Palliative Care Association of New York 

 5           State.

 6                  ASSEMBLYWOMAN PAULIN:  And you can 

 7           speak in that order.

 8                  CHAIRWOMAN KRUEGER:  Yes.

 9                  ASSEMBLYWOMAN PAULIN:  Maybe not.  

10           We're missing someone.  Who -- we're missing 

11           American Cancer?

12                  CHAIRWOMAN KRUEGER:  I think so.  

13           Okay, let's just start with Georgana, please.  

14                  (Off the record.)

15                  MS. HANSON:  This really isn't my 

16           first rodeo, but I guess it is.  

17                  Good evening.  Thank you for the 

18           opportunity to provide testimony today.  My 

19           name is Georgana Hanson.  I'm the vice 

20           president of public policy and regulatory 

21           affairs for Planned Parenthood Empire State 

22           Acts.  I'm here on behalf of our board chair, 

23           Tess Barker, who's unfortunately unable to 

24           attend.


                                                                   536

 1                  PPESA is proud to represent the five 

 2           Planned Parenthood affiliates who provide 

 3           primary and preventive reproductive 

 4           healthcare services to more than 200,000 

 5           individuals in New York each year.

 6                  Yesterday would have been the 

 7           51st anniversary of the U.S. Supreme Court 

 8           landmark decision in Roe v. Wade.  As with 

 9           any anniversary, it's an opportunity for 

10           reflection and an opportunity for action.  We 

11           know that Roe, while critical, was a right in 

12           name only for far too many for far too long.  

13           We must continue to fight for a future where 

14           access to sexual and reproductive healthcare 

15           is a reality for all, where every individual 

16           has the power to shape their futures and 

17           control their own body.

18                  New York has an opportunity and an 

19           obligation to lead in this fight, to be bold 

20           and innovative in building systems of 

21           policies and care that are anchored in 

22           equity, to make strategic and critical 

23           investments that support providers who are 

24           burdened by the rapidly rising costs of care, 


                                                                   537

 1           and to ensure unfettered access to care for 

 2           all who need it.

 3                  It is in that frame that I want to 

 4           briefly uplift three key issues for your 

 5           consideration in the enacted budget. 

 6                  First, we respectfully request an 

 7           increase to the Medicaid reimbursement for 

 8           the offices associated with the provision of 

 9           medication abortion.  Last year's budget made 

10           critical investments in reproductive and 

11           sexual healthcare services, but it failed to 

12           include a significant component of abortion 

13           care:  Medication abortion.  Medication 

14           abortion comprises roughly 64 percent of the 

15           abortion care New York Planned Parenthood 

16           affiliates provide.  For three of our upstate 

17           affiliates, it's over 70 percent.

18                  Unfortunately, the reimbursement 

19           providers receive in Medicaid for this 

20           service falls significantly short compared to 

21           what it costs them to deliver this care.  

22           This widening gap makes it incredibly 

23           challenging for providers to invest in 

24           expanding access to care, let alone the 


                                                                   538

 1           present need.

 2                  Over the past several years many 

 3           states have raised Medicaid rates for 

 4           abortion services, recognizing the need for 

 5           intentional investment in the face of 

 6           sustained attacks on abortion access.  As a 

 7           result, our reimbursement levels for 

 8           medication abortion are out of alignment with 

 9           these access states, like California, 

10           Illinois, Vermont, and Oregon, all of which 

11           reimburse significant above New York's rate.

12                  An increase in the Medicaid 

13           reimbursement rate for medication abortion is 

14           necessary to ensure providers can not only 

15           continue to deliver but expand access to this 

16           essential healthcare.

17                  Additionally, we ask that the enacted 

18           budget include $35 million in grant funding 

19           for abortion providers and $1 million for 

20           abortion funds to increase access.  We 

21           strongly support the 35 million grant 

22           investment in abortion access proposed by the 

23           Governor.  Further, we ask the Legislature to 

24           include an additional million to be directed 


                                                                   539

 1           to organizations addressing the practical 

 2           support needs of people seeking abortion care 

 3           in New York, and ensure passage of the 

 4           Reproductive Freedom and Equity Program.

 5                  Thank you.

 6                  ASSEMBLYWOMAN PAULIN:  Thank you.

 7                  Next?

 8                  MS. CHIRICO:  I must have strong 

 9           fingers -- first time.

10                  (Laughter.)

11                  MS. CHIRICO:  I just want to thank all 

12           of you for what you do every day.  Thank you 

13           to the Senators for offering an opportunity 

14           for the Hospice and Palliative Care 

15           Association to be here today.  

16                  And so much time has been spent today 

17           discussing the crisis of the hospital 

18           systems, and I have to say that's a rightful 

19           use of the time here.  But what I also want 

20           to say is the answer is not allowing the 

21           expansion of hospitals into the home.  And 

22           right now we are going through something 

23           that's not theoretical, it's actually a 

24           reality, where the 1115 waiver and the 2805-x 


                                                                   540

 1           waiver that has been contained in the budget 

 2           is being utilized to circumvent the 

 3           Certificate of Need process of New York.

 4                  In December the Department of Health 

 5           commissioner approved the expansion, based on 

 6           a hospital-hospice collaborative, expansion 

 7           of the hospice into two additional counties.  

 8           Those counties were not on their original 

 9           license, and they did not have to go through 

10           the CON application process, they did not go 

11           through the PHHPC process, there was not 

12           public comments allowed.  This was through 

13           the 2805-x waiver.  And we see this as a 

14           threat to the home-based community providers 

15           that exist in your communities.

16                  We ask that you seriously look at the 

17           policies that are being put in the budget 

18           related to 2805-x and reject those changes 

19           until the Department of Health and 

20           commissioner are required to follow public 

21           notice, Certificate of Need, and the 

22           Master Plan on Aging recommendations that the 

23           Governor herself requested be done in the 

24           End-of-Life Workgroup, of which I am the 


                                                                   541

 1           chair.  The group recommended a Certificate 

 2           of Need Task Force to do a full review and to 

 3           update the need methodology.  

 4                  We also ask that you hold the 

 5           Department of Health to their word and create 

 6           the center for hospice and palliative care.  

 7           Even though the Governor vetoed the bill you 

 8           approved, the Department of Health said they 

 9           are going to implement it, and we hope that 

10           you make sure that the budget includes that.

11                  And finally, please remember that 

12           everything that is done in these budget 

13           meetings that are focused on Medicaid do 

14           indeed impact the Medicare providers, and 

15           consider that through workforce as well as 

16           other initiatives.

17                  Thank you so much for your time.

18                  CHAIRWOMAN KRUEGER:  (Mic off; 

19           inaudible.) 

20                  So this discussion you just brought up 

21           about cutting around the CON, was this to 

22           approve for-profit hospice programs?

23                  MS. CHIRICO:  No.  This was actually 

24           to allow a current not-for-profit expansion 


                                                                   542

 1           without going through the process.

 2                  CHAIRWOMAN KRUEGER:  So you wouldn't 

 3           necessarily oppose groups, because they might 

 4           even be members of your association.  Am I 

 5           right?

 6                  MS. CHIRICO:  Yeah, the issue is more 

 7           concerning about the fact that the need -- 

 8           there was no need methodology utilized, there 

 9           was no proof that there was a need.  It's an 

10           opportunity for the hospitals to put together 

11           a value-based purchase without using the 

12           existing providers.  They were not considered 

13           in the application.

14                  CHAIRWOMAN KRUEGER:  Got it, okay.  

15           Thank you.

16                  Georgana, you were here a minute ago 

17           when the previous panel brought up the 

18           question about whether joining the compacts 

19           might put at risk our ability to have 

20           providers continuing in reproductive health 

21           if they were I guess part of a licensing 

22           model and telehealth model.

23                  Were you aware of this issue?  Or can 

24           you look into it for us?


                                                                   543

 1                  MS. HANSON:  Yeah, so we -- we don't 

 2           have a position at this time, but we -- you 

 3           know, this is a whole new landscape, legally, 

 4           around abortion access and the impact on 

 5           providers.  So it's something that we're 

 6           taking those concerns seriously and looking 

 7           into.

