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NY State Legislature· S8800-2025Signed by Governor

Relates to the calculation of rates for certain treatment pursuant to the medical assistance program, the official text

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S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8800
 
                             I N  S E N A T E
 
                              January 8, 2026
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in relation  to  the  calculation  of
   rates  for  certain  treatment  pursuant  to  the  medical  assistance
   program; and to amend a chapter of  the  laws  of  2025  amending  the
   insurance  law relating to requiring rates paid for rehabilitation and
   opioid treatment be pursuant to certain fee schedules published by the
   office of addiction services and supports, as proposed in  legislative
   bills  numbers S.  6897-A and A. 7038-A, in relation to the effective-
   ness thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraph  (J)  of  paragraph  31 of subsection (i) of
 section 3216 of the insurance law, as amended by a chapter of  the  laws
 of  2025 amending the insurance law relating to requiring rates paid for
 rehabilitation and opioid treatment be pursuant to certain fee schedules
 published by the office of addiction services and supports, as  proposed
 in legislative bills numbers S. 6897-A and A. 7038-A, is amended to read
 as follows:
   (J)  (I)  This [subparagraph] CLAUSE shall apply to facilities in this
 state that are licensed,  certified,  or  otherwise  authorized  by  the
 office  of  addiction  services and supports for the provision of outpa-
 tient, intensive outpatient, outpatient rehabilitation and opioid treat-
 ment  that  are  participating  in  the  insurer's   provider   network.
 Reimbursement  for covered outpatient treatment provided by such facili-
 ties shall be at rates negotiated between the insurer  and  the  partic-
 ipating  facility,  provided that such rates are not less than the rates
 that would be paid for such treatment pursuant to the medical assistance
 program under title eleven of article five of the social  services  law.
 For  the purposes of this [subparagraph] CLAUSE, the rates that would be
 paid for such treatment pursuant to the medical assistance program under
 title eleven of article five of the social services law  [shall  be  set
 forth in a fee schedule setting forth the specific fee for each individ-
 ual  service  covered  by  this  subparagraph published by the office of

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11143-04-6
 S. 8800                             2

