A7393

Assembly Bill 7393, sponsored by Assemblymember Darling, was laid aside during Senate floor consideration. Sen. Lanza requested the procedural action, which was granted by Acting President Persaud. The bill would have amended Part F of Chapter 59 of the Laws of 2018.

The Senate passed legislation extending the state's authority to sweep excess Medicaid reserve funds from health insurance companies when they are sold for profit. The bill passed 40-21 on a party-line vote. The measure extends authority originally granted in 2018 when the state captured reserves from the sale of Fidelis Care. Under the bill, any future profits from the sale of health insurance companies with significant public funding would be directed to the Health Care Transformation Fund for healthcare-related investments, including capital projects, debt retirement, housing, and support for healthcare providers. Sen. Rivera argued the extension is necessary to preserve the state's ability to recapture public funds without having to re-legislate in the future. He noted that the funds must be used for healthcare purposes and cited the difficulty of tracking down legislation that has been stricken from law. Sen. Ashby opposed the measure, characterizing it as another instance of the state finding creative ways to cover Medicaid funding gaps rather than addressing underlying budget problems. He questioned the necessity of the extension given that the sponsor acknowledged no similar situation is anticipated in the near future.