State Seeks to Recover Medicaid Balances

DOH has sent a Dear Administrator letter to nursing homes and home care providers regarding recovery of outstanding Medicaid liabilities related to rate adjustments and cash receipts assessments. 

The state hopes to reduce or eliminate Medicaid balances related to rate revisions and cash receipts assessments by March 2015.  To incentivize payment, the state will waive interest charges associated with outstanding rate revision balances if full payment is made by Sept. 1.  Providers submitting full payment of outstanding balances related to rate revisions by March 1, 2014 would qualify to have half of the interest charges associated with outstanding rate revision balances waived.

The interest waiver incentive applies only to rate-related balances;  DOH is not able to waive interest or penalties related to the cash receipts assessment. 

For providers that do not take part in the incentive program, the Department “will consider increasing the minimum recoupment amounts from the standard 15 percent” to achieve their collection goal and will release their policy on this in August.  DOH will also be contacting those providers with recoupment percentages lower than 15 percent “to negotiate an equitable payment arrangement.” 

The 2013-14 global cap assumes that $234 million of the $500 million in outstanding Medicaid liabilities will be collected in this state fiscal year.  The DAL provides DOH contact information for liability balance inquiries and other questions on the initiative.  Providers must respond by mid-August to take advantage of the incentive program. 

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