Senators Gallivan Backs Efforts to Increase Reimbursements Rates for Health Care Facilities

Jim Ranney

May 23, 2024

Nursing Home Care
Bill Would Update Medicaid Rates Paid to Nursing Homes in NYS

Senator Patrick M. Gallivan (R-C, Elma) and members of the Senate Minority Conference penned a letter in support of legislation, (S.6914A) which amends the public health law, in relation to residential health care facility rates. Senator Gallivan, the Ranking Member of the Senate Standing Committee on Health, is a co-sponsor of the bill. 

The proposed bill addresses a critical issue concerning nursing homes in New York State, particularly focusing on the need to regularly update Medicaid reimbursement rates to align with current costs. While Medicaid is the primary payer for nursing home care and the main revenue stream for providers serving our most vulnerable populations, the “expense basis” calculation for Medicaid reimbursement has not been updated since 2007.

“Nursing homes in New York State are providing care to Medicaid patients but are being reimbursed for only about 70-percent of the actual cost of services,” Senator Gallivan said.  “The state must address these outdated rates and provide adequate reimbursements to ensure nursing homes are financially able to provide the quality care residents deserve.” 

The letter was addressed to Senate Majority Leader Andrea Stewart-Cousins, Finance Committee Chair Liz Krueger, Assembly Speaker Carl Heastie and sponsors of the bill Senator Gustavo Rivera and Assemblywoman Amy Paulin, urging them to support this bill and move it to the floor for a vote.

The letter from the Senators states, “This bill, which is strongly supported by the nursing home industry, establishes a much-needed schedule requiring the DOH to rebase expenses and update Medicaid rates at least every five years. With this legislation, the DOH and Division of the Budget (DOB) can ensure that reimbursement better reflects current costs and prioritize providers with the resources necessary to recruit and retain quality direct care staff.”



related legislation