Joint health budget subcommittee opens talks; members back hospital and nursing-home funding and raise CDPAP, Medicaid concerns

At its first meeting, the joint state Senate–Assembly budget subcommittee on health opened formal budget negotiations, with co-chairs Senator Gustavo Rivera and Assemblywoman Amy Paulin emphasizing increased funding for hospitals, nursing homes, early intervention services and reproductive health, and Republican members raising concerns about an imminent CDPAP home-care transition and changes to Medicaid cost controls.

Senator Gustavo Rivera, co-chair of the General Conference Health Subcommittee, said the Senate delegation “looks forward to working with the assembly and the executive, to restore vital funding and increasing Medicaid reimbursement rate for hospitals and nursing homes,” and to direct MCO-tax revenue toward those and other health priorities.

The meeting focused on several spending priorities that members said they will press in conference negotiations: higher Medicaid reimbursement rates for hospitals and nursing homes, additional operating and capital support for financially distressed hospitals, funding for early intervention providers, expanded reproductive-health grant funding, nutrition assistance programs, and school-based health centers.

Republican members signaled particular concern about two items. Senator Patrick Gallivan, the ranking Republican on the Senate health committee, warned that the transition to a statewide intermediary for Consumer Directed Personal Assistance Program (CDPAP) could disrupt patient care. "With only 13 business days left until the, until the deadline and only a 40,000 patients registered as of March 10, I have serious concerns that patient care will be significantly disrupted when this transition takes effect on April 1," Gallivan said.

Gallivan also objected to a proposal he described as new reporting requirements on material transactions for independent health-care practices. He argued the proposed length of review periods could have "unintended consequences for independent healthcare practices across New York State," limit patient choice and raise costs.

Several Democratic members emphasized workforce supports and an inflationary increase for providers. Senator Natalia Fernandez thanked members "for supporting the 7.8, inflationary budget increase," saying the boost was needed so the health-care workforce "is able to live to sustain their families, and to be able to care for our neighbors." Members also specifically cited the nurse–family partnership, the medical indemnity fund and programs to allow seniors to age in place as priorities.

Assembly Insurance Committee Chair David Weprin and Assembly aging leaders highlighted efforts to bolster insurance consumer protections and investments in aging programs that can reduce reliance on nursing-home care, such as home-sharing and naturally occurring retirement community initiatives. Assembly Republicans reiterated concerns about expanding Medicaid without clear fiscal guardrails and urged transparency about how MCO-tax proceeds and federal waivers will be used.

No formal motions or votes were taken at the session. Co-chairs said the subcommittee will continue negotiations with Assembly and Executive counterparts with the goal of an on-time budget or as close to on time as possible.

Next steps: members said they will hold follow-up discussions with each other and with the Executive Branch as budget talks continue.