Executive Order #38 - Court of Appeals Decision

Esq. Stephen B. Hanse in Legal

The New York State Court of Appeals, the State’s highest court, rendered its Decision today on the issue of whether or not the Governor and the Department of Health have the power to adopt regulations placing caps of $199,000 on compensation paid to certain employees of Medicaid providers. In affirming the Order of the Appellate Division, Third Department, the Court of Appeals held that the Governor and the Department have the power to adopt regulations placing caps on compensation only when such payments are derived from State funds (e.g. Medicaid or Medicaid-managed care). The Court held that the Governor and the Department do not have the power to adopt regulations placing caps on compensation when such payments are made with non-State funds (e.g. payments from Medicare or other third party sources). 

NYSHFA/NYSCAL CONTACT: 

Stephen B. Hanse, Esq.
President & CEO
518-462-4800 x11