Across-the-Board Medicaid Cut Expires

Legislative provisions that enacted the two percent across-the-board Medicaid payment cut (originally enacted in 2011) expired on March 31, 2015. This means that those providers, such as Certified Home Health Agencies (CHHAs) that have been subject to the two percent reduction, will no longer have their Medicaid payments reduced effective April 1, 2015. This change will be reflected in payments released on Wed., June 3.  

Please note that the 2014-15 State Budget contained a provision that eliminated the cut effective April 1, 2014, one year prior to its natural expiration. However, that provision is still awaiting federal approval. When approval is received, the State intends to repay providers the funds that were withheld during the period April 1, 2014 through March 31, 2015. The natural expiration of the cut on March 31, 2015 does not require approval from the Centers of Medicare and Medicaid Services (CMS).

For nursing homes, the .8 percent non-reimbursable cash receipts assessment enacted in lieu of the across-the-board cut remains in effect. A portion of the savings accruing from the assessment is reserved to fund the Universal Settlement of Appeals and Litigation. The State has indicated a willingness to reinvest the remaining Medicaid savings generated by the assessment into nursing home care, and LeadingAge New York is urging the Department of Health (DOH) to take the necessary steps to ensure that is done as quickly as possible.

The e-MedNY notice is copied below.

Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841

E-MedNY Notice: 2% Across-the-Board Medicaid Payment Reductions

This notice is to advise impacted providers that effective May 8, 2015, the 2 percent Across-the-Board Medicaid payment reduction will be eliminated for claims with service dates on or after April 1, 2015. This change will be reflected in checks issued in Cycle 1969 (checks dated May 18, 2015 with a release date of June 3, 2015).

The retroactive repayment of the reduction taken over the period April 1, 2014 through March 31, 2015 is still pending federal Centers for Medicare & Medicaid Services (CMS) approval. Questions may be directed to 2percentacrosstheboard@health.ny.gov. Please use the title of this notice as the subject in the email.

To view the full notice, click here.