Attention OASAS Residential Reintegration Service Providers

October 27, 2021

See notification below from today’s NY State Register re: state’s intention to incorporate the OASAS 820 Residential Reintegration Service into the Medicaid benefit package.  This move is expected to generate additional reimbursement dollars for providers offering this service.  

Department of Health

Pursuant to 42 CFR Section 447.205, the Department of Health hereby gives public notice of the following:

The Department of Health proposes to amend the Title XIX (Medicaid) State Plan for non-institutional services to enhance and increase access to Home and Community Based Services (HCBS) in accordance with the federal statutory provisions of Section 9817 of the American Rescue Plan Act of 2021 (ARP) which, subject to approval of the State’s initial spending plan and narrative (Spending Plan) by the Centers for Medicare and Medicaid Services (CMS),provides a ten percent increase in Federal Medical Assistance Percentage (FMAP) to state Medicaid programs from April 1, 2021 to March31, 2022 to supplement existing state expenditures on HCBS. The following changes are proposed:

Non-Institutional Services
Contingent upon CMS approval of the Spending Plan submitted by the State, effective on or after November 1, 2021, this notice proposes to increase recovery oriented residential offerings by incorporating the residential reintegration services into the Medicaid benefit package and provide for an enhanced rate  period of November 1, 2021 to March 31, 2024. 

To allow for full disbursement of funds available April 1, 2021 – March 31, 2022, the initial rate will be increased by 50% for November 1, 2021 until December 31, 2021. Rates will then be reduced 50% percent effective January 1, 2022. This enhancement will enhance and expand the HCBS system and sustain promising and effective programs and services for individuals in recovery from a substance use disorder under the Medicaid program, including, but not limited to, strengthening the response to the COVID-19 PublicHealth Emergency, increasing services for individuals in early recovery to assist with reintegrating into their community and allowing providers to supplement the implementation of residential rehabilitation reintegration services to address increases in overdose rates and substance use disorder treatment and recovery service needs of Medicaid beneficiaries receiving HCBS during the COVID–19 PHE.

The estimated annual net aggregate increase in gross Medicaid expenditures as a result of this proposed increase for Residential Rehabilitation Integration Services is $23,668,639.05.

The public is invited to review and comment on this proposed State Plan Amendment, a copy of which will be available for public review on the Department’s website at
state_plans/status. Individuals without Internet access may view the State Plan Amendments at any local (county) social services district.

For the New York City district, copies will be available at the following places:
New York County
250 Church Street
New York, New York 10018

Queens County, Queens Center
3220 Northern Boulevard
Long Island City, New York 11101

Kings County, Fulton Center
114 Willoughby Street
Brooklyn, New York 11201

Bronx County, Tremont Center
1916 Monterey Avenue
Bronx, New York 10457

Richmond County, Richmond Center
95 Central Avenue, St. George
Staten Island, New York 10301

For further information and to review and comment, please contact:

Department of Health, Division of Finance and Rate Setting, 99 Washington Ave., One Commerce Plaza, Suite 1432, Albany, NY 12210,