Memorandum in Opposition

For Immediate Release: May 15, 2023

S.5367 (Brouk) — AN ACT to amend the unconsolidated law, to establish  parity  in  reimbursement  rates  for  supportive stabilization  services  provided that are substantially equivalent to crisis stabilization center services

This legislation, S.5367, would mandate the same reimbursement level for crisis stabilization services provided by different types of providers.  The New York Health Plan Association (HPA) opposes this legislation.  The applicability of this legislation is unclear, as it amends the unconsolidated law.  The need for the legislation is also unclear.

HPA recognizes that the current behavioral health delivery system often fails to meet the needs of individuals in crisis, many of whom could avoid an inpatient hospitalization if appropriate community-based services were available. However, there is confusion regarding the myriad services and programs licensed and certified by the Office of Mental Health (OMH), which often have vague definitions of services offered, and often have overlapping levels of care provided among different providers.

The bill memo indicates that reimbursement levels for one type of stabilization provider is four times higher than for a different type of provider, even though there are “numerous parallels.”  There is no background provided for why there is a discrepancy in the rates among types of providers, nor is there any analysis of the actual cost of delivering these services.  It is also unclear as to why changing the reimbursement requires a statutory change.

For these reasons, HPA opposes S.5367.