 8                  CHAIRWOMAN KRUEGER:  Okay, thank you.

 9                  Assembly.

10                  ASSEMBLYWOMAN PAULIN:  I'm actually 

11           going to go first this time.

12                  So are you talking about the -- in the 

13           budget there's an expansion for community 

14           paramedicine with the hospitals.  Is that 

15           what you're referring to?  Or you're 

16           referring to contracts with hospice at 

17           hospitals?  Or both?

18                  MS. CHIRICO:  So it's a complicated 

19           issue, but I'll try and connect the dots 

20           here.

21                  The 1115 waiver is -- primarily 

22           supports two CMMI initiatives, primary care 

23           and also the AHEAD program.  Which the focus 

24           of the AHEAD program is for community 


                                                                   544

 1           expansion of hospitals -- not just outpatient 

 2           services, but in the home.

 3                  The 2805-x we believe is another means 

 4           by which this expansion is allowed.  And 

 5           although the paramedicine program was one 

 6           component of it, you'll see that there's a 

 7           laundry list of things allowed under the 

 8           2805, and it includes teaching hospital 

 9           nurses how to do home visits.  

10                  It includes things -- although there's 

11           supposed to be collaboration with the 

12           Article 40 or other article licensed 

13           organizations, the intent is to divert and 

14           create another revenue stream for hospitals.  

15           So if they can't make the money on the 

16           inpatient unit, now we'll move to the 

17           community setting and see if we can recoup 

18           some of the revenue there --

19                  ASSEMBLYWOMAN PAULIN:  So the 

20           objection is bypassing the existing agencies 

21           out there.

22                  MS. CHIRICO:  Yes.

23                  ASSEMBLYWOMAN PAULIN:  Got it.

24                  And on the compact issue that 


                                                                   545

 1           Senator Krueger just raised, have there -- do 

 2           you know, have there been issues during the 

 3           time of the executive order that it -- 

 4           because we -- you know, we were able to 

 5           bypass a lot of things during that time, 

 6           including that.  So during those three years 

 7           was there any notable problem that you know 

 8           of?

 9                  MS. HANSON:  In terms of --

10                  ASSEMBLYWOMAN PAULIN:  Lack of access 

11           or problems dealing with the compact as it 

12           relates to reproductive rights.

13                  MS. HANSON:  Not that I'm aware of, 

14           based on the questions that you raised.  But 

15           again, I'm happy to --

16                  ASSEMBLYWOMAN PAULIN:  Take it back.

17                  MS. HANSON:  You know, we're just 

18           starting to look --

19                  ASSEMBLYWOMAN PAULIN:  We'd like to 

20           know.

21                  MS. HANSON:  Sure.

22                  ASSEMBLYWOMAN PAULIN:  Okay.

23                  Do you have other Senators?

24                  CHAIRWOMAN KRUEGER:  No.


                                                                   546

 1                  ASSEMBLYWOMAN PAULIN:  Okay, Assembly.  

 2                  First, Mr. Jensen again.

 3                  ASSEMBLYMAN JENSEN:  Thank you.

 4                  In the Governor's budget proposal, how 

 5           much -- was there any increase in allocation 

 6           of funding for hospice and palliative care?

 7                  MS. CHIRICO:  Zero.

 8                  ASSEMBLYMAN JENSEN:  In last year's 

 9           enacted budget, what was the increase for 

10           hospice and palliative care?

11                  MS. CHIRICO:  Zero.

12                  ASSEMBLYMAN JENSEN:  In the past few 

13           rounds of the healthcare modernization grant 

14           funding, how much money was earmarked for 

15           hospice and palliative care providers?

16                  MS. CHIRICO:  Zero.

17                  ASSEMBLYMAN JENSEN:  Where does 

18           New York State rank in access to hospice and 

19           palliative care?

20                  MS. CHIRICO:  Last in the nation.

21                  ASSEMBLYMAN JENSEN:  Thank you.

22                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

23           González-Rojas.

24                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Okay, 


                                                                   547

 1           there we go.  Thank you, Madam Chair.

 2                  Ms. Hanson, you -- the bell rang right 

 3           when you were talking about the Reproductive 

 4           Freedom and Equity Act, which is a 361-b.  If 

 5           you could like delve in a little bit more 

 6           about why this is so important.  We're on the 

 7           heels of the 51st anniversary of Roe, where a 

 8           majority now of this country has -- is 

 9           either -- abortion access is like eliminated 

10           completely or extremely restricted.  So if 

11           you can expand upon that.

12                  MS. HANSON:  Yes.  No, thank you.

13                  So the Reproductive Freedom and Equity 

14           Program would put into statute a sustained 

15           grant program around abortion access.  It 

16           would support providers in addressing the 

17           challenges that they're experiencing 

18           delivering care, including non-compensated 

19           care.  It would also support training, among 

20           other things that would allow expanded access 

21           to abortion services.

22                  It would also allow the opportunity to 

23           invest in abortion funds.  Those 

24           organizations are nonprofit organizations 


                                                                   548

 1           that are really breaking down barriers to 

 2           care that individuals are experiencing every 

 3           day, including here in New York.  And I think 

 4           that's one of the things, as we reflect on, 

 5           you know, the loss of Roe, it was very vital 

 6           to have a constitutional right about abortion 

 7           access.

 8                  But the reality was there was always 

 9           barriers that prevented people from getting 

10           the care they need that often impacted 

11           disproportionately people of color, 

12           low-income individuals, young individuals.  

13           And we're seeing that not just when we had 

14           Roe, but certainly very much more so in the 

15           wake of losing that constitutional right.

16                  And so this would invest in those 

17           organizations that are helping to connect 

18           individuals, break down barriers -- 

19           transportation, lodging.  We did get to hear 

20           in a recent event from the New York Abortion 

21           Access Fund.  Some of their on-the-ground 

22           realities right now is they're trying to help 

23           individuals.  Over 60 percent of the callers 

24           are New Yorkers who are having barriers 


                                                                   549

 1           getting care here in New York to abortion, 

 2           where we've long had it accessible.

 3                  So investing in those organizations 

 4           and providers is critical, and that's what 

 5           the Reproductive Freedom and Equity Program 

 6           would do.

 7                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  And 

 8           what percentage of counties in New York do 

 9           not have access to an abortion provider?

10                  MS. HANSON:  I'm not going to be able 

11           to say the exact number, so I'm happy to give 

12           that to you.

13                  I think one of the things we know is 

14           that when we talk about the challenges 

15           providers, healthcare providers are 

16           experiencing -- staffing, for example, and 

17           that vicious cycle we heard about before.  

18           you know, that's the case for all providers.  

19           That's the case for reproductive and sexual 

20           healthcare providers.  

21                  And so when providers are 

22           understaffed, when they're struggling to, you 

23           know, open up appointment slots or 

24           appointment slots have to be closed because 


                                                                   550

 1           they lack the staff, that's lacking access.  

 2           And so that's why we really need a strong 

 3           investment.

 4                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

 5           you so much.

 6                  MS. HANSON:  Thank you.

 7                  ASSEMBLYWOMAN PAULIN:  I think that's 

 8           it.  So thank you very much, Panel H.

 9                  And we're on to Panel I:  Feeding 

10           New York State; The Alliance for a Hunger 

11           Free New York; and The Food Pantries for the 

12           Capital District.  And we will take you in 

13           that order.  

14                  (Pause.)

15                  ASSEMBLYWOMAN PAULIN:  Panel J is 

16           Home Care Association of New York State; 

17           Consumer Directed Action of New York; 

18           Empire State Association of Assisted Living; 

19           New York State Association of Health Care 

20           Providers; and Home Healthcare Workers of 

21           America.  

22                  So Feeding New York State.  Press the 

23           button.  

24                  MR. HEALY:  Thank you to the committee 


                                                                   551

 1           chairs, ranking members, Senators, 

 2           Assemblymembers, and all in attendance here 

 3           today.  

