Empire State EPIC 24:02:06

“We must fundamentally rethink the way health care is delivered in New York State so that we can both improve quality and contain costs. It won’t be done overnight - and it will take sacrifice and innovation - but that’s never stopped New Yorkers before.”
- State Attorney General and Governor-Elect, Eliot Spitzer www.spitzerpaterson.com

Below, please find Weingarten, Reid & McNally’s “2007 Session Outlook” followed by a summary of the status of legislation of interest to medicine, which Governor Pataki has acted on since our last update in August.

However, first we wanted to share that Weingarten, Reid & McNally (WRM) has attended a number of MSSNY meetings on behalf of New York ACEP to continue to press our concerns over legislation or regulatory action which would require default rates for emergency services. WRM shared with MSSNY two documents outlining this issue and one detailing other New York ACEP priorities such as overcrowding and no-fault coverage for 2007 (see below).

OUTLOOK FOR 2007
It is widely anticipated that the 2007-08 State Budget will contain cuts in many areas, including Medicaid. State Budget Director John Cape called on state agency executives to give New York’s next governor sound financial advice and asked for a no-growth spending plan to be submitted by October 6th. Cape asked agency heads to “submit budget requests for 2007-08 that limit General Fund spending to no more than the current year levels”. Pataki’s budget chief warned that some state agencies may be asked to come up with even greater savings due to a projected budget gap in excess of $3 billion going into the next fiscal year that begins April 1, 2007.

The Governor-Elect has until February 1st to submit a proposed budget to the State Legislature. Eliot Spitzer has vowed to make “honest and hard choices to reduce the cost of health care and increase access to health insurance”. Noting that Medicaid is the largest and fastest growing part of the State budget, Spitzer has said that it “must be part of comprehensive reform.”

On his campaign website www.spitzerpaterson.com, Governor-Elect Spitzer has layed out his plan to reform the way that health care is delivered in New York State:

Increase access
We must commit to cutting the total number of uninsured New Yorkers in half over the next four years. We must guarantee health insurance for every child and remove bureaucratic barriers to getting the nearly one million uninsured adults who are eligible for coverage enrolled in existing programs.

Increase affordability and cost control while maintaining quality
In order to reduce health care costs and increase the quality of care, we need to redesign our health care system. First, we must honestly assess the capacity of New York’s hospital and nursing home system. Second, we must introduce sophisticated information technologies to reduce paperwork, improve treatment and patient safety and improve accountability. Third, we must dramatically improve the management of chronic diseases, including diabetes, heart disease, asthma, hypertension and HIV/AIDS. Fourth, we must cut prescription drug costs by increased use of generic drugs and by leveraging the state’s purchasing power through exploring the creation of a non-profit pharmacy benefit manager from which both Medicaid and commercial plans can buy from.

Reduce the cost of Medicaid
Medicaid is the largest and fastest-growing part of the state budget and must be part of any comprehensive health care reform. The biggest issue in Medicaid spending is long-term care, which now accounts for over 40 percent of the Medicaid budget. We must develop a better and less costly long term care system by making it easier for our residents to save for their long term care, supporting better home and community-based living options, increasing the role of managed long-term care and making it easier for our families to navigate the state’s complex web of long-term care programs.

If we are ever going to bring meaningful health care reform, we must increase the state’s ability to investigate and prosecute Medicaid fraud by expanding the tools available to the state. We must also reduce Medicaid’s prescription drug costs through a stronger preferred drug list program.

A focus in Spitzer’s health care plan, fraud and abuse is an area that will gain momentum in 2007. It was a centerpiece of the 2006 budget following a three-part story in the New York Times on Medicaid fraud. An agreement was reached in the final days of the 2006 session between the Governor and the Legislature to establish in law a new independent Office of Medicaid Inspector General (MIG) who will serve at the pleasure of the governor. The bill provides broad powers to the MIG to investigate potential fraud, abuse and waste, and increases civil and criminal penalties for Medicaid fraud. It limits the application of “health care fraud” crimes to those situations where a health care provider has “knowingly and willingly” submitted false claims. It requires health care providers to implement corporate compliance programs to combat fraud. As Attorney General, Eliot Spitzer was very vocal and involved in fraud and abuse cases. He is expected to use this new office to significantly step up state government’s efforts in this area.

Next year will be a time of great change in Albany. In addition to the elections, top level policy positions at nearly every state agency are likely to change. WRM will keep New York ACEP members apprised of developments that will affect access to emergency health care in New York State.

Volunteer Physician Legislation
Governor Pataki signed legislation in June to make permanent the health care practitioner volunteer program in Schenectady County. However, he recently vetoed legislation which would have authorized the Department of Health to designate additional volunteer health care practitioner programs throughout the state. If signed, these programs would have enabled retired physicians to provide healthcare services to low income individuals by covering the cost of their medical liability insurance.

Physician Shortage Study Bill
Legislation (S.7324, Bonacic/A.8155A, Koon) which authorizes the Charles D. Cook Office of Rural Health to study employment incentives to attract physicians to practice in rural, shortage areas in New York State, was signed into law by Governor Pataki in mid-August.

Health Plan Reforms
Legislation (S.8417, Spano/A.11996, Bradley) which was signed by the Governor in mid-August, takes some important first steps to address several problems that physicians have experienced in their dealings with health plans in processing health care claims and inappropriate delays in credentialing physicians. The bill includes provisions to:

  • Prohibit managed care plans and other insurers from demanding refunds from a physician for a previously paid bill, except in limited situations involving fraud or abusive billing, to no more than two years after the time that such payment was initially made;
  • Require 30 days advance written notice to a provider that the insurer will be seeking a refund, including the specifics regarding the previous payment that is being reviewed. Some insurers have been known to merely offset the amount demanded against future payment owed to a physician with little if any notice as to why such future payments were being reduced;
  • Require health plans to accept and initiate the processing of claims consistent with the AMA’s CPT codes, guidelines and conventions;
  • Require some “transparency” regarding the unique manner by which health insurance companies determine how they will reimburse claims submitted by physicians for care provided to patients;
  • Health plans will be required to provide the name of the commercially available coding editing software they use as well as significant edits added to the software; and
  • Require that an insurer or health plan complete its review of a health care provider’s application to become a member of its provider panel within 90 days of receiving such application, except in limited situations such as a failure of a third party to provide necessary documentation or unusual circumstances.

Timothy’s Law
The Legislature reached agreement on mental health parity legislation (a version
of Timothy’s Law) to mandate health insurance coverage for mental health care, during the last week of the session. However, the bill had not aged three days prior to the session adjournment and the Governor refused to issue a message of necessity, so the bill was not advanced. The Senate passed the bill when they returned to Albany in September for a special session. The Assembly is expected to pass the bill if they return to Albany later this year for a special session or during the 2007 session.

Increase in DWI Penalties
Legislation (A.11963, Gant/S.8232, Fuschillo) to enact a number of measures to enhance the penalties for driving while intoxicated, was signed into law by Governor Pataki in mid-September. Included in the bill is a provision to permanently revoke the drivers license of a person who has been convicted of driving while intoxicated three times in four years or four times in eight years and to create the crime of “Aggravated Driving while Intoxicated” if a person is found to have a blood alcohol content of 0.18%.

