02/21/2024
The Governor's proposed cut to Health Homes would nearly decimate the program. We thank Politico for covering this story.
Feb 21, 2024
BY MAYA KAUFMAN
DRIVING THE DAY
Community-based organizations are slamming the Hochul administration’s plan to further reduce spending on Medicaid Health Homes.
Hochul wants to “restructure” the program to focus on the most severe, acute patients and coordinate services with new care management programs under the state’s recently approved Medicaid 1115 waiver, according to budget documents.
That would yield annual savings of $125 million starting in the 2026 fiscal year, the executive budget notes.
The Health Home program was launched in 2012 to help coordinate care for Medicaid enrollees who have chronic medical and behavioral conditions, following a recommendation by former Gov. Andrew Cuomo’s Medicaid Redesign Team.
There are 30 designated Health Homes serving about 170,000 adults and children statewide.
iHealth, a coalition of 21 organizations that provide Health Home services, is pressing the state Legislature to reverse Hochul’s cut in the final state budget.
The coalition is arguing the cut would be “disastrous” for the New Yorkers who rely on the program, which has been shown in recent studies to increase diabetes patients’ access to care and decrease hospitalizations for mental health and substance use concerns.
“The state is relying on the Health Home program in its newly approved 1115 Medicaid waiver, yet the budget cut would decimate the program. It makes no sense,” Matthew Lesieur, executive director of iHealth, said in a statement.
The potential cut is among over $1.2 billion in Medicaid savings initiatives floated by Gov. Kathy Hochul for the upcoming fiscal year.
Last year’s budget already slashed Health Home spending by $100 million over two years, which has forced some providers to disenroll clients who were not ready to leave the program, Lesieur said. An additional cut would result in the program “essentially ceasing to exist,” his coalition claims.
In a statement to POLITICO, Health Department spokesperson Danielle DeSouza said the program’s care management services play an important role in the health care system.
“The FY25 Executive Budget prioritizes funding for health homes that serve those New Yorkers most in need, while also ensuring responsible overall levels of Medicaid spending,” DeSouza said.