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Across-the-Board Cut Impact to Be Felt in March

Members will recall that Medicaid payments to providers are being reduced across the board (ATB) by 1 percent for dates of service Jan. 1, 2020 through March 31, 2020 and each State Fiscal Year (SFY) thereafter. The 1 percent ATB reduction is being taken against Medicaid fee-for-service (FFS) payments made to nursing homes, adult day health care programs, home care agencies, personal care providers, and Assisted Living Programs. Published Medicaid FFS rates for affected providers are not being revised; rather, the 1 percent reduction is being taken against Medicaid payments for dates of service on or after Jan. 1, 2020. Conversely, the ATB cut to Managed Long Term Care (MLTC) plans is being implemented as a 1 percent rate reduction impacting January 2020 rates. MLTC plan rates for January 2020 are scheduled to be paid starting with Medicaid payment cycle 2215 and include additional rate cuts beyond the ATB cut.

Providers have not yet felt the impact of the 1 percent ATB reduction. It is scheduled to be reflected in Medicaid payment cycle 2219 (check date of March 2nd, scheduled release date of March 18th). Members should anticipate a retroactive negative adjustment to payments related to dates of service back to Jan. 1, 2020 to be reflected in that cycle. The 1 percent reduction will then be reflected in weekly Medicaid payments going forward. Additional information on the cut is available here.

Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841