Vaccinations Bill
S.7421-B, Skelos/ A.11042B, Lopez passed the Senate and Assembly during the final week of the session. This bill requires children born after January 1, 1994 to have booster vaccinations for diphtheria, tetanus and pertussis upon entering the sixth grade. This bill was signed by the Governor in mid-August.

Immunizations Registry Bill
Legislation to require the New York State Department of Health to establish an automated and electronic statewide immunization registry of persons under nineteen years of age, was signed into law by the Governor in August.

We would like to thank New York ACEP members for your strong advocacy efforts throughout 2006 and all of us at Weingarten, Reid & McNally look forward to continuing to work with you to achieve your legislative and budgetary priorities during the 2007 session.

Summary of Concerns Regarding Default Rates for Emergency Services
The New York State Chapter of the American College of Emergency Physicians is concerned that proposals by the insurance industry to require non-participating providers to accept as payment in full the “usual and customary” fees of insurers for services provided in hospital emergency departments will have the unintended effect of decreasing patient access to specialty services in hospital emergency departments, contributing to emergency department overcrowding, and undermining the financial stability of the State’s emergency care network. Our concerns are summarized below.

  • Emergency physicians provide care to all patients who enter a hospital emergency department, regardless of the patient’s ability to pay or the physician or hospital’s contractual arrangement with the patient’s insurer. Because of this long-standing commitment to patient care, emergency physicians bear a disproportionate financial burden for uninsured and underinsured individuals. In addition, current Medicaid payment rates are grossly inequitable for emergency care- even with the recent fee increase from $17 to $25, emergency fee-for-service rates are still far less than reimbursement for other services.
  • Currently, there is a shortage of on-call specialists in emergency departments. A recent national survey shows that the Northeast, including New York State, has the highest rate of inadequate on-call covererage-74% of hospitals surveyed reported this as a problem. Top shortages include orthopedics, plastic surgery, neurosurgery, and hand surgery. Any proposals to further limit fees will impair patient access to on-call specialists in hospital emergency departments.
  • Overcrowding and ambulance diversion are currently serious problems in emergency departments across the State. New York ACEP has conducted two studies in the last five years that show that overcrowding in the EDs is a continuing problem in every geographic area of the State. It’s an ongoing problem that is not seasonal or episodic in nature based on the flu or other factors. The State Department of Health did its own survey which confirmed New York ACEP’s findings. The Health Department’s study found that the top factors associated with ED overcrowding were increased patient volume, increased patient acuity and age of patients, and nursing shortages in both the ED and inpatient units. Government imposed fee limitations would be a step backward in this effort and hurt patient access to care.
  • In a recent national survey, New York ranked second to last for the number of emergency departments per capita and was less than average in the number of board-certified emergency physicians per 100,000 people.
  • The “default rate” proposal singles out the providers of the State’s emergency care safety net and allows health insurance plans to dictate the price of their services, regardless of how equitable or fair that price might be.
  • The proposal will completely undermine the ability of emergency care providers to negotiate fair market rates for their services, or remain independent of contracted relationships when a health care plan refuses to negotiate a reasonable price.
  • The high concentration of managed care plans has already seriously eroded the negotiating power of physicians to get a fair price for their services. The default rate proposal will tip the balance even further in favor of insurers. It will have a negative effect on the emergency care network at a time when the State should be investing more, not less, resources to combat terrorism and ensure quality of care.

Key Legislative Priorities for 2007
The New York Chapter of the American College of Emergency Physicians (New York ACEP) represents over 1700 emergency physicians across the state that have a shared mission to provide the highest quality emergency medical care for all patients regardless of their ability to pay for care.

Support legislation and other measures to address problems associated with Hospital Crowding and Ambulance Diversion
Hospital crowding is an increasing problem in New York State and nationally. Surveys by New York ACEP and the State Department of Health show that hospital crowding and ambulance diversion are significant problems in nearly every geographic area of the State and are not simply due to episodic or seasonal events.

In some institutions the situation has reached crisis proportions. Due to capacity and resource constraints within hospitals, care is delayed for waiting patients or patients are diverted to other hospitals, requiring travel at significant distances in an emergency. Additionally, patients who have been seen and treated in the emergency department (ED) and admitted to the hospital are sometimes boarded in hallways for inordinate amounts of time without comforts like a bathroom, mattress, call light, privacy or confidentiality while awaiting inpatient beds.

New York ACEP supports legislation which codifies into law the Department of Health’s guidelines on hospital crowding and ambulance diversion and creates new mechanisms to implement and enforce these directives, including unannounced annual inspections by the Department and a requirement that hospitals report over six diversions in a month or over twenty-five in a year to the Department. New York ACEP supports universal access to high quality emergency care for any person who believes that he or she needs emergency services.

Oppose legislation to reduce reimbursement for emergency services for non-participating providers in commercial and government managed care plans
A major problem faced by emergency physicians is a lack of access in the ED to specialty care. Emergency physicians provide care to every patient who walks into the emergency department. Increasingly, we do so with reduced specialty physician back up from on-call specialists such as surgeons, neurosurgeons, plastic surgeons, obstetricians, orthopedic surgeons and cardiologists.

Reduced access to on-call specialists results in significant delays for patients awaiting care and increases the number of patients that must be transferred to obtain the required services. We are particularly concerned that a prohibition on balance billing of emergency services would further reduce patient access to on-call specialists in hospital emergency departments. An unintended effect of the legislation could be to force specialists to make an unpalatable choice of either absorbing further financial losses by accepting inadequate government and commercial insurance rates or further reducing their coverage at hospitals.

New York ACEP opposes any proposal to prohibit balance billing of emergency services or require nonparticipating providers to accept, as payment in full, the “usual and customary” fees of commercial managed care plans for emergency services provided to the managed care plans’ enrollees.

Support legislation to require No Fault Insurance Coverage of Emergency Treatment
Under current New York State law, if a driver in an alcohol-related crash is taken to the hospital for treatment, but does not have health insurance and is unable to pay the bill for his or her services, the health care providers cannot be compensated for their services under a person’s No-Fault automobile insurance policy. The health care provider is forced to absorb the cost of the treatments provided.

With the exorbitant cost of treating a person for injuries from alcohol-related crashes, health care providers, such as emergency physicians, can no longer bear the burden of these costs. Legislation passed both houses last year to correct this inequity by ensuring that health care providers receive proper compensation for the medical treatment they provide. Unfortunately, the bill was vetoed by Governor Pataki.

New York ACEP supports the introduction and passage of legislation in 2007 to ensure that payments are made by motor vehicle insurance carriers to physicians and other health care providers for the treatment of injuries to an intoxicated driver.

Empire State EPIC 24:01:06

New York ACEP Scores Major Victory: Medicaid Fee Increase
The New York Chapter of the American College of Emergency Physicians (New York ACEP) made great strides in advocating for its members this year by securing an increase in Medicaid fees for emergency physician services from $17 to $25. Our success was the result of the ongoing support and grassroots efforts by New York ACEP members.

Provided below is a summary of budget highlights and other legislation of interest to New York ACEP

Medicaid Inspector General
A centerpiece of Governor Pataki’s proposed budget was the establishment of a new independent Office of Medicaid Inspector General (MIG). Interest in Medicaid fraud and abuse was fueled by a three-part story featured over a year ago in the New York Times claiming that the State’s Medicaid program has become so lax in investigating and uncovering provider fraud that it is “a $44.5 billion target for the unscrupulous and the opportunistic.”

