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New York to cut Medicaid spending by 1 percent

Jan 02, 2020 12:45 pm
Bethany Bump is reporting for the Times Union the state Department of Health has proposed reducing state Medicaid payments by 1 percent, effective January 1. The proposal was published in the State Register this week, and comes as New York faces a $6 million budget gap, the largest since the 2008-09 recession. The rate cut would impact providers such as hospitals, nursing homes, doctors and others who provide care through New York’s Medicaid program. The program serves approximately 6 million New Yorkers, most of whom are children, seniors or individuals with disabilities. The department said in a statement, “This reduction in spending growth was approved by the Legislature as part of the F[iscal] Y[ear] 2020 budget and is being implemented in the fourth quarter of the state’s fiscal year as the Department of Health works with its partners to develop an overall plan to reduce Medicaid spending growth while continuing to provide high-quality care to...New Yorkers.” Some Medicaid payments will be exempt from the proposed cut, such as those for federally qualified health centers, Medicare prescription drug coverage, school health services, and hospice services. Payments funded exclusively with federal or local funds will also be exempt. Read the full story in the Times Union.