powered by LeadingAge New York

State Seeks to Reinstate Payment Lag

The Department of Health (DOH) sent a notice in late December that it intends to return providers and managed care plans that are currently not subject to the two-week Medicaid payment lag back onto the lag in early 2019. Impacted providers and plans will encounter two Medicaid payment cycles with no payment (Jan. 30th and Feb. 27th) unless they request, and DOH grants, a temporary extension. Organizations may request an extension to remain off the lag by submitting the necessary materials (listed here) to DOH by Jan. 14, 2019. We have reached out individually to LeadingAge NY member plans and providers affected by this change but invite members to contact us with further questions.

The State holds Medicaid checks/payments for two weeks prior to releasing the funds to plans and providers. Organizations encountering cash flow challenges or Medicaid payment issues are able to request advance payments by being taken off the two-week lag. As part of efforts to collect outstanding Medicaid receivables, the State is seeking to return providers and plans back onto the lag where possible. The Dear Administrator Letter (DAL) outlining the two payment cycles that would be skipped and providing instructions on how to request an extension is available here. Please note that as part of the extension request, DOH requires the organization to demonstrate that the reason behind the request "is a short-term problem caused by an extraordinary event or that is related to issues with Medicaid."

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