Assisted Living Program (ALP) Dear Administrator Letter

April 22, 2022

Dear Administrator:

This letter contains information for your Assisted Living Project (ALP) facility regarding the State´s Minimum Wage reconciliation from January 1, 2017 through December 31, 2021. The Minimum Wage Act (Article 19 of the New York State Labor Law) sets the benchmarks for minimum wage.

The initial minimum wage component for the 2017-2019 ALP rates were issued with an incorrect regional calculation when a provider specific calculation should have been used. The Department recalculated the minimum wage component for these years with individual survey data collected through ESAAL and released that information in the letter dated July 30, 2020. This created a liability (RR1) for some providers, issued on March 11, 2021 in cycle 2273. These calculations were re- validated and minor corrections were made for the 2017-2019 period. Additionally, the 2020-2021 minimum wage component was calculated using individual survey data as collected by the Department.

The updated 2017-2021 ALP Minimum Wage Rates will be active in cycle 2333, check release date May 25, 2022. Please be advised that some of the rate changes may result in recoupments and A/R balance increases. The standard recoupment of 15% will be applied to all payments beginning in cycle 2333.

For providers who have outstanding RR1 liabilities from the rate changes processed on March 11, 2021 in cycle 2273, if the rate adjustment in cycle 2333 is positive, those funds will automatically be applied to the existing RR1 liabilities at 100% recoupment rate. If the positive funds generated in cycle 2333 are more than your RR1 liability balance, you will be paid the excess in cycle 2333. If the positive funds are less than the RR1 liability balance, recoupment will commence on the remaining balance at 15% per week starting in cycle 2333.

This document and current ALP rates are posted here.

If you have any questions regarding the Minimum Wage rate changes, calculations, or other questions regarding ALP facilities, please send an email with the subject line Minimum Wage-Reconciliation 2017-2021 to ALP-Rates@health.ny.gov. Please contact bimamail@health.ny.gov for questions specific to your facility's A/R balance and recoupment.

Sincerely,

Attachments

Laura Rosenthal, Director
Bureau of Residential Health Care Reimbursement
Division of Finance and Rate Setting
Office of Health Insurance Programs