State Requests CMS Approval for Nursing Home Cut Give-back

On Sep. 30th, the State filed a Medicaid State Plan Amendment (SPA) with the Centers for Medicare and Medicaid Services (CMS) to reinvest into nursing home care some of the savings related to previously enacted Medicaid cost savings provisions. The State enacted a 0.8 percent increase in the cash receipts assessment on nursing homes in lieu of the two percent across-the-board cut imposed on most other Medicaid providers.  While the two percent cut has expired, the 0.8 percent nursing home assessment continues.  The SPA will allow the Department of Health (DOH) to reinvest part of the money collected through the assessment into nursing home rates.  

The SPA now formalizes the commitment DOH had made to reinvest half of the savings that accrued from the assessment after April 2014 into nursing home rates.  When approved, the provision will increase nursing home Medicaid operating rates by approximately one percent retroactive to the time that the cut was repealed on April 1, 2014.  

We will let members know when CMS acts on the SPA.

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