January 8, 2025
As you know, New York’s application to CMS to implement an MCO Tax – an initiative that was vaguely discussed in the April 2024 enacted state budget, was approved last month. Since then there has been little to no information coming from the Governor’s Office regarding implementation of the new tax although political watchdogs and pundits have written about it extensively since the idea first hit the streets.
Here’s a link to an interview with Bill Hammond from the Empire Center for Public Policy who wrote about the new tax late last year: https://www.empirecenter.org/publications/episode-45-medicaid-money-grab/
Also, last night a little birdie shared a MCO Tax Implementation Memo Hinman Straub, a law firm here in Albany that represents some of the impacted NYS health plans, sent to its clients regarding the new tax (ATTACHED).
Securing a set aside of resources from the MCO Tax for behavioral health providers is a top priority for the NYS Council this year and going into the 2025 legislative session.
———- Forwarded message ———
From: Lauri Cole <lauri@nyscouncil.org>
Date: Mon, Dec 23, 2024 at 5:36 PM
Subject: NY’s MCO Tax Apparently Approved
To:
Earlier today the Greater New York Hospital Association President and CEO Ken Raske posted on ‘X’ that New York’s request to create a new tax on MCOs had been approved by CMS. Later in the day the post was removed from X (Twitter) but Kate Lisa, a journalist with State of Politics just posted a story online that says ‘budget officials have confirmed’ (the approval). No press release yet from the Governor’s Office which may be why GNYHA took down the news.
Ultimately the ’24-’25 enacted state budget included rather vague language requiring New York State to apply to CMS for approval of the Tax that would generate some $4B in Medicaid funds the state needs to keep commitments made to hospitals and nursing homes for funds they fought for during budget negotiations. The funds were to be placed in a ‘healthcare fund’.
A top priority for the NYS Council continues to be our advocacy to compel state leaders to set aside proceeds from the Tax for mental health and substance use disorder providers and our systems of care in the revenue that results from implementation of the Tax.