 4                  My name's Ryan Healy.  I'm 

 5           representing Feeding New York State, the 

 6           statewide association of New York's Feeding 

 7           America food banks.  We greatly appreciate 

 8           the opportunity to talk about the critically 

 9           important issue of food insecurity across the 

10           state.  

11                  First I'd like to acknowledge the work 

12           of this committee and both chambers for the 

13           progress New York has made in recent years.  

14           In response to the unprecedented COVID-19 

15           pandemic, New York has stepped up, creating 

16           the Nourish New York program, which connects 

17           hungry New Yorkers with fresh New York-grown 

18           produce; expanding no-cost school meals to 

19           over 300,000 New York children; and 

20           increasing funding for statewide anti-hunger 

21           programs such as the Hunger Prevention 

22           Nutrition Assistance Program, or HPNAP, and 

23           the Nutrition Outreach and Education Program, 

24           or NOEP.


                                                                   552

 1                  The reality is we have more work to 

 2           do.  And unfortunately, the Executive Budget 

 3           proposes doing less.  The Executive Budget 

 4           proposal clearly misses the mark on hunger.  

 5           Its framework proposes a nearly 40 percent 

 6           reduction in funding for the HPNAP program, 

 7           flat funding for Nourish New York, and a 

 8           $2 million cut to the SNAP outreach and 

 9           enrollment program, NOEP.  

10                  These programs have no meaningful 

11           impact on our budget deficit, but they keep 

12           New Yorkers fed and they maximize 

13           participation in federal nutrition programs.  

14           The last thing we should be doing right now 

15           is returning HPNAP funding levels to fiscal 

16           year 2017.

17                  This year statewide anti-hunger 

18           programs are requesting 64 million for HPNAP, 

19           75 million for Nourish New York, and an 

20           additional $2 million in funding, a restored 

21           $2 million in funding for NOEP.  

22                  Why are we asking for additional 

23           funding?  Because food insecurity is on the 

24           rise here in New York State and across the 


                                                                   553

 1           country.  Back in October the USDA reported 

 2           food insecurity rose at the fastest one-year 

 3           rate since 2008, which is the first full year 

 4           of the Great Recession.  That came just one 

 5           month after Census data reported that in 

 6           2022, child poverty rates more than doubled 

 7           following the expiration of the Child Tax 

 8           Credit.  

 9                  Just a few weeks ago our own 

10           Department of Health released a report 

11           finding nearly one in four New York adults 

12           experienced food insecurity within the last 

13           year.  And these data points affirm what 

14           New York food banks and emergency food 

15           providers are reporting.  Across our network, 

16           we're serving more than 62 percent more 

17           individuals compared with pre-pandemic 

18           levels.

19                  The DOH report also identifies as 

20           strong correlation between food insecurity 

21           and the prevalence of chronic disease, 

22           including diabetes, hypertension, coronary 

23           heart disease, as well as mental health 

24           challenges including anxiety and depression.


                                                                   554

 1                  Hunger and food insecurity persists in 

 2           all corners of the state.  Rural communities 

 3           such as Herkimer and Oswego have 

 4           disproportionately high rates of food 

 5           insecurity.  The Village of Dolgeville, for 

 6           example, regularly closes down an entire 

 7           street for food distributions due to high 

 8           demand.  Also {inaudible} suburban 

 9           communities --

10                  ASSEMBLYWOMAN PAULIN:  Thank you very 

11           much.

12                  CHAIRWOMAN KRUEGER:  Thank you.

13                  ASSEMBLYWOMAN PAULIN:  Next.

14                  MS. PERNICKA:  Hi.  Thanks for having 

15           me.  I'm Natasha Pernicka, the executive 

16           director of The Alliance for a Hunger Free 

17           New York.  

18                  As Ryan mentioned, we know there is a 

19           direct correlation between people having 

20           consistent access to nutritious food and the 

21           health outcomes that they experience in their 

22           life.  The state budget as drafted is 

23           negligent in responding to the current hunger 

24           crisis.  


                                                                   555

 1                  Other stats to add to Ryan's include 

 2           when New Yorkers were asked in the U.S. 

 3           Census poll "Do you have enough food to last 

 4           for the week?", comparing 2021 to 2023, the 

 5           number of New Yorkers who answered no 

 6           increased 87 percent compared to 35 percent 

 7           nationally.  People do not have enough food 

 8           to make it through the week.

 9                  This hunger crisis is systemic and 

10           political in nature, and it's beyond the 

11           capacity of what is being pushed onto the 

12           charitable sector to handle without 

13           government addressing adequate resources that 

14           are needed.  Just Monday I was in Dutchess 

15           County at their Food Pantry Coalition.  

16           Pantries came together, they talked about the 

17           increases that they're seeing, the challenges 

18           they're experiencing having adequate 

19           resources to handle the increases, the lack 

20           of food.  And these stories and statistics 

21           are across the state, from New York City, 

22           Binghamton, North Country, west -- across the 

23           entire state, the stories and statistics are 

24           the same.


                                                                   556

 1                  Fortunately you have the ability to do 

 2           the right thing, which is increase the two 

 3           important programs for our food providers, 

 4           HPNAP, the Hunger Prevention Nutrition 

 5           Assistance Program -- which in 2012 a study 

 6           was done, in 2012 $50 million would have been 

 7           an adequate budget amount for HPNAP, more 

 8           than 12 years ago.  Now we're looking at 

 9           going back to 34.5 million.  Food providers 

10           across the state are going to lose valuable 

11           resources at a time when they're needed most.

12                  It's also important to notice that 

13           food pantries provide resources for people 

14           who don't qualify for SNAP, people who might 

15           be $50 above what would be required to be 

16           eligible for SNAP.  We're seeing more and 

17           more families with two parents working, 

18           having to turn to local food pantries to get 

19           their food needs met.

20                  Nourish New York is an incredible 

21           program to increase the quality and the 

22           health of fresh produce and other healthy 

23           foods through food pantries.  We need to make 

24           sure that the stagnant funding is increased.  


                                                                   557

 1           If we look at food inflation prices, last 

 2           year the stagnant funding of HPNAP, we lost 

 3           $8 million in purchasing power due to food 

 4           inflation pricing.  Food inflation is higher 

 5           than the general inflation rate.

 6                  ASSEMBLYWOMAN PAULIN:  Thank you very 

 7           much.

 8                  Finally, next.

 9                  MS. PENDER-FOX:  Hi.  I'm Angie 

10           Pender-Fox.  I'm the associate executive 

11           director --

12                  ASSEMBLYWOMAN PAULIN:  Did you press, 

13           is it green?

14                  MS. PENDER-FOX:  Yes.  Can you hear 

15           me?

16                  ASSEMBLYWOMAN PAULIN:  Make it a 

17           little closer.

18                  MS. PENDER-FOX:  Is this better?

19                  ASSEMBLYWOMAN PAULIN:  Yup.

20                  MS. PENDER-FOX:  I'm Angie Pender-Fox.  

21           I'm the associate executive director with 

22           The Food Pantries for the Capital District.  

23           The Food Pantries for the Capital District 

24           was funded in 1979.  We're a coalition of 


                                                                   558

 1           70 pantries serving Albany, Rensselaer, 

 2           Schenectady, and Saratoga counties.

 3                  As a coalition we thought we had seen 

 4           the highest levels of need in 2022, only to 

 5           see an increase in pantry visits in 2023.  

 6           Just last week our food access referral line 

 7           received 85 calls from community members 

 8           seeking food assistance.  This is the most 

 9           calls our referral line has ever seen in one 

10           day in the history of our organization.

11                  In the Governor's State of the State 

12           she spoke of New York residents having to 

13           choose which bills they would pay, rent or 

14           medical, but she never mentioned food.  She 

15           forgot food.  But I can guarantee you the 

16           families we serve every day do not forget 

17           about food.  The parent with children to feed 

18           is not forgetting about food.  The senior who 

19           cannot get to the grocery store and only gets 

20           $28 a month on SNAP is not forgetting about 

21           food.  The veteran who has served their 

22           country and is now in need is not forgetting 

23           about food.  The child who is going to bed 

24           hungry tonight is not forgetting about food.


