eMedNY 2% Across the Board Medicaid Payment Reduction Notice

Esq. Stephen B. Hanse in Finance & Reimbursement

An eMedNY notice forwarded to Medicaid providers this past Friday states that the 2 percent across-the-board Medicaid payment reduction that was repealed effective 4/1/14 in the enacted 2014-15 State Budget is being reactivated prospectively starting May 22nd (Medicaid payment cycle 1919)  until such time as CMS approves the repeal.

This notice does not apply to nursing homes as the State has held the 0.8 percent assessment in abeyance since 4/1/14 in order to determine how to best restore the 2% cut.

This reactivation of the two percent reduction impacts Certified Home Health Agencies.  Most other Medicaid long term care providers were subject to alternate cost savings measures in lieu of the two percent across-the-board cut.  For Long Term Home Health Care Programs, a 0.7 percent assessment has been in place, while Assisted Living Programs have been subject to a reduction in EQUAL payments. According to the Department of Health, those alternative measures will continue in lieu of a two percent cut until CMS approval is received and/or a decision is made to restore the funds in some different manner.

  NYSHFA CONTACT: Stephen B. Hanse, Esq.
Vice President, Governmental Affairs
518-462-4800 x25