The following information was received by the NY Disability Advocates
NYS is facing a $6.1 billion state budget deficit in the next fiscal year and a $4B deficit in the current budget that ends 3-31-20. To deal with the current year’s shortfall, the state plans to defer $2.2 billion in Medicaid payments until after April 1, 2020 (next fiscal year) leaving $1.8 billion in upcoming Medicaid cuts. These deficits are the result of spending over the Global Medicaid Cap which caused the State to spend over the 2% cap on overall state spending. Medicaid growth has expanded because of the reduction in enhanced federal dollars and growth in long-term care services. The Governor has said he will cut $1.8 billion in Medicaid out of this current year’s budget which ends on March 31, 2020. We have been assured that the Governor will provide the promised 2%#bFair2DirectCare funding in January 2020 for 100 and 200 codes as well as the 2% on April 1 for 100, 200, and 300 codes. There are continuing discussions of a July 2020 OPWDD rate cut since the recent Rate Rationalization changes increased State spending which will need to be recouped due to the required fiscal neutrality for Rate Rationalization. Final rates are still in draft form.
We will continue to post information as we receive it.