Feds Urge More Talks On NY Medicaid Application

Jan 27, 2014

New York has revised its request for a $10 billion dollar Medicaid adjustment, which would allow using that money to pay for related health care programs, after federal officials concluded capital investment and some other programs are ineligible.

The application was first filed 18 months ago, prompting Gov. Andrew Cuomo and the state health commissioner to publicly blame the delay for threatening financially distressed New York hospitals.

U.S. Health and Human Services Secretary Kathleen Sebelius says they've begun drafting "a potential agreement" based on New York's revisions, but there are "outstanding issues."

She says the so-called Medicaid waiver shouldn't "determine the future path for particular New York hospitals."

New York wants to spend most of the money over five years for alternative care and transitional subsidies for hospitals losing patients.

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