Assembly's SFY 2024-25 Budget Proposal Makes Critical Investments in Medicaid and Public Health

Speaker Carl Heastie and Health Committee Chair Amy Paulin today announced that the Assembly’s proposed State Fiscal Year (SFY) 2024-25 Budget adds $3.1 billion in funding to the Medicaid program and $1.1 billion in investments in public health.

“Access to affordable, high quality care is essential to the health and wellbeing of our people and our state,” Speaker Heastie said. “Our budget invests in critical programs and services that New Yorkers rely on, and creates a long term plan to support the health and wellbeing of people across the state. The Assembly Majority will continue to work to invest in the health of our people and our healthcare infrastructure.”

“The Assembly Majority is committed to strengthening our health care system and improving patient care,” Assemblymember Paulin said. “We have worked to include in our budget investments and provisions that will get New Yorkers the care they need.”

The Assembly proposal includes the Healthcare Access Improvement Plan, which would add a premium on managed care organizations (MCO), which would generate $4 billion. This would allow New York State to repay the tax obligation for each plan, generating an additional $4 billion in federal funding for the state. Of that, $938 million would be reserved for future investments in the Medicaid program and allow the state to invest $3.1 billion into Medicaid programs including:

• $930 million to increase Medicaid rates across the board by three percent;
• $407 million to increase hospital rates by 7.5 percent;
• $500 million to create a new Hospital Directed Payment Template (DPT) program;
• $205 million to increase nursing home rates by 7.5 percent;
• $13.5 million to increase Assisted Living Program rates by 7.5 percent;
• $30 million for Certified Home Health Agencies;
• $28.5 million to alleviate SOFA waitlists; and
• $949 million to restore unallocated Medicaid cuts, as well as other cuts.

The Assembly budget proposal invests $1 billion for healthcare facility capital needs. It also includes language to ensure that additional capital support to SUNY Downstate would be used to maintain the future of SUNY Downstate as a vital safety net provider.

Funding in the proposed spending plan would also help nursing homes across the states, investing an additional $75 million to maintain $100 million for Vital Access Provider Assistance Program (VAPAP) grants. These allow nursing homes in financial distress to apply for short-term financial relief to maintain operations and vital services. It would also provide $28.5 million to restore the nursing home capital rate add on.

The proposed Assembly budget includes $7.3 million in funding to increase Early Intervention reimbursement by 11 percent. This will help families get babies and toddlers critical, time sensitive services that can result in outcomes with lifelong benefits.

Also included in the spending plan is:

• $60 million to maintain the Managed Care Quality Pool;
• $25 million to increase funding for the Nourish NY Program; and
• $18 million to maintain over the counter pharmaceutical coverage.

The budget proposal also invests in long term care (LTC) in the state, including $200.4 million to restore wage parity for Consumer Directed Personal Assistance Programs (CDPAP) workers, providing critical funding to a program that helps seniors stay in their homes longer. Also included is $51.75 million to maintain the Managed Long Term Care (MLTC) Quality Pool.

The proposed spending plan also includes the following restorations:

• $22 million for the Hunger Prevention and Nutrition Assistance Program (HPNAP);
• $7.5 million for the Tobacco Control Program;
• $3.8 million for School Based Health Centers;
• $2.5 million for the Cancer Services Program;
• $1 million for the Nurse Family Partnership Program; and
• $500,000 for the Diversity in Medicine program.

“1199SEIU congratulates Speaker Carl Heastie, Health Chair Amy Paulin and their Assembly colleagues on the passage of their One House Budget proposal, which makes critical investments to protect healthcare for vulnerable New Yorkers. This budget would put us on a path to fully funding Medicaid while reversing harmful cuts—essential steps to prevent further hospital closures and protect nursing home care. We appreciate the Assembly’s forward-thinking approach to safeguarding home care services while ensuring a more transparent and accountable payment system. We call on the governor to finalize a budget which accomplishes these priorities, protecting access to care and reducing health disparities,” said George Gresham, president of 1199SEIU United Healthcare Workers East.