New York State Budget

       As you may have been reading lately, some very drastic Medicaid changes were written into the New York State budget this year.  Governor Pataki signed an appropriations bill which contained provisions eliminating spousal refusal and instituting a penalty period for home care, which technically became effective April 1, 2006. 

     The measure sustained a legal challenge, and as of this date, it appears that the Governor and the Legislature have resolved their differences.  The Legislature passed S 8471 on June 23, and the Governor is expected to sign it.  This new bill provides that spousal refusal will NOT be repealed and that transfers of assets will NOT be penalized for home care services or assisted living.  Additionally, contrary to a provision in the original legislation, Medicaid "wraparound" for Medicare Part D drugs for dual eligibles will continue until January 1, 2007.  In other words, pharmacists may still bill Medicaid for the rest of the year when the Part D plan refuses to pay because the drug is not on the formulary or for other reasons.

     This was a very close call.  Similar measures are usually contained in the state budget bills, but they usually do not pass.  Seniors and those who advocate for them can breathe a sigh of relief - at least for another year.