A change to the rate paid by the federal government to New York for care of the developmentally disabled will deliver a $500 million hit to Gov. Andrew Cuomo’s proposed budget, his administration announced Wednesday.
Cuomo’s 30-day budget amendments reflect a planned change in Medicaid reimbursement rates, and now his administration is changing its proposed spending plan to include $120 million in cuts to the Office for People With Developmental Disabilities and $380 million in adjustments to the state’s Medicaid cap.
“It’s a net rate adjustment that would impact state resources that would require additional state resources of $500 million,” Cuomo’s Budget Director Robert Megna said.
The state and federal government have been in negotiations over the reimbursement rate for New York’s care for developmentally disabled in nine state-owned facilities. A Poughkeepsie Journal series in 2010 found the federal government had been reimbursing the state at a rate that amounts to $4,556 per patient, per day.
Cuomo’s financial plan in January had acknowledged it would lower its payment rates by a total of $800 million starting April 1, with the feds seeking an extra $300 million on top of that.