November 20, 2023
On November 7, OASAS shared with a formal transmittal letter sent to Medicaid Managed Care Plans, etc. informing them of their obligation to pay the new rates for 4% COLA and Minimum Wage increases no later than 90 days from the date of the transmittal but regardless, they need to pay the new rates back to the effective dates of the rate changes. We sent the transmittal to all NYS Council members on 11/7.
Below please find the OMH transmittal. The date of the transmittal is today, 11/20. Plans have 90 days from today to begin paying the new rates. But regardless, they must pay the new rate retroactive to the ‘effective dates’ (listed in the box below).
As always, if you have questions please feel free to reach out to me at 518 461-8200 at your convenience.
———- Forwarded message ———
From: Buckley, Shannon (OMH) <Shannon.Buckley@omh.ny.gov>
Date: Mon, Nov 20, 2023 at 2:00 PM
Subject: FW: Rate Approval: January 2023 Minimum Wage Increase and April 2023 Cost of Living Adjustment (COLA) – Notification of Division of Budget (DOB) Approval
To: <KIDSMMC-L@listserv.omh.ny.gov>
This message has been forwarded via listserv. Please do not reply to this message.
From: omh.sm.co.bho <bho@omh.ny.gov>
Sent: Monday, November 20, 2023 1:48 PM
To: omh.sm.co.bho <bho@omh.ny.gov>
Subject: Rate Approval: January 2023 Minimum Wage Increase and April 2023 Cost of Living Adjustment (COLA) – Notification of Division of Budget (DOB) Approval
MEMORANDUM
| To: | Mainstream Medicaid Managed Care Plans, Health and Recovery Plans (HARPs), HIV Special Needs Plans (HIV SNPs), and Medicaid Advantage Plus (MAP) Plans |
| From: | New York State (NYS) Office of Mental Health (OMH) |
| Date: | November 20, 2023 |
| Subject: | Rate Approval: January 2023 Minimum Wage Increase and April 2023 Cost of Living Adjustment (COLA) – Notification of Division of Budget (DOB) Approval |
Dear Health Plan Administrators,
On August 3, 2023 OMH notified Mainstream Medicaid Managed Care Plans, HARPs, HIV SNPs, and MAP Plans (collectively referred to as “MMCPs” herein) of increases to mental health outpatient service rates to reflect a legislatively mandated Minimum Wage Increase and a four percent COLA effective January 1, 2023 and April 1, 2023 respectively. This memorandum is being sent to alert MMCPs that DOB approved the following rate(s) change(s):
Table 1:
| Rate Increase | Effective Date | DOB Approval Date |
| Minimum Wage Increase | January 1, 2023 | November 17, 2023 |
| COLA | April 1, 2023 | August 24, 2023 |
Per Chapter 57 of the Laws of 2022, MMCPs are required to pay claims based on the effective date of the rate changes. As a result, MMCPs must complete necessary systems edits to ensure payable claims for applicable OMH programs and dates of service are reimbursed at the rate increases identified in Table 1 above. Additionally, MMCPs are required to conduct retrospective reconciliation to adjust payments for clean claims as necessary. MMCPs must complete these activities as soon as possible but no later than 90 days from the date of DOB approval.
Please refer to the OMH Medicaid Reimbursement page for the following services that get the Minimum Wage Increase and/or COLA increase and January 2023 Minimum Wage Increase and April 2023 Cost of Living Adjustment COLA (ny.gov) for the original notification distributed to MMCPs.
If you have any questions regarding these rate changes, please contact OMH Managed Care at 518-402-2822 or BHO@omh.ny.gov.
Thank you.
Office of Mental Health
Division of Managed Care
44 Holland Avenue, Albany, New York 12229