Urge Elected Officials to Stop Shortchanging the Most Vulnerable New Yorkers & Update Nursing Home Reimbursement

LeadingAge New York is calling on State legislators to INCREASE and REFORM nursing home Medicaid reimbursement and REJECT the Governor’s Budget cuts. 

In the face of an $810 million (State share) Medicaid funding gap for the nursing home care provided in New York, the Governor’s Budget proposes a 10% capital cut to nursing home Medicaid rates, eliminates crucial Vital Access Provider Assurance Program (VAPAP) funds, and demands up to $400 million in additional, unspecified cuts to the long-term care sector.

Despite sharply rising costs, New York’s nursing home Medicaid rates have not been adjusted for inflation since 2007.  As a result, according to a federal panel of experts, our nursing home reimbursement is among the worst in the country.  On average, New York State’s nursing home Medicaid rates cover only 75% of the cost of care for each Medicaid resident served.  As the main payer for the nursing home care provided in our State, Medicaid reimbursement directly impacts:

• provider ability to offer the competitive wages that staff deserve, and
• provider ability to offer the level of staffing and quality of life that nursing home residents deserve.

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. To ensure sustainable access to high-quality nursing home care for older adults and others who need round-the-clock care, New York must reform and rationalize the nursing home reimbursement methodology with a downpayment of $510 million (State share) in State Fiscal Year 2024-25 and a commitment to fully fund, reform, and rebase rates by 2025.

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