Important Budget Updates

February 1, 2020

Here in Albany the scramble to protect particular areas of Medicaid spending and prevent taxes and other revenue raisers is on as we await news of the appointees to the MRT 2.0 Workgroup.  Each group seeking omission from the hand of the MRT 2.0 will cite reasons why their particular area of Medicaid is too important to touch.  This includes insurers and other businesses (see article below).

For the moment the NYS Council will keep our eye on the budget ball.  We have weighed in heavy with our contacts in government regarding our interest in being seated on the MRT 2.0.

Next week we will be testifying at the Mental Hygiene hearing (Monday) where we will make the requests our sector must have to provide some measure of fiscal sustainability (3FOR5 CAMPAIGN).  We will float proposed budget language that would create a set aside of at least 40% of (potential) DSRIP 2.0 funds for community-based organizations, and we will continue to pursue a set aside of future disbursements from the state’s Health Care Transformation Fund account (think Centene / Fidels $).   We will work aggressively to protect children’s BH services from any/all cuts as well as any future efforts to start a new ‘reform’ of the system while we continue to try and get the first phase done and implemented correctly.  Finally, we will argue for critical investments including rate and contract increases, Opioid Settlement and other similar new money coming to NYS to address our ongoing Opioid Epidemic, and rising rates of suicide completions, and of course, various loan forgiveness, scholarships, mentoring programs and other solutions to help with our crippling workforce crisis.

NYS Council members will be in Albany next Tuesday and Wednesday (2/4, 2/5) for a series of meetings with leaders representing the Governor’s Office, DOH, OMH and OASAS.  On Day 2 we will ‘storm the hill’ as our members, joined by some of our BHCC/BH IPA colleagues and a group of providers that operate OASAS 819/820 residential programs, will participate in meetings with New York’s legislative leaders and chairs of committees that provide leadership in our topic areas.

We are looking forward to seeing many of you next week!  THANK YOU for coming to Albany at this critical moment in time.

Insurance, business groups say MRT 2 should not consider new taxes (back)

By Shannon Young, Politico

More than a dozen health plans and business groups are urging Gov. Andrew Cuomo to rule out any new or increased taxes on privately insured customers as a way to plug New York’s Medicaid budget gap.

The coalition — composed of the New York Health Plan Association, Business Council of New York State, New York State Conference of Blue Cross and Blue Shield Plans and Capital Region Chamber, among others — sent a letter to the governor asking that the new Medicaid Redesign Team focus solely on “reforming and controlling costs” in the program and not on implementing new taxes.

“A workgroup charged with reassessing the way the program’s current structure is driving unsustainable costs should not undertake policy discussions that will add to the cost of health insurance for New York businesses and the individuals they employ, union benefit funds and individual consumers,” the groups wrote.

The coalition added that New York collects more than $5 billion annually through taxes, surcharges and assessments on health insurance, “the third largest source of state revenue behind the sales and income taxes.”

“Therefore, taxes of any kind — e.g. HCRA taxes, personal income taxes, corporate taxes — should not be part of the MRT’s directive. … As your administration finalizes the MRT’s membership, scope and process, we urge you to direct it to focus on measures to improve the efficiency and sustainability of the program, and make clear that any discussion of taxes is beyond its authority,” the letter said.

Cuomo’s office did not immediately respond to a request for comment.

The letter came just a day after state lawmakers pressed state health officials for details on the MRT 2, which Cuomo has tasked with identifying $2.5 billion in savings by the budget’s end-of-March deadline.