$7.5 Billion Waiver Will Enable New York to Invest Nearly $6 Billion of Federal Funding into State’s Health Care System Over the Next Three Years
Waiver Amendment to Improve Health Equity and Address Health Disparities Throughout State
Waiver Will Deliver Critical Support to Address Health-Related Social Needs, Support Safety Net Hospitals, and Address Workforce Shortages
New York Plans to Submit an Amendment to its Demonstration in Early 2024 to Provide Continuous Medicaid Eligibility for Children Up to Age Six
On January 9, 2024, New York State Governor Kathy Hochul announced the Centers for Medicare and Medicaid Services approved a groundbreaking amendment to New York’s Medicaid Section 1115 Demonstration that will be catalytic in New York’s continuing efforts to build a health care system that benefits all New Yorkers. The demonstration bundles a comprehensive series of actions to advance health equity, reduce health disparities, and strengthen access to primary and behavioral health care across the state, and will be supported through $7.5 billion in funding over the next three years.
NYS Governor Kathy Hochul
“This amendment allows New York to make investments in critical Medicaid initiatives that will enhance health equity in this state,” Governor Hochul said. “CMS’ approval of the amendment will help us to continue to support underserved communities, provide New Yorkers with critical services such as nutrition and housing support, and improve access for individuals and families affected by substance use.”
New York State Health Commissioner Dr. James McDonald said, “This Medicaid 1115 waiver amendment will help the Department continue to invest in the health and well-being of New Yorkers. I thank CMS for giving us the opportunity to continue to invest in high quality health services and programs, expand the health care workforce, and strive towards true health equity.”
State Medicaid Director Amir Bassiri said, “After many months of negotiations, we have secured an agreement that is critical to the state’s health care system. Approval of this demonstration amendment will allow the state to advance health equity, reduce health disparities, support the delivery of health-related social needs, sustain critical safety net hospitals, and establish career pathways training programs for front-line health and social care professionals that will target workforce shortages throughout the state.”
Senate Majority Leader Chuck Schumer said, “Medicaid is the bedrock of healthcare for thousands of New Yorkers, and this federal approval of New York’s Medicaid waiver will create a stronger foundation for care in the Empire State. I applaud Governor Hochul’s effort to invest upwards of $6 billion in federal funding to deliver better health care to the neediest, help our safety net hospitals provide top-notch care and address the serious challenge of health worker shortages.”
Democratic Leader Hakeem Jeffries said, “Many Americans rely on Medicaid to live with grace and dignity, and our healthcare heroes count on its crucial funding to keep our hospital system operational. I thank Governor Hochul, the Biden administration and the New York congressional delegation for their work to protect and strengthen Medicaid in New York, expand our healthcare workforce and strive towards health equity across the state.”
Representative Jerrold Nadler said, “I applaud today’s announcement which will deliver urgently needed funding to support New York’s safety net hospitals and advance health equity across the state. The approval of this demonstration project will allow New York to continue to invest in health services and programs that support our most underserved communities.”
Representative Brian Higgins said, “This action gives New York State the flexibility to dedicate federal resources to address the root causes of disparities and ultimately better serve the health needs of people and communities. Governor Hochul’s bold leadership and initiative to think beyond the band-aid and look at the big picture will create meaningful, lasting improvements to the health and lives of New Yorkers.”
Representative Joe Morelle said, “The environment you live in is directly related to your healthcare risks, and underserved communities are experiencing a higher rate of negative outcomes due to health inequities. This federal waiver will allow our state flexibility in planning programs to increase workforce initiatives designed to ensure the continued availability of care in distressed neighborhoods. I’m grateful to Governor Hochul for recognizing the need for this waiver and look forward to our work together addressing the many social determinants to healthcare.”
Representative Paul Tonko said, “I’ve long championed efforts to bolster our health care system and, in particular, to bring compassionate, quality care to individuals struggling with addiction and mental illness. I’m thankful that this comprehensive care will be delivered to New Yorkers and will continue to do all I can to secure federal funding that supports our communities and provides hope to those who need it most.”
Representative Dan Goldman said, “Our society has an obligation to provide health care to those among us who need it most, and we must attack this problem with a whole-of-government approach. This historic $6 billion investment is critical to providing access to high-quality, affordable care to New Yorkers across the state. I was proud to support this initiative back in May, and I applaud Governor Hochul in securing this critical funding and bolstering Medicaid for the millions of New Yorkers who rely on it.”
Representative Ritchie Torres said, “Ensuring that every New Yorker has quality healthcare — especially those who are low-income and most vulnerable — is our moral obligation as elected leaders. Today’s announcement will greatly benefit the lives of countless New Yorkers who have been negatively impacted by unfair discrepancies in health care treatment, often due to factors completely out of their control. I look forward to working with the Governor’s team to ensure we use this investment to benefit the people of the Bronx.”
CMS’ approval allows New York to make large investments across a series of wide-ranging Medicaid initiatives, including establishing Social Care Networks to integrate health, behavioral, and social care services that connect high-need members to critical nutritional and housing support services; enhancing access to coordinated and comprehensive treatment for substance use disorders; investing in primary care and making long-term, sustainable investments in the state’s health care workforce.
The demonstration amendment also includes funding to support a Medicaid Hospital Global Budget Initiative for a subset of financially distressed safety net hospitals looking to transition to payments that reward value rather than volume of care provided. This initiative will support essential safety net hospitals that help serve the most vulnerable populations and have significantly more adverse health risk factors and poorer health outcomes.
The demonstration will address significant health care workforce shortages in safety net settings through innovative career pathways training programs for front-line health and social care professionals that will increase access to culturally appropriate services. These career pathways training programs will train and educate for the purpose of creating a reliable healthcare workforce pipeline to address workforce shortages, as well as increasing opportunities for employment and career advancement.
The workforce initiatives also include a loan repayment program for certain healthcare workforce professionals who commit to working in community-based practices in underserved areas, including dentists, psychiatrists, and clinical nurse specialists.
By the end of the demonstration, the state’s goal is to have made significant progress in its Value-Based Payment (VBP) strategies and alignment across Medicare and Medicaid to advance primary care and population health outcomes.
This article was originally published on January 9th, 2024, here.
