Revised Executive Compensation Regs Proposed

Last week, the Department of Health and twelve other state agencies issued revised proposed regulations limiting spending on executive compensation and administrative costs. Perhaps most significantly, the proposed April 1, 2013 effective date has been delayed.

The regulations would now take effect as of the first day of the covered provider's reporting period after July 1, 2013. For most providers which report their operations on a calendar year basis, the effective date would now be Jan. 1, 2014. This most recent version of the proposed regulations would also: (1) delete related organizations from its coverage; (2) clarify that covered providers will not be held responsible for a subcontractor's or agent's failure to comply with the regulations; (3) require reporting of subcontractors and agents on request, rather than in all cases; and (4) make other technical amendments and corrections. The revised regulations also exempt, until April 1, 2015, executive compensation contracts that were agreed to before July 1, 2012.

LeadingAge New York submitted extensive comments on the Oct. 31, 2012 version of the regulations. We are carefully reviewing this revised proposal and anticipate filing comments by the April 12 deadline.

Contact: Dan Heim, dheim@leadingageny.org, 518-867-8866