On February 24, New York State’s Medicaid Redesign Team (MRT) passed a package of 79 reforms and cuts, including making wage parity for home care workers a condition for providers to participate in the Medicaid program.
The group of lawmakers, providers, and representatives from trade, union, and consumer groups was appointed by Governor Andrew Cuomo during his first week in office to find ways to cut Medicaid costs for FY 2012.
“Parity is an issue that we have cared deeply about — and fought for — over the last several years,” said Rick Surpin, PHI board chair and president of Independence Care System. “Parity is essentially about creating good jobs and providing good care, which is part of the core of PHI’s work. It is now also a critical element of Medicaid Redesign in New York State.”
The proposed package could save the state $1.14 billion in FY 2012, or a combined total of $2.3 billion in state and federal Medicaid savings.
Positive Impact on Home Care Workers
If passed, effective October 2011, all certified home health agencies, long-term home health care programs, and managed long-term care plans (MLTCs) serving Medicaid clients in a geographic area with a living wage law will be required to comply with that law.
The Medicaid reform package also includes a provision, beginning in 2012, to transition most Medicaid beneficiaries over age 21 who need more than 120 days of care into a MLTC plan, a PACE program, or into Medicaid Advantage Plus managed care programs.
“Since the redesign of the delivery system includes transitioning clients to programs with strong care management, it was imperative that the wage parity proposal be part of the final package,” said PHI New York State Policy Director Carol Rodat.
“This shift would have required many personal care aides — who earn $10 an hour — to take a $2 pay cut in order to stay with their client, who under managed care would receive home health aide services. In short, without parity the changes threaten continuity of care as well as the workforce,” Rodat said.
In exchange for cuts to home health reimbursement and increased use of care management models, the package also includes a provision to expand the scope of practice to allow home health aides to administer pre-poured medications to non-self-directing clients as well as self-directing ones.
Plan Awaits Passage
Governor Cuomo has approved the MRT’s recommendations, which will now be included in the executive budget’s 30-day amendments due to the legislature on March 3. The deadline for passing the state budget is April 1.
“PHI is pleased with the MRT proposal, particularly its positive impact on wages for home care workers,” Rodat said.
To stay abreast of how New York’s direct-care workers will fare under Medicaid Redesign, visit the PHI New York website and subscribe to PHI New York News.
– by Meghan Shineman, PHI New York Policy Analyst
