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CMS Disapproves Extension and Renewal of DSRIP 2.0 Waiver

The Centers for Medicare and Medicaid Services (CMS) rejected the State's $8 billion request to extend and renew its federal Medicaid waiver yesterday. The waiver, known as the Delivery System Reform Incentive Payment (DSRIP) Program, would have provided funds to continue the restructuring of the delivery system initiated under the first DSRIP waiver and to advance the transition from fee-for-service (FFS) reimbursement to value-based payment (VBP) models. The application to renew the DSRIP waiver also sought to make long term care an additional high priority area. The disapproval of the application will not only eliminate the opportunity to continue the $8 billion investment made under the original DSRIP waiver, but it will also prevent the State from spending over $600 million that remains from the original waiver. More information about the waiver application is available here.

Contact: Karen Lipson, klipson@leadingageny.org, 518-867-8383 ext. 124