The Community Service Society of New York
04/22/2024 | Press release | Distributed by Public on 04/22/2024 19:35
Press Release: CSS Statement on FY 2025 State Budget
April 22nd, 2024
Press Release
CSS Statement on FY 2025 State Budget
The state budget passed by the State Legislature this past weekend and signed by Governor Hochul, although falling short on addressing New York's housing crisis, represents a major step forward in protecting healthcare consumers from medical debt.
The Community Service Society of New York (CSS) applauds the governor and state legislators for their continued commitment to protecting patients, particularly low-income New Yorkers, from the devastating impacts of medical debt. Under their leadership, New Yorkers have benefited from laws passed in the last three years that address the root causes of medical debt, including a bill signed by Governor Hochul last December at our headquarters that prohibits medical providers from sending medical debt to credit reporting agencies.
Building on previous legislation aimed at tackling New York's medical debt crisis, the new patient protections included in the FY 25 budget make New York's Hospital Financial Assistance Law the strongest in the nation. For example, it prohibits all New York hospitals from suing patients with incomes below 400 percent of the federal poverty level (FPL) for medical debt. It also requires them to provide a fair discount schedule to patients that consists of free care for people below 200 percent of FPL and payment plans based on discounts off of the Medicaid reimbursement rate, capped at five percent of a families' gross income each year for patients with incomes between 200-400 percent of FPL.
Another positive aspect of the budget for healthcare consumers is the inclusion of a law that eliminates cost-sharing for insulin for enrollees in state-regulated health insurance plans. More than 10 percent of New Yorkers - about 500,000 people - rely on insulin every day. Many are people of color, seniors, or live in low-income households. They tend to disproportionately suffer from diabetes complications, including kidney failure, blindness, and loss of limbs. Banning copayments for insulin saves lives, provides enormous economic relief to consumers, and generates millions of dollars in savings to our healthcare system.
We are disappointed, however, that the same bold leadership that produced the strongest Hospital Financial Assistance law in the nation was missing when it came to "Coverage for All" legislation (S2237B/A3020B). This critically important bill -- which would have provided essential and preventive healthcare coverage to more than 150,000 New Yorkers who are barred from accessing care due to their immigration status -- was left out of the final budget. We urge the State Legislature to pass this bill before the end of the legislative session.
Equally disappointing is the failure by the Assembly to fully restore a nine percent budget cut from the previous fiscal year for Community Health Advocates (CHA), a consumer assistance program that helps New Yorkers navigate the state's complex healthcare system and has saved consumers more than $175 million since 2010. As a result, the program's helpline and 27 community-based organizations in the CHA network will be forced to cut services to New Yorkers across the state who need help understanding and using their health insurance, disputing insurance denials, addressing billing issues, and accessing healthcare services.
Finally, we would like to thank state lawmakers for including in the budget $3.250 million for the Education Debt Consumer Assistance Program (EDCAP); $3 million for the Community Health Access to Addiction and Mental Healthcare Project (CHAMP); and $300,000 for the Next Door Project. These programs are essential to further our mission of promoting economic opportunity and championing an equitable state.