An agreement was reached in the final days of the Session between the Governor and the Legislature to establish in law a MIG who will serve at the pleasure of the Governor. The bill provides broad powers to the MIG to investigate potential fraud, abuse and waste, and increases civil and criminal penalties for Medicaid fraud. The language of the bill limits the application of “health care fraud” crimes to those situations where a health care provider has “knowingly and willingly” submitted false claims. The final agreement does not allow individuals to bring private lawsuits— something that the Assembly sought but the Senate rejected. The bill requires health care providers to implement corporate compliance programs to combat fraud.

Balance Billing Prohibition
New York ACEP and Weingarten, Reid & McNally have for several years battled various proposals to prohibit balance billing of emergency services. Last year we were successful in meeting with Assembly Health Committee Chairman, Richard Gottfried, and convincing him to withdraw a bill on this subject. Most recently, lobbyists for managed care plans met with staff at the State Insurance Department to ask them to support this limitation through regulation or other means. New York ACEP’s lobbyists, Weingarten, Reid & McNally, had a follow-up meeting with key officials at the State Insurance Department to express concerns about a balance billing prohibition.

In addition, Dr. Sama, Dr. Murphy and Bob Reid attended a June 15th meeting with the State Superintendent of Insurance, Howard Mills, to make him personally aware of the issue and the consequences of imposing a limitation. New York ACEP members made the argument to the Superintendent that a balance billing prohibition would hurt access to patient care by exacerbating the problems of reduced on-call specialty coverage and hospital crowding. New York ACEP and Weingarten, Reid & McNally will continue to monitor this issue and fight any further attempts to impose fee limitations for emergency services.

Patient Access Legislation
New York ACEP and Weingarten, Reid & McNally worked on several fronts this year to advocate for passage of legislation to ease hospital crowding and its associated problems. First, a Board lobby day was held February 28th in Albany in conjunction with the Board meeting where members educated their legislators about the problem of hospital crowding and ambulance diversion.

New York ACEP members Dr. Samuel Bosco and Dr. Mara McErlean joined Weingarten, Reid & McNally at a March 20th meeting with David Wollner, Director of the Office of Health Systems Management for the New York State Department of Health (DOH), and several of Mr. Wollner’s staff members. During the meeting, the findings of New York ACEP’s recent survey were discussed as well as possible options to reduce hospital crowding and ambulance diversion. In the Chapter’s most recent survey, 93% of respondents reported crowding as a problem, with 59% citing it as a year round issue.

Department of Health officials acknowledged the widespread, multi-faceted problem of crowding in New York’s hospitals and agreed to continue to work with New York ACEP to address it. New York ACEP proposed additional spot checks by the State DOH during peak hours as one step that could be taken to improve compliance with the Commissioner’s directive to “use all available inpatient beds in managing admissions from the emergency department.” In addition, New York ACEP recommended the collection of data during evening hours when crowding and boarding of patients in the ED is most prevalent. Currently, data is provided by hospitals to State DOH mid-week in the morning.

Although we were unable to achieve a consensus within the State Health Department and the Legislature on our recommendations, the lobby day and meetings with State officials were a great success in raising awareness and understanding of this difficult issue among legislators and State DOH staff. In the coming year, New York ACEP will continue to work toward a solution.

Emergency Services for Children Legislation
(A.10690-a, Gottfried/S.8238, Hannon) supported by New York ACEP to establish the Emergency Medical Services for Children (EMSC) program in statute passed both houses. This bill would establish a statutory foundation for the current EMSC program to ensure that New York State will continue to be eligible for federal funds. Key provisions of the bill would:

  • Provide for members to be appointed by the State Health commissioner including, but not limited to: an emergency medicine physician; a pediatric emergency medicine physician; a pediatric nurse; a pediatric critical care physician; a pediatric critical care nurse; a pediatric surgeon; a pediatric psychiatrist; a pediatric primary care physician; a pediatric emergency medical services physician; a pediatric toxicologist physician; a prehospital care provider; a school nurse; a hospital administrator; a parent of a previously ill or injured child; and a parent of a child with special health care needs. The Commissioner is required to appoint a physician to chair the committee.
  • Provide that all members are uncompensated and are appointed by the Commissioner for renewable four year terms upon the recommendation of the appropriate statewide professional or parental organization.
  • Require the committee to meet as often as necessary, but no less than quarterly.
  • Establish the powers and duties of the department including but not limited to:
  1. develop and maintain statewide systems for identifying facilities able to provide prehospital medical oversight for pediatric emergencies, specialty pediatric emergency medical and trauma care and preferential transport for suddenly ill or injured children to such facilities;
  2. institute statewide educational programs for continuing education in pediatric prehopsital basic and advanced life support;
  3. develop and adopt statewide equipment guidelines for life support for pediatric emergencies; and
  4. ensure that all aspects of the Emergency Medical Services for Children Program are well integrated with all other medical services and trauma care programs.

This bill, if signed by the Governor, will be effective immediately. Due to this bill’s overwhelming support from the medical and trauma services community, it is anticipated that the Governor will sign this legislation.

Regressive Medical Liability Legislation Defeated
Weingarten, Reid & McNally worked with other associations and lobbyists representing physicians to secure the defeat of two bills which would have drastically expanded physician liability exposure and drive increased premium rates.

The first bill, S.36 (DeFrancisco) would have removed the current statutory limit on the fees attorneys can take in medical liability actions. The second bill, S.54 (DeFrancisco), would have expanded the damages awardable in a wrongful death action. The identical bill (A.5856, Weinstein) was reported by the Assembly Judiciary Committee to the Assembly Codes Committee.

Increase in DWI Penalties
Legislation (A.11963, Gantt/S.8232, Fuschillo) passed both houses to enact a number of measures to enhance the penalties for driving while intoxicated. Included in the bill is a provision to permanently revoke the drivers license of a person who has been convicted of driving while intoxicated three times in four years or four times in eight years and to create the crime of “Aggravated Driving while Intoxicated” if a person is found to have a blood alcohol content of 0.18%.

We would like to thank New York ACEP members for your strong grassroots advocacy efforts this year.

Empire State EPIC 23:04:06

As the New York ACEP newsletter goes to print, the acrimony in Albany is at an all-time high. As expected, the State Legislature passed an “on-time” State Budget before the April 1st deadline, for the second year in a row after twenty years of late budgets. The $112.8 billion “two-house” budget deal was negotiated and passed without the involvement of Governor Pataki, who spent almost two months recovering in hospitals and at home from emergency surgery for an appendectomy. Upon his return to Albany just prior to the spring recess, Governor Pataki vetoed 207 items totaling over $2.9 billion. In issuing his vetoes, the Governor greatly raised the stakes by declaring much of the Legislature’s budget increases to be unconstitutional under the terms of the recent Court of Appeals case (Silver v. Pataki).

During the last week of April, the Senate and Assembly successfully overrode all of the Governor’s vetoes, although Governor Pataki has said that he will not enforce unconstitutional overrides. Both Senate Republican Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver have accused Governor Pataki of negotiating in “bad faith” and say that they will take the issue to court if the Governor follows through on his threat to withhold funds. Unless all three sides can come to a new three-way agreement, billions of dollars, including almost $1 billion in health care, will be impounded by Governor Pataki while the disagreement over budget powers once again heads to the Judicial Branch.

