State Moves Forward with Medicaid Cut
Last week, eMedNY distributed a notice informing Medicaid providers that the State is moving forward with implementing the additional 0.5 percent Medicaid payment reduction enacted in this year’s State Budget. That means that the current 1 percent reduction being applied to Medicaid payments will increase to 1.5 percent. The Department of Health (DOH) is indicating that at this time, the reduction will be prospective starting with Medicaid payment cycle 2231 (June 10th check release date). DOH will make a retroactive adjustment to capture claims previously submitted for dates of service between April 2nd and May 13th at a future date. While the cut is a payment (not a rate) reduction for Medicaid fee-for-service (FFS) providers, it is being imposed on Medicaid managed care plans as a rate cut. The full text of the announcement is available here.
Please note that hospice, Nursing Home Transition and Diversion (NHTD) Waiver, and Traumatic Brain Injury (TBI) Waiver Medicaid payments are exempt from the cut.
LeadingAge NY Contact: Darius Kirstein, dkirstein@leadingageny.org