SFY 2023-24 Budget Includes $1.4 Billion for Distressed and Safety-Net Hospitals, Medicaid Rate Increases and Wage Increases for Home Health Care Workers

Speaker Carl Heastie and Health Committee Chair Amy Paulin today announced the enacted State Fiscal Year (SFY) 2023-24 Budget includes $1.4 billion for distressed hospitals, Medicaid rate increases and wage increases for home health care workers.

“The Assembly Majority has always been committed to ensuring that every New Yorker has access to high quality affordable health care,” said Speaker Heastie. “This budget reflects our commitment to our safety net hospitals and our home health care workers who provide critical care for our most vulnerable populations.”

“My Assembly Majority colleagues and I have always fought to preserve, protect and expand access to health care for all New Yorkers,” said Assemblymember Paulin. “This year, we fought tirelessly to increase Medicaid rates for hospitals and nursing homes as well as provide increases for many vital public health programs.”

Hospital & Medicaid Rate Increase Investments

The SFY 2023-24 Budget includes an additional $500 million for distressed and safety-net hospitals, $800 million in additional Essential Plan rate increases, $318.8 million to increase Medicaid hospital inpatient rates by 7.5 percent, $76 million to increase Medicaid hospital outpatient rates by 6.5 percent and $71.6 million for additional Disproportionate Share Hospital (DSH) support for State University of New York (SUNY) hospitals. The plan also invests $216.5 million to increase nursing home and assisted living program reimbursement rates by up to 7.5 percent.

Home Health Care Worker Wage Increase Investments

Included in the enacted budget is $53 million to increase home health care wages by $1.55 beginning January 1, 2024, with increases of $0.55 annually through 2026, and indexing wages thereafter based on the three-year average of the Consumer Price Index (CPI-W).

Also included is $405 million to partially restore the passthrough of the Affordable Care Act (ACA) enhanced Federal Medical Assistance Percentage (eFMAP) funding to counties.

Other Investments

Additional investments include:

• $60 million to expand the Medicaid-Buy In program for those with disabilities;
• $58.9 million to expand mental hygiene programs in Medicaid;
• $53.6 million to expand Medicaid coverage of preventative care;
• $46 million to improve access to primary care;
• $13.7 million to increase transportation service reimbursement rates; and
• $8.3 million to strengthen New York’s reproductive health system.

Other public health investments include:

• $22 million for the Hunger Prevention and Nutrition Assistance program;
• $18.5 million to support a lead abatement program;
• $7.5 million for the Tobacco Control Program; and
• $2.5 million for the Cancer Services program.