HCP Meets With DOH to Address Minimum Wage Funding Needs

As the December 31 minimum wage increases approach, HCP has been in frequent communication with staff at the New York State Department of Health (DOH) Office of Health Insurance Programs (OHIP) regarding reimbursements for Medicaid home care services to cover the increased costs of compliance with the minimum wage and Wage Parity laws.

DOH officials have been working to address many of the issues that HCP has brought to the Department’s attention. As of last week, all of the Medicaid managed long term care (MLTC) plans had sent contract amendments to at least some providers. However, HCP informed DOH that many providers have still not received contract amendments from all of the plans with which they contract.

At the Department’s request, HCP sent a survey this week to HCP members that serve New York City to collect information about outstanding contract issues, including contract amendments that had not yet been received, inadequate funding for the minimum wage increase, and other concerns. As of December 28, more than half of the survey respondents had still not received contracts from all the MLTC plans with which they contract. Providers are advised to reach out to the plans with whom they contract as soon as possible concerning any outstanding contract amendments.

The survey results reinforced HCP’s previous communications with the Department concerning some of the contract amendments, including plans that offered inadequate reimbursement, failed to include additional minimum wage funding for key service lines, or failed to amend contracts to reflect the cost of compliance with the Federal Fair Labor Standards Act (FLSA).

HCP will follow up with DOH regarding outstanding issues related to the initial phase of the minimum wage funding, which covers the time period of December 31, 2016 through March 31, 2017. DOH will convene another Minimum Wage Stakeholder Work Group meeting in early January to discuss reporting and reconciliation procedures to ensure that the minimum wage funding is appropriately allocated.

Read the full article in the December 29, 2016 issue of the HCP Insider.



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