Easy Go, Easy Come: DOH to Reverse ALP Medicaid Payment Reduction
The Department of Health (DOH) has notified Assisted Living Program (ALP) providers that negative Medicaid payment adjustments in cycle 2325 (check release date of March 30th/31st) include more than was intended and will be reversed in cycle 2326.
In cycle 2325, DOH meant to implement the 1.5 percent across-the-board Medicaid payment reduction applied to most Medicaid payments for services provided on and after April 2, 2020. The cut had not yet been applied to ALP payments, and DOH was implementing it as a retroactive adjustment. However, as part of that adjustment, the Department inadvertently also implemented a minimum wage reconciliation, which was not their intention. As a result, a number of ALPs may see large, negative adjustments in Medicaid cycle 2325. To remedy this, DOH will reverse the adjustments made in cycle 2325 in the next cycle (i.e., 2326) and will seek to implement the 1.5 percent reduction in a subsequent cycle.
The 1.5 percent Medicaid payment reduction was implemented in 2020 for almost all Medicaid providers, including ALPs. We are hopeful that it will be repealed effective April 1, 2022 by the final 2022-23 State Budget agreement.
Please reach out if you have questions, concerns, or see payment discrepancies other than what is discussed above.
Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841