Legislature Increases Medicaid Reimbursement Fee for Emergency Physicians
New York ACEP’s top budget priority this session was to seek an increase in Medicaid reimbursement for Emergency Physicians, in line with rates paid under Medicaid in other states and by Medicare. As a result of the strong grassroots efforts by New York ACEP members, coupled with our Albany-based advocacy during the lobby day and throughout the first few months of the session, the Legislature included an increase in Medicaid reimbursement from $17 per visit to “not less than $25 per visit”, a rate increase of almost 50%!

Unfortunately in mid-April, Governor Pataki vetoed this fee increase, claiming that it was unconstitutionally submitted by the Legislature. Immediately following the Governor’s veto, New York ACEP again mobilized its grassroots network and was successful with the Legislature overriding this veto. However as previously stated, the Governor has declared that he will ignore the Legislature’s overrides in the area of Medicaid, Family Health Plus and others which he views to be unconstitutional.

Governor Pataki’s hard line on impounding hundreds of millions in health care funds and $805 million in property tax rebates leaves legislators who are running for re-election this fall with the limited options of either heading to court or renegotiating a whole new deal in order to shake loose the funds. Of course this doesn’t provide much solace because the court route spells nothing short term and the renegotiation route would put us in a very competitive situation vis-à-vis other appropriations. Weingarten, Reid & McNally will continue to monitor the situation on the ground in Albany and will continue to work with the Chapter office on public relations, advocacy and other strategies to fight for the much-deserved Medicaid fee increase for Emergency Physicians.

Medicaid Inspector General
A centerpiece of Governor Pataki’s proposed budget is the establishment of a new independent Office of Medicaid Inspector General (MIG) within the State Department of Health. Interest in Medicaid fraud and abuse was fueled by a three-part story featured last July in the New York Times, claiming that the State’s Medicaid program has become so lax in investigating and uncovering provider fraud that it is “a $44.5 billion target for the unscrupulous and the opportunistic.”

Despite bi-partisan support for the MIG, the Legislature was unable to reach agreement on the details of the proposal. Outstanding issues include the length of time of the Inspector General’s term, the severity of the penalties, and how much authority should be given to county government to pursue provider fraud. The Governor’s bill proposes a five year term for the MIG, who would be appointed by Governor Pataki this year. The Democratic Assembly is unwilling to accept a Republican MIG for such a long period of time. Despite these differences, negotiations on this issue are continuing in earnest. Legislators would like to claim victory for a Medicaid fraud and abuse initiative as they head toward the November elections. In addition, the Legislature’s two- way budget agreement assumes that $475 million will be saved through the establishment of a Medicaid Inspector General and other anti-fraud and abuse proposals.

New York ACEP 2006 Lobby Day
This year, New York ACEP held its annual Board lobby day in Albany on February 28th. The day began with a morning briefing by Weingarten, Reid & McNally on New York ACEP’s top budgetary and legislative priorities including the inclusion of a Medicaid fee increase for Emergency Physicians in the final state budget, the advancement of legislation to reduce hospital crowding and ambulance diversion and the defeat of any attempts to prohibit balance billing of emergency services in New York State. Following the briefing, Board members met with their Senators and Assemblymembers as well as other key lawmakers and policy staff including Senate Majority Leader Bruno regarding New York ACEP’s priorities.

The lobby day was a great success in raising awareness on New York ACEP’s legislative goals and fostering relationships with key policymakers. In fact, the timing was optimal, as the Legislature was negotiating emergency department fee increases while Board members were in Albany and we were able to ensure that a fee increase for emergency physicians was included in the discussions.

Patient Access Legislation
In addition to advocating for the advancement of the Patient Access legislation during the lobby day, New York ACEP members Dr. Sam Bosco and Dr. Mara McErlean recently joined Weingarten, Reid & McNally representatives at a meeting with David Wollner, Director of the Office of Health Systems Management for the New York State Department of Health and his staff. During the meeting, the findings of New York ACEP’s recent survey were discussed as well as the Patient Access legislation and other possible options to reduce hospital crowding and ambulance diversion. Department of Health officials acknowledged the widespread, multi-faceted problem of crowding in New York’s hospitals and agreed to continue to work with New York ACEP to try to address this problem.

End of Session Outlook
It remains to be seen how or when the current stalemate on the State Budget will be resolved. With all 212 state legislators up for re-election in November, they are eager to conclude business for the year and return to their home districts. It is still possible that Governor Pataki’s hard line on holding back government funds will force the Legislature back to the negotiating table. Weingarten, Reid & McNally will continue to monitor issues of concern to New York ACEP and will keep members informed of any new developments.

Empire State EPIC 23:03:06

New York ACEP Collaborates with National to Release New York’s Report Card
In January, New York ACEP collaborated with National ACEP to release New York’s report card on the State of Emergency Medicine in New York, which conveyed the findings of a state-by-state comparison conducted by the American College of Emergency Physicians. Utilizing 50 measures, ACEP assigned grades to each state for four key areas: Access to Emergency Care, Quality and Patient Safety, Public Health and Injury Prevention and Medical Liability Environment. New York received an overall grade of C+.

 

The above quotes appeared in articles from newspapers across the state as well as web-based media highlighting the findings of New York’s Report Card. Weingarten, Reid & McNally worked with President, Dr. Gaeta and Executive Director, JoAnne Tarantelli to create a New York ACEP press release in addition to national’s release. We circulated the New York ACEP release to Capitol and statewide press and were successful in reaching additional members of the media. Furthermore, we were able to build on national ACEP’s strong message regarding our poor medical liability environment, and raise awareness on New York’s serious access problem and the State’s failure to make necessary investments in emergency medicine. In addition to the excerpts above, New ACEP members Sandra Schneider, MD FACEP from the University of Rochester was quoted in the Albany Times Union while Joel Bartfield MD FACEP from Albany Medical Center was interviewed by Albany’s Capital News 9 discussing the findings of New York’s report card.

The 2006 Legislative Session began in Albany January 4th with Governor Pataki giving his 12th and final State of the State Address. On January 17th, the Governor submitted his State budget proposal. The $110.7 billion spending plan features $4 billion in tax cuts, increases State fiscal reserves to $4 billion and uses the projected $2 billion 2005-06 surplus to reduce out-year gaps. Also, Governor Pataki proposed a $1 per pack state tax on cigarettes outside of New York City, which is estimated to bring in about $308 million this year, and approximately $4 billion is expected to flow into state coffers due to the recent Empire and other health insurance conversions to for-profit status.

As soon as the budget was released, Assembly Democrats criticized the Governor for proposing tax cuts that will create a $1.9 billion deficit in 2007, the year after Pataki leaves office. They also took issue with the lack of funding for education aid in light of the Campaign for Fiscal Equity Court of Appeals case that directs additional aid to New York City. Others, including Senate Majority Leader Joseph Bruno and business leaders, hailed the proposal for its focus on business tax cuts and economic development.

Provided below is a summary of the Governor’s budget as it relates to healthcare. Of particular interest, the budget proposes $1.3 billion in Medicaid cuts and increases co-payments for emergency room services to $25 for Family Health Plus recipients. It would be helpful for members to inform New York ACEP of the impact that this co-payment would have on you and your hospitals.