                                                                   559

 1                  We are asking you to not forget about 

 2           food and our people.  We ask you to support a 

 3           request to fund HPNAP at 75 million, Nourish 

 4           New York at 75 million, and to expand direct 

 5           contracts with emergency food relief 

 6           programs.

 7                  As a coalition of food pantries we 

 8           come together monthly with our members to 

 9           share information, discuss trends and 

10           practices.  We survey our members at least 

11           twice a year.  Our members are telling us 

12           that the need continues to grow.  Some 

13           pantries are seeing 20, 30, 40 percent 

14           increases.  Some pantries have had to reduce 

15           the number of times people can come to their 

16           pantries, going from twice a month to once a 

17           month, to maximize their resources.

18                  Once upon a time one of our largest 

19           pantries in Albany was receiving 3,000 pounds 

20           of food a week through our food delivery 

21           service, and we thought this was a lot.  But 

22           now they receive as much as 7,500 pounds of 

23           food a week and still worry that this may not 

24           be enough to meet the need.


                                                                   560

 1                  Funding is a concern.  Thirty percent 

 2           of our pantries reported that they were 

 3           concerned that they would not have enough 

 4           funding to get through 2023.  And consistent 

 5           sourcing is an issue.  Pantries are not 

 6           always able to source foods that meet 

 7           community needs.

 8                  Our coalition works with our members 

 9           to facilitate service coordination and 

10           collaboration.  We have a handful of pantries 

11           who have direct contracts with Nourish 

12           New York, and these pantries are working 

13           together to provide culturally sensitive and 

14           fresh foods for those they serve.  They come 

15           together as a group --

16                  ASSEMBLYWOMAN PAULIN:  Thank you so 

17           much.  Sorry.  Three minutes goes by quick.

18                  MS. PENDER-FOX:  It does.

19                  ASSEMBLYWOMAN PAULIN:  Assemblymember 

20           Jensen.

21                  ASSEMBLYMAN JENSEN:  Nope, I'm good.

22                  ASSEMBLYWOMAN PAULIN:  Oh, you're 

23           good.  Wow.

24                  ASSEMBLYMAN JENSEN:  They did a great 


                                                                   561

 1           job.  That's why I don't have anything.  

 2                  (Laughter.)

 3                  ASSEMBLYWOMAN PAULIN:  I think we're 

 4           on to the next panel.

 5                  CHAIRWOMAN KRUEGER:  Nope --

 6                  ASSEMBLYWOMAN PAULIN:  Oh, 

 7           Assemblymember -- Assemblymembers, both.  

 8           First Jessica González-Rojas and then --

 9                  CHAIRWOMAN KRUEGER:  We have Senators.

10                  ASSEMBLYWOMAN PAULIN:  Oh, and then we 

11           have a Senator, and then we have Nikki.  

12           Okay.

13                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

14           you so much.

15                  Mr. Healy, you said one in four 

16           New Yorkers have experienced food insecurity 

17           in the past year.  That -- I think we all 

18           need to sit with that.  Can you talk about 

19           which counties and maybe metropolitan areas 

20           are most impacted?  Actually, which counties 

21           across New York are most impacted by food 

22           insecurity?

23                  MR. HEALY:  Thanks, Assemblymember.  

24           The county that has the highest prevalence of 


                                                                   562

 1           food insecurity is the Bronx.  Up to 

 2           40 percent of New York adults in the Bronx 

 3           have experienced food insecurity within the 

 4           last 12 months.  In addition, suburban 

 5           counties like Rockland County and then 

 6           upstate rural counties, including Oswego and 

 7           Herkimer, have some of the highest rates.

 8                  MS. PERNICKA:  If I can just add, the 

 9           report that he's quoting is from New York 

10           State Department of Health, and they list the 

11           food insecurity rates by county.  It's 

12           accessible to everybody.

13                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

14           you.  And, you know, there's so many 

15           important programs that I'm supporting and 

16           we're fighting for.  Are there some that you 

17           would say would really address the root cause 

18           of the connection between hunger and public 

19           health?

20                  MR. HEALY:  Absolutely.  I think 

21           there -- in addition to funding the critical 

22           anti-hunger programs that serve as a backstop 

23           for New Yorkers struggling, we also need to 

24           do a lot more in reducing the prevalence of 


                                                                   563

 1           hunger, poverty and food insecurity.  

 2                  Some things -- you have a couple of 

 3           pieces of legislation, of course.  Universal 

 4           school meals or health school meals for all, 

 5           as well as a proposal that you and 

 6           Senator May lead to establish a $100 minimum 

 7           SNAP benefit.  As Natasha had mentioned 

 8           earlier, when the SNAP emergency allotments 

 9           came to an end last year, New York households 

10           were hit particularly hard.  The average 

11           household lost about $150 per month, and some 

12           benefits go to $23 bucks a month.  It doesn't 

13           get you very far, so we need to do a little 

14           more than a dollar a day.

15                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

16           you.  Anyone else want to add?

17                  MS. PERNICKA:  I can add that when New 

18           Yorkers do have a consistent access to 

19           nutritious food, in particular through Food 

20           as Medicine interventions, we've seen people 

21           reduce their need for insulin, their 

22           hypertension has reduced, and they have lost 

23           weight.  And so we're excited to be able to 

24           do more of that through Food as Medicine, but 


                                                                   564

 1           we need resources to have healthy food in our 

 2           food supply chain.

 3                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  Thank 

 4           you so much for all your work.

 5                  CHAIRWOMAN KRUEGER:  Senator Brad 

 6           Hoylman-Sigal.  

 7                  SENATOR HOYLMAN-SIGAL:  Thank you, 

 8           Madam Chair.  

 9                  I wanted to ask about the Nourish 

10           New York grant.  And I've heard from some of 

11           the organizations in my district -- I 

12           represent the West Side of Manhattan -- that 

13           received a rejection, in effect, in applying 

14           for the grant.  Do you know why and what the 

15           outcome has been for these organizations thus 

16           far?

17                  MR. HEALY:  Thank you, Senator.  

18                  The Nourish New York, which became a 

19           permanent program -- it was codified in 2021.  

20           It obviously came about during the depths of 

21           the pandemic as an emergency program.  But in 

22           2021 when it became permanent, the Department 

23           of Health and Agriculture & Markets, which 

24           co-administer the program, put out an RFA in 


                                                                   565

 1           the spring of last year.  There were a bunch 

 2           of organizations that applied.  Some great 

 3           organizations that do fantastic work in the 

 4           community either didn't receive funding or a 

 5           saw a major reduction in funding.  

 6                  The determinations as to methodology 

 7           and allocations, we don't have clear answers 

 8           yet.  We would just underscore that there's a 

 9           lot of great organizations but there's just 

10           not enough funding.

11                  MS. PERNICKA:  I'd personally like to 

12           add that the increases that we're asking for 

13           Nourish New York and Hunger Prevention 

14           Nutrition Assistance Program have to have 

15           intent in the budget that they're both 

16           available to food banks and food pantries and 

17           other emergency food providers.  It can't be 

18           fast-tracked through food banks only.  

19                  The contracts have to be available to 

20           food pantries as well, especially the 

21           organizations that lost both HPNAP and 

22           Nourish New York contracts last year because 

23           the additional 22 million was treated as a 

24           legislative add-on.  These increases need to 


                                                                   566

 1           be added to the base budget so that they can 

 2           be added to the contracts so that these 

 3           organizations have consistent funding.  We 

 4           cannot be funded year over year and not 

 5           knowing what the funding is going to be the 

 6           next year, especially with the increases in 

 7           demand.

 8                  CHAIRWOMAN KRUEGER:  Thank you.  

 9                  Are there any other Assemblymembers 

10           with questions?  Yes?  Hello.  Please, yes.  

11           If you press that until it turns green.

12                  ASSEMBLYWOMAN LUCAS:  Okay, there you 

13           go.

14                  CHAIRWOMAN KRUEGER:  Yes, good.

15                  ASSEMBLYWOMAN LUCAS:  Okay, good 

16           evening.  How are you?  

17                  I kind of -- I guess that my question 

18           is a spinoff of the previous questions.  

