CMS Gives Nod to New York Section 1115 Medicaid Demo
- January 12, 2024
The Centers for Medicare & Medicaid Services (CMS) has approved New York’s amended Section 1115 demonstration that looks to advance health equity and improve access to primary and behavioral health statewide.
The approval clears the way for the state to make significant investments in a wide-range of Medicaid initiatives, including to address health-related social needs, to enhance access to coordinated and comprehensive treatment for substance use disorders, and to support greater integration between primary care providers, community-based organizations, and behavioral health specialists, CMS said.
The demo also includes funding to support a Medicaid Hospital Global Budget Initiative for certain financially distressed safety net hospitals to transition to value, rather than volume, based payments. In addition, the demo is designed to help establish sustainable base reimbursement rates for safety net hospitals and address significant health care workforce shortages in those settings, including a loan repayment program for clinicians who work in community-based practices in underserved areas, CMS added.
Under the plan, New York will also increase Medicaid payment rates for obstetrics, primary care, and behavioral health.
“This amendment allows New York to make investments in critical Medicaid initiatives that will enhance health equity in this state,” New York Governor Kathy Hochul said in a statement. “CMS’ approval of the amendment will help us to continue to support underserved communities, provide New Yorkers with critical services such as nutrition and housing support, and improve access for individuals and families affected by substance use.”