 addiction services and supports  by  November  first  of  the  preceding
 calendar  year  and]  shall be the rates with an effective date of April
 first of the preceding year, which shall be established prior to October
 first of the preceding calendar year.
   (II)  THE  OFFICE  OF  ADDICTION  SERVICES  AND SUPPORTS SHALL PUBLISH
 INFORMATION ADEQUATE TO CALCULATE THE RATES THAT WOULD BE PAID FOR  SUCH
 TREATMENT  PURSUANT TO THE MEDICAL ASSISTANCE PROGRAM UNDER TITLE ELEVEN
 OF ARTICLE FIVE OF THE SOCIAL SERVICES LAW. SUCH  INFORMATION  SHALL  BE
 PROVIDED  IN  A  FORM AND MANNER TO BE DETERMINED BY THE COMMISSIONER OF
 ADDICTION SERVICES  AND  SUPPORTS.  NOTHING  IN  THIS  CLAUSE  SHALL  BE
 CONSTRUED  TO  RELIEVE  AN  INSURER OF THE OBLIGATION TO REIMBURSE AT NO
 LESS THAN THE APPLICABLE MINIMUM RATE SET FORTH IN CLAUSE  (I)  OF  THIS
 SUBPARAGRAPH. Prior to the submission of premium rate filings and appli-
 cations,  the  superintendent  shall  provide  insurers with guidance on
 factors to consider in calculating the impact of rate  changes  for  the
 purposes  of  submitting  premium  rate  filings and applications to the
 superintendent for the subsequent policy year. To the  extent  that  the
 rates  with  an  effective date of April first differ from the estimated
 rates incorporated in premium rate filings  and  applications,  insurers
 may  account  for  such  differences  in future premium rate filings and
 applications submitted to the superintendent for approval.
   § 2. Subparagraph (K) of paragraph 35 of  subsection  (i)  of  section
 3216  of  the insurance law, as amended by a chapter of the laws of 2025
 amending the insurance law relating to requiring rates paid for rehabil-
 itation and opioid  treatment  be  pursuant  to  certain  fee  schedules
 published  by the office of addiction services and supports, as proposed
 in legislative bills numbers S. 6897-A and A. 7038-A, is amended to read
 as follows:
   (K) (I) This [subparagraph] CLAUSE shall apply to outpatient treatment
 provided in a facility issued an operating certificate  by  the  commis-
 sioner of mental health pursuant to the provisions of article thirty-one
 of  the  mental  hygiene law, or in a facility operated by the office of
 mental health, or in a crisis stabilization center licensed pursuant  to
 section  36.01  of  the mental hygiene law, that is participating in the
 insurer's provider network. Reimbursement for covered outpatient  treat-
 ment  provided  by  such a facility shall be at rates negotiated between
 the insurer and the participating facility, provided that such rates are
 not less than the rates that would be paid for such  treatment  pursuant
 to  the medical assistance program under title eleven of article five of
 the social services law. For the purposes of this [subparagraph] CLAUSE,
 the rates that would be paid for such treatment pursuant to the  medical
 assistance  program  under  title  eleven  of article five of the social
 services law [shall be set forth in a fee  schedule  setting  forth  the
 specific  fee  for  each individual service covered by this subparagraph
 published by the office of  mental  health  by  November  first  of  the
 preceding  calendar  year and] shall be the rates with an effective date
 of April first of the preceding year, which shall be  established  prior
 to October first of the preceding calendar year.
   (II) THE OFFICE OF MENTAL HEALTH SHALL PUBLISH INFORMATION ADEQUATE TO
 CALCULATE  THE  RATES  THAT WOULD BE PAID FOR SUCH TREATMENT PURSUANT TO
 THE MEDICAL ASSISTANCE PROGRAM UNDER TITLE ELEVEN OF ARTICLE FIVE OF THE
 SOCIAL SERVICES LAW. SUCH INFORMATION SHALL BE PROVIDED IN  A  FORM  AND
 MANNER TO BE DETERMINED BY THE COMMISSIONER OF MENTAL HEALTH. NOTHING IN
 THIS  CLAUSE  SHALL BE CONSTRUED TO RELIEVE AN INSURER OF THE OBLIGATION
 TO REIMBURSE AT NO LESS THAN THE APPLICABLE MINIMUM RATE  SET  FORTH  IN
 CLAUSE (I) OF THIS SUBPARAGRAPH. Prior to the submission of premium rate
 S. 8800                             3
 
