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Stephen B. Hanse, Esq., NYSHFA | NYSCAL President and CEO, Testifies During New York State Joint Legislative Budget Hearing on Health

Stephen Hanse made a compelling request to the Legislature during Tuesday’s joint Legislative Budget Hearing on Health to support a 20% Medicaid reimbursement rate increase – up from the Governor’s Executive Budget proposal of 5%.

Over the last 15 years, New York State has cut nearly $2 billion in essential funding to long-term care providers. The Governor’s modest increase is simply not enough to rectify the previous administration’s underfunding of long-term care.

“It’s been said that one of the fundamental roles of government is to provide care for those who cannot care for themselves. New York, unfortunately, leads the nation with the largest shortfall between the amount Medicaid reimburses nursing homes and the actual cost of providing essential care,” said Stephen Hanse.

This shortfall amounts to approximately $55 per day. The current statewide average Medicaid reimbursement rate (to cover operating and capital costs) is $255, resulting in a rate of $10.63 per hour for 24-hour skilled nursing care.

While NYSHFA | NYSCAL appreciates the Governor’s focus on payment mechanisms to facilities to ensure their viability, the Legislature must proceed with a thoughtful long-term coordinated approach in service of the State’s aging population and the providers and operators who support them. Amending the Governor’s proposed 5% Medicaid reimbursement rate increase to 20% would accomplish this.

Read the full testimony attached.

Watch the archived legislative hearing (NYSHFA remarks at 5:29 timestamp).

If you’re a NYSCAL member, register now to join us for our assisted living lobby day on Tuesday, March 14.


Stephen B. Hanse, Esq.
President & CEO
518-462-4800 x11

Kristin DeVries
Director of Government Relations
518-462-4800 x14


Posted in Legislative