19           Because oftentimes in certain zip codes, 

20           Black communities, you see a lot of 

21           inequities when it comes to fresh produce.  

22                  Additionally, in terms of who gets 

23           approved for these grants.  I've personally 

24           watched this.  I've had to develop my own 


                                                                   567

 1           pantry just because of what was happening 

 2           amongst seniors.  I watch a lot of these 

 3           big-box organizations that are specific to a 

 4           specific ethnicity receive funding, and then 

 5           when it comes to distributing out, there is 

 6           no fresh produce.  And when we do get the 

 7           fresh produce, it is days old and rotten.  

 8                  I experienced and witnessed during 

 9           COVID where trucks were telling us that they 

10           were told to take food, certain foods, to 

11           specific neighborhoods and we were to get the 

12           tail end of whatever is left over.

13                  So could you talk to me a little bit 

14           about what that process looks like?  Do you 

15           have any data, you know, that would allow us 

16           to track and monitor who's the recipient of 

17           certain types of food as well as the grants?  

18           And additionally, who has this oversight.  

19           Because the process, when coming to ask for 

20           funding, I'm not excited about it because the 

21           process is not fair where I live.

22                  MR. HEALY:  Just a couple of things 

23           real quick.  

24                  Obviously systemic racism is apparent 


                                                                   568

 1           across the food system.  You have Black and 

 2           Hispanic and Native Americans two to three 

 3           times more likely to be food insecure, which 

 4           is a significant issue that the state needs 

 5           to take more seriously, the country needs to 

 6           take more seriously.  

 7                  In regards to the grant programs, 

 8           there is -- at least for HPNAP and Nourish 

 9           New York there is a competitive bid process 

10           every year.  The Department of Health makes 

11           awarding determinations.  Our 10 food banks 

12           work closely with thousands of 

13           community-based organizations in distributing 

14           the food.  

15                  We haven't heard of the specific 

16           examples that you're citing, but we will 

17           definitely take a look into that, because 

18           that's unacceptable.

19                  MS. PERNICKA:  This is why it's 

20           important for all nonprofits to have access 

21           to Nourish New York contracts directly and 

22           not rely on the food bank system as the only 

23           contractor for New York.

24                  MR. HEALY:  And we second that.


                                                                   569

 1                  ASSEMBLYWOMAN LUCAS:  Thank you.  

 2                  CHAIRWOMAN KRUEGER:  (Mic off; 

 3           inaudible.)  Senator Lea Webb.

 4                  SENATOR WEBB:  Yes, thank you, Chair.  

 5                  My question will be really brief.

 6                  In your proposals you talk about the 

 7           desire to expand direct contracts to direct 

 8           food providers for direct impact.  And I was 

 9           wondering if you could expound upon this a 

10           little bit more.  Because again, this is an 

11           issue that I'm all too familiar with.  In my 

12           district, most certainly, you know, we have 

13           significant issues around child poverty.  We 

14           have some of the highest rates in the state 

15           in Senate District 52.  And this continues to 

16           be an ongoing challenge with respect to food 

17           insecurity.  

18                  So I wanted to -- if anyone could kind 

19           of expound on that a little bit more.

20                  MS. PERNICKA:  I can speak to that.

21                  What we're seeing -- food banks are an 

22           incredible part of our food system, but we 

23           also need to have local responses utilizing 

24           HPNAP and Nourish New York funding so that 


                                                                   570

 1           pantries and other organizations are able to 

 2           buy culturally appropriate food for the needs 

 3           in their own neighborhoods.  

 4                  We are also seeing across the state 

 5           that food pantries are working 

 6           collaboratively, though organizations that do 

 7           have direct contracts are even getting prices 

 8           that are cheaper through wholesalers and 

 9           farmers than going through the food banks.  

10           So the dollars are going farther.  The 

11           pantries are working collaboratively to meet 

12           the unique needs in their own communities.  

13                  And I know Angie has an example here 

14           in the Capital Region about how local 

15           organizations, working together, are being 

16           really efficient and effective in the 

17           delivery of services.

18                  MS. PENDER-FOX:  Yes, so we do have a 

19           group of about five pantries who had come 

20           together, out of our 70 food pantries, who 

21           have direct contracts.  And what they do is 

22           they work together to serve, yes, themselves 

23           as a collective, but also reached out to 

24           those smaller pantries in other communities 


                                                                   571

 1           to see what their needs were and surveyed 

 2           them.  

 3                  We have a whole system -- we worked 

 4           with them, and we have a whole system in 

 5           which, you know, everyone gets a certain 

 6           amount of funding, they can do their own 

 7           ordering so they order fresh produce, fresh 

 8           foods, culturally appropriate foods to meet 

 9           the needs of the community.  And they're 

10           working at this state I think with about 32 

11           or 33 pantries.  It works out really, really 

12           well.

13                  MR. HEALY:  And if I could just add, 

14           I'd just like to echo the other panelists 

15           here.  We support direct contracts for all 

16           food relief organizations, not just food 

17           banks.  We support an open, transparent 

18           competitive bid process.

19                  On the point about, you know, sourcing 

20           food to meet the needs, we have a beautiful 

21           state, a diverse state, and there's a lot of 

22           important needs -- Halal, kosher.  And 

23           programs like Nourish New York and HPNAP 

24           actually help make up for the lack of Halal 


                                                                   572

 1           and kosher foods available through the 

 2           federal programs.  

 3                  That's why, you know, our view is that 

 4           programs -- HPNAP, Nourish New York -- should 

 5           be seen as tools for equity within our food 

 6           system.  

 7                  And so there's a lot of work to do, 

 8           but, you know, we look forward to partnering 

 9           on that.

10                  SENATOR WEBB:  Thank you all very 

11           much.

12                  CHAIRWOMAN KRUEGER:  Thank you.

13                  ASSEMBLYWOMAN PAULIN:  Yes, thank you 

14           so much.  

15                  Next panel.

16                  CHAIRWOMAN KRUEGER:  Thank you for 

17           your presence tonight.  

18                  Last panel.

19                  ASSEMBLYWOMAN PAULIN:  Last panel:  

20           Home Care Association of New York State is 

21           first.  Consumer Directed Action of New York 

22           is second.  Empire State Association of 

23           Assisted Living is third.  New York State 

24           Association of Health Care Providers is 


                                                                   573

 1           fourth.  And Home Healthcare Workers of 

 2           America is last.

 3                  So press the green button hard.

 4                  CHAIRWOMAN KRUEGER:  Very hard.

 5                  ASSEMBLYWOMAN PAULIN:  You're off.

 6                  MR. CARDILLO:  Thank you.

 7                  This proposed budget contains 

 8           proposals of high impact and enormous 

 9           concerns to the home care sector.  In 

10           addition to the concerns about what it 

11           contains is what it lacks.

12                  In particular, certified home health 

13           agencies, which are the agencies that accept 

14           patients on discharge from hospitals, provide 

15           postsurgical care, provide the complex 

16           management of patients with diabetes, 

17           congestive heart failure, COPD and so on -- 

18           these agencies, which serve over 500,000 

19           New Yorkers each year, are substantially 

20           functioning below margin in the state, have 

21           long been overlooked for any discrete support 

22           in the budget or to have their rates adjusted 

23           to come close to cost.

24                  There is a proposal by Assemblywoman 


                                                                   574

 1           Paulin, A7568, that would address the 

 2           specific needs of agencies in that category, 

 3           along with providing essential support for 

 4           hospices and licensed agencies.  We urge you 

 5           to include 7568 in the Article VII.  

 6                  Wages are a critical issue in the 

 7           budget.  We -- the Governor's budget proposes 

 8           to eliminate the wage parity support for 

 9           personal assistants in the consumer-directed 

10           program.  We urge your rejection of that 

11           proposal. 

12                  We also urge your attention to the 

13           200 million -- 400 million in the 

14           aggregate -- proposals to cut Medicaid from 

15           the Executive, which are unspecified.  They 

16           will only serve to combine with these other 

17           proposals to further undermine access and 

18           workforce in the system.

