This week, the New York State Assembly and Senate announced the one-house versions of the state’s budget legislation for State fiscal year (FY) 2024-25. Each chamber’s proposal is based on the Governor’s Executive Budget, but may include modified appropriations and may include or exclude some of the accompanying Article VII legislative proposals. The three parties will now begin negotiations on reconciling these proposals, with a target date of April 1st to finalize the Enacted Budget for 2025.
Like last year, both the Assembly and Senate have proposed significant changes from the Executive Budget which would result in higher spending. Both chambers propose increased spending of over $13 billion (All Funds), or almost 6%. This would be funded in large part by a new tax on managed care organizations (MCOs), which would seek to hold plans harmless while drawing down an additional $4 billion per year in federal matching funds. This proposal is modeled on the similar large increase to MCO taxes that California enacted last year.
The Assembly and Senate also proposed notable removals or replacements of the Governor’s policy proposals. Major health care-related items include:
- New proposed capital funding;
- Significant new investments in Medicaid funding, including a 3% across-the-board increase and additional increases for hospitals, nursing homes, and assisted living programs, new safety net hospital funding, and a 3.2% cost of living adjustment (COLA) for most human services agencies;
- Removal of the Executive’s proposals to repeal Consumer Directed Personal Assistance Services (CDPAS) wage parity, although both chambers noted that they remain open to working on ways to achieve “administrative efficiencies” related to Medicaid long-term care. The Assembly specifically noted that they believe home care services should be carved out of the managed long-term care (MLTC) program and administered directly by the Department of Health;
- Removal of many of the Executive’s proposed scope of practice and workforce reforms;
- Adjustments to the Executive’s proposals on mental health reimbursement and parity; and
- New proposals to establish additional investments in health capacity, in particular related to reproductive health and doula care (community-based as well as integrated into facilities).
SPG’s summary of notable changes, additions, and removals to proposals from the Executive Budget in the one-house bills is available here. Our original Executive Budget summary is available here. As a reminder, these bills are far from final, and many omitted provisions may return or be modified.