NY-State Legislature Approved Budget Bill

Bookmark and Share

New York state legislature approved a budget bill on March 30, 2011 that is expected to be signed by Governor Andrew M. Cuomo and would make fundamental structural changes to the Medicaid program recommended by the governor's Medicaid Redesign. The approved budget bill would eliminate trend factors in setting reimbursement rates for hospitals, nursing homes, and home care providers, and implement a 2 percent across-the-board reduction in reimbursement rates.  In addition, it would create a demonstration program authorizing providers to form up to seven accountable care organizations (ACOs), which would provide care to patients under Medicaid and private insurance.