The Legislature is continuing to finalize the FY 2022-23 State Budget. As such, the following is a summary of some of the significant provisions included within the final FY 2022-23 State Budget.
NYSHFA|NYSCAL anticipates the FY 2022-23 State Budget will include the restoration of the 1.5% Medicaid payment cut. Additionally, NYSHFA anticipates that the healthcare worker bonus provisions will be included within the Education, Labor, Housing & Family Assistance budget bill which has yet to be printed.
Please note that the final FY 2022-23 State Budget did not include the Executive Budget proposal to eliminate the “resource test” for seniors and individuals with disabilities as well as raising the income level from SSI related levels to 138% of the federal poverty rate (Part N). The unintended consequence of this proposal was that by eliminating the resource test it would have severely impacted the private pay nursing home population.
Additionally, the final FY 2022-23 State Budget did not include the Executive Budget proposals to increase disclosure requirements for CON applications; authorize New York to enter into the Interstate Medical Licensure Compact and Nurse Licensure Compact; authorize the utilization of medication aides in nursing homes; and require a competitive procurement for managed care programs.
The following are some of the significant initiatives impacting long-term care that were included within the FY 2022-23 State Budget. NYSHFA|NYSCAL is continuing to review all budget legislation and will provide regular updates as necessary.
Medicaid Trend Factor
Provides a uniform 1% Medicaid increase for providers beginning April 1, 2022.
70/40/5 Law Amendments
Excludes from the definition of “revenue” the Cash Receipts Assessment.
Excludes from the definition of “revenue” the capital per diem portions of reimbursements for CMS four and five star rated nursing homes that are not attributable to a capital expenditure made to an entity with a common or familial ownership.
Permits the DOH, on a pro-rata basis for 2022, to enforce violations of the 5% profit provisions of the 70/40/5 law.
Financially Distressed Nursing Homes
Includes financially distressed nursing homes among the list of providers that are eligible for temporary lump-sum Medicaid payments under the State’s Vital Access Provider Assurance Program.
Quality Pool Funding
Expands funding methods for the Nursing Home Quality Pool to be funded at the discretion of the Commissioner through State appropriations and/or Medicaid adjustments.
Statewide Healthcare Facility Transformation Funding
Establishes and implements a new $1.6 billion Statewide Healthcare Facility Transformation Program IV within the DOH to fund capital projects for eligible healthcare providers for the purpose of transforming, redesigning, and strengthening quality health care services in alignment with statewide and regional health care needs, and in the ongoing pandemic response. DOH would enter into a formal agreement with the Dormitory Authority of New York State to administer awards to eligible health facilities. Eligible facilities include residential health care facilities and assisted living programs.
The FY 2022-23 State Budget also includes a total of $450 million to be awarded for capital projects submitted under Statewide III Program that were not awarded funding. Of this amount, $50 million of this funding must be awarded to Residential Health Care Facilities or adult care facilities.
$750 million is to be awarded to health care providers without a competitive bid process to build innovative, patient-centered models of care, increase access to care, to improve the quality of care and to ensure financial sustainability of health care providers. Of this funding, a minimum of $25 million must be awarded to Residential Health Care Facilities.
Medicaid Global Cap Extension & Metric Change
Changes the metric for calculating the Medicaid Global Cap from the 10-year rolling average of the Consumer Price Index (CPI) to the five-year rolling average of the Medicaid spending annual growth rate projections within the National Health Expenditure Accounts produced by the Office of the Actuary in CMS. These provisions also extend the Global Cap through FY 2024 and mandate certain DOH quarterly reports.
Nurses Across New York Program
Creates the Nurses Across New York Program to make financial awards to RNs and LPNs for the purpose of student loan repayment. Funding would be allocated regionally, with one third of awards going to New York City and two-thirds of awards going to the rest of the State. To be eligible for awards under this program, nurses must serve an underserved population determined by the Commissioner of Health for three years. The awards would be paid out over a three-year period with 30% of the award being paid out in the first year, 30% being paid out in the second year, and the remaining award balance in the third year. Awards may only be used to pay Federal or State student loans.
NYSHFA will continue to provide updates on the FY 2022-23 State Budget as additional information becomes available.
Stephen B. Hanse, Esq.
President & CEO