President's Message
Fully Fund Medicaid and Safety Net Providers
The New York State AFL-CIO strongly urges increased aid for safety net hospitals and higher Medicaid reimbursement rates to help offset the chronic staffing shortages, mandatory overtime, and budget shortfalls that have plagued our health care system for too long, especially for safety net facilities.
The Executive budget’s 5% increase in Medicaid funding for hospitals is completely eliminated with the loss of funding from the 340(b) drug pricing program and cuts to the Indigent Care Pool. Hospital reimbursements would actually be $110 million less than last year. The proposed plan also cuts the $700 million in assistance for safety net hospitals approved in last year’s budget.
Changes proposed to the 340(b) program have been delayed for several years but will be implemented. This change would remove the ability of safety net providers to purchase necessary drugs directly from manufacturers at a discount but still receive full reimbursement from Medicaid. This is a $674 million cut to safety net providers including hospitals, clinics and various providers that help the chronically ill access health care, housing, and other support services.
The Executive Budget also proposes a 5% Medicaid increase for nursing homes, which is mostly paid for by money already budgeted for the Nursing Home Staffing Pool that was agreed to in last year’s budget. The net increase is just 2% at a time when nursing homes need to raise wages to meet the new staffing standard.
Years of systematic austerity have put too many healthcare providers at risk, and it is endangering the quality of health care. It is deepening the worst workforce crisis in many years by starving providers of resources they need to recruit and retain nurses and other direct care workers.
The NYS AFL-CIO joins with our affiliates in calling for a larger Medicaid increase of 10% for hospitals with additional funding for safety nets and a 20% increase for nursing homes to begin reversing the long-term trend of capping, cutting and limiting funding for health care. We also call for an increase of targeted safety net funding of at least $1.3 billion.
Mario Cilento, President
Upcoming Meeting
INFRASTRUCTURE COMMITTEE MEETING
Tuesday, February 28, 2023, 1:00 p.m.
NURSE ISSUES COMMITTEE MEETING
Wednesday, March 1, 2023, 11:00 a.m.