2% Across The Board Medicaid Payment Reduction

April 2011 - March 2013 Initial Implementation

The final 2011-12 state budget (Chapter 59 of the Laws of 2011) requires a 2% across the board reduction to most Medicaid payments 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 savings initiative authorized by the Governor, which is listed as proposal #4651-B in the Phase 1 Project Management Work Plan, found on the Department's Redesigning the Medicaid Program website.

Prospective implementation of this payment reduction will commence on November 3rd, 2011. However, since the law is applicable to dates of service on or after April 1, 2011, the Department will do a reconciliation of previously paid claims to determine the additional recoupment amount for those claims. Information pertaining to the manner in which these funds are to be recovered will be posted to this website.

Additional questions should be submitted to the following electronic mailbox: 2PercentAcrosstheBoard@health.state.ny.us

Responses to frequently asked questions will be posted on a weekly basis.

Provider Notification - November 3, 2011

NHTD and TBI 2% Rate Cut Provider Letter - August 20, 2012