 filings and applications, the superintendent shall provide insurers with
 guidance on factors to consider in calculating the impact of rate chang-
 es  for the purposes of submitting premium rate filings and applications
 to the superintendent for the subsequent policy year. To the extent that
 the  rates  with  an effective date of April first differ from the esti-
 mated rates incorporated  in  premium  rate  filings  and  applications,
 insurers may account for such differences in future premium rate filings
 and applications submitted to the superintendent for approval.
   § 3. Subparagraph (K) of paragraph 5 of subsection (l) of section 3221
 of the insurance law, as amended by a chapter of the laws of 2025 amend-
 ing  the  insurance  law  relating to requiring rates paid for rehabili-
 tation and  opioid  treatment  be  pursuant  to  certain  fee  schedules
 published  by the office of addiction services and supports, as proposed
 in legislative bills numbers S. 6897-A and A. 7038-A, is amended to read
 as follows:
   (K) (I) This [subparagraph] CLAUSE shall apply to outpatient treatment
 provided in a facility issued an operating certificate  by  the  commis-
 sioner of mental health pursuant to the provisions of article thirty-one
 of  the  mental  hygiene law, or in a facility operated by the office of
 mental health, or in a crisis stabilization center licensed pursuant  to
 section  36.01  of  the mental hygiene law, that is participating in the
 insurer's provider network. Reimbursement for covered outpatient  treat-
 ment  provided  by  such a facility shall be at rates negotiated between
 the insurer and the participating facility, provided that such rates are
 not less than the rates that would be paid for such  treatment  pursuant
 to  the medical assistance program under title eleven of article five of
 the social services law. For the purposes of this [subparagraph] CLAUSE,
 the rates that would be paid for such treatment pursuant to the  medical
 assistance  program  under  title  eleven  of article five of the social
 services law [shall be set forth in a fee  schedule  setting  forth  the
 specific  fee  for  each individual service covered by this subparagraph
 published by the office of  mental  health  by  November  first  of  the
 preceding  calendar  year and] shall be the rates with an effective date
 of April first of the preceding year, which shall be  established  prior
 to October first of the preceding calendar year.
   (II) THE OFFICE OF MENTAL HEALTH SHALL PUBLISH INFORMATION ADEQUATE TO
 CALCULATE  THE  RATES  THAT WOULD BE PAID FOR SUCH TREATMENT PURSUANT TO
 THE MEDICAL ASSISTANCE PROGRAM UNDER TITLE ELEVEN OF ARTICLE FIVE OF THE
 SOCIAL SERVICES LAW. SUCH INFORMATION SHALL BE PROVIDED IN  A  FORM  AND
 MANNER TO BE DETERMINED BY THE COMMISSIONER OF MENTAL HEALTH. NOTHING IN
 THIS  CLAUSE  SHALL BE CONSTRUED TO RELIEVE AN INSURER OF THE OBLIGATION
 TO REIMBURSE AT NO LESS THAN THE APPLICABLE MINIMUM RATE  SET  FORTH  IN
 CLAUSE (I) OF THIS SUBPARAGRAPH. Prior to the submission of premium rate
 filings and applications, the superintendent shall provide insurers with
 guidance on factors to consider in calculating the impact of rate chang-
 es  for the purposes of submitting premium rate filings and applications
 to the superintendent for the subsequent policy year. To the extent that
 the rates with an effective date of April first differ  from  the  esti-
 mated  rates  incorporated  in  premium  rate  filings and applications,
 insurers may account for such differences in future premium rate filings
 and applications submitted to the superintendent for approval.
   § 4. Subparagraph (J) of paragraph 7 of subsection (l) of section 3221
 of the insurance law, as amended by a chapter of the laws of 2025 amend-
 ing the insurance law relating to requiring  rates  paid  for  rehabili-
 tation  and  opioid  treatment  be  pursuant  to  certain  fee schedules
 published by the office of addiction services and supports, as  proposed
 S. 8800                             4
 