Independent Office of Medicaid Inspector General
A centerpiece of the proposed budget is the establishment of a new independent Office of Medicaid Inspector General within the State Department of Health. Interest in Medicaid fraud and abuse was fueled by a three-part story featured last July in the New York Times, claiming that the State’s Medicaid program has become so lax in investigating and uncovering provider fraud that it is “a $44.5 billion target for the unscrupulous and the opportunistic.”

On the heels of all of this press, Governor Pataki created an independent Office of Inspector General by executive order. Legislative leaders as well as the leading Democratic candidate for governor, Eliot Spitzer, immediately announced support for the new office. Governor Pataki’s proposed state budget puts the new office into law and greatly enhances is powers and duties. In addition, the proposed legislation increases penalties for Medicaid fraud and abuse. A total of $94,596,000 is appropriated for the new office. The total amount includes a transfer of approximately $76.2 million in existing funds, and an increase of $18.3 million for new staff and other services. Key provisions of the bill would:

  • provide that the Inspector General be appointed by the Governor with the advice and consent of the Senate for a term of five years. The Inspector will report directly to the Secretary of the Governor;
  • establish five regional offices across the State;
  • transfer all staff working on Medicaid fraud, waste and abuse prevention in the Department of Health (DOH) and other state agencies to OMIG. The workforce for OMIG will total 492 full-time employees (411 existing; 81 new) as well as 135 employees funded by contractual resources;
  • charge the Office with conducting and supervising all prevention, detection, audit and investigation efforts, and to coordinate such activities with the Department of Health’s Office of Medicaid Management, and the Office of Mental Health, Office of Mental Retardation and Developmental Disabilities and Office of Alcoholism and Substance Abuse; and
  • charge the Office with coordinating their activities with the fiscal agent employed to operate the Medicaid Management Information System (MMIS), local governments and entities, the Attorney General (AG), State Comptroller, and various other education and human service organizations.

The Executive Budget also proposes:

  • Hospitals and Nursing Homes
  • Eliminating the 2006 inflationary trend cost increases for hospitals and nursing homes;
  • Decreasing the hospital reimrsement rates for certain detoxification services;
  • Limiting hospital Graduate Medical Education reimbursement to actual costs;
  • Eliminating the hospital length of stay volume relief;
  • Reducing rates for providers who inappropriately inflate base year spending; and
  • Requiring the calculation of cost based rates when a facility is unable to achieve 90% occupancy after a five-year period.

Pharmacy

  • Eliminating Medicaid and EPIC reimbursement for drugs to treat erectile dysfunction;
  • Including cost as a factor to be considered in determining which drugs will be placed on the preferred drug list;
  • Eliminating the physician’s right of final determination in both the Preferred Drug List and the Clinical Drug List programs;
  • Mandatory participation of EPIC enrollees in Medicare Part D; and
  • A six-month transition period (through July 1, 2006) where the State will continue to fund medically necessary drugs in the event that they are not available under Part D, and Medicaid will continue the wrap around benefit for drugs used in the treatment of mental illness, HIV/ AIDS and organ transplants.
  • Medicaid and Family Health Plus
  • Requiring mandatory co-pays for Family Health Plus and eliminating the six-month guaranteed eligibility;
  • Prohibiting FHP coverage for individuals working for businesses with more than 100 employees; and
  • Increasing the number of Medicaid eligibles enrolled in managed care plans by 300,000.

Other Highlights

  • $65 million in additional premiums for the Excess Medical Liability Insurance Program;
  • $29 million to purchase and stockpile necessary medications and supplies to respond in the event of a pandemic outbreak;
  • $250 million for the second installment for the HEAL NY Program;
  • Increasing funding for the tobacco control program and for AIDS prevention and treatment; and
  • Continuing the Expanded In-Home Services for Elderly and Access to Home Programs.

Official Prescription Program
Beginning April 19, 2006, all prescriptions written in New York must be written on official forge-proof prescription forms, which physicians must sign up for and order from the New York State Department of Health. One recent change to the program is that the Department has drafted regulations exempting all hospitals from the program until April of 2007. This exemption does not apply to the prescribing of controlled substances under Article 33 of the Public Health Law and will continue after April 19, 2007 only if the registered hospital has implemented an electronic prescription system.

2006 Outlook
The 2006 Legislative Session is expected to be tumultuous and busy with the impending elections for Governor, Attorney General, State Comptroller, and US Senate, and re-election campaigns for all 212 members of the State Legislature.

New York ACEP’s 2006 lobby day was held Tuesday, February 28th. New York ACEP members meet with key Senators, Assembly Members and staff, including their own representatives to discuss ACEP’s 2006 legislative priorities. Grassroots activities by ACEP members across the state are critical to complement our Albany-based efforts for the advancement of the hospital crowding legislation (A.3264, Gottfried/ S.4926, Hannon), an increase in the Medicaid reimbursement rate for emergency medicine comparable to primary care rates and the defeat of legislation prohibiting balance billing of emergency services, if advanced.

It is also important for members to support the New York ACEP Political Action Committee (PAC). Donations to the PAC enable ACEP members to educate elected officials and political candidates about the importance of maintaining access to high quality emergency care. Donations to the PAC are used to support political candidates in the elections process. Through these donations, members are able to attend political events and get to know their elected officials personally.

Empire State EPIC 23:02:05

New York ACEP had a successful legislation session including: $2.5 million for a partial restoration of Medicaid/Medicare “crossover” payments to physicians who provide services to individuals who are dually eligible for both Medicare and Medicaid; extension of the State’s Excess Medical Liability Insurance Program for two more years; and a rejection by the Legislature of the Executive’s proposed physician and medical procedure specific taxes and fees. In addition, New York ACEP was successful in achieving passage of legislation in the Senate and Assembly to require that motor vehicle insurance carriers make payments to physicians and other health care providers for the treatment of injuries for intoxicated drivers. The passage of this legislation follows several years of effort by New York ACEP members, Weingarten, Reid & McNally, and a coalition of groups that included the Medical Society of the State of New York and Mothers Against Drunk Driving.
Unfortunately, despite a series of meetings with the Governor’s office he again vetoed the bill stating:

“While I remain sympathetic to the legitimate concerns raised by health care providers who render medical treatment to drunk drivers who do not pay for such services, this bill does not fully resolve the issues raised in my disapproval. Accordingly, I am constrained to disapprove this bill.

First, the magnitude of this problem remains unclear. The only data cited are imprecise figures extrapolated from national data. Moreover, even if the correctness of this data is assumed, the proponents of the bill have yet to quantify how many of these patients have health insurance or could be billed directly for emergency services.

Second, the scope of coverage to be provided under the bill remains overbroad. Proponents stress the need to cover emergency room treatment. I objected to the provision in the 2001 bill that would have mandated No-Fault insurance coverage for all services provided within 48 hours after an accident because it would have covered non-emergency treatment and, thus, could have been exploited by persons who engage in No-Fault auto insurance fraud. In an effort to address the concern, this bill would mandate coverage for a broad and undefined range of “medical screening and necessary stabilizing treatment for emergency medical conditions.” Although this language is intended to limit coverage to treatment in emergency rooms, the bill language could be interpreted to mandate reimbursement for emergency room treatment or for medical screening and necessary stabilizing treatment for emergency medical conditions, regardless of whether treatment would be rendered in an emergency room setting. Thus, insurers and the Insurance Department are concerned that this ambiguity in the bill text poses an unacceptable risk that medical mills and fraud rings could bill for extensive and expensive services for spurious “emergency medical conditions.”

