BILL NUMBER: S4881B
SPONSOR: CLEARE
 
TITLE OF BILL:
An act to amend the social services law, in relation to increasing the
amount of the savings exemption for eligibility for Medicaid
 
PURPOSE:
This bill would increase the ABD (Aged, Blind Disabled) asset test in
Medicaid, which would bring greater equity to the Medicaid program for
seniors and people with disabilities and to reduce health disparities
for communities of color, who are disproportionately harmed by the
current eligibility criteria.
 
SUMMARY OF PROVISIONS:
Sections 1 and 2 would amend section 366 of the social services law to
increase the asset limit to $300,000 for Medicaid applicants and recipi-
ents who are 65 year of age or older, certified blind or certified disa-
bled.
Section 3 of the bill establishes the effective date of January 1, 2025
for sections 1 and 2
 
JUSTIFICATION:
Increasing the asset test is necessary to meaningfully address racial
disparities in access to health care, exposed so vividly by COVID-19.
Older New Yorkers and people with disabilities with monthly incomes
below 138% of the Federal Poverty Line (FPO ($1563/month) are dispropor-
tionately people of color. The savings people at this income level have
are typically minimal and tend to be in cash rather than in a home or in
retirement accounts. When reviewing assets, however, Medicaid counts
cash but does not consider an applicant's home and retirement accounts.
Given the disparities in homeownership and retirement savings between
New Yorkers of color and white New Yorkers, this leads to racial inequi-
ties, as well as disparities for people with disabilities. The asset
poverty rate in New York varies dramatically by race.
* New York has the highest asset poverty rate for Latinx households
nationally-53.4% compared to 17.2% for white households in New York
State.
* New York has the sixth highest asset poverty rate nationally for
households of color-40.S% compared to 17.2% for white households.
* New York has the sixth highest rate for households with an adult with
a disability-47.4% compared to 25.3% for non-disabled households.
We recognize political and fiscal realities may make it difficult to
repeal the asset limit this year as California has done, so we suggest
an incremental approach with the increase of the asset test effective
January 1, 2025 and a full repeal in the future.
Prior to the full repeal, increasing the liquid asset limit will make
access to health care more equitable. A home worth $995,000 is exempt
from Medicaid, but a tenant who cannot afford to buy a home, and saves
$100,000, is disqualified from Medicaid. An asset limit of six times the
annual income limit would be $112,536 in 2022 (single person). This is
lower than California's asset limit, now increased to $130,000 as Cali-
fornia phases in full repeal of the asset test.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
See as follows: effective date of January 1, 2025 for sections 1 and 2.

Statutes affected:
S4881: 366 social services law, 366(2) social services law, 366(1) social services law
S4881A: 366 social services law, 366(2) social services law, 366(1) social services law
S4881B: 366 social services law, 366(2) social services law, 366(1) social services law