 in legislative bills numbers S. 6897-A and A. 7038-A, is amended to read
 as follows:
   (J)  (I)  This [subparagraph] CLAUSE shall apply to facilities in this
 state that are licensed,  certified,  or  otherwise  authorized  by  the
 office  of  addiction  services and supports for the provision of outpa-
 tient, intensive outpatient, outpatient rehabilitation and opioid treat-
 ment  that  are  participating  in  the  insurer's   provider   network.
 Reimbursement  for covered outpatient treatment provided by such facili-
 ties shall be at rates negotiated between the insurer  and  the  partic-
 ipating  facility,  provided that such rates are not less than the rates
 that would be paid for such treatment pursuant to the medical assistance
 program under title eleven of article five of the social  services  law.
 For  the purposes of this [subparagraph] CLAUSE, the rates that would be
 paid for such treatment pursuant to the medical assistance program under
 title eleven of article five of the social services law  [shall  be  set
 forth in a fee schedule setting forth the specific fee for each individ-
 ual  service  covered  by  this  subparagraph published by the office of
 addiction services and supports  by  November  first  of  the  preceding
 calendar  year  and]  shall be the rates with an effective date of April
 first of the preceding year, which shall be established prior to October
 first of the preceding calendar year.
   (II) THE OFFICE OF  ADDICTION  SERVICES  AND  SUPPORTS  SHALL  PUBLISH
 INFORMATION  ADEQUATE TO CALCULATE THE RATES THAT WOULD BE PAID FOR SUCH
 TREATMENT PURSUANT TO THE MEDICAL ASSISTANCE PROGRAM UNDER TITLE  ELEVEN
 OF  ARTICLE  FIVE OF THE SOCIAL SERVICES LAW.  SUCH INFORMATION SHALL BE
 PROVIDED IN A FORM AND MANNER TO BE DETERMINED BY  THE  COMMISSIONER  OF
 ADDICTION  SERVICES  AND  SUPPORTS.  NOTHING  IN  THIS  CLAUSE  SHALL BE
 CONSTRUED TO RELIEVE AN INSURER OF THE OBLIGATION  TO  REIMBURSE  AT  NO
 LESS  THAN  THE  APPLICABLE MINIMUM RATE SET FORTH IN CLAUSE (I) OF THIS
 SUBPARAGRAPH. Prior to the submission of premium rate filings and appli-
 cations, the superintendent shall  provide  insurers  with  guidance  on
 factors  to  consider  in calculating the impact of rate changes for the
 purposes of submitting premium rate  filings  and  applications  to  the
 superintendent  for  the  subsequent policy year. To the extent that the
 rates with an effective date of April first differ  from  the  estimated
 rates  incorporated  in  premium rate filings and applications, insurers
 may account for such differences in  future  premium  rate  filings  and
 applications submitted to the superintendent for approval.
   §  5.  Paragraph 12 of subsection (g) of section 4303 of the insurance
 law, as amended by a chapter of the laws of 2025 amending the  insurance
 law  relating  to  requiring  rates  paid  for rehabilitation and opioid
 treatment be pursuant to certain fee schedules published by  the  office
 of  addiction  services  and  supports, as proposed in legislative bills
 numbers S.  6897-A and A. 7038-A, is amended to read as follows:
   (12) (A) This  [paragraph]  SUBPARAGRAPH  shall  apply  to  outpatient
 treatment  provided in a facility issued an operating certificate by the
 commissioner of mental health pursuant  to  the  provisions  of  article
 thirty-one  of  the mental hygiene law, or in a facility operated by the
 office of mental health, or in a crisis  stabilization  center  licensed
 pursuant to section 36.01 of the mental hygiene law, that is participat-
 ing  in  the  corporation's  provider network. Reimbursement for covered
 outpatient treatment provided by such facility shall be at rates negoti-
 ated between the corporation and the  participating  facility,  provided
 that  such rates are not less than the rates that would be paid for such
 treatment pursuant to the medical assistance program under title  eleven
 of  article  five  of  the social services law. For the purposes of this
 S. 8800                             5
 
