Amendments to New York Social Services Law §363-d: Changes in Compliance Program Requirements

Medicaid Update - August 2020 Volume 36 - Number 13

Legislative Update – Amendments to New York Social Services Law §363-d: Changes in Compliance Program Requirements

Effective April 1, 2020, Social Services Law (SOS) §363-d was amended to make changes to the mandatory compliance program requirements and permit the imposition of a monetary penalty for failing to adopt and implement an effective compliance program. Compliance with the requirements of SOS §363-d is a condition of payment of the medical assistance program.

All providers who are subject to the mandatory compliance program requirements in SOS §363-d will be impacted by these changes and should take the steps necessary to review the changes, then comply.

It is the provider's responsibility to ascertain whether or not they are required to implement and operate an effective compliance program under the statute [see SOS §363-d(4)]. Providers subject to the provisions of this section include those for which the medical assistance program is a substantial portion of their business operations. "Substantial portion of business operations" is defined in 18 New York Consolidated Rules and Regulations (NYCRR) Part 521. The Office of the Medicaid Inspector General (OMIG) will issue updated guidance in the coming months.

OMIG monitors providers' adherence to the requirements found in SOS §363-d and Part 521. Providers are advised to review the amendments made to SOS §363-d, in Part QQ of Chapter 56 of the Laws of 2020 which can be found at: https://omig.ny.gov/compliance/compliance-library. In the interim, providers subject to the mandatory compliance program requirements must continue to maintain and operate their compliance programs.

There will be guidance in the future regarding the changes to SOS 363-d.  Please monitor our website, www.omig.ny.gov; the “compliance library” on our website, and Medicaid Updates, available on the NYS Department of Health website.  In the interim, Providers should continue their compliance programs.

Questions regarding the information presented in this article should be directed to OMIG's Bureau of Compliance at (518) 408‑0401 or via email at compliance@omig.ny.gov.