LeadingAge New York is calling on New York policy makers to INCREASE and REFORM nursing home Medicaid reimbursement and REJECT the Governor’s Budget cuts. The Assembly and Senate have stood up for nursing home residents by proposing a meaningful increase in Medicaid rates, but we need the Legislature and the Governor to include a 10.5% increase, rebasing and no cuts in the final budget agreement.
As the main payer for the nursing home care provided in our State, Medicaid directly impacts providers’ ability to offer the competitive wages that staff deserve, and the quality care nursing home residents deserve.
In the face of an $810 million (State share) Medicaid funding gap for the nursing home care in New York, the Governor proposed cuts in funding -- a 10% capital cut to nursing home Medicaid rates, elimination of the crucial Vital Access Provider Assurance Program (VAPAP), and up to $400 million in additional cuts to the long-term care sector.
Fortunately, the Senate and Assembly have rejected the Governor’s proposed cuts to nursing homes and have instead proposed meaningful INCREASES in Medicaid reimbursement (Assembly proposes 10.5%; Senate proposes 9.5%). The Legislature has also demonstrated their support for nursing home “rebasing”, which would ensure that Medicaid rates keep pace with rising costs going forward. (Right now, reimbursement rates are based on 2007 costs – a major driver of the $810 million shortfall.)
Mission-driven nursing homes are under significant financial and operational strain after 15 years of underfunding. Eleven nursing homes have closed their doors since 2020 alone. 82% of non-profit homes are losing money on operations. To ensure sustainable access to high-quality nursing home care for older adults and others who need round-the-clock care, we need all nursing home stakeholders to urge the Governor and legislators to include a 10.5% Medicaid rate increase and nursing home rate rebasing language in the Final State Fiscal Year 2024-25 Budget!
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Click here for a short video that explains New York’s nursing home staffing and funding challenges.