 [paragraph] SUBPARAGRAPH, the rates that would be paid for  such  treat-
 ment  pursuant  to  the medical assistance program under title eleven of
 article five of the social services law [shall be set  forth  in  a  fee
 schedule  setting  forth  the  specific  fee for each individual service
 covered by this paragraph published by the office of  mental  health  by
 November  first  of  the preceding calendar year and] shall be the rates
 with an effective date of April first of the preceding year, which shall
 be established prior to October first of the preceding calendar year.
   (B) THE OFFICE OF MENTAL HEALTH SHALL PUBLISH INFORMATION ADEQUATE  TO
 CALCULATE  THE  RATES  THAT WOULD BE PAID FOR SUCH TREATMENT PURSUANT TO
 THE MEDICAL ASSISTANCE PROGRAM UNDER TITLE ELEVEN OF ARTICLE FIVE OF THE
 SOCIAL SERVICES LAW. SUCH INFORMATION SHALL BE PROVIDED IN  A  FORM  AND
 MANNER TO BE DETERMINED BY THE COMMISSIONER OF MENTAL HEALTH. NOTHING IN
 THIS  SUBPARAGRAPH SHALL BE CONSTRUED TO RELIEVE AN INSURER OF THE OBLI-
 GATION TO REIMBURSE AT NO LESS THAN  THE  APPLICABLE  MINIMUM  RATE  SET
 FORTH  IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. Prior to the submission of
 premium rate filings and applications, the superintendent shall  provide
 corporations  with  guidance  on  factors to consider in calculating the
 impact of rate changes for  the  purposes  of  submitting  premium  rate
 filings and applications to the superintendent for the subsequent policy
 year. To the extent that the rates with an effective date of April first
 differ from the estimated rates incorporated in premium rate filings and
 applications,  corporations  may  account for such differences in future
 premium rate filings and applications submitted  to  the  superintendent
 for approval.
   §  6.  Paragraph 10 of subsection (l) of section 4303 of the insurance
 law, as amended by a chapter of the laws of 2025 amending the  insurance
 law  relating  to  requiring  rates  paid  for rehabilitation and opioid
 treatment be pursuant to certain fee schedules published by  the  office
 of  addiction  services  and  supports, as proposed in legislative bills
 numbers S.  6897-A and A. 7038-A, is amended to read as follows:
   (10) (A) This [paragraph] SUBPARAGRAPH shall apply  to  facilities  in
 this  state that are licensed, certified, or otherwise authorized by the
 office of addiction services and supports for the  provision  of  outpa-
 tient, intensive outpatient, outpatient rehabilitation and opioid treat-
 ment  that  are  participating  in  the  corporation's provider network.
 Reimbursement for covered outpatient treatment provided by such  facili-
 ties  shall  be  at  rates  negotiated  between  the corporation and the
 participating facility, provided that such rates are not less  than  the
 rates  that  would  be  paid  for such treatment pursuant to the medical
 assistance program under title eleven of  article  five  of  the  social
 services  law.  For  the  purposes of this [paragraph] SUBPARAGRAPH, the
 rates that would be paid for such  treatment  pursuant  to  the  medical
 assistance  program  under  title  eleven  of article five of the social
 services law [shall be set forth in a fee  schedule  setting  forth  the
 specific  fee  for  each  individual  service  covered by this paragraph
 published by the office of addiction services and supports  by  November
 first  of  the  preceding  calendar year and] shall be the rates with an
 effective date of April first of the  preceding  year,  which  shall  be
 established prior to October first of the preceding calendar year.
   (B) THE OFFICE OF ADDICTION SERVICES AND SUPPORTS SHALL PUBLISH INFOR-
 MATION  ADEQUATE  TO  CALCULATE  THE  RATES  THAT WOULD BE PAID FOR SUCH
 TREATMENT PURSUANT TO THE MEDICAL ASSISTANCE PROGRAM UNDER TITLE  ELEVEN
 OF  ARTICLE  FIVE OF THE SOCIAL SERVICES LAW.  SUCH INFORMATION SHALL BE
 PROVIDED IN A FORM AND MANNER TO BE DETERMINED BY  THE  COMMISSIONER  OF
 ADDICTION  SERVICES  AND SUPPORTS. NOTHING IN THIS SUBPARAGRAPH SHALL BE
 S. 8800                             6
 
 CONSTRUED TO RELIEVE AN INSURER OF THE OBLIGATION  TO  REIMBURSE  AT  NO
 LESS  THAN  THE APPLICABLE MINIMUM RATE SET FORTH IN SUBPARAGRAPH (A) OF
 THIS PARAGRAPH. Prior to the submission  of  premium  rate  filings  and
 applications,  the  superintendent shall provide corporations with guid-
 ance on factors to consider in calculating the impact  of  rate  changes
 for  the purposes of submitting premium rate filings and applications to
 the superintendent for the subsequent policy year. To  the  extent  that
 the  rates  with  an effective date of April first differ from the esti-
 mated rates incorporated  in  premium  rate  filings  and  applications,
 corporations  may  account  for  such differences in future premium rate
 filings and applications submitted to the superintendent for approval.
   § 7. Section 7 of a chapter of the laws of 2025 amending the insurance
 law relating to requiring  rates  paid  for  rehabilitation  and  opioid
 treatment  be  pursuant to certain fee schedules published by the office
 of addiction services and supports, as  proposed  in  legislative  bills
 numbers S. 6897-A and A. 7038-A, is amended to read as follows:
   §  7.  This  act shall take effect immediately [and shall apply to all
 policies and contracts issued, renewed, modified, altered, or amended on
 or after such date].
   § 8. This act shall take effect immediately; provided,  however,  that
 sections  one,  two,  three,  four,  five and six of this act shall take
 effect on the same date and in the same manner as a chapter of the  laws
 of  2025 amending the insurance law relating to requiring rates paid for
 rehabilitation and opioid treatment be pursuant to certain fee schedules
 published by the office of addiction services and supports, as  proposed
 in legislative bills numbers S. 6897-A and A. 7038-A, takes effect.
Every fact on this page links to its source, starting with the official bill record.