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2% CUT DOES NOT APPLY

November 07, 2011

2% CUT DOES NOT APPLY TO RESTORATIVE SERVICES IN RESIDENTIAL SETTINGS

MANY PROVIDERS HAVE RECEIVED THE FOLLOWING E-MAIL FROM eMEDNY. This cut does NOT apply to restorative services in residential settings. In fact, this is a broad Medicaid cut that does NOT apply to mental health programs except Article 28 inpatient.

State to implement 2% Across the Board Medicaid Payment Reductions

The final 2011-12 state budget (Chapter 59 of the Laws of 2011) requires a 2% across the board reduction to most Medicaid payments. Such payment reductions will apply for dates of service on or after April 1, 2011. The reduction will remain in effect for dates of service through March 31, 2013. These provisions were enacted to meet the target of the Medicaid Redesign initiative authorized by the Governor.