Third, in 2001 I emphasized my Administration’s commitment to compre- hensive auto insurance reform measures to target No-Fault insurance fraud. My 2001 disapproval stated that any bill in this area should be considered only in the context of “broad and meaningful No-Fault reforms.” The bill fails to include the comprehensive legislative reforms for which my Administration has long advocated.

While I am constrained to disapprove the bill, I also recognize that current law imposes an inequitable result on health care providers who may be unable to collect reimbursement for treatment that, in many instances, they are both legally and ethically obliged to provide.

Therefore, I am directing my staff to work with the sponsors and supporters of this bill, as well as other affected stakeholders with respect to this issue, to collect data regarding the magnitude of this problem and to explore options for assisting doctors, hospitals and other health care providers in dealing with the fiscal burdens created by drunk drivers.

The bill is disapproved. (signed) GEORGE E. PATAKI

While none will disagree that the outcome is unacceptable, the success of New York ACEP’s effort of passing this bill, given its tortuous history, is nothing less than historic. In particular, we need to thank State Senator Bonacic (photo left) and Assemblyman Dinowitz (below) for their perseverance on this issue. Clearly, New York ACEP members working together with

President Dr. Gaeta, Governmental Affairs Chairs Dr. Bosco and Dr. Sama, Executive Director, Joanne Tarantelli and Weingarten, Reid & McNally in Albany have demonstrated the ability to successfully advocate and achieve results for New York ACEP members across New York State.

As we look to 2006, the Legislative Session will be challenging, with numerous statewide and local elections scheduled, a Constitutional budget amendment up for voter approval that could significantly change the balance of power between the Legislative and Executive branches, and a focus in health care on Medicaid fraud.

State Budget
Earlier this month, the State Budget Director John Cape told State agencies to submit budget requests for 2006-07 that limit State General Fund revenues to no more than the current year level. The Division of the Budget said the state faces a potential budget gap of $2.5 billion next year and $3.9 billion in 2007-08 which could force cutbacks in funding for education, health care and other popular programs. Although current financial projections show healthy revenue growth, John Cape reports that there will be additional spending restraints due to the aftermath of Hurricane Katrina and the increasing energy costs that the state has incurred.

Despite DOB’s dire predictions, there is potential for new funding in health care next year. The Health Care Reform Act (HCRA) fund, in jeopardy of becoming insolvent earlier this year, received a badly needed infusion of revenues when the State prevailed in a Court of Appeals case challenging the constitutionality of the conversion of Empire from not-for-profit to a for-profit status. The resolution of this case in June resulted in the transfer of $754 million in funds that had been held in escrow. HCRA was expected to receive another $1.1 billion in conversion proceeds by the end of this year. However, an announcement last month that Empire will sell the company to a large for-profit national company is expected to nearly double that figure to $2.1 billion in cash and another $2.1 billion in future stock sales.

There is a possibility that the State could realize an estimated $1.5 billion in additional funds if HIP makes a similar conversion in 2006. This conversion was under discussion last year but failed to materialize when a consensus could not be reached on a number of issues, including how the proceeds should be utilized.

Even in the face of new potential funding, Governor Pataki is expected to put forth a proposed State Budget with cuts in Medicaid and other human service programs.

Elections
Pending elections include statewide races for Governor, Attorney General, State Comptroller, and US Senate, and re-election campaigns for all 212 members of the State Legislature. While Attorney General (AG) Eliot Spitzer has emerged as the Democratic candidate for Governor, there is no front-runner among several Republicans who are considering running, raising the possibility of a year-long primary campaign. Rochester billionaire Tom Golisano has reportedly switched his party position and is now a Republican candidate for Governor, running against William Weld, former Massachusetts Governor and native New Yorker, in the primaries. State party conventions will be held in May or early June, a time when the State Legislature is typically engaged in the intense activity of negotiating and passing a flurry of bills to conclude its business for the year.

With less than a month to go, New York City Mayor Michael Bloomberg has spent over $40 million on his campaign thus far, setting an all-time record for most money spent on a non-presidential campaign. At this point in Bloomberg’s 2001 Campaign, he had spent $29 million, which in the end cost him $75 million in total. Currently in his 2005 campaign, he has spent over $40 million and is expected to spend near $100 million in the end. His opponent, Fernando Ferrer, has spent nearly $6 million, which is less than Bloomberg’s last opponent in 2001.

Governor Pataki’s announcement that he won’t seek a fourth term creates the first “lame duck” administration since 1982. The last lame duck Governor, Hugh Carey, found himself largely ignored by a State Legislature that was focused on spending money to win over constituents in an election year. At that time, the Legislature added millions of dollars to Governor Carey’s proposed budget in the face of huge deficits. When Carey vetoed the spending items, the Legislature easily mustered the two-thirds vote needed in each house to override the vetoes. Governor Pataki’s administration could meet a similar fate in 2006. In fact, the Democratic Assembly and Republican Senate demonstrated its willingness to join forces and override Pataki’s budget vetoes just two years ago in 2003.

Medicaid Fraud
One issue that is sure to be prominent next year is Medicaid fraud. According to a three-part story featured in July in the New York Times, New York State’s Medicaid program has become so lax in investigating and uncovering provider fraud that it is “a $44.5 billion target for the unscrupulous and the opportunistic.” The Times claims that its year-long investigation uncovered abuses of inappropriate dentist billings, ambulettes transporting ambulatory patients, and hundreds of thousands of dollars billed by physicians for an AIDS treatment drug that was abused by healthy body builders.

Also mentioned in the New York Times story is a recently completed federal Department of Health and Human Services Medicaid audit on speech claims made by the New York City Department of Education during an eight year period spanning September 1, 1993 to June 30, 2001. The audit report will go to CMS which makes the final determination on how much reimbursement to seek.

The New York Times story drew strong reactions from politicians and candidates on both sides of the aisle. Almost immediately, Governor Pataki appointed a new, independent Office of Inspector General (OIG). The newly appointed head of the office, Kimberly O’Connor, previously served as a prosecutor in the Schenectady County District Attorney’s Office and as General Counsel to the State Division of Criminal Services. The Democratic candidate for Governor, Attorney General Eliot Spitzer, voiced support for the new OIG.

High ranking Republican officials, including Senate Health Chairman Kemp Hannon, Deputy Majority Leader Dean Skelos and Congressman John Sweeney publicly criticized the government’s efforts and offered various solutions including more federal audits and greater authority to county district attorneys.

On Monday, September 19th and Wednesday, September 21st, the New York State Assembly and Senate held separate hearings on Medicaid fraud, abuse and waste. Key testimony was given by Dennis Whalen, Executive Deputy Commissioner for State DOH, Peter Pope, Deputy Attorney General for the Criminal Division, and Kimberly O’Connor, the new Medicaid Inspector General. Both Mr. Whalen and Mr. Pope defended the State’s record in preventing and uncovering fraud and said that the New York Times story overstated the problem.

