On Tuesday, January 18th, Governor Hochul released her $216.3 billion FY 2022-23 Executive Budget proposal entitled “A New Era for New York.” As presented, the FY 2022-23 Executive Budget increases overall State spending by an estimated 3.1%, increases the Medicaid Global Cap ceiling to 4.7%, and changes the metric used to set the Medicaid Global Cap spending from the 10-year rolling average of the medical component of the CPI to a 5-year rolling average based on Medicaid spending projections. Total Federal, State and local Medicaid spending is expected to be $92 billion in FY 2023, an increase of 6.3%.
In presenting the Executive Budget, Governor Hochul emphasized the critical need to invest in healthcare and rebuild New York’s healthcare workforce, highlighting that the FY 2022-23 Executive Budget includes $10 billion for healthcare – “the largest investment in healthcare in State history.”
The following is a brief summary of certain initiatives included within Governor Hochul’s FY 2022-23 Executive Budget:
- Restores the prior administration’s 1.5% Medicaid cut;
- Increases the Medicaid base rate by 1% ATB;
- Invests $1.2 billion (state share) for healthcare worker retention and recruitment by providing up to $3,000 per frontline healthcare worker earning up to $100k annually. Workers must have been employed a minimum of 6 months to be eligible. These funds will flow through the employer via Medicaid;
- Allows for nursing homes to utilize medication aides;
- Establishes a $1.6 billion capital program for financing capital improvements to nursing homes and other eligible healthcare facilities;
- Allocates $450 million for other capital improvements, with $50 million guaranteed for nursing homes;
- Invests $150 million to build out IT infrastructure and telehealth capabilities for various providers;
- Allocates $61 million (state share) for minimum staffing requirements;
- Invests $50 million to support the implementation of a Green House Nursing Home initiative; and
- Allocates $750 million to construct a new laboratory on the Harriman campus in Albany.
NYSHFA|NYSCAL will continue to keep you updated as the FY 2022-23 Executive Budget bills are introduced and negotiations with the Legislature begin.
Stephen B. Hanse, Esq.
President & CEO