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GOVERNOR SIGNS BILLS TO EXTEND FAMILY HEALTH PLUS TO COVER MORE NEW YORKERS
Legislative Leaders Join Governor in Hailing Expansion of Family Health Plus Program

Governor Eliot Spitzer today announced that he has signed legislation to provide access to low-cost health insurance for tens of thousands of New Yorkers under the Family Health Plus plan.

This new law helps to address the challenge of keeping private employer dollars in the health care system, as health care costs continue to rise, making it harder for businesses to remain competitive. Under the law, private employers and Taft-Hartley funds will be given the option of participating in the State’s Family Health Plus insurance program, which is currently available only to New Yorkers who meet income eligibility requirements and who lack other coverage.

By allowing employers to offer employees the low-cost Family Health Plus insurance plan, the State will ensure that more New Yorkers have access to affordable health insurance, while simultaneously controlling State health care costs. That is because the State will leverage government funds to maintain and bring in more private employer dollars into the health care system.

For those employers who opt into the program, the State will pay a portion of the insurance premium for eligible employees. By sharing in the cost of insurance for these employees, the State will make it easier for employers to offer health care coverage without making these businesses uncompetitive.

“Rising health care costs are making it harder and harder for businesses to offer employee health care coverage, putting an increased burden on individuals and the State to pick up the tab,” said Governor Spitzer. “This agreement sets up a public-private partnership that will result in more people being insured at a lower cost to themselves, to employers and, ultimately, to the state.”

Senate Majority Leader Joseph L. Bruno said: “This important legislation makes health care coverage more accessible for thousands of New Yorkers who are uninsured and builds on New York’s legacy as a national leader in providing quality and affordable health care for its families.”

Assembly Speaker Sheldon Silver said: “Providing health insurance to uninsured New Yorkers is among this session’s most significant accomplishments. The lack of a comprehensive federal policy to establish universal health care requires the states to step up and create initiatives like this that will provide low-wage workers with access to health care they otherwise would not be able to afford.”

Assemblyman Richard N. Gottfried, Chair of the Assembly Committee on Health said: “Family Health Plus is cheaper and has better benefits than almost anything in the commercial market. We should let employers and their employees take advantage of that. This bill is not the only answer to the problem of the uninsured, but it is a significant step in the right direction.”

President and CEO of the Retail Council of New York State, James R. Sherin said: “There are small and independent retailers throughout New York State who want to provide health care coverage for their employees, but they’ve been priced out of the market. Creating and expanding employer partnerships for Family Health Plus responds directly to that concern and looks for ways to help those employers attract and retain the employees they need. We applaud the bill and look forward to working with the Governor and the State Legislature to spread the word to retailers across the state.”

The new law, combined with a $53 million state-share Medicaid rate adjustment to New York City providers of personal care services, will resolve an immediate crisis for New York City’s home care workers by enabling them to continue to receive health insurance coverage while the Family Health Plus buy-in program is implemented. Beginning April 1, 2008, the home care workers will be transitioned into the Family Health Plus program and the current home care worker health insurance “demonstration project” that was limited only to home care workers will be terminated.

Governor Spitzer also signed a second law, which will allow self-employed farmers to exclude the value of depreciated business assets from their gross family income in determining their income eligibility for Family Health Plus. This amendment, which is contingent upon federal approval, will allow more farm families to obtain vital health insurance coverage.

Both laws help move New York toward universal health insurance coverage, building on the Patient First reforms implemented in the enacted budget in April. Other reforms include an expansion of Child Health Plus to provide access to coverage for all currently uninsured children in New York, and a streamlining of Medicaid eligibility rules to bring in 900,000 uninsured, but Medicaid-eligible, adults and children. Taken together, these reforms will help expand coverage and, over the long run, reduce the cost of health care in New York.