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Urge Lawmakers to Reject the Executive Budget’s Devastating Nursing Home Cuts

The SFY 2019-20 Executive Budget and subsequent 30-day amendments advance three actions in the Medicaid program to generate an additional $446 million in cuts to services and supports for seniors. These actions include:

  • Reducing case-mix adjustments to Medicaid rates for changes in resident acuity by $246 million annually. Medicaid and Medicare efforts to reduce hospital lengths of stay and admissions are raising the acuity level of residents in nursing homes. While the impact would vary from home to home, on average a cut of this severity would reduce Medicaid rates by more than $9 per day.
  • Instituting an across-the-board cut of 0.8 percent to payments to all Medicaid providers (except for mental hygiene services) to save the State $190.2 million. For nursing homes, this would mean a $60.8 million cut.
  • Eliminating the 1.5 percent increase in operating rates for nursing homes, which was to be effective Nov. 1, 2018. This cut would reduce promised funding by $140 million for the 17-month period from November 2018 through March 2020.

The 30-day amendment cuts are in addition to the single largest cut proposed in the Executive Budget, which would alter how nursing home Medicaid rates are adjusted for acuity. The State expects the provision to save $122.8 million annually, suggesting a provider impact of $245.6 million. While the impact will vary from home to home, on average it would reduce Medicaid rates by more than $9 per day.

Medicaid already pays less than the actual cost of providing care. LeadingAge New York urges members to be aware of the potential financial impact of these proposals on their organization and to contact their legislators early and often to oppose these cuts.

Enter your information below to contact your lawmakers, urging them to reject the massive Medicaid cuts proposed in the Executive Budget and 30-day amendments.