Health budget subcommittee outlines Medicaid priorities, nursing-home funding and oversight concerns

The joint Legislature budget conference subcommittee on health convened and set rules for its work while outlining priorities for the 2026 state budget, with members pressing for nursing-home funding, financial support for distressed hospitals and stronger Medicaid oversight.

Sen. Gustavo Rivera (D), chair of the Senate Health Committee, opened the session and reviewed procedural rules that bind co-chairs, require designated recording secretaries and bar proxy voting. Rivera emphasized the state’s obligations to beneficiaries of the medical indemnity fund, saying the state must "keep our promises to these families."

Assemblymember Amy Pollan, cochair of the General Conference Health Subcommittee and chair of the Assembly Health Committee, listed the major subjects the subcommittee expects to address this session: the global cap, capital funding, financially distressed and safety-net hospitals, early intervention, reproductive health, emergency medical services and nursing-home funding, as well as the medical indemnity fund and preauthorization issues for insurance coverage.

Sen. Patrick Gallivan (R), the subcommittee’s minority member, welcomed provisions in both one-house budgets restoring what he described as the full 15% capital Medicaid reimbursement for nursing homes, calling the increase necessary because "they need help." He said additional support for financially distressed hospitals was appropriate but raised concerns that the proposals lack "significant support for home care" and do not advance enough measures to combat "waste, fraud, and abuse" in Medicaid.

Assemblymember Josh Jensen, speaking for the assembly minority, urged broader negotiations to produce an enacted budget that reflects statewide needs. "The most productive manner would be true five-way negotiations to have an enacted budget that truly reflects the need of all New Yorkers who call our state home," he said. Jensen cautioned against relying on "budgeting gimmicks" and said any Medicaid savings from the state’s return to the "13 31 basic health plan" should be used to promote long-term fiscal sustainability and stability for providers.

Both minority and majority members expressed a desire for continued, transparent talks with staff to resolve outstanding issues before the Legislature’s deadline. The co-chairs closed the short session saying staff will continue consultations; no formal votes or motions were taken during this meeting.

The subcommittee identified several items for follow-up work, including more detailed proposals on home-care funding, specific anti-fraud measures in Medicaid, and technical discussions about the medical indemnity fund and how proposed savings would be allocated. The committee adjourned with a target of completing a final negotiated budget on time.