However, key legislators in both houses seem clearly convinced that the State’s fraud and abuse system is completely broken and in need of major changes. While there is no clear consensus on how to address the perceived problems, actions in 2006 could include passage of legislation to create a state false claims act, increased and new criminal penalties for fraud, increased funding for additional staff to investigate and prosecute fraud and abuse, and/or increased funding for demonstration programs to allow counties to investigate and prosecute Medicaid fraud and abuse. In addition, it’s clear that there will be much greater scrutiny on all Medicaid providers now and for the foreseeable future. Both houses plan to hold more hearings before the end of the year.

Constitutional Budget Amendment
The balance of power between the Executive and Legislative branches in next year’s State Budget negotiations will be greatly affected by the outcome of a Constitutional budget amendment that will be on the ballot on November 8, 2005. If approved, the amendment will:
change the start of the fiscal year from April 1 to April 30th beginning in 2006, and from April 1 to May 1 in 2007;

  • create a contingency budget to take effect on the first day of the fiscal year at statutorily determined levels in the event the Legislature does not act on the Governor’s proposed budget; and
  • grant the Legislature the ability to pass two multiple-purpose appropriations bills.
  • establish a new Budget Office and a separate Advisory Committee, appointed by Senate Majority Leader and Assembly Speaker; and
  • create a new fiscal stabilization reserve fund, for the sole purpose of balancing a subsequent fiscal year, and limit the existing reserve fund to current year needs.

The amendment would restore some of the budget-making power that the Legislature lost last year when the State Court of Appeals ruled that they had no power to amend the Governor’s proposed budget “language” relating to items such as funding formula’s for education aid and Medicaid reimbursement. In addition, the ruling limits the Legislature’s budget-making authority to deleting or adding appropriations, thereby eliminating its ability to reshape the budget by reprogramming funds from one purpose to another. The constitutional amendment would arguably restore the Legislature’s authority to create its own State Budget by permitting it to independently submit an alternative budget once the May 1st deadline is missed and a contingency budget goes into effect.

Governor Pataki and Attorney General Spitzer are both opposed to the Constitutional amendment. Business groups have also come out against it saying that it would create a powerful incentive for the Legislature to delay negotiations and virtually guarantee late budgets every year. Supporters of the amendment, including a number of good government groups, believe that the amendment is necessary to protect funding for vital services and that it will force Albany to enact better and more timely budgets.

Support the New York ACEP PAC In 2006
Next year is the perfect time to support New York ACEP’s Political Action Committee (PAC). Donations to the PAC enable New York ACEP members to educate elected officials and political candidates about the importance of maintaining access to high quality emergency services. Donations to the PAC are used to support political candidates in the elections process. Through these donations, New York ACEP members around the state are able to attend political events and get to know their elected officials personally.

Weingarten, Reid & McNally will continue to work with New York ACEP in 2006 to maximize your effectiveness in Albany.

Empire State EPIC 23:01:05

A Successful 2005 Legislative Session for New York ACEP
The 2005 Legislative Session was a successful one for New York ACEP with the passage of legislation (A.5158 Dinowitz/S.5578 Bonacic) in both houses to require that motor vehicle insurance carriers make payments to physicians and other health care providers for the treatment of injuries for intoxicated drivers, and a total of $5 million in new Medicaid funds for the partial restoration of Medicaid/Medicare “crossover” payments to physicians who provide services to individuals who are dually eligible for both Medicare and Medicaid.

Legislators and the Governor were given relatively high marks by good governments groups and the media for their efforts toward government reform. For the first time in 20 years, the Legislature enacted an “on-time” State Budget by the April 1st deadline. Both the Senate and the Assembly enacted internal rule changes including a requirement for members to be physically present in their seats for every vote, public meetings of the previously secret Assembly Rules Committee which determines which bills are released for a final vote on the Assembly floor, a ban on lobbyists entering the back of the Assembly Chamber and other changes. Government reform measures passed by both houses include new oversight of public authorities and the New York Racing Association, C-span like coverage of Senate and Assembly floor debates, and regulation of “procurement” lobbying of State agency contract decisions.

The 2005 Session concluded in an orderly fashion June 24th, only one day later than the scheduled recess. However, a number of high profile issues were left undone including the allocation of $80 million for nursing home wages and benefits, settlement of Indian land claims, and expansion of Megan’s Law to protect people from sexual predators. There is speculation that the Legislature could return to Albany later this year to consider a limited agenda of unfinished business.

In late July, Governor Pataki announced that he will not seek a fourth term as Governor of New York, but he committed to serving out the remaining year and a half in his current term. Pataki’s announcement has ignited a firestorm of speculation about both his own future and that of the State’s Republican Party. Elected in 1994, Pataki is the nation’s longest-tenured governor currently in office and it is widely believed that Pataki is considering a run for national office in 2008. At the state level, a number of names have been mentioned as possible Republican gubernatorial candidates against Democrat and current state Attorney General Eliot Spitzer in 2006 including Congressman John Sweeney, Billionaire Thomas Golisano, Secretary of State Randy Daniels and Westchester County District Attorney Jeanine Pirro.

While Pataki’s announcement was not unexpected, it is unclear how it will affect relations between the Governor and the Legislature in the upcoming session.

Legislative No-Fault Victory In Governor Pataki’s Hands
As this newsletter goes to print, New York ACEP and our government affairs representatives, Weingarten, Reid & McNally, have been working to urge Governor Pataki to sign the “No-Fault” legislation. The passage of this legislation follows several years of effort by New York ACEP members, Weingarten, Reid & McNally, and a coalition of groups that included the Medical Society of the State of New York, the College of Surgeons and the Society of Orthopedic Surgeons. For the past three years, the legislation has been the focus of Albany-based and grassroots lobbying coordinated by New York ACEP and Weingarten, Reid & McNally. While the bill passed the Assembly for the past three years, it died in the Senate.

This year, Weingarten, Reid & McNally worked with New York ACEP and its coalition partners to redouble efforts at passing the bill in the Senate. It was highlighted during a New York ACEP Board lobby day in Albany April 5th and during a coalition lobby day May 31st. The May 31st lobby day included meetings with key staff to Governor Pataki, Senator Majority Leader Bruno, Senate Insurance Chairman Senator Seward, and our Senate and Assembly sponsors. Due to the grassroots efforts of New York ACEP members, we were able to gain 10 Republican sponsors for the bill this year. In addition, during the final week of the legislative session, Weingarten, Reid & McNally worked with the Senate sponsor, Senator Bonacic, to develop a press strategy in an attempt to pass the bill. These efforts paid off as the bill passed the Senate one day before the Legislature left for its Summer Recess.

We then faced the task of convincing Governor Pataki of the merits of this legislation. The Governor vetoed another version of this bill 4 years ago. Our work on this began earlier this year as we met with the sponsors to amend the bill to address all of the issues the Governor had raised in his previous veto message. An action alert asking members to call the Governor to request his approval of the bill was posted on the New York ACEP website when the legislation was transmitted to the Governor by the Legislature. Additionally, New York ACEP and Weingarten, Reid & McNally worked with the coalition, including our newest partner, Mothers Against Drunk Driving (MADD) to hold an Albany-based press conference calling upon the Governor to sign the bill into law.

New York ACEP members should be commended for all of their efforts at the grassroots level for the advancement of this bill. Please visit New York ACEP’s web site at http://www.nyacep.org for an update on the outcome of this legislation.

