Adviser Fall 2017 Dec. | Page 16

One Voice 2018 Sneak Peak: A Tumultuous Year Ahead F ederal tax reform. Medicaid Block Grants. $4 billion state budget deficit. Democratic unification in the State Senate. Staffing ratios. Medicaid cuts. All indications point to 2018 shaping up to be a turbulent year for advocacy and with a slew of potential damaging cuts and mandates for long term care programs and providers. Ami Schnauber Federal Outlook On the federal level, tax reform proposals will make it harder to build affordable senior housing, retirement communities and renovate health care facilities. The elimination on tax-exempt bond funding will further limit the State’s ability to move forward with health transformation grants. Congress is also continuing its attempt at reforming or overturning the Affordable Care Act. Such proposals have contemplated the inclusion of Medicaid Block Grants to the states. Given New York’s generous Medicaid benefits and large number of enrollees, Block Grants would mean significantly less money from the federal government. The only way to manage such a significant loss of money is through changes in benefits and eligibility. State Outlook Back in New York, the State is estimating a more than $4 billion budget deficit for the 2018-2019 state fiscal year. We expect to see significant Medicaid cuts in the Governor’s proposed budget next year and will need to be prepared for a big budget fight. Complicating the political landscape is the recent unification of the State Senate Democrats. For the past several years, the break-away Independent Democratic Conference (IDC) has worked with the Senate Republicans to share power in the Senate. Just recently the IDC leader and the Senate Democratic leader agreed to a plan that would unify the democrats to take control of the Senate. The plan is partly dependent on the success of the democrats in upcoming special elections and would not take effect until after the April budget deadline. We expect to see significant Medicaid cuts in the governor’s proposed budget next year and will need to be prepared for a big budget fight. A democratic Senate could have a big impact on the success or defeat of nurse staffing ratios legislation. While the bill passed in the Assembly last year it stalled in the Senate. A democratic majority may have the votes to move the bill to the floor and pass it. Leading Age NY Priorities There are many priority bills that we will be pushing in the upcoming legislative session. All are aimed at trying to meet a growing demand of an aging baby boomer population, delaying or eliminating the need for seniors to go on Medicaid or unnecessarily move to a higher level of care, as well as initiatives that would make providing long term care more efficient. (See 2018 Sneak Peek on page 17) 15 Adviser a publication of LeadingAge New York | Fall 2017