Responding to NYS Council Member Questions re: 1% Medicaid Rate Reduction

January 6, 2020

We’ve had several questions from NYS Council members today regarding specific Programs / Services that may be swept up in the 1% Medicaid rate reduction discussed in the December 30  New York State Register notice.

In response to specific member inquiries received today we can share the following additional information:

• Mental hygiene programs (OPWDD, OMH and OASAS) for providers under Article 16, 31, 32 – are exempt.
• Health Homes ARE subject to the 1% reduction (This is a DOH Program)
• OMH believes that the new (children’s) CFTSS services are not impacted since they are licensed or designated under OMH.

As a refresher, here’s the language from the 2019-2020 *proposed executive budget pertaining to the 1% reduction.  The final budget rejected the cut but gave DOB/Governor’s office authority to pursue these types of cuts as needed in the final deal:

Across the Board Reductions in Medicaid Claims:  Authorizes across the board uniform reductions in Medicaid claims, with certain exemptions, for the period April 1, 2019 to March 31, 2021 to achieve reductions of up to $190.2 million in Medicaid state share savings in SFY 2019-20 and SFY 2020-2021. An alternative method may be considered at the discretion of the Commissioner of Health and the Director of the Budget based upon consultation with the healthcare industry that achieves comparable savings. The reductions will not impact payments required by federal law such a Federally Qualified Health Centers (FQHCs), hospice or pursuant to the federal medicare program, or direct payments authorized under the Mental Hygiene Law for providers under article 16, 31 or 32. 

Please stand by for more information to follow.