19                  Home care has unique needs in the 

20           workforce area, particularly with regard to 

21           nursing.  The Governor has proposals for 

22           workforce in the budget, and those proposals 

23           really need to be modified to ensure a focus 

24           that supports the recruitment of nurses and 


                                                                   575

 1           other key staff within home care.

 2                  A prior speaker spoke about proposals 

 3           in the budget that circumvent current laws to 

 4           allow for services to be provided in the home 

 5           by providers that do not meet those license 

 6           requirements.  We urge your opposition to 

 7           those proposals, your rejection of those 

 8           proposals in the budget.

 9                  One area in particular is the area 

10           related to 2805-x.  That area is the Home 

11           Care Hospital Physician Collaboration 

12           program.  It's a wonderful program.  We 

13           worked with the hospitals and the Legislature 

14           to create it several years ago.  The 

15           Executive proposals undermine the core of 

16           that program, which is to really leverage the 

17           providers who exist to work together.

18                  We urge your opposition to the managed 

19           care proposals, the procurement, the rate 

20           cuts and the other elements that would 

21           undermine services to patients, dislocate 

22           agencies -- thank you.

23                  ASSEMBLYWOMAN PAULIN:  Thank you.

24                  CHAIRWOMAN KRUEGER:  Thank you.  


                                                                   576

 1                  Next.

 2                  MR. O'MALLEY:  Good evening.  My 

 3           name's Bryan O'Malley.  I'm with Consumer 

 4           Directed Action of New York.

 5                  At the 30,000-foot level we at 

 6           Consumer Directed Action are strongly opposed 

 7           to the $2.54 per hour, or 12 percent, wage 

 8           and benefit cut.  That would make CDPA 

 9           workers second-class home care workers.  

10                  We have deep concerns about the 

11           unidentified $200 million in cuts.  

12                  We support the proposal by 

13           Senator Rivera and Assemblymember Paulin to 

14           repeal eligibility cuts set to take effect 

15           this year that would deem thousands not 

16           disabled enough for personal care.

17                  And we also support the Home Care 

18           Savings and Reinvestment Act, which would 

19           phase out MLTCs and replace them with care 

20           managers without a profit motive to deny 

21           care, and fee-for-service Medicaid payments 

22           for transparent payment.

23                  Coming down from 30,000 feet, this 

24           budget forces us to ask questions fundamental 


                                                                   577

 1           to what we want Medicaid to be.  Regarding 

 2           the Governor's proposed wage benefit cut for 

 3           CDPA workers, I ask if your salary were cut 

 4           by 12 percent, would you look for new work?  

 5           If you were a PA in New York City earning 

 6           just over $1500 per pay period, could you 

 7           afford losing $200 from that check?  Could 

 8           you afford to go back to slightly more than 

 9           you were making in 2019?

10                  How do 12 percent wage and benefit 

11           cuts for a low-wage workforce primarily 

12           composed of Black, Latinx and immigrant 

13           women, advance an equitable New York?

14                  What about the disabled or older 

15           Medicaid recipient who needs services?  When 

16           their worker inevitably leaves, how do they 

17           hire someone new at this wage, with no 

18           benefits, when every public and 

19           private-sector employer pays more?

20                  Does it even make financial sense to 

21           leave that recipient stranded without 

22           services?  CMS and others put the cost of a 

23           State 4 pressure sore at $125,000, meaning 

24           less than 1 percent of consumers developing 


                                                                   578

 1           pressure sores as a result of cutting wages 

 2           wipes out any savings.

 3                  And the same can be said for the cuts 

 4           to eligibility.  If someone can eat, shower 

 5           and go to the bathroom once up, but can't 

 6           transfer and get themselves out of bed, does 

 7           it matter that they don't need full 

 8           assistance with other ADLs?  They're not 

 9           leaving bed.  They won't eat, bathe, and 

10           they'll lie in their own urine and feces.  

11           What's the cost of that?  

12                  Does it advance equity to deny 

13           services to an aging community that's growing 

14           more impoverished and is increasingly 

15           comprised, again, of Black, Latinx and 

16           immigrant elders?  Can we just fight any of 

17           this while giving billions to MLTCs that were 

18           supposed to provide care management but 

19           don't, supposed to do assessments but don't, 

20           supposed to pay for nursing homes but don't?

21                  Thank you very much.

22                  CHAIRWOMAN KRUEGER:  Thank you.

23                  ASSEMBLYWOMAN PAULIN:  That was good 

24           timing.


                                                                   579

 1                  Next.  Chris?  

 2                  MR. VITALE:  Good evening, Chairs 

 3           Krueger, Rivera and Paulin and members of the 

 4           New York State Senate and Assembly.  My name 

 5           is Chris Vitale.  I'm the legislative 

 6           coordinator for the Empire State Association 

 7           of Assisted Living, or ESAAL.  I'm also a 

 8           former owner/operator of licensed assisted 

 9           living communities across New York State for 

10           the past 25 years.

11                  ESAAL is a not-for-profit organization 

12           representing 347 licensed assisted living and 

13           adult care facilities in the state that serve 

14           more than 33,000 frail elderly, some of which 

15           are on SSI, Medicaid and/or private-pay 

16           residents.  

17                  As we say every year, we continue to 

18           suffer from a lack of state support, anemic 

19           reimbursement rates and budget cuts.  You 

20           have the full testimony in front of you, and 

21           I will now highlight some key points.

22                  This historic lack of assistance is 

23           resulting in closures.  We've lost more than 

24           3100 low-income adult care facility beds in 


                                                                   580

 1           the last decade; 700 of those beds have 

 2           closed this past year, with these residents 

 3           ending up in skilled nursing homes at a much 

 4           higher cost to the state. 

 5                  Given this, we are dismayed that the 

 6           budget again proposes to eliminate the only 

 7           source of state funding to ACFs, the 

 8           Enhancing the Quality of Adult Living, or 

 9           EQUAL program.  This $6.5 million program is 

10           directed only to facilities that serve SSI or 

11           safety-net residents.  The money is directed 

12           by and for those residents.  This is not a 

13           new cut, and the Legislature has restored it 

14           in the past.  We ask that you do the same 

15           again.

16                  Moving on to the Medicaid-funded 

17           Assisted Living Program, the low rates for 

18           this program are completely unsustainable.  

19           The 6.5 percent increase in last year's 

20           budget, although appreciated, doesn't come 

21           close to covering the costs of care, labor, 

22           energy, food, insurance -- it's all way up.

23                  The ALP rate base year in statute is 

24           30 years old.  I was in high school when it 


                                                                   581

 1           was determined.  And it needs to be revised 

 2           to prevent more closures.  We need a bridge 

 3           rate increase of 13.5 percent until that 

 4           takes effect.  And we ask that you include 

 5           ALP rebasing an additional rate increase in 

 6           your one-house budget bill.

 7                  Same as last year, the budget includes 

 8           a proposal to require facilities to report on 

 9           quality and other measures.  We're not 

10           against this idea.  We just want to be 

11           consulted when DOH develops quality 

12           indicators and the reporting processes.  We 

13           support the Assemblymember Paulin bill, 

14           A5790, as proposed.

15                  I'll wrap up with a couple of 

16           proposals we do support.  The budget proposes 

17           to make permanent the Special Needs Assisted 

18           Living Voucher program, which helps cover the 

19           cost of care for individuals with dementia 

20           and Alzheimer's who run out of funds.  We 

21           want to see this program supported.

22                  Finally, this budget includes 

23           $7.2 million in funding for family caregivers 

24           who need access to respite care at adult care 


                                                                   582

 1           facilities.  We want that funding to remain 

 2           with DOH and support a methodology that 

 3           distributes it to as many people as possible.

 4                  In closing, I talk to operators every 

 5           day who are struggling to keep their doors 

 6           open, and we need help.  

 7                  Thank you.

 8                  CHAIRWOMAN KRUEGER:  Thank you.

 9                  ASSEMBLYWOMAN PAULIN:  Next.

10                  MS. FEBRAIO:  Thank you for the 

11           opportunity.  I'm Kathy Febraio, president 

12           and CEO of the New York State Association of 

13           Health Care Providers, representing home care 

14           providers across New York State.

