1. Statutory Authority:

§ 841.2 Legal base

(a) Section 19.07(e) of the Mental Hygiene Law authorizes the Commissioner to adopt standards including necessary rules and regulations pertaining to addiction services.

(b) Section 19.09(b) of the Mental Hygiene Law authorizes the Commissioner to adopt regulations necessary and proper to implement any matter under their jurisdiction.

(c) Section 32.01 of the Mental Hygiene Law authorizes the Commissioner to adopt any regulation reasonably necessary to implement and effectively exercise the powers and perform the duties conferred by Article 32 of the Mental Hygiene Law.

(d) Section 32.07(a) of the Mental Hygiene Law authorizes the Commissioner to adopt regulations to effectuate the provisions and purposes of Article 32 of the Mental Hygiene Law.

(e) Sections 43.01 and 43.02 of the Mental Hygiene Law grant the Commissioner the power and responsibility to adopt regulations that are necessary and proper to implement matters under his/her jurisdiction and to establish standards and methods of payment made by government agencies pursuant to Title 11 of article 5 of the Social Services Law for eligible addiction services certified by the Office.

(f) Section 264 of the Social Services Law provides that each office within the Department of Mental Hygiene shall be responsible for establishing and maintaining standards for medical care and services in institutions serving Medicaid patients.

(g) Pursuant to section 23 of Part C of chapter 58 of the laws of 2009, the Commissioner is authorized, with the approval of the Commissioner of Health and the Director of Budget, to promulgate regulations pursuant to Article 32 of the Mental Hygiene Law utilizing the Ambulatory Patient Group (APG) methodology for the purpose of establishing standards of payments made by government agencies pursuant to title 11 of article 5 of the Social Services Law for addiction services otherwise subject to the provisions of this Part.

(h) Article 15 of the executive law defines the protected classes included in the state human rights law.

(i) Title 10 of the New York Code of Rules and Regulations Part 86-8 defines reporting and rate certification for outpatient services ambulatory patient group.

2. Legislative Objectives: The legislature has authorized OASAS to establish regulations governing the reimbursement and participation in the Medical Assistance Program, and the amendments to this rule conform to the current OASAS State Plan Amendment relating to rate setting methodologies.

3. Needs and Benefits: The proposed rule repeals the old Part 841 and replaces it with the new Part 841. The reason that OASAS chose to repeal and replace rather than just make amendments throughout is that the amendments were substantial and it was more efficient to repeal and replace the language. This amended regulation results from a revised State Plan (i.e., State Plan Amendment) which was approved by CMS and resulted in a Medicaid rate package that was approved by the Division of Budget. The goal of this change was to eliminate cost-based rates and use the same fee methodology for all providers within a given space. This is what the amendments to 841 accomplish to reflect this change. This amendment removes outdated and irrelevant language and reflects the new State Plan Amendment. Medicaid rules (and therefore the OASAS State Plan) have updated the way OASAS Providers bill for services, and the regulatory language was updated to reflect this. These changes will allow for rate methodologies that promote efficiency, meaning fees rather than cost-based rates, for inpatient services. Overall, the changes provide for more accurate and fair reimbursement, as well as add simplicity to the entire regulation.

4. Costs: No additional administrative costs to the agency and/ or providers are anticipated.

5. Paperwork: There is no additional paperwork beyond what is already required.

6. Local Government Mandates: There are no new local government mandates.

7. Duplication: This proposed rule does not duplicate, overlap, or conflict with any State or federal statute or rule.

8. Alternatives: The alternative is to leave the regulation as it currently reads, with outdated language.

9. Federal Standards: This regulation does not conflict with federal standards.

10. Compliance Schedule: This rule was presented and approved at the September 2021 Behavioral Health Services Advisory Council (BHSAC) meeting, and was published in the October 27th 2021 issue of the State Register. No public comments were received, and this rule will be effective upon publication.

OASAS has determined that the rule will not impose any adverse economic impact or reporting, recordkeeping or other compliance requirements on small businesses or local governments because the amended regulation does not impose any new requirements on providers, it only updates the regulation to conform to the OASAS State Plan Amendment.

OASAS has determined that the rule will not impose any adverse impact on rural areas or reporting, recordkeeping or other compliance requirements on public or private entities in rural areas because the changes do not impose any new requirements, it was only updated to accurately reflect changes to the OASAS State Plan.

No change in the number of jobs and employment opportunities is anticipated as a result of the proposed repeal and replacement of Part 841, because the new Part pertains only to standards for reimbursement and participation in the Medical Assistance Program. The Office will not need to hire additional staff or reduce staff size; the proposed changes will not adversely impact jobs outside of the agency; the proposed changes will not result in the loss of any jobs within New York State.

As a rule that does not require a RFA, RAFA or JIS, this rule will be initially reviewed in the calendar year 2027, which is no later than the 5th year after the year in which this rule is being adopted.

The agency received no public comment.