LeadingAge NY Seeks Release of Nursing Home Medicaid Funding

Given the many Medicaid State Plan Amendment (SPA) requests awaiting federal approval and the precarious financial health of many member nursing homes, LeadingAge NY is urging the State to expedite Medicaid rate updates. In a new letter to Acting Commissioner of Health James McDonald, we ask the State to incorporate the State share of the 7.5 percent increase to nursing home and Adult Day Health Care (ADHC) Medicaid rates enacted in this year’s State Budget as soon as possible. Because Medicaid funding includes a federal match, the Centers for Medicare and Medicaid Services (CMS) reviews and approves state-proposed Medicaid spending changes before federal matching funds are made available. However, there is little risk to the State in releasing the non-federal share of the overall funding in advance of federal approval. The Department of Health (DOH) has followed this practice in several recent Medicaid payments.

In addition, we request that DOH do all that it can to obtain approval for the pending SPA that would allow for payment of the federal portion of the so-called “safe staffing” funding. The State share (50 percent) of that funding has been distributed (or allocated to hospital-based homes) prior to federal approval, but the release of federal matching dollars can only occur after CMS approval. Because those dollars are meant to improve staffing by helping providers to defray the high cost of meeting staffing level requirements during a staffing crisis, they are needed now. Similarly, because the Medicaid rate increase was made in recognition of years of Medicaid underfunding, it is imperative that the dollars be made available without delay. We stress that this would support adequate capacity of well-staffed beds, allow homes to meet the timeframes of labor agreements, and help quality providers recover from the extreme financial stress of the pandemic without needing to resort to sale, reduction of services, or closure.

We will continue this advocacy with policymakers. A copy of the letter is available here.

Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-461-5993