New York State Budget Update
Late last week, the New York State Assembly and Budget passed the 2020-21 State Budget. Some of the highlights of this budget are included below.

Enhanced FMAP Funding:
As part of the COVID-19 relief packages passed by the Federal government, there will be an enhanced Federal Medical Assistance Percentages (FMAP) to assist state Medicaid programs in dealing with the COVID-19 pandemic. The budget allows the Governor and Department of Health (DOH) to change, delay, or modify some or all Medicaid payment cuts. Right now, it is unclear which items will be effected.

Capital Reimbursement:
The following changes apply to the capital reimbursement of nursing homes:
  •  The capital component of the nursing home Medicaid rate is cut by 5%
  • Eliminates residual reimbursement for proprietary residential health care facilities.

Across the Board Cut to Medicaid Providers:
The 1% Across the Board Medicaid Cut implemented 1/1/2020 will be increased to 1.50% effective April 1, 2020.

Minimum Wage Funding:
The 2020-21 SFY Budget includes $1.8 billion to support increases in minimum wage for Medicaid funded services. As a reminder, the minimum wage will rise on December 31, 2020 to $14 per hour on Long Island and Westchester, and $12.50 per hour for upstate counties. The minimum wage in New York City is already $15 per hour.

Medicaid Global Cap:
The Medicaid Global Cap provision was extended through the 2021-22 State Fiscal Year. The cap calculation was modified to implement technical changes when spending exceeds the Global Cap.

Spousal Refusal:
The budget eliminated the ability for spouses living together to refuse to make their income and resources available when determining Medicaid eligibility. This change also applies to parents who are living with their children.

Intergovernmental Transfer (IGT):
IGT payment for public (government owned) nursing homes was extended through March 31, 2023.

Refinancing Shared Savings Program:
Refinancing shared savings program was reauthorized through March 31, 2023.

Other Provisions:
  • Provides immunity for liability for health care facilities for providing, in good faith, health care services pursuant to the COIVD-19 emergency rule.
  • Community Based LTC services has a 30 month lookback period when determining eligibility.
  • OMIG has enhanced oversight of Managed Care Organizations and MLTC plans.
  • $225 million was reauthorized for the Statewide Health Care Facility Transformation program. The budget does not include any deadline for the issuance of a request for applications nor the awarding of funding under this program.

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