CHHA Initial 2017 Pediatric Rates
The Department of Health (DOH) posted on Feb. 10th the initial 2017 Medicaid fee-for-service (FFS) rates for CHHAs who are serving pediatric patients (under 18 years of age) to the Health Commerce System (HCS). Included in this announcement were another 0.0% roll factor adjustment and a 0% trend factor for the period of 2016 and 2017. The Dear Administrator Letter (DAL) also highlighted the statewide aggregate Administrative and General (A&G) cap, which is 27.44 percent in 2017 based on the 2015 costs; a 3 percent adjustment for CHHAs that submit a signed attestation for worker Recruitment and Retention; and a 4.7 percent Recruitment, Training, and Retention (RT&R) add-on again for CHHAs who submit an attestation.
Please note the calculations for the Fair Labor Standards Act (FLSA) adjustment. The DAL clarifies how $0.34 was added to the CHHA pediatric hourly rates for home health aide services for FLSA in October 2015. It includes details on the 2017 calculation based on the 2015 cost reports, which included a portion of an FLSA adjustment. According to the DAL, “because the 2017 rates are based on agencies' 2015 cost reports, approximately 2.5 months of increased FLSA costs are already included in the base year cost data. Consequently, home health aide rates for 2017 have been increased by 27 cents (9.5/12 time 34 cents).”
The DAL also includes clarification on the NYC wage parity and minimum wage adjustment. The DAL states: “Home Health Aide payment rates for New York City providers were adjusted to a minimum of $20.95 per hour, beginning March 1, 2014, to enable CHHAs to meet the 'Wage Parity' requirements of Section 3614.14 of the New York State Public Health Law. Effective January 1, 2017, the minimum payment rate for NYC CHHAs has been increased to $22.28 to additionally reflect the scheduled increase in the minimum wage in New York City. The additional amount consists of $1.00 per hour in wages and $0.33 per hour in payroll taxes and fringe benefits. The $0.27 FLSA adjustment detailed above is in addition to the $22.28 minimum.”
The DAL includes a note: "Both the FLSA adjustment and the NYC wage adjustments, if applicable, have been applied to the bottom-line 'Revised 2017 Rates,' usually on page 3 of the CHHA rate sheet, through an override to the '2017 Medicaid Rate' which follows the A&G adjustment (usually on page 2), prior to the addition of the R&R and RT&R adjustments."
Contact: Cheryl Udell, cudell@leadingageny.org, 518-867-8871