15                  So what else can I say?  It's the end 

16           of the day, New York has demographic 

17           challenges, workforce shortages, 

18           reimbursement dilemmas, widespread financial 

19           fragility for providers operating in the 

20           Medicaid program.  Systemic underfunding, 

21           astronomical growth, and reform proposals 

22           have been a common theme today.

23                  Home care is no different, except that 

24           funding for home care agencies has remained 


                                                                   583

 1           flat for over a decade, while other sectors 

 2           have seen substantial investments.  We 

 3           desperately need a 10 percent increase in 

 4           Medicaid reimbursements this year.  Recent 

 5           funding to support wage increases has only 

 6           been partially passed on to home care 

 7           agencies, while no funding has been provided 

 8           for running a home care agency.

 9                  For too many years there have been 

10           discussions about the Medicaid payment system 

11           for home care.  So let me be very clear:  

12           Regardless of the payment system, the rate 

13           and amount paid to home care providers is 

14           simply inadequate to sustain the viability of 

15           the system.

16                  So let's ask ourselves if we have any 

17           water before we work on the plumbing.  We 

18           need to have enough money to meet payroll 

19           next week before we talk about fixing the 

20           system.  Nearly 30 percent of licensed home 

21           care agencies operated at a loss in fiscal 

22           year 2021.  I assume it's worse today.

23                  So we are asking for a 10 percent 

24           Medicaid rate increase for home care 


                                                                   584

 1           providers.  We want restoration of $1 billion 

 2           in Medicaid cuts, including the 200 million 

 3           state and then its match at the federal level 

 4           in the unspecified home care cuts.  We want 

 5           restoration of the wage cuts for personal 

 6           assistants of over $2 per hour.  

 7                  We want opposition to home care absent 

 8           licensure under Article 36.  And we want 

 9           inclusion of S6983A from Rivera and A7335 of 

10           Paulin's to establish a regional minimum 

11           hourly based reimbursement rate for home 

12           care.

13                  My written submission includes the 

14           testimony of Karen Clark, who could not be 

15           here this evening.  She's the executive 

16           director of Home-Health Care Partners, a 

17           respected not-for-profit home care agency 

18           serving upstate New York for almost 30 years.  

19           Despite their good work and reputation, the 

20           difficult business environment in New York 

21           State and persistent fundamental threats to 

22           our industry led to their decision to close 

23           their doors.

24                  To quote Karen's testimony:  "The 


                                                                   585

 1           outlook for home care is grim.  Our agency is 

 2           still doing what is right as we grieve and 

 3           wind down.  We are service providers, and we 

 4           have been service recipients.  Home care is 

 5           very real and personal to us."

 6                  So home care agencies like Karen's 

 7           work every day to make sure --

 8                  ASSEMBLYWOMAN PAULIN:  Thank you very 

 9           much.  Sorry.

10                  MS. FEBRAIO:  -- provide services.  

11           Thank you.

12                  MR. SHAW:  Hello.  Connor Shaw, the 

13           political director of Home Healthcare Workers 

14           of America, representing 40,000 home care 

15           aides mainly in the five boroughs, but into 

16           Long Island and Westchester as well.

17                  We are very concerned about what's not 

18           in this budget, which includes not the 

19           expansion of the Quality Incentive/Vital 

20           Access Provider Pool program, which we've 

21           come and talked to many of you about in the 

22           past.  This is a program that provides a 

23           slightly higher rate to agencies that meet 

24           higher levels of training and healthcare 


                                                                   586

 1           access to their members.  

 2                  While there is an upfront cost to 

 3           providing this extra reimbursement, it 

 4           undoubtedly saves the state tens of millions 

 5           of dollars.  Every home care aide that does 

 6           not receive health insurance through their 

 7           employer receives it through State Medicaid.  

 8           By encouraging employers to provide more 

 9           access to health insurance for the people 

10           currently working for their agency, they're 

11           keeping folks off the Medicaid rolls.  

12                  By providing a higher level of 

13           training than the 12 hours currently required 

14           for the QIVAPP program, you are keeping 

15           elderly folks out of hospitals.

16                  We've brought many of these aides to 

17           talk to you about some of the training they 

18           go through.  Providing an extra dollar an 

19           hour to folks making $17.50 is nothing 

20           compared to the cost of one hospital stay 

21           that these can prevent.  You're talking about 

22           a workforce largely of immigrant women 

23           working in their first jobs in the 

24           United States.  


                                                                   587

 1                  With the reduction of the $1 increase 

 2           in wage parity that was supposed to go into 

 3           effect last October, we are seeing home care 

 4           providers cutting English as a second 

 5           language training, childcare services and 

 6           transportation to get to patients that don't 

 7           live near public transportation.  But cutting 

 8           these programs and asking the workforce to 

 9           fund their minimum wage increase through a 

10           reduction of benefits puts at risk an 

11           industry already 100,000 aides short in 

12           New York State alone -- and that is facing a 

13           growing elderly population.

14                  We do not have the infrastructure to 

15           deal with the elderly and aging population 

16           without investing in home care.  We cannot -- 

17           there's not a possible amount of money that 

18           you can put in nursing care that can replace 

19           what home care provides this state.  And the 

20           QIVAPP program, acknowledging that there's an 

21           upfront cost, saves the state tens of 

22           millions of dollars.  It's already in place 

23           but was closed off to new employers that want 

24           to help New York meet its goals.


                                                                   588

 1                  Why do you have a program that 

 2           encourages employers to help New York meet 

 3           its goals but you don't allow employers who 

 4           want to access that to participate?  

 5                  We would support raising the standards 

 6           for QIVAPP.  Frankly, an employer only has to 

 7           provide 30 percent of their workforce health 

 8           insurance to qualify.  We support raising 

 9           that to 50 percent.  Again, that helps the 

10           state save money by keeping folks off 

11           Medicaid.  If a home -- again, a home care 

12           aide making $17.50 an hour, if they are not 

13           getting health insurance through their 

14           employer, they are getting it through 

15           State Medicaid.

16                  Thank you.  

17                  CHAIRWOMAN KRUEGER:  Thank you.  

18                  Senator Rivera.

19                  SENATOR RIVERA:  Hey, folks.  Thank 

20           you for holding on for as long as you have.  

21                  Just two things.  One -- and anybody 

22           can chime in, but certainly, Madam, you were 

23           talking about it -- as far as these 

24           unallocated cuts.  Now, this is the first 


                                                                   589

 1           time that I've heard of anything like this.  

 2           I'm not sure if you've heard of anything like 

 3           this before.  And if you do, like if you can 

 4           give me kind of your impression of what -- 

 5           what are these folks thinking.  What is this 

 6           unallocated cut thing?  It's like 

 7           $200 million, do what you will.  What do you 

 8           think about this?

 9                  MS. FEBRAIO:  Well, when they -- the 

10           cost savings for the cut to worker wage 

11           parity in the CDPAP is --

12                  SENATOR RIVERA:  Oh, I'll get to that.

13                  MS. FEBRAIO:  But that's 200 million 

14           as well.  So 200 million is going to be 

15           significant, whatever they decide to do with 

16           it.  It's -- it's very concerning.  I haven't 

17           seen it before.

18                  SENATOR RIVERA:  And have you -- have 

19           you been -- has there been any -- because the 

20           argument that they were making this morning 

21           was that they want -- that this is put out 

22           there so that we can, you know, together, 

23           stakeholders can come -- can decide 

24           collectively what is best to be able to 


                                                                   590

 1           provide savings, blah, blah, blah.

 2                  Has there been any outreach from the 

 3           administration to anybody certainly at this 

 4           table -- I should have asked this earlier -- 

 5           anybody at this table on this type of issue?  

 6           Or have you heard from anybody in the 

 7           industries that we're talking about that are 

 8           going to be impacted -- I mean, folks talk to 

 9           each other all the time, whether there has 

10           been any outreach from the administration to 

11           do what they claim this is about.  

12                  (Panel members shaking heads.)