State Budget Victory: $5M for Medicare/Medicaid Crossover Restoration
As noted above, the 2005-2006 State Budget was enacted “on-time” for the first time in over twenty years. Through the grassroots efforts of New York ACEP members and Albany-based lobbying by Weingarten, Reid & McNally, the final State Budget included $2.5 million for a partial restoration of Medicaid/Medicare “crossover” payments to physicians who provide services to individuals who are dually eligible for both Medicare and Medicaid. The funding was added to the budget at the request of Senate Majority Leader Joseph Bruno. The total amount of funding available after federal matching funds are included is $5 million. Funds will be provided to physicians and DME providers who provided services to this population during the first quarter of the new fiscal year (April 1- June 30, 2005). The legislation requires the New York State Department of Health (New York State DOH) to determine the ratio of the physician’s payments to the total of the crossover payments for services provided during this period. Weingarten, Reid & McNally continue to monitor the efforts of the New York State DOH as they implement this legislation and determine the physician’s coinsurance enhancement for this period. Also, we will work to ensure that emergency physicians receive their share, as determined by New York State DOH.

Balance Billing Prohibition Defeated
Throughout the 2004 and 2005 sessions, New York ACEP members and Weingarten, Reid & McNally worked to successfully defeat legislation to prohibit balance billing for emergency services. Early in 2005, New York ACEP members including Dr. Sama and Dr. Lynn met with the Chairman of the Assembly Health Committee, Assemblyman Richard Gottfried, to express concerns about legislation that he introduced in 2004. Assemblyman Gottfried was very receptive to our concerns. He did not reintroduce the legislation in 2005. Senator Kemp Hannon did reintroduce his legislation (S.2556) to limit reimbursement for emergency services provided by non-participating providers in managed care plans and prohibit balance billing of emergency services. Members of the College met with Senator Hannon in April to express opposition to the bill. This meeting was very productive and Senator Hannon indicated that he understood the impact of the bill on emergency medicine. At the close of the 2005 Session, the bill had not been moved out of the Senate Health Committee.

Hospital Crowding Bill Reintroduced
New York ACEP was successful in getting legislation (A.3264 Gottfried/ S.4926 Hannon)) re-introduced in both houses this year to address hospital overcrowding. The bill codifies into law the Department of Health’s guidelines on hospital crowding and ambulance diversion. Further, it creates new mechanisms to implement and enforce these directives, including unannounced annual inspections by the Department of Health.

Although the patient access legislation has not been advanced out of the Health Committee of either house at this time, New York ACEP and its legislative representatives have been very successful in educating legislators on the gravity of this problem and the importance of taking steps to reduce crowding and ambulance diversion at hospitals throughout the State.

Most recently, on June 28th Dr. Samuel Bosco, Bob Reid and Shauneen McNally met with the Director of the Office of Health Systems Management (OHSM), David Wollner, and three members of his staff. Dr. Bosco shared the preliminary results of New York ACEP’s most recent survey, which shows that 90% of respondents believe that hospital crowding is still a serious problem. New York State DOH officials acknowledged that hospital crowding continues to be a problem across the State. Mr. Wollner suggested the Department staff look into the possibility of including a “mini-survey” on boarding of admitted patients and other factors as part of the HERDS system. There was also a discussion of possible follow-up actions that New York State DOH could take to gain greater compliance with the New York State DOH guidelines on hospital crowding and ambulance diversion once information is gained from the HERDS system. Our firm requested that New York ACEP be invited to provide input at the new Hospital Closure Commission meetings to discuss the impact of any decisions on hospital crowding. A follow-up meeting is planned for later this summer.

Next Steps
New York ACEP’s Board, Government Affairs Committee, Executive Director and members together with Weingarten, Reid & McNally, your advocates on the ground in Albany, will continue to educate legislators regarding the Chapter’s legislative and budgetary priorities in preparation for the 2006 session. Weingarten, Reid & McNally will continue to inform Chapter members about breaking news in Albany. Please visit New York ACEP’s web site at http://www.nyacep.org for action alerts and other updates, as posted by Executive Director, JoAnne Tarantelli and her staff.

We want to thank New York ACEP members for their strong grassroots advocacy this year and we wish you all a safe and relaxing summer.

Empire State EPIC 22:03:05

Since the 2005 Legislative Session began in January, Weingarten, Reid & McNally has been very busy working together with New York ACEP President Theodore J. Gaeta, DO, Governmental Affairs Committee Co-Chairs, Samuel F. Bosco, MD and Andrew E. Sama, MD, Executive Director, JoAnne Tarantelli and other members of the Board and Government Affairs Committee to advance New York ACEP’s 2005 Legislative agenda. The primary focus of New York ACEPs 2005 legislative priorities is increased patient access to high-quality emergency care in New York State. The Chapter’s 2005 priorities include reducing hospital crowding and ambulance diversion, highlighting the inequitable Medicaid reimbursement rate for emergency physicians, the advancement of No-Fault and Medical Liability Reform legislation and defeating legislation to prohibit balance billing of emergency services.

As this newsletter goes to print, the State Legislature has just passed the first on-time budget in over twenty years. After months of negotiations, and just hours before the April 1st deadline was set to expire, the Senate and Assembly passed a spending plan totaling over $105 billion. Included in this plan is the partial restoration of funding for Medicaid-Medicare crossover payments for dually eligible individuals. A summary of relevant budget issues and New York ACEP legislative priorities is provided below.

2005 State Budget Update

Partial Medicaid- Medicare “Crossover” Payment to Physicians Secure
Due to the outpouring of grassroots and Albany-based activity by New York ACEP, your legislative representatives, Weingarten, Reid & McNally, and the Chapter’s many partners in a coalition of physician and patient groups, language was included in the Legislature’s final budget to implement Senate Majority Leader Joseph Bruno’s allocation of $2.5 million to partially restore Medicaid crossover payments to physicians who provide services to individuals who are dually eligible for both Medicare and Medicaid. This legislation maximizes federal financial support to allocate $5 million to physicians and DME providers who provide services to this population during the first quarter of the new fiscal year (April 1-June 30, 2005).

The legislation requires the Department of Health (DOH) to determine the ratio of the physician’s payments to the total of the crossover payments for services provided during this period. Weingarten, Reid & McNally will monitor the efforts of the DOH as they implement this legislation and determine the physician’s coinsurance enhancement for this period. Also we will work to ensure that emergency physicians receive their share, as determined by the DOH.

Health Care Reform Act (HCRA)/Excess Liability
The Legislature agreed with the Governor’s proposal to re-authorize HCRA for two more years (through June 30, 2007) and agreed to move HCRA “on budget”. Included is the extension of Excess Medical Liability Insurance Program for two more years.

Prescription Drugs
A state “Preferred Drug Program (PDP)” and Prior Authorization requirement have been created. The plan ensures that doctors will have the final say in which drugs may be prescribed to patients and will result in an estimated $55 million in Medicaid savings this year.

Family Health Plus
Provisions are included for an accelerated State takeover of the Family Health Plus program for counties outside of New York City. Under the plan, the State will assume all local costs for the Family Health Plus program, effective October 1. The takeover of the program will provide $25 million in fiscal relief to local property taxpayers in SFY 2005-06.  The Legislature rejected the Executive’s proposal to inc