13                  MS. FEBRAIO:  Not yet.

14                  SENATOR RIVERA:  And Bryan, just -- I 

15           want you to take the rest of the time.  One 

16           of the proposals that I was like, what are 

17           you doing here?  Like I asked them this 

18           morning, right -- there was a lot to ask 

19           about.  But the cut to the wages to CDPAP 

20           workers is -- it seemed -- could you tell me 

21           a little bit more?  I'm sorry I had to step 

22           aside when you were testifying.  But I just 

23           wanted to give you an opportunity if you had 

24           anything else to share about the impact 


                                                                   591

 1           that's going to have on these workers, in 

 2           turn on the people who they serve.  And how 

 3           do you think we should actually deal with 

 4           this?

 5                  MR. O'MALLEY:  I mean, I hope that 

 6           this cut can be just rejected outright.  It 

 7           is a straight cut to the workers.  Right?  

 8           Like we have worked so hard over the past 

 9           couple of sessions to raise wages for 

10           workers, and we at CDANY have a leader in 

11           that effort, working with all of you here, to 

12           make that happen.  This would bring us below 

13           the wages when we started that.  This would 

14           bring us -- the wages would not have been 

15           lower since 2019.

16                  That -- the -- I don't know how we can 

17           justify that.  People will go without 

18           services.  People will lose their workers.  

19           Because Chipotle and Target are already 

20           paying more.  If -- I -- you know, if they 

21           have to compete with every other home care 

22           agency, and it also leads to the plans 

23           exploiting the workers as well.

24                  SENATOR RIVERA:  We will talk much 


                                                                   592

 1           more about this in the weeks to come.

 2                  Thank you for being here.

 3                  ASSEMBLYWOMAN PAULIN:  Assemblyman Ra.

 4                  ASSEMBLYMAN RA:  Thank you.

 5                  Mr. Shaw, can you just elaborate a 

 6           little bit about what the real-world impact 

 7           is of cutting that dollar from the wage 

 8           parity?

 9                  MR. SHAW:  Yeah.  One of our agencies 

10           that we brought up aides from last week had a 

11           very innovative program that they had been 

12           funding, which was providing after-school 

13           tutoring and SAT prep as a benefit to their 

14           home care aides.

15                  Since they implemented that program, 

16           they reduced -- they increased their 

17           retention rate from 35 percent in the first 

18           180 days to 71 percent in the first 180 days.  

19           That is outstanding in one period.  Because 

20           that is a benefit -- you couldn't pay money 

21           in the paycheck to replicate that benefit, 

22           providing after-school for these -- again, a 

23           workforce largely made up of immigrant women.  

24                  They are going to run out of funding 


                                                                   593

 1           on February 15th for that program because 

 2           they had budgeted in that dollar increase 

 3           that was supposed to come in October.  They 

 4           have tutors, they have a whole program that 

 5           they run for that.  That is going to run out 

 6           of money.

 7                  We also have spoke to multiple 

 8           agencies that are trying to figure out what 

 9           they're going to do.  One of the things that 

10           that wage parity was providing was travel 

11           reimbursements for going to patients that 

12           don't live close to public transportation.

13                  Almost every single aide relies on 

14           public transportation to get to their 

15           patients.  By -- if they're cutting that 

16           program, you are going to functionally end 

17           home care access to places in Staten Island 

18           or in the outer boroughs that do not have 

19           access to public transportation.  Because an 

20           aide who's making $17.50 an hour can't afford 

21           to pay $30 to an Uber to and from work.

22                  So those are two -- and we have other 

23           examples.  But wage parity is what funds 

24           every -- paid time off, health insurance, 


                                                                   594

 1           every benefit that these aides get.  And that 

 2           scheduled increase was put into the money as 

 3           a minimum-wage increase.  So again, you're 

 4           asking some of the lowest-paid workers in 

 5           New York to pay for their own wage increase 

 6           by reduction of benefits.

 7                  And I can't name a single other 

 8           industry that that has happened in.

 9                  ASSEMBLYMAN RA:  Thank you.

10                  ASSEMBLYWOMAN PAULIN:  That's it on my 

11           side.

12                  CHAIRWOMAN KRUEGER:  Any other Senate?  

13           No?  Oh, I see an Assemblymember.

14                  ASSEMBLYWOMAN PAULIN:  Ah.  Okay, 

15           sorry.  

16                  Assemblymember Jessica González-Rojas.  

17           To close, I think.

18                  (Laughter; overtalk.)

19                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  It's 

20           been a tough day.  

21                  Thank you all so much for your work.  

22           And this issue is so, so important to me 

23           because I myself needed a home care worker 

24           when I broke my leg.  And I'm now currently 


                                                                   595

 1           navigating my mother, who's declining 

 2           cognitively and physically.  And the 

 3           patchwork of resources we need to pull 

 4           together to make life work for her, to be 

 5           independent, is really difficult.  So thank 

 6           you for everything.  

 7                  Thank you, Bryan and Connor, for 

 8           underscoring that cut that we heard about 

 9           earlier that Senator Rivera asked about.  We 

10           were all baffled by the commissioner's and 

11           the director's comment this morning.  

12                  But my question is for Kathy.  My 

13           understanding of home care services for 

14           non-Medicaid individuals is that the Offices 

15           for the Aging have to provide that funding 

16           for the home care aides and are required to 

17           pay that increase by law, but haven't 

18           received any funding to support that.  

19                  So maybe -- Al, you're nodding too.  

20           If anyone could speak to that, what that 

21           impact means on our older adults and those 

22           that need home care services.

23                  MS. FEBRAIO:  Well, it will definitely 

24           increase the waiting lists at the county 


                                                                   596

 1           level.  

 2                  The executive director of the 

 3           Association for Aging in New York, 

 4           Becky Preve, would be a good resource to get 

 5           more details on the numbers and the quantity.  

 6           Our members, as home care agencies, contract 

 7           with those counties to provide that care.  

 8           But she would be the one with more data and 

 9           statistics that would show the impact of what 

10           that means.

11                  MR. CARDILLO:  I think, you know, one 

12           of the issues is that when the wage 

13           requirements were passed, within the 

14           legislation I think was the presumption that 

15           when implemented, they'd be evenly 

16           implemented.  

17                  So really, regardless of whether the 

18           worker is caring for a non-Medicaid or 

19           Medicaid or Medicare patient, we're looking 

20           to support those wages.  And the program has 

21           not been implemented that way.  And frankly 

22           within the Office for Aging, you know, the 

23           waiting lists are very extensive.  And there 

24           isn't the support that's necessary to balance 


                                                                   597

 1           those wages.

 2                  I would say that the same impact is 

 3           being seen for the Medicare recipients.  

 4           There's no carry-over accommodation to 

 5           support the wage function in that area.

 6                  ASSEMBLYWOMAN GONZÁLEZ-ROJAS:  And 

 7           with my last couple of seconds, I just want 

 8           to thank Assemblymember Paulin and 

 9           Senator Rivera for their bill that would 

10           phase out the MLTCs.  I'm dealing with an 

11           MLTC.  It's a nightmare.  It's a waste of 

12           money.  And I think there's a lot of 

13           alignment behind that.  

14                  So thank you.  Thank you so much.

15                  CHAIRWOMAN KRUEGER:  Thank you.

16                  Done now?

17                  ASSEMBLYWOMAN PAULIN:  We are done 

18           now.  

19                  Thank you all for coming and staying, 

20           and especially to our last panel, because we 

21           know how you feel.

22                  CHAIRWOMAN KRUEGER:  And some of us 

23           will be back here tomorrow for the 

24           Transportation hearing, 9:30, bright and 


                                                                   598

 1           early.  Some of us will -- 

 2                  ASSEMBLYWOMAN PAULIN:  To the members 

 3           who stayed, thank you.

 4                  CHAIRWOMAN KRUEGER:  All right.  Thank 

 5           you all very much for being with us.

 6                  ASSEMBLYWOMAN PAULIN:  Yes, we 

 7           adjourn.

 8                  (Whereupon, at 7:16 p.m., the budget